Tips for Project Success in a Functional Organization

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Tips for Project Success in a Functional Organization

There are fundamentally two types of organizations: functional and projectized. Of course, between those there are various combinations of functional and projectized in the form of matrix and hybrid.

Every organization type has its own advantages and disadvantages, but from the project point of view, functional organizations are most challenging, due to their focus on individual functional work.

A typical functional organization has departments like R&D, operations, procurement, human resources, quality assurance and—on occasion—project management. Each department focuses on its own area.

The challenge is, projects are often multifunctional, crossing various functions and requiring contributions from all departments. In a typical functional organization, there is no one who looks after projects end to end and connects all the dots. A project manager has little authority over the resources of other departments. All told, this results in several challenges:

  1. The project manager has little or no authority over team members as they report to their respective functional managers.
  2. Team members may not give much importance to project work due to their loyalty towards their department.
  3. Team members may work in silos due to the loose coupling among departments and the missing connecting thread.
  4. Trust among team members may not be strong as they work in silos.
  5. Functional managers or resources may not have equal zeal to achieve project objectives as they don’t own the end results.
  6. Resources are not dedicated for a project as they support multiple projects at a time.
  7. The project manager may not have any say in selecting team members.
  8. Changing priorities of function groups independent of project priorities may bring changes in resource allocation and can impact project progress inversely.
  9. The project manager may not have functional managers’ buy-in.
  10. Various functional managers and the project manager may have conflicting opinions. They may take time to reach an agreement or do not achieve an agreement all together.

Despite all these challenges, a project manager still has the responsibility to make the project successful. How can they do this?

Let’s discuss some tools and techniques that a project manager can use:

  1. Stakeholder Analysis

Until you get to know the stakeholders and analyze their engagement, a project cannot be successful. The communication strategy is key to bind stakeholders, and any communication strategy without proper stakeholder analysis will be ineffective. Moreover, it will lead to chaos.

  1. Kickoff Meeting

A project launch, the kickoff meeting is an important event and may decide its fate. It helps in onboarding functional managers, securing their buy-in and building trust. Take time to ask each functional manager what they want from the project in order to support it.

  1. Trust-building

The project will become a struggle if trust is not built among stakeholders, especially in a functional organization. The kickoff is the starting point. Project managers need to build transparency and create opportunities for networking and exchanging ideas. Keep functional managers informed about project progress and seek their help when required. In turn, offer help when they need it. A helping mind set could be key to build trust.

  1. Networking

In a functional organization there is a fair possibility that people on the project work in silos. Therefore it is important for the project manager to create networking opportunities for greater interaction among contributors and supporters. Informal networking events could be more effective.

  1. Conflict Management

Due to the different goals of independent functions, varied personalities and the loosely coupled structure of functional organizations, different functional managers may have opinions that differ from the project manager’s. To get a functional manager’s buy-in, conflict management skills are essential. Please refer my post The Techniques That Don't Resolve Conflict. A project manager has to find a solution where both the functional manager and project manager feel they’re winning and achieving their goals.

  1. Communication

Communication is an underlying skill required to apply all the tools we’ve discussed so far. A project manager has to focus on two aspects: establishing an information system and ensuring effective interaction with team members and stakeholders. A project management information system keeps stakeholders informed and fosters collaboration. Effective interaction requires active listening skills. Here, refer to my posts Listen Up and 8 Steps for Better Listening. Listening skills help you understand others better, do stakeholder analysis, make up your mind and thereby communicate effectively.

I’d love to hear from you: How do you drive your projects to success in a functional organization? I look forward to reading your thoughts.

Posted by Vivek Prakash on: July 03, 2019 12:10 AM | Permalink

Comments (10)

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Great points. Your analysis of the situation is equivalent to my experience in several companies. Knowing your stakeholders and pulling your team together while building trust are essential stepping stones for success

Super points and great insight. Thanks!

Very interesting article., thanks for sharing

Good article Vivek, very nicely presented

Very good insights. I'm now working like this. Feeling powerless and "alone". I have a 7th issue, management clueless about project management.

Very nicely presented and explained. It is very challenging aspect of project environment. Your suggestions are very helpful to overcome challenges of managing functional organization for project success.

Thank you Vivek for sharing valuable tips !!

Very well done. Excellent. points on working with a functional team. Getting is right from the start seems to be the key!

Vivek, Nice article. All the issues are valid. The solutions suggested are meaningful.

On target. I am working in this environment now and we are working to change it.

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