A major utility company in Cleveland has what is commonly called \"fragmented\"

Question

A major utility company in Cleveland has what is commonly called "fragmented"

project management, where each department maintains project managers through staff positions. The project managers occasionally have to integrate activities that involve departments other than their own. Each project normally requires the involvement of several people. The company also has product managers operating out of a rather crude project (product) organizational structure. Recently, the product managers and project managers were competing for resources within the same departments.

To complicate matters further, management has put a freeze on hiring. Last week top management identified 120 different projects that could be undertaken. Unfortunately, under the current structure, there are not enough staff project managers available to handle these projects.

AIso, management would like to make better use of the scarce functional resources.

Staff personnel contends that the solution to the above problems is the establishment of a project management division under which there will be a project management department and a product management department. The staff people feel that under this arrangement better utilization of line personnel will be made and that each project can be run with fewer staff people, thus providing the opportunity for more projects. Do you agree or disagree, and what problems do you foresee?

Explanation / Answer

The current structure of the company is not suitable for managing the projects. It will lead to under utilization and over allocation of resources.

The proposed solution of setting up a project management office will enable the company to integrate the practices and allow it to optimally allocate the resources based on the urgency. This will solve the current problem and will lead to better management of projects.   

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