I am preparing for the PMP exam in a near future and have a simple question: What is the difference between performing organization and project team?
I have read something about performing organization such as: ""The performing organization is the entity that employs the people responsible for completing the prject work. In some instances, the performing organization can be a vendor whose project team is completing the project work for another entity, the customer.""
So, could you please tell me the difference in a clear way and with examples or illustrations
Thank you very much for your attention Saving Changes...
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
The project team belongs to the performing organization. Project team is a subset of the performing organization. Saving Changes...
There is no difference , as mentioned by Sergio the project team belongs to the performing organization . The difference is that the project team could be delivering a project for the performing organization , or the performing organization (project team) delivering a project for a customer (another entity) Saving Changes...
The importance of this distinction is that support and capability maturity of the performing organization will impact the success of the project and hence the focus can't purely be on the efforts of the project team. Saving Changes...
@Dina, so does this mean that the performing organisation is really the entity responsible for completing/ undertaking the work necessary to fulfil the project objectives?
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1 reply by Keith Novak
Aug 01, 2022 4:29 PM
Keith Novak
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Essentially yes but it depends on whether the term is being used to describe who completes all the work, or some of the work.
The performing organization may be describing a task, subset of tasks, or the whole project. In practical terms, I look at it as who is assigned the budget and the people to do what work.
Designing a new car for example might be broken down by functions such as chassis, powerplant, suspension, etc. Depending on the context, the performing organization might be everyone developing the car, everyone responsible for the complete suspension system, or it might be who has the task to design the wheels.
@Dina, so does this mean that the performing organisation is really the entity responsible for completing/ undertaking the work necessary to fulfil the project objectives?
Essentially yes but it depends on whether the term is being used to describe who completes all the work, or some of the work.
The performing organization may be describing a task, subset of tasks, or the whole project. In practical terms, I look at it as who is assigned the budget and the people to do what work.
Designing a new car for example might be broken down by functions such as chassis, powerplant, suspension, etc. Depending on the context, the performing organization might be everyone developing the car, everyone responsible for the complete suspension system, or it might be who has the task to design the wheels. Saving Changes...
Wayne KremlingSr Project Manager - Retired| Boeing - RetiredSt. George, UT, United States
The answer to this fits into the old PM adage "It depends". It depends on the context of the question or the hierarchy the project is performing in. For instance the Project Leadership's organization could represent the "Performing Organization" because they own the project and the budget. That Performing Organization may have multiple project teams for multiple projects. If they are using matrixed support structure for completing work packages, each work package could be considered a Performing Organization for that WP, but not everyone in that Performing Organization is supporting the project.
But in the exam, unless indicated otherwise, the Performing Organization will be the organization who assigned the PM for the project, and the project team is a subset of the Performing Organization. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
The performing organization is the legal entity or the department/business unit that commits to perform the project work.
In the case of contract work, there is a customer who pays and a vendor who delivers as performing organization.
In case of an internal project, the performing organization is the company department that formally agreed (sometimes by MOU) to deliver the project. Often IT delivers for a business function like HR, sales, marketing.
The team itself is not a legal entity and mostly not a department.
The sponsor acts as agent of the performing organization and thru the charter formally assigns/authorizes a project manager to lead the team and deliver the project. Saving Changes...
