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An oPERATions REsouRCEs PERsPECTivE on PRoduCT And sERviCE dEvEloPmEnT 305

Figure 8.13 organisation structures for design processes

FM FM FM FM FM FM
FM FM FM PM PM
PM PM
PM PM

Lightweight project managers
FM FM FM
Pure functional Balanced PM
organisation Increasing project matrix
orientation organisation PM
Pure project PM
organisation Heavyweight project managers
PM FM FM FM
PM FM FM FM PM
PM
PM PM
PM PM
PM
FM = Functional manager
PM = Project manager

● Project team (or tiger team) – A manager is given responsibility for a project team

composed of a core group of personnel from several functional areas and/or groups,
assigned in a full-time basis. The functional managers have no formal involvement.
Effectiveness of the alternative structures
Although there is no clear ‘winner’ among the alternative organisational structures,
there is wide support for structures towards the project rather than the functional end
of the continuum. In one widely respected study, Professors Clark and Fujimoto argued
that heavyweight project manager structures and dedicated project teams are the most
efficient forms of organisation for product competitiveness, shorter lead-times and
20

technical efficiency. Other studies, although sometimes more equivocal, have shown

that, in terms of the best total outcome from the development process, structures from
balanced matrix through to project teams can all give high success rates. Perhaps of
more interest is the suitability of the alternative structures for different types of product
or service development project. Matrix structures are generally deemed to be appropri-
ate for both simple and highly complex projects. Dedicated project teams, on the other
hand, are seen as coming into their own, especially in highly complex projects.
Yet again, there are advantages in functionally based development structures. In

Chapter 10 we discuss how clustering resources around a functional specialism helps

the development of technical knowledge. Some organisations do manage to capture the
deep technological and skills development advantages of functional structures, while at
the same time coordinating between the functions so as to ensure satisfactory delivery of
new product and service ideas. Perhaps the best known of these organisations is Toyota,

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