Samenvatting - Financial and Project Management (440026-B-6)

Financial & project management
Project management
Guest lecture: Temporary Organiza ons and Financial Management

Projects are all over the place
 Projects are part of 'temporary systems'
 projectification




Intuitive approach
 Think-Pair-Share:
o What is a project?
 Time-bound, dedicated budget
o What is/are difference(s) between a project and an organization?
 Organization intends to be timeless
 Organizations have goals; projects have a task to complete (task-oriented)
o What is project management?

Possible (intuitive) answers
 Project = an organizational form; distinctions among org. Forms reflect social processes and
boundary creation (where does the organization stop?)
 An organizational form is an entity comprising multiple people and resources with a partical
purpose/goal/aim.
 In any organizational form, mainly two aspects of work exist; ongoing operations and
projects
 Projects are defined as unique, temporary endeavors (inspanningen) with a specific
beginning and end (time-bound)
 Operations constitute an organization's on-going, repetitive activities, such as accounting or
production
 Permanenet vs. Temporary
 Routine vs. unique

Operations versus Projects: some examples
Operations:
 Taking class notes
 Daily entering sales receipts into the accounting ledger
 Practicing scales on the piano
 Manufacturing Apple iPods

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,Projects:
 Writing term paper
 Setting up a sales kiosk for a professional accounting meeting
 Writing a new piano piece
 Designing an iPod that is 2x4 inches and can carry 10,000 song

Project Management
 Project Management is the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals.
 The primary challenge of project management is to achieve all the project goals and
objectives while honoring the preconceived constraints. The primary constraints are scope,
time, quality and budget (+ stakeholder satisfaction)

Project Management & Social Sciences?




''How is your project going?''

Temporary Systems: PBOs and Projects
 A temporary system in business, science, and society is typically defined as a collaborative
endeavor that is carefully planned to achieve a particular aim. They can be further defined as
temporary rather than permanent social systems that are constituted by teams
(people/organizations) within or across organizations to accomplish particular tasks under
time constraints.


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,  Temporary:
o Pre-defined end point in time
o Once completed.
 Intra-organizational: Project & Project-based Organization
o Team members come from the same organization
 Inter-organizational: IO Temporary Organizations
o Team members come from different/multiple organizations

Types of Temporary Systems




What is a PBO (Intra-organizational)?
PBO = Project-based Organization
 What is it?
o An independent organizational form (an organization) in which the project (and not
a functional department) is the primary organizational unit for economic or societal
activities (e.g., production, innovation, change, and competition).
 Where can we find them?:
o In private manufacturing enterprises, also in other organizations public and private
(legal profession, consultancy, marketing, film industry, advertising, aid).

PBO vs. other organizational structures




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, Functional organization




Project-based organization




PBO: typical characteristics
 Appropriate for complex, non-routine tasks
 Competences and capabilities build from project to project
 Help to adapt to uncertain, risky, and changing environments
 Populated by integrators (commercial & technical) and brokers (to external clients)
 Project managers have high status and control over functions, personnel, and resources
 PBO is flexible and reconfigurable (cf. large hierarchies)
 PBO = series of projects
 Often: close user-producer interaction

PBO: Advantages
 Well-suited for innovation & learning, coping with emerging properties & demands from
clients;
 Flexibility high and response time to changing circumstances relatively low;
 High employee loyalty to protect goals due to short lines with project manager.
o Feeling connected to task/product, you get more commited and get to see results

PBOs: Disadvantages
 Ill-suited for coordination of resources and capabilities across projects, routine production
activities, achieving economies of scale;

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