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Chapter 1 What the Functional Manager Sh... > The Three Types of Organizational St... - Pg. 15

What the Functional Manager Should Know About the Project Organization 15 ment with the proper plan and estimate to meet the project require- ments. Meanwhile, my relationship with Tim was anything but warm: we never really connected and communication was poor. He never seemed to have time for this project; other tasks were always more pressing. A close provider/customer relationship did not exist in this situa- tion, with plenty of mistakes and missteps on Tim's part and on mine. However, Tim was the customer. He understood project manage- ment but felt project plans were a waste of time. He just wanted it done. In the end, we negotiated terms so that my company would be paid within 60 days if the software was not deployed in production and would receive most of the payment as long as there were no severe bugs. Neither we nor the customer won or lost; we both sur- vived. A provider/customer partnership must have common goals and a strong level of interdependence to be successful. The Three Types of Organizational Structure Although having trust-based relationships between provider and cus- tomer team members is essential, having an organizational structure that supports the execution of projects is also critical. Functional managers must understand the type of organizational structure in which they are operating, its impact on projects, and the implications for the project manager, the project team, and themselves. Three basic structure scenarios exist and I have experienced the challenges associated with each of them. Functional Organization Structure The functional organization structure aligns around the major func- tions of the business. I encountered this first scenario when I led a large strategic project for a publishing company early in my project management career. The company had few project management processes and even fewer project managers. I was actually a financial analyst working for the CFO of the organization. The organization American Managememt Association · www.amanet.org