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16 ORGANIZING FOR PROJECT MANAGEMENT

must be altered. And senior management must motivate a culture change to ac-
commodate a shifting focus on projects.

The Project Organization

The Project Organization is a specialized organization for executing projects. It
was designed for isolated, one-of-a kind work, with a strong focus on the project.
In the case of major projects, a separate project organization is established specif-
ically for a single project. The organization’s lifespan is equal to the lifespan of the
project. The Project Organization makes less efficient use of resources. It is a
poor model for technology transfer. See Figure 1.2b.

The Project Organization first came into being for major aerospace and de-
fense type projects. In fact, many of these projects required the establishment of
a dedicated organization prior to submitting a bid. If the project was not awarded
to the firm, the newly created staff was disbanded. In the Project Organization,
staff buildups would occur to match the peaking of effort in each discipline, fol-
lowed by a decline in personnel as the peak was passed. New people were

Figure 1.2b The Project Organization

General
Manager

Personnel Administration

Alpha Beta Gamma Delta Omega
Project Project Project Project Project

Engineering Procurement Construction Engineering Procurement Construction

Design Systems Civil Design Systems Civil
Materials Materials Mechanical
System Mechanical System
Engineering Engineering Electrical

Electrical