Types of Project Managers

In 1962, in one of the first discussions of how project management had evolved, Davis identified four types of project management organization.8_{He noted that organiza-} tions tend to evolve from one type to the next as they become more sophisticated and their problems become more complex. Although the correspondence is not exact, Davis’ classification can be used to introduce the four types of project managers. • Project expeditors. They are individuals who speed up work and are the com-

munication link to the general manager. Their purpose is to achieve unity of communications. They are not really managers, but rather serve as translators of technical concepts into business concepts of costs, schedules, and markets. Because their role is limited to funneling information to executives and making suggestions, the expeditor role is restricted to smaller projects with low risk and little at stake. • Project coordinator. Their purpose is to achieve unity of control over project activi-

ties. They have authority to control project matters and disburse funds from the budget, but have no actual line authority over workers. Their authority derives primarily through their association with upper-level executives. The construction project manager in Figure 2-2, for example, would be in this position if he coordi- nated the work but needed the approval of the developer for major decisions such as contracting or reallocation of funds.

• Matrix managers. They perform the full range of management functions. Al- though they serve the same purpose as the first two, they also have authority to plan, motivate, direct, and control project work. Their purpose is to achieve unity of direction. Matrix managers direct people located administratively in other, functional departments, and the resulting crisscross pattern of vertical-functional and horizontal-project reporting relationships create what is called a matrix orga- nization. The manager of a construction project who is employed by the same company that is both designing and constructing the building is such a manager. She must rely upon managers in the architectural and construction departments for the assignment of personnel to her project. These personnel report to the proj- ect manager only in regard to the project and for as long as they are needed on the project; otherwise, they report to their respective department managers. The same personnel may also work on other projects and report to other matrix proj- ect managers.

• Pure project managers. They direct pure project organizations of people who report directly to them. Their purpose is to achieve unity of command. These managers are primarily integrators and generalists rather than technical specialists. They must balance technical factors with schedules, costs, resources, and human fac-

tors. In the course of a project, they actively deal with top management, func- tional managers, vendors, customers, and subcontractors. The manager of a large construction project for example, whom the developer has hired and delegated the power to make major decisions (such as letting contracts for architects and builders, or cancelling them) has this role.

Although the last two types are most in keeping with the project management concept, the other two are just as widely found. All four will be discussed further in later chapters.

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Project management originated in construction and aerospace because the environ- ments and kinds of activities in those industries demand flexible forms of manage- ment. But what about other industries and other environments? Certainly there must be many applications of project management beyond the familiar ones cited. In fact, project management is now used almost everywhere, and there are relatively few in- dustries or situations where project management is not being applied or applicable at least some of the time. This section identifies conditions and situations where it is more applicable (or essential) to use a project-type organization instead of a tradi- tional, functional organization.

Project management can be applied to any ad hoc undertaking. As Figure 1-3 in Chapter 1 showed, “ad hoc undertaking” includes a broad range of activities, such as writing a term paper, remodeling a kitchen, fundraising, or constructing a theme park such as Walt Disney’s Epcot center. Some of these undertakings are more appropriate for project management than others. Generally, there are two conditions suggesting when project management should be used: first, the more unfamiliar or unique the undertaking, the greater the need for project management to ensure nothing gets overlooked; second, the more numerous, interdisciplinary, and interdependent the activities in the undertaking, the greater the need for a project manager to ensure everything is coordinated, integrated, and completed.

Frequently, customers such as major corporations or the U.S. government request or require project management because they believe it offers better cost, schedule, and quality control, and they prefer having a single point of contact—the project manager— to deal with. In most cases, however, the contractor has the option of deciding when to use project management. In some cases, project management is inappropriate sim- ply because the nature of the work does not require it, or the effort to implement it would exceed the effort of the undertaking itself.

Criteria

Cleland and King suggest five general criteria to help decide when to use project man- agement techniques and organization:10

1. Unfamiliarity

By definition, a project is something different from the ordinary and routine. A proj- ect always requires that different things be done, that the same things be done differ- ently, or both. For example, minor changes in products, such as annual automobile

design changes, can usually be accomplished without setting up a project team. Mod- ernizing a plant, on the other hand, calls for nonroutine efforts such as revising the fa- cilities hardware and software, replacing equipment, retraining employees, and altering policies and work procedures. So does a corporate relocation or installation of a new employee benefits system. Project management would be needed to plan and coordinate these one-of-a-kind undertakings.

2. Magnitude of the Effort

When a job requires substantially more resources (people, capital, equipment, etc.) than are normally employed by a department or organization, project management techniques may be necessary. Examples include such undertakings as facility reloca- tion, merging two corporations, or developing and placing a new product on the mar- ket. Even when the job lies primarily in the realm of one functional area, the task of coordinating its work with other functional areas might be overwhelming. For ex- ample, a corporate software installation might seem to fall within the single functional area of information systems, yet during the course of the project, there will be a con- tinuous meshing of policies, procedures, and resources of all departments affected by the installation. Hundreds of people may be involved, and the required coordination and integration might be more than any one area can tackle.

3. Changing Environment

Many organizations exist in environments that are rapidly changing. Examples in- clude so-called “high-tech” industries such as computers, electronics, pharmaceuti- cals, and communications. The environment of these industries is characterized by high innovation, rapid product changes, and shifting markets and consumer behav- ior. Other industries, such as chemicals, biotechnology, and aerospace, though less volatile, also have highly competitive and dynamic environments. Changing envi- ronments present new opportunities that organizations must move swiftly to capture. To survive and succeed, organizations must be creative, innovative, flexible, and ca- pable of rapid response. Project management provides the flexibility and diversity needed to deal with changing goals and new opportunities.

4. Interrelatedness

Functional areas are sometimes self-serving and work at cross-purposes. When a joint effort is required, project management builds lateral relationships between ar- eas to expedite work and reconcile the conflicts inherent in multifunctional under- takings. The project manager links together and coordinates the efforts of areas within the parent organization as well as those of outside subcontractors, vendors, and customers.

5. Reputation of the Organization

The risk of the undertaking may determine the need for project management. If fail- ure to satisfactorily complete the project will result in financial ruin, loss of market share, a damaged reputation, or loss of future contracts, there is a strong case for proj- ect management. Project management cannot guarantee that any of these will not happen but it does provide better planning and control to improve the odds. The like- lihood for successfully completing any activity is increased when a single competent individual is assigned responsibility for overseeing it. The project manager, with the assistance of a technical support group, can do much to reduce the risks inherent in large, complex undertakings.