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2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE

At the opposite end of the spectrum to the functional organization is the projectized organization, shown in
Figure 2-5. In a projectized organization, team members are often colocated. Most of the organization’s resources
are involved in project work, and project managers have a great deal of independence and authority. Virtual
collaboration techniques are often used to accomplish the benefits of colocated teams. Projectized organizations 2
often have organizational units called departments, but they can either report directly to the project manager or
provide support services to the various projects.

Project Chief
Coordination Executive

Project Project Project
Manager Manager Manager

Staff Staff Staff

Staff Staff Staff

Staff Staff Staff

(Gray boxes represent staff engaged in project activities)

Figure 2-5. Projectized organization

Many organizations involve all these structures at various levels, often referred to as a composite organization,
as shown in Figure 2-6. For example, even a fundamentally functional organization may create a special project
team to handle a critical project. Such a team may have many of the characteristics of a project team in a projectized
organization. The team may include full-time staff from different functional departments, may develop its own set
of operating procedures, and may even operate outside of the standard, formalized reporting structure during the
project. Also, an organization may manage most of its projects in a strong matrix, but allow small projects to be
managed by functional departments.

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 25

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