Sample The more clearly an organisation’s shared perceptions and values are

stated, the more strongly people can identify with their organisation and feel a vital part of it. Identity generates commitment to the organisation and reasons for members to devote energy and loyalty to the organisation.

A second important function is that culture helps legitimise the management system of the organisation. Culture helps clarify authority relationships. It provides reasons why people are in a position of authority and why their authority should be respected.

Most importantly, organisational culture clarifies and reinforces standards of behaviour. Culture helps define what is permissible and inappropriate behaviour. These standards span a wide range of behaviour from dress code and working hours to challenging the judgment of superiors and collaborating with other departments. Ultimately, culture helps create social order within an organisation. Imagine what it would be like if members didn’t share similar beliefs,

values and assumptions—chaos! The customs, norms and ideals conveyed by the culture of an organisation provide the stability and predictability in behaviour that is essential for an effective organisation. See Snapshot from practice: Real-life project teams for an example of this.

Although our discussion of organisational culture may appear to suggest one culture dominates the entire organisation, in reality this is rarely the case. ‘Strong’ or ‘thick’ are adjectives used to denote a culture in which the organisation’s core values and customs are widely shared within the entire organisation. Conversely, a ‘thin’ or ‘weak’ culture is one that is not widely shared or practised within a firm.

Figure 4.5 Key dimensions defining an organisation’s culture

Job Individual Task Independent Loose Low Performance Low Means Internal 1. Member identity 2. Team emphasis 3. Management focus 4. Unit integration 5. Control 6. Risk tolerance 7. Reward criteria 8. Conflict tolerance 9. Means-ends orientation 10. Open-system focus Organisation Group People Interdependent Tight High Other High Ends External

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chAPTeR 4 Project Organisational Structures and Cultures

Sample

. The degree to which the organisation monitors and responds to changes in the . The degree to which the organisation monitors and responds to changes in the As shown in Figure 4.5, each of these dimensions exists on a continuum. Assessing an organisation according As shown in Figure 4.5, each of these dimensions exists on a continuum. Assessing an organisation according to these ten dimensions provides a composite picture of the organisation’s culture. This picture becomes the basis to these ten dimensions provides a composite picture of the organisation’s culture. This picture becomes the basis for feelings of shared understanding that the members have about the organisation, how things are done and the for feelings of shared understanding that the members have about the organisation, how things are done and the

Culture performs several important functions in organisations. Culture performs several important functions in organisations.

provides a sense of identity

provides a sense of identity for its members. for its members. provides a sense of identity

provides a sense of identity provides a sense of identity

Sample

The more clearly an organisation’s shared perceptions and values are The more clearly an organisation’s shared perceptions and values are stated, the more strongly people can identify with their organisation stated, the more strongly people can identify with their organisation and feel a vital part of it. Identity generates commitment to the and feel a vital part of it. Identity generates commitment to the organisation and reasons for members to devote energy and loyalty organisation and reasons for members to devote energy and loyalty to the organisation.

to the organisation.

A second important function is that culture A second important function is that culture the management system

the management system of the organisation. Culture helps clarify of the organisation. Culture helps clarify

Sample

authority relationships. It provides reasons why people are in a authority relationships. It provides reasons why people are in a position of authority and why their authority should be respected. position of authority and why their authority should be respected.

only

The degree to which rules, policies and direct supervision are used to oversee and control The degree to which rules, policies and direct supervision are used to oversee and control The degree to which employees are encouraged to be aggressive, innovative and risk seeking. The degree to which employees are encouraged to be aggressive, innovative and risk seeking. The degree to which rewards such as promotion and salary increases are allocated The degree to which rewards such as promotion and salary increases are allocated according to employee performance rather than seniority, favouritism or other non-performance factors. according to employee performance rather than seniority, favouritism or other non-performance factors. . The degree to which employees are encouraged to air conflicts and criticisms openly. . The degree to which employees are encouraged to air conflicts and criticisms openly. The degree to which management focuses on outcomes rather than on The degree to which management focuses on outcomes rather than on . The degree to which the organisation monitors and responds to changes in the . The degree to which the organisation monitors and responds to changes in the As shown in Figure 4.5, each of these dimensions exists on a continuum. Assessing an organisation according As shown in Figure 4.5, each of these dimensions exists on a continuum. Assessing an organisation according

Even within a strong organisational culture, there are likely to be subcultures often aligned within specific departments or specialty areas. As noted earlier in our discussion of project management structures, it is not uncommon for norms, values and customs to develop within a specific field or profession such as marketing, finance or operations. People working in the marketing department may have a different set of norms and values than those working in finance.

Countercultures sometimes emerge within organisations that embody a different set of values, beliefs and customs—often in direct contradiction with the culture espoused by top management. How pervasive these subcultures and countercultures are affect the strength of the culture of the organisation and the extent to which culture influences members’ actions and responses.

IdenTIFyIng culTuRAl chARAcTeRISTIcS

Deciphering an organisation’s culture is a highly inter pretative, subjective process that requires assessment of both current and past history. The student of culture cannot simply rely on what people report about their culture. The physical environment in which people work, as well as how people act and respond to different events that occur, must be examined. Figure 4.7 contains a checklist for the basic analysis of the culture of an organisation. Although by no means exhaustive, the checklist often yields clues about the norms, customs and values of an organisation:

SNAPSHOT FROM PRACTICEReal-life project teams

While working for Oracle Corporation®_{, both in the UK and the USA, the} author had the opportunity to work in various areas of the business, enabling him to experience both leadership and membership of a number of different project teams. Some of the larger projects, for example back-office system consolidations, were run by a small ‘core’ team of full-time project staff, comprising the project manager, communications and change manager and business analysts. However, the majority of other employees utilised by the project were seen as transient and, typically, Subject Matter Experts (SME) were drawn in from across the business as and when needed. SMEs ranged from a variety of technical experts to local (in-country) business representatives. The SMEs retained their functional position in the organisation but also reported to the project manager in regard to assigned project activities vand tasks. This hybrid structure worked well for the organisation and the delivery of projects. The culture of the organisation was ‘empowerment’. Everyone knew what their role was, and they were suitably empowered to carry out their role. The environment was very positive and the SMEs, project managers and others involved supported each other in a collective, collaborative manner.

The author experienced a different situation at an energy utility company in Australia. There was a complex political culture with a predominantly ‘command and control’ ethos. The organisation was (outside of operations) a projectised organisation with many large and small projects being attended to in a true projectised nature. As an example of a project structure in practice, imagine a project designed to deliver changes to core aspects of the business model. Included in the scope of this project was the redesign of the following business processes: strategic planning, business planning, performance management, benefits management and portfolio/program/project management. This, as can be imagined, touched on all the senior positions and players in the organisation and was run as a full-time project with a project manager, SMEs, business analysts, a part-time organisational change manager and a full-time project administrator. The focus of the project was stakeholder management and communications. The project was well supported by other functional departments in terms of human resources, procurement and corporate communications (these functional departments supporting the day-to-day activities of the business, as well as most large or small projects).

These two examples show the range of differing cultures and project structures that can typically be found across organisations. As a project manager (contract or permanent), you have to quickly be able to adapt to the organisation’s culture and to the preferred style of project structure: functional, matrix or projectised.

Figure 4.6 Real-life team projects Source: istock

PART 2 Positioning Projects

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Sample

The author experienced a different situation at an energy utility company in Australia. There was a complex political culture with

a predominantly ‘command and control’ ethos. The organisation was (outside of operations) a projectised organisation with many

large and small projects being attended to in a true projectised nature. As an example of a project structure in practice, imagine a

project designed to deliver changes to core aspects of the business model. Included in the scope of this project was the redesign

of the following business processes: strategic planning, business planning, performance management, benefits management and

Sample

Even within a strong organisational culture, there are likely to be subcultures often aligned within specific Even within a strong organisational culture, there are likely to be subcultures often aligned within specific departments or specialty areas. As noted earlier in our discussion of project management structures, it is not departments or specialty areas. As noted earlier in our discussion of project management structures, it is not

Sample Sample

portfolio/program/project management. This, as can be imagined, touched on all the senior positions and players in the organisation

and was run as a full-time project with a project manager, SMEs, business analysts, a part-time organisational change manager

and a full-time project administrator. The focus of the project was stakeholder management and communications. The project was

well supported by other functional departments in terms of human resources, procurement and corporate communications (these

functional departments supporting the day-to-day activities of the business, as well as most large or small projects).

These two examples show the range of differing cultures and project structures that can typically be found across organisations.

As a project manager (contract or permanent), you have to quickly be able to adapt to the organisation’s culture and to the preferred

style of project structure: functional, matrix or projectised.

only

from across the business as and when needed. SMEs ranged from a

variety of technical experts to local (in-country) business representatives.

The SMEs retained their functional position in the organisation but also

reported to the project manager in regard to assigned project activities

vand tasks. This hybrid structure worked well for the organisation and

the delivery of projects. The culture of the organisation was

‘empowerment’. Everyone knew what their role was, and they were suitably empowered to carry out their role. The environment was

very positive and the SMEs, project managers and others involved supported each other in a collective, collaborative manner.

The author experienced a different situation at an energy utility company in Australia. There was a complex political culture with

a predominantly ‘command and control’ ethos. The organisation was (outside of operations) a projectised organisation with many

large and small projects being attended to in a true projectised nature. As an example of a project structure in practice, imagine a

1 Study the physical characteristics of an organisation. What does the external architecture look like? What image does it convey? Is it unique? Are the buildings and offices the same quality for all employees? Or are modern buildings and fancier offices reserved for senior executives or managers from a specific department? What are the customs concerning dress? What symbols does the organisation use to signal authority and status within the organisation? These physical characteristics can shed light on who has real power within the organisation, the extent to which the organisation is internally differentiated and how formal the organisation is in its business dealings.

2 Read about the organisation. Examine annual reports, mission statements, press releases and internal newsletters. What do they describe? What principles are espoused in these documents? Do the reports emphasise the people who work for the organisation and what they do or the financial performance of the firm? Each emphasis reflects a different culture. The first demonstrates concern for the people who make up the company. The second may suggest a concern for results and the bottom line.

3 Observe how people interact within the organisation. What is their pace—is it slow and methodical or urgent and spontaneous? What rituals exist within the organisation? What values do they express? Meetings can often yield insightful information. Who are the people at the meetings? Who does the talking? To whom do they talk? How candid is the conversation? Do people speak for the organisation or for the individual department? What is the focus of the meetings? How much time is spent on various issues? Issues that are discussed repeatedly and at length are clues about the values of the organisation’s culture.

4 Interpret stories and folklore surrounding the organisation. Look for similarities among stories told by different people. The subjects highlighted in recurring stories often reflect what is important to an organisation’s culture. For example, many of the stories that are repeated at Versatec, a Xerox subsidiary that makes graphic plotters for computers, involve their flamboyant cofounder, Renn Zaphiropoulos. According to company folklore, one of the very first things Renn did when the company was formed was to assemble the top management team at his home. They then devoted the weekend to hand-making a beautiful teak conference table around which all future decisions would be made. This table came to symbolise the importance of teamwork and maintaining high standards of performance, two essential qualities of the culture at Versatec. Try to identify who the heroes and villains are in the folklore company. What do they suggest about the culture’s ideals? Returning to the Versatec story, when the company was eventually purchased by Xerox many employees expressed concern that Versatec’s informal play hard/ work hard culture would be overwhelmed by the bureaucracy at Xerox. Renn rallied the employees to superior levels of performance by arguing that if they exceeded Xerox’s expectations they would be left alone. Autonomy has remained a fixture of Versatec’s culture long after Renn’s retirement.

It is also important to pay close attention to the basis for promotions and rewards. What do people see as the keys to getting ahead within the organisation? What contributes to downfalls? These last two questions can yield important insights into the qualities and behaviours which the organisation honours as well as the cultural taboos

nATIOnAl AuSTRAlIA BAnk (nAB) I. Physical characteristics:

Head Office, 8-storey modern building, located at the Docklands in Melbourne, Australia Smart business attire, banking formalities.

II. Public documents:

Annual reports (financial statement), sustainability reports, investor reports, risk and capital reports.

Strategy, Focus on the strong Australian franchise and manage international positions for value, Maintain balance sheet strength, Reduce complexity and cost, Enhance our reputation.

III. Behaviour:

Investing in the skills and capabilities of employees, Organisational Culture, Diversity and Inclusion, Talent Management, Health and Wellbeing, Learning and Development, Performance and Reward, Industrial Relations, Flexible Working. IV. Folklore:

Stories, anecdotes and history evidenced.

Source: National Australia Bank, Annual Review 2011

Figure 4.7Organisational culture analysis

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In document Project Management in Practice (Page 35-37)