Effective Project Management requires a thorough understanding of the roles and responsibilities of all stakeholders, including the Project Manager. This article will describe a typical Project structure and highlight the roles of the various agents.
There are many parallels between the organizational structure of the workplace and that of Project. It is important that the Project’s responsibility and authority are clearly defined. This is similar to the workplace. This means that all parties must have a clear understanding of the reporting arrangements. A group of stakeholders will also be identified, and the Project will strive to meet their needs. Projects require certain levels of management to accomplish a task. There will be a delegation of agents working together in order to achieve the Project objectives.
This organisational structure usually has four hierarchical levels.
Corporate or senior management
Sponsor or Project Executive
Project Manager
Delivery Team
Corporate or senior management
This is the group that funds the Project. This group could also be called the host organization, as they are representatives of the organization that has decided to proceed with the Project. This group is concerned about the big picture, including the returns on investments, project completion dates, and the success of the Project.
Sponsor or Project Executive
The Corporate or Senior Management appoints the Sponsor or Project Executive to represent the host organization at the Project. Their role will typically begin before the Project begins and continue until it ends. The Project Executive or Sponsor will typically be given the funds. They also need to be aware and involved in the overall direction and strategy for the Project delivery. They are generally responsible for the Project’s business case and will guide the Project Manager in setting priorities and objectives. They are crucial in making important decisions and are often more influential in the early stages of a Project.
A Steering Group or Committee often supports the Project Board. The Project Executive or Sponsor is still responsible for the Project. However, the Steering Group can help with the project by delegating finance and resources. The Steering Group represents the key interests of the Project, i.e. the end-users and customers, as well as the suppliers.
Project Manager
The Sponsor or Project Executive will appoint them. Essential for the day-today management of the Project. Reporting on progress to the Sponsor and Project Executive. They will also set priorities based upon their decisions. While the Project Manager will report any problems or concerns to the Sponsor/Project Executive, they will also be responsible for most planning activities.
The Project Manager must have a range of skills to plan and direct a project, as well as problem solving skills and communication skills.
Delivery Team and Team Manager
The project manager can appoint the Team Manager to oversee the day-to-day delivery of work packages. The Team Manager will escalate issues and problems to the Project Manager but will delegate short-term tasks to other members of the delivery team. The Team Manager will be the direct report of the individuals in the delivery group.
The hierarchical structure of the Project’s influence usually fits into this. There are many actors and sub-hierarchies within the Project. Project direction is often less top-down.