Formal organizational charts indicate reporting relationships but are not very effective at displaying project relationships. Projects organize around the work, phases, or activities. The organization of the project reacts to the nature of the work at any given phase.
During the start-up meeting of a large complex project, the project manager facilitated the development of the project organization chart that included all the major companies and leaders from the client and key subcontractors. After the chart was complete, the project manager ripped the chart up in front of the entire project team to demonstrate his key message, which was that there are formal reporting relationships, but the real leadership and communication will change during the life of the project. In other words, the system will adapt to meet the needs of the project at each phase. During the design phase, the engineering team will identify the primary needs and communication will center on supporting the engineering efforts. Later, the procurement team will take the lead as critical equipment and supplies are identified and purchased. Later in the project, the construction team takes the lead as the project moves from the design offices to the field and the engineering and procurement teams support the construction effort.
Informally, the project team reorganizes information flows and priorities to support the current work of the project and a good project manager facilitates this adaptive behavior of the project organization by minimizing the impact of formal authority and processes.
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