Project Driven Vs Non Project Driven

The decision on how to structure your organization is essential to your business success. The
conventional structure, which is based around discrete departments that each have their own
budgets and objectives, makes it easy to establish who is responsible for what with clear
accountability and chains of command. Responsiveness may be slow, however. This is a
failing that project-based organizations seek to address.

A Primer on Organizational Design

Organizational design describes how an organization chooses to structure itself to create peak
efficiency, fast decision-making and a happy workforce. It involves many different aspects of
the work environment, including team and department structures, management and
supervision, lines of reporting, accountability, communication and more.

Over the years, several types of organizational structures have evolved. As the marketing
platform Hubspot points out, these can be broken into two key categories: hierarchical (also
called the mechanistic or bureaucratic structure) and organic. Non-project based organizations
fall into the first category, while a project-based organizational structure falls into the second.

Hierarchical Means Formal

The hierarchical organization is the standard way in business. The two popular methods of
hierarchically structuring a business are the divisional structure, where the company is
organized around the geographical location of its offices or markets, and the functional
structure, where the company is organized around departments or functions. If you have ever
worked in a company that had separate sales, marketing, HR and finance teams, you've worked
in a functional organizational structure.

Graphically, you can think of a hierarchical structure as branches, where each specialist area,
such as marketing and finance, stands next to one another. It's a formal structure where
 employees who are connected to each other by skills work in a distinct unit, and they report to
the head of their organizational unit. Each unit has its own budget, goals and objectives, and
there is little overlap between one business function and another. The departments essentially
operate in silos.

Pros of the Non-Project Structure

 There's a clear chain of command, where every employee has a line manager and knows
who he reports to.
 Organizing people into departments allows for quick decision-making within the team or
specialty area.
 There are defined channels for communication within each department. 
 Employees can specialize in a particular skill set, market or area of the business. 

Cons of the Non-Project Structure

 If the goals of one department contradict the goals of another department, this can lead to
a conflict of interest.
 Power play and conflict between line managers of different departments often exist,
particularly when responsibilities overlap.
 The interdepartmental flow of information may suffer as there is no horizontal
communication between employees in the various teams or departments.
 There is no central contact person to help customers find out about the status of a project
that crosses functional lines.

Organic Means Flexible

As the management learning platform Mind Tools suggests, organic or project-based structures

are specifically designed to dampen the shortcomings of a classic hierarchical organization.
Here, the structure is based around the delivery of a specific project. The employees come
from different specialist areas or departments to work on the project. At the end of the project,
they transition to another project, whether it's a client project or one for internal development.
 Fundamentally, there's no real hierarchy in a project-based organization. Teams are put
together based on the needs of the project, and the project generally requires collaboration
between people from different fields. Hence, the need for an adaptable, organic structure where
teams can flex and grow, form and dissolve, depending on the unique needs of each project.

In the project-based organizational chart, projects are headed up by a project manager who
takes care of the project planning, coordination and monitoring. The project manager has a
high level of responsibility and acts with a great deal of creative freedom for that particular
project. The project manager usually has the authority to set priorities and direct the work of
the people assigned to the project team.

Project-Based Organization Advantages

 Project-based structures mean increased responsiveness, as the organization can adapt

quickly to market changes and the needs of the project. 
 Employees are drawn from across the business entity, which means the project gets the
exact resources and skill sets it needs to deliver value.
 For clients, there is one point of contact for the project (the project manager).
 Cross-departmental communication and idea exchanges are much more efficient, as all
communication lines converge on the project manager. 
 Project-based structures focus on the final result of the project instead of bureaucracy,
processes and internal power struggles.Project-Based Organization Disadvantages

Project-Based Organization Disadvantages

 There’s a need for effective coordination since multiple projects may demand attention
simultaneously.
 The risk of duplication of work is great, especially when separate projects overlap in
terms of content.
 In fully project-based organizations, employees may feel homeless as they move from
project to project without the security of returning to their primary department.
 Other high-priority tasks may be neglected as everyone is fully focused on the needs of
the project. 
 Project teams work in isolation from one another, which effectively creates another type
of silo. 

Who Should Use a Project-Based Structure?

Some businesses naturally gravitate toward a project-based structure. Management

consultancies, for example, often place employees on projects, rather than in departments.
These employees move from project to project and from client to client, wherever their skills
are needed.

Project teams are also popular in the construction, entertainment and aerospace industries,
according to the corporate training company Invensis.

Beyond that, any business that needs the ability to innovate or change direction on the fly is
likely well-suited to a project-based structure. Since there's a robust, result-oriented focus to
this approach, any business whose success depends on its output (as opposed to its processes)
should consider this approach. Think of a movie company with various skills and departments
– all equal – working together to produce a single blockbuster movie.

Solutions Found in the Middle

Whereas project and non-project structures lie at opposite ends of the spectrum, solutions can
often be found in the middle. The matrix structure offers a hybrid approach. Here, employees
are allocated to a functional department and report to a line manager, but they are also
allocated to a project reporting to a project manager, so they have dual reporting relationships.

The project itself is made up of people from many different departments. At the end of a
project, the project members return to their functional department, so they always have a home
base.

What’s interesting about the matrix structure is how flexible it is. As project management
education resource Project Engineer  observes, organizations can create a weak matrix, where
functional managers lead the project instead of the project team lead. It can create a strong
matrix, where the project arm is entirely separate from the functional department. The only real
downside is complexity.
 Skills required by a Project Manager

Project managers are responsible for initiating, designing, planning, executing, monitoring and completing
projects. They manage teams, facilitate commitment and motivate team members, manage the expectations
of key stakeholders and communicate the status of project milestones. They build a comprehensive work
plan and manage the budget for projects.

Here are 20 top skills every project manager should have:

1. Communication
2. Leadership
3. Organization
4. Negotiation
5. Team management
6. Time management
7. Risk management
8. Problem-solving
9. Budget management
10. Motivation
11. Technical writing
12. Adaptability
13. Technologically savvy
14. Reporting skills
15. Active listening
16. Research skills
17. Interpersonal skills
18. Project management methodologies
19. Policy knowledge
20. Conflict management

Related: Types of Project Management Certifications

1. Communication

Project managers must have strong communication skills to be able to convey messages to
clients and team members. They need this skill to effectively share their vision, goals, ideas and
issues. They also need communication skills to produce presentations and reports.
2. Leadership

Strong leadership skills are critical for project managers. They allow leaders to oversee and
coordinate tasks as well as motivate and encourage the team and define the road map to
successfully complete the project.

3. Organization

To ensure processes are running smoothly and in line with common goals, project managers
must have strong organizational skills. While this includes the ability to multitask, it also
includes prioritizing tasks, compartmentalizing projects and documenting everything for easy
access and future reference.

4. Negotiation

A project manager must be effective at negotiating terms with suppliers, clients and other
stakeholders. You must also employ negotiation skills when working with your team as well to
bring everyone in line with strategic goals or manage interpersonal conflicts within the team.

5. Team management

A project manager must be able to bring a team together and move them in one direction,
aligning their personal goals with those of the organization. Team management skills include the
ability to effectively delegate responsibilities, handle conflicts, evaluate performances and coach
team members to help them improve their skills.

6. Time management

Every project is subject to deadlines, which means there are numerous tasks that need to be
accomplished in a short amount of time. Project managers must be able to create a project
timeline and maintain those deadlines throughout the project lifecycle.

7. Risk management

While they are not generally apparent, risks are inevitable during a project, which is why a
project manager must have the experience and ability to pinpoint what could go wrong and
implement a risk mitigation strategy. They must be able to ask their team hard questions and
continually confirm timelines, decisions and dependencies. They should also know how to use
professional risk management tools that allow them to analyze potential risks to develop risk
mitigation strategies.

8. Problem-solving

A project manager must be able to gather information, weigh the associated pros and cons and
then formulate the best solution. Strong problem-solving skills will allow project managers to
have a structured approach to solving problems to achieve a positive result.
9. Budget management

One of the most important responsibilities for the project manager is to create a viable budget
and control it throughout the lifecycle. Project managers usually need experience to be able to
effectively identify where costs are being overrun and what changes they need to make to control
the costs. They need the ability to track costs, put together spreadsheets and decide what the
budget should or should not be spent on.

10. Motivation

To keep their team happy and motivated when deadlines are rapidly approaching, a project
manager must have motivational skills. Tactics include using positive reinforcement, praise and
team-building activities. They must be able to cultivate a positive, fun and collaborative working
environment.

11. Technical writing

Technical writing is a form of writing that project managers use in drafting potential
deliverables, circulating memos, targeting product releases or sending news updates.

12. Adaptability

Project managers must be able to adapt to upcoming product trends, new technology, user
demographics and more. This is a particularly important skill at the material level, as they must
lead entire teams in the right direction.

13. Technologically savvy

Being tech-savvy and having hands-on experience with the latest technology can allow you to
increase the speed of your team's productivity. By knowing how to adapt to current technology
trends, you may be able to increase output and your team's ability to get things done effectively.

14. Reporting skills

A project manager must be able to gather information throughout the lifespan of a project and
report them for future evaluation. This is particularly important if a project begins to experience
problems. Project managers need reporting skills to coordinate with managers, clients and team
members to set expectations, objectives and convey information regarding deliverables.

15. Active listening

Active listening is an important part of effective communication that allows project managers to
connect with team members, develop better relationships with clients and manage the
expectations of key stakeholders. Active listening allows them to fully understand the
perspective of the person they are speaking to and empathize with them.
16. Research skills

Research skills allow the project manager to fill any gaps in knowledge that may allow them to
complete the project more efficiently or more successfully.

17. Interpersonal skills

Interpersonal skills include self-confidence, relationship management and collaboration skills.

The ability to collaborate well as part of a team allows the team to work together more
productively and complete the project more efficiently. Relationship management skills are also
essential, as they enable the project manager to develop and nurture relationships with clients,
vendors and team members. The right level of self-confidence can also improve the confidence
of the team as a whole, increasing morale and allowing for improved performance.

18. Project management methodologies

A good project manager must have the ability to apply frameworks and methodologies, such as
agile and SCRUM, throughout the lifecycle of a project.

19. Policy knowledge

To keep a project running smoothly, project managers must have an adequate grasp of policy
knowledge, including health, safety, environmental and business best practices.

20. Conflict management

Strong conflict management skills are essential for project managers, who must keep their teams
operating efficiently and working well together. Conflict management and resolution skills are
also important for fixing stalled workflows, project discrepancies or addressing other internal or
external setbacks.