WHY MAKE A DISTINCTION BETWEEN PROJECTS AND OPERATIONS?

WHY MAKE A DISTINCTION BETWEEN PROJECTS AND OPERATIONS?

It is important to make a distinction between projects and operations for several reasons, the first of which is that there are major differences in:

■ The decision-making process

– The delegation of authority to make changes
– The rules and methods for managing risk
■ The role expectations and skill sets

– The value sets
– The expectations of executive management for results
– Reporting relationships and reward systems

Project scope or complexity can vary, so size can cause a project to fall within the generally accepted definition of project. A subgroup enter-prise unit may initiate its own products or services using projects, complete them autonomously with a single person in charge, and then turn them over
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to another group to operate. Whether this is a project or not depends on its temporary nature and reassignment of the staff member after completing the unique product or service (contrasted with just moving on to another job assignment).

The Decision-Making Process

The decision-making process relies on delegation of authority to the project manager and team to make changes as needed to respond to project demands. A hierarchy of management is simply not flexible enough to deliver project results on time and on budget. The detailed planning carried out before the project is begun provides structure and logic to what is to come, and trust is fundamental to the process. The project manager uses the skills and judgment of the team to carry out the work of the project, but the decision authority must rest with the project manager. Whether the project is large or small, sim-ple or complex, managed by a temporary assignment of staff from other groups (matrix structure) or with full-time team assignments, the delegation of authority is fundamental to the project manager’s ability to perform the job.

Projects with a strong link to the organization’s strategic objectives are most likely to be defined by executive management and managed at a broader level, with higher degrees of involvement and participation from multiple affected departments. Depending on organizational level, the proj-ect manager’s involvement in establishing strategic linkages for the project with the organization’s mission will be more or less evident. Some larger organizations use a process of objective alignment to ensure that projects complement other efforts and advance top management’s objectives.15 Projects at higher levels in the organization probably will state the link with the organization’s mission in their business case and charter documents. Projects at a lower level will need to clarify that link with management to ensure that they are proceeding appropriately in a way that supports the organization’s mission.

It is unlikely that a project linked directly with the organization’s cur-rent strategic initiatives would be implemented by a single person; a team would be assigned to implement it. The project manager has delegated authority to make decisions, refine or change the project plan, and reallo-cate resources. The team conducts the work of the project. The team reports to the project manager on the project job assignment. In non-“projectized” organizations, team members might have a line manager relationship for reporting as well. Line managers have little authority to change the project in any substantial way; their suggestions are managed by the project man-ager—along with other stakeholders. (Line managers, however, do control promotions and salary of “temporary” project team members.)

A subgroup project generally has more input from local management, less coordination with other departments, and generates less risk for the

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organization should it fail to deliver. It might be coordinated by an individ-ual working with a limited number of other people for a few weeks or months until completion of the deliverable. In many large organizations, only larger projects of a specific minimum duration or budget are formally designated as projects and required to use the organization’s standard proj-ect management process.

Role Expectations and Skill Sets

Whereas a few people can accomplish small projects, larger projects— especially those critical to an organization—tend to be cross-functional. Participation by individuals from several disciplines provides the multiple viewpoints needed to ensure value across groups. An important high-level project will be more likely to involve people representing various groups across multiple organizational functions; it may even be interdisciplinary in nature. The varied input of a cross-functional team tends to mitigate the risk of any one group not supporting the result. Interdisciplinary participation also helps to ensure quality because each team member will view other team members’ work from a different perspective, spotting inconsistencies and omissions early in the process. Regardless of whether the effort is large or small, the authority to manage risk is part of the project manager’s role.

Basic project management knowledge and understanding are required for the individual project manager to complete smaller projects on time and on budget. However, professional-level skill, knowledge, and experience are necessary to execute larger, more complex or strategic projects. The project manager leads, orchestrates, and integrates the work and functions of the project team in implementing the plan. The challenges of managing teams with different values and backgrounds require excellent skills in establishing effective human relations as well as excellent communication skills and team management skills. Honesty and integrity are also critical in managing teams that cross cultural lines.

The project manager of a small project may carry the dual role of managing the project team and performing technical work on the project. The project manager of a large, strategic, complex project will be perform-ing the technical work of project management, but the team will be doing the technical work necessary to deliver the product or service. Often a larg-er project will have a team or technical leader as well and possibly an assis-tant project manager or deputy. Small projects are a natural place for beginning project managers to gain experience. The senior project manag-er will be unlikely to take on small projects because the challenges and the pay are not in line with the senior project manager’s level of experience. An exception, of course, would be a small, critical, strategic project for top management, although if it is very small, it too could be considered simply “duties as assigned.”
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People who work in project management will have varying levels of skill and knowledge, but they all will be focused on the delivery of project results. Their background and experience will reflect the functional spe-cialties within their industry group, as well as the size of projects they work on. The diversity of projects is so broad that some people working in the field may not even recognize a kinship or commonality with others in the same field. They may use different vocabularies, exhibit diverse behaviors, and perform very different types of work to different standards of quality and with differing customs and behaviors.

The project management maturity of the organization hosting the project also will cause the organization to place value on different types of skills and experience. A more mature project environment will choose pro-fessional discipline over the ability to manage crises. A less mature organ-ization or a small project may value someone who can do it all, including both technical and management roles, in developing the product and run-ning the project.

It stands to reason, then, that hiring a project manager from a differ-ent setting or different type or size of project may create dissonance when roles, authority, and alignment with organizational strategy are involved.