Page 383 - Global Project Management Handbook

18-24 MANAGEMENT OF THE PROJECT-ORIENTED COMPANY

TABLE 18.9 Characteristics of a Non-Project-Oriented Organization
• The term project is used for many different things, including routine tasks. A project inflation
arises. Projects are not awarded adequate management attention.
• The project boundaries are defined according to the divisions and departments of the company.
This results in too many small projects, which leads to suboptimizations. The integrative work
must be performed by the permanent organization, which is, however, overtaxed by it.
• Nobody knows which and how many projects are being performed at any time. No information
regarding the project portfolio exists. Projects arise informally, parallel projects with the same
objectives are performed, and resources required for projects cannot be controlled.
• No project management methods are used in projects. This means that the transparency and the
chance for efficient communication in projects are lost. This does not increase creativity; it
reduces it.
• Individuals leave their mark on the working forms in projects. This means “reinventing the wheel”
for each project. The professionalism in project management depends exclusively on the
qualifications of individual persons.
• The objectives and the tasks are always agreed from one project meeting to the next. The lack of a
“big project picture” means that the members of the project organization lack orientation.

A new management paradigm is required for the successful, efficient management of
projects and programs. This new management paradigm can be characterized on the basis of

● Customer orientation
● Perception of the organization as a competitive factor
● Process orientation and team orientation
● Empowerment of employees
● Networking with customers, partners, and suppliers
● (Dis)continuous change
This new management paradigm is influenced by the model of the learning organiza-
tion, by lean management, and by total quality management (Table 18.10).

TABLE 18.10 Influences of the “New Management Paradigm”
Influences of the learning organization (Senge, 1998)
• Distinction between individual, collective, and organizational learning
• Perception of the organization as a competitive factor
• Necessity of learning and delearning
• Continuous and discontinuous learning
Influences of lean management (Womack, 1992)
• Process orientation
• Concentration on core competencies
• Flat, lean organizational structures
• Team work
• Networks and cooperations
• Continuous improvement
Influences of total quality management (Juran, 1991)
• Customerorientation
• Product and process quality
• Quality control, quality assurance and quality management