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Organizational Project Management

Theory and Implementation

Ralf Müller, Nathalie Drouin and Shankar Sankaran

This concise text introduces an integrated view of all project management-related activities in an organization, called Organizational Project Management (OPM). Practical cases from several organizations, as well as popular theories such as the Resource-Based Theory and Institutional Theory provide for an insightful yet realistic understanding of OPM as an integrative tool for organizations to improve their efficiency and effectiveness.
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Index

Ralf Müller, Nathalie Drouin and Shankar Sankaran

3-point-estimate 117

3Ps (P3M) 2, 3, 61

absorptive capacity 133, 136

academia 177

academic literature 34

accountability 4344, 95, 100

achieved outcomes 158

actors 143144

adaptability 136

adhesion, logical 68

advanced level of governance 56, 57

adverse selection 96

agency theory 9697

agile life-cycles 113

Agile Manifesto 142

agile pragmatist paradigm 48, 4950, 99, 189191

agility 34

Amazon 13

analytic constructs 143

Andersen, E. 102, 136

Apple 130

Aristotle 122

assessment of OPM

see OPM assessment

Association for International Project Management Officers (AIPMO) 30

Association of Project Management (APM) principles of governance 51

Aubry, M. 3, 31, 32, 33, 68, 102

audit sub-system 194, 195, 196

Australian government department

see government department case study

authentic leadership 123

authoritative governmentality 5354, 181

autonomy 8485

Badewi, A. 145

balanced leadership 125128

balancing 63, 6566

portfolio optimization 7073

Barki, H. 83

Barney, J. 130

Barthes, R. 5253

basic level of governance 5657

Battilana, J. 142

Beer, S. 193, 194

behaviour control 4750, 99

benchmarking 141

benefits management 63, 67

benefits realization management (BRM) 2, 4, 56, 9, 60, 63, 67, 7376, 7677

EE case study 165166

OPM assessment 182, 192

bespoke-designed products 23

between-layer interactions 25, 38, 5859, 7677, 156160

between-layer relationships 156

Bezos, J. 13

Biesenthal, C. 144

Biffl, S. 7273

Board of Directors 101

boundary-crossing facets 8182

Bourgault, M. 8485

Bradley, G. 7374, 7475

Breese, R. 73, 74, 75

Bresnen, M. 144

bundling

government department 172173

resource management 137139

business integration 7, 9, 58, 6077, 80

benefits realization

see benefits realization management (BRM)

EE case study 165166, 168

government department case study 172173

institutional theory 151

links between OPM model layers 7677

OPM assessment 181182, 185192

OPM systems design 195196, 198

portfolio management 60, 6163, 6570, 7677, 101, 181182, 192

portfolio management cycle 63

portfolio optimization 60, 7073, 7677, 182, 192

portfolio strategy 2930, 60, 6365, 7677, 181, 192

theory of the OPM model 155, 156, 159160

Business Sector Advisory Group on Corporate Governance (Millstein Report) 43, 9596

Byars, L. L. 13

capabilities 3, 130131, 132, 135136

building 132133, 136

dynamic 132133, 136

see also resource-based view (RBV)

categorization 63, 65

changes to the project 118119

Chi, C. S. F. 145

Chia, R. 1314, 15

Chih, Y. 74, 76

Child, J. 16, 82

China

OPM assessment 185189, 191

pharmaceutical company 138139

churn 2324

classical management theories 1516

close-out phase 112, 113

Cochrane, R. 115116

coercive isomorphism 141

cohesion, logical 68

collaboration, inter-organizational 8687

competing values model 32

complementary within-layer relationships 155156

complex product systems (CoPS) 23

complexity perspectives 18

comply-or-explain governance 5051

comply-or-penalty governance 5051

concept phase 112

conflicts in global projects 146147

conformist paradigm 48, 4950, 99, 190, 191

Confucius 122

construction project conflicts 146147

context dependence 8

contingency-based theories 16, 1718

institutional theory and 147148

contraction and growth 34

control

governance paradigms 4750

implementation and control phase 112113, 117119

level of and organizational integration 8485

management control 63, 6667

sub-system 194, 195196

convergent methodologies 107108

Cooper, R. G. 65, 7071

coordination sub-system 194, 195, 196

corporate governance 42, 4344

orientation and control 4750

and project governance 9496

costs estimation 117

Crawford, L. 3

Critical Path Method (CPM) 109111

critical success factors (CSFs) 121

cultural-cognitive elements 142143, 150151

culture 16

Dean, M. 53, 157158

decision making 8586

in the public sector 106

DeFillippi, R. 8283

definition (planning) cycle 63, 6566

delivery cycle 63, 6668

design

designing OPM systems 196199

organizational philosophy and 1319

design thinking 18

development of OPM 34

Dille, T. 144

DiMaggio, P. J. 142

direct governmentality 54

distributed leadership 125, 126127

divisional structure 1920

Dolan, D. 8586

Donaldson, T. 1819

Drouin, N. 6465, 8485, 137138

Dulewicz, V. 123124

dynamic capabilities 132133, 136

earned value management (EVM) 118

Edgett, S. J. 65, 7071

education of project managers 5556

EE case study 162169

business integration 165166, 168

OPM approach 164165, 168

OPM governance 165, 168

organizational integration 166167, 168

organizational philosophy 163164, 168

project governance 167, 168

effectiveness 2627

efficiency 2627, 131132

efforts, estimating 117

elements of OPM 4

identification of 56

see also under individual elements

emergent methodologies 108

emotional intelligence 123

emotional leadership competences 123

energy sector company

see EE case study

engaging leadership style 124

Enterprise Resource Planning (ERP) projects 145

episteme 157160

epistemology 15

estimation 117

evolutionary algorithm 7273

fairness 4344, 96, 100

Fayol, H. 15

financial management 63, 67

flexible economist paradigm 4850, 99, 189, 190

Ford Motors 16

Foucault, M. 5253, 156

Freeman, R. E. 18

functional organizational structure 19, 20

Gaddis, P. O. 111

Gemünden, H. G. 68

General Motors 16

generative learning 133

George, G. 132, 133

Geraldi, J. 144, 148, 149

German project networks 145146

goal-oriented leadership style 124

goals 115116

Gobeli, D. H. 20

Goleman, D. 123

governance 42

corporate

see corporate governance

OPM governance

see OPM governance

organizational 63, 6768

portfolio 6769

principles of good governance 4344, 9596, 100

project governance

see project governance

theory of the OPM model 153, 157160

governance institutions 92, 101105, 183, 192

governance models 42, 5052, 9899, 100

OPM assessment 180, 192

governance paradigms 42, 4650, 99

OPM assessment 180, 189191, 192

governance of project management 43, 5458

institutional theory 150, 151

OPM assessment 181, 192

government department case study 170175

business integration 172173

OPM approach and OPM governance 172

organizational integration 173

organizational philosophy 171172

project governance and management 173174

governmentality 14, 43, 5254

institutional theory 150, 151

OPM assessment 180181, 192

theory of the OPM model 156160

Greenwood, R. 1617

growth and contraction 34

Hamel, E. 8485

hard and soft governance model 98, 100

Higgs, M. 123124

high-tech industries 87

history 33

Hitt, M. A. 137

Hobbs, B. 3, 31, 32, 33

Hobday, M. 2223

Hofstede, G. 16

horizontal leadership 125, 126127

Huemann, M. 21, 22

human relations movement 16

human resource management (HRM) 8, 17, 22

hybrid life-cycles 113

hybrid strategy 2930

identification 157160

implementation control 64

implementation and control phase 112113, 117119

implementation patterns 187189

incremental life-cycles 113

indirect governmentality 54

information asymmetry 96

information technology (IT) 8

innovation 131132

innovation by design 18

institutional embeddedness 145146

institutional entrepreneurs 142

institutional logics 17, 143

institutional theory 14, 1617, 140152

application to projects 145147

importance to project management 144

institutional entrepreneurs 142

isomorphism 141

OPM and 148152

and other theoretical approaches 147148

and projects 142144

institutional thickness 145

integrated within-layer relationships 155

integration

business

see business integration

OPM as resource orchestration 137139

organizational

see organizational integration

intellectual leadership competences 123124

intelligence sub-system 194, 195

intended outcomes 158

interactions between layers 25, 38, 5859, 7677

theory of the OPM model 156160

interactions within layers 156160

intermediate level of governance 56, 57

International Project Management Association (IPMA) 111

inter-organizational collaboration 8687

interpretivist paradigm 1415

involving leadership style 124

Ireland, R. D. 137

ISO Standards 51, 111

isomorphism 141

issues driving transitions 3435

iterative life-cycles 113

Jackson, M. 193

Jamieson, A. 61

Jaradat, R. M. 193

Javernick-Will, A. N. 145

Johns, G. 8

Jugdev, K. 61

Kamoche, K. N. 132

Keegan, A. 23

Killen, C. P. 61, 6465

Klakegg, O. J. 102, 106

Kleinschmidt, E. J. 65, 7071

knowledge areas for PPM 69

Kock, A. 61, 64

Kopmann, J. 61, 64

Korean car manufacturers 141

Kremmel, T. 7273

Kubalík, J. 7273

Kunc, M. 7576

Larsen, E. W. 20

Laufer, A. 85

layered governance model 5152, 99, 100

layers of the OPM model 68

between-layer interactions 25, 38, 5859, 7677, 156160

between-layer relationships 156

within-layer interactions 156160

within-layer relationships 154156

see also under individual layers

leadership 109, 121128

balanced 125128

horizontal 125, 126127

shared and distributed 124125, 126127

styles 124

vertical 122124, 126127

legitimacy 140, 143, 145

Lessard, D. 90, 133

leveraging 137139

Levitt, R. E. 146147

liberal governmentality 5354, 181

life-cycles see project life-cycles

Lindkvist, L. 24, 8283

logical adhesion 68

logical cohesion 68

M-Form organizations 16

Mahalingam, A. 146147

Making Project Critical movement 120

management 43

classical management theories 1516

and leadership 121122

project management see project management

theories applicable to project governance 9698

management control 63, 6667

management demand 5556

Management of Portfolios (MoP) 6163, 6364, 6568, 71

managerial leadership competences 123124

Mancini, M. 22, 23, 154

Manning, S. 24

Margolis, S. 13

Mariana Dam 141

Martinsuo, M. 6970

matrix structure 19

Maylor, H. 36, 119

megaprojects 78, 81, 8889, 9091

EE case study 162169

OPM assessment 182183, 192

Meredith, J. R. 74

methodologies 107108

OPM assessment 184, 192

methods, goals and 115116

Midler, C. 35

Miller, D. 1617

Miller, P. 54

Miller, R. 90

Millstein Report 43, 9596

mimetic isomorphism 141

Miterev, M. 22, 23, 154

models, governance

see governance models

moral hazard 96

Morris, P. W. G. 61, 144, 148, 149

Müller, R. 31, 54, 137138

organizational enablers 149150

project governance 95, 99, 100, 102, 103

standardization 106

transition between vertical and horizontal leadership 126127

multi-objective evolutionary algorithm 7273

multi-project approach 7, 9, 25, 26, 2730

OPM assessment 179, 192

strategies for the multi-project organization 2627, 3940

multi-project strategy 2730

mutual exclusivity 154

Neil, T. C. 13

neo-institutional theory 14, 140, 142

neoliberal governmentality 54, 181

nested governance model 5152, 9899, 100

Netherlands, the 185192

network researchers 24

networks 12

project networks 145146

Nidiffer, K. E. 8586

Nogeste, K. 80

normative elements 142143, 150151

normative isomorphism 141

normative stakeholder approach 1819

OECD 43, 9495

operations sub-system 194, 195, 196

OPM 12

development of 34

development of the ‘onion’ model 49

and institutional theory 148152

model layers mapped onto VSM model 194196

organizational integration and 8889

and resource-based view 134139

OPM approach 78, 9, 25, 2641, 5859

contextual contingencies 38

EE case study 164165, 168

government department case study 172

institutional theory and 149

multi-project approach

see multi-project approach

OPM assessment 178180, 185192

OPM systems design 194195, 197

organizational PMOs

see organizational PMOs (OPMOs)

projectification

see projectification

RT case 3841

strategies for the multi-project organization 2627, 3940

theory of the OPM model 155, 156

OPM assessment 176192

data analysis and results 185191

data collection 177185, 186

OPM governance 7, 9, 38, 4259

contextual contingencies 5859

EE case study 165, 168

governance models 42, 5052, 180, 192

governance paradigms 42, 4650, 99, 180, 189191, 192

governance of project management 43, 5458, 150, 151, 181, 192

government department case study 172

governmentality

see governmentality institutional theory and 149

OPM assessment 180181, 185192

OPM systems design 195, 197

principles of good governance 4344, 9596, 100

theory of the OPM model 155, 156

OPM systems design 196199

Organisation for Economic Co-operation and Development (OECD) 43, 9495

organizational core competences 131

organizational culture 131

organizational enablers 149151

organizational form 8183

organizational governance 63, 6768

organizational integration 67, 9, 7891

basic tenets of integration 8384

basic tenets of organizational form 8183

challenges of 8487

EE case study 166167, 168

government department case study 173

institutional theory and 151

and OPM 8889

OPM assessment 182183, 185192

OPM systems design 195, 196, 198

theory of the OPM model 155156, 159160

organizational learning 132

organizational philosophy 8, 9, 1125

and design 1319

EE case study 163164, 168

government department case study 171172

institutional theory and 148149

OPM assessment 178, 185192

OPM systems design 194195, 197

process-oriented organizations

see process-oriented organizations (ProcOOs)

project-based organizations

see project-based organizations (PBOs)

project-oriented organizations

see project-oriented organizations (POOs)

theory of the OPM 154, 159

organizational PMOs (OPMOs) 2, 7, 9, 25, 40, 5859

images of 3134

OPM approach 26, 27, 3035

OPM assessment 179, 187, 189, 192

OPM systems design 195, 196

typology of 3233

organizational policies 94, 105106, 183, 192

organizational theories 1314

organizational unit, OPMO as 31

organizations and organizing 15

outcome control 4750, 99

paradigms 1415, 46

governance

see governance paradigms

perceived pressure 5556

performance 32

philosophy, organizational

see organizational philosophy

Pinsonneault, A. 83

Pisano, G. 132133

planning cycle 63, 6566

planning phase 112, 114117

policies, organizational 94, 105106, 183, 192

policy sub-system 194195

politics 33

portfolio communication management 69

portfolio governance 6769

portfolio governance management 69

portfolio management 60, 6163, 6570, 7677, 101, 181182, 192

portfolio management cycle 63

portfolio optimization 60, 7073, 7677, 182, 192

portfolio performance management 69

portfolio risk management 69

portfolio strategic management 69

portfolio strategy 2930, 60, 6365, 7677, 181, 192

portfolios 2, 61

positivist paradigm 1415

Powell, W. W. 142

power 33

practitioner literature 34

precept 158160

predictive life-cycles 112120

processes and tasks 114120

predictive methodologies 107

premise control 64

Preston, L. E. 1819

principles 34

principles-based governance 5051

principles of governance 4344, 9596, 100

prioritization 63, 65, 66

procedures 105

process compliance (behaviour control) 4750, 99

process governance model 51, 98, 100

process-oriented organizations (ProcOOs) 21, 140, 154

institutional theory 148149

OPM assessment 178, 187189, 192

organizational philosophy 11, 1920, 25

processes

OPM as a process 135136

organizational form 8182

professional services firms 1617

professionalization of project management 111

Program (or Project) Evaluation and Review Technique (PERT) 109111, 117

programme management 101

programme strategy 2930

programmes 2, 61, 7891

OPM assessment 182183, 192

organizational integration 78, 8081, 8889, 90, 91

programmification 36

project-based organizations (PBOs) 84, 140, 154

institutional theory 148149

OPM assessment 178, 187189, 192

organizational philosophy 11, 2225

project governance 6, 9, 80, 92108

corporate governance and 9496

EE case study 167, 168

governance models 9899, 100

governance paradigms 99

government department case study 173174

institutional theories and 149151

management theories applicable to 9698

methodology 107108, 184, 192

OPM assessment 183184, 185192

OPM systems design 195, 196, 198

policies 94, 105106, 183, 192

relations 94, 107, 183184, 192

theory of the OPM model 155, 156

project governance institutions 92, 101105, 183, 192

project leadership 109, 121128

project-led organizations 84

project life-cycles 111120

EE case study 162

processes and tasks for predictive life-cycles 114120

project management 6, 9, 109128, 156

governance of 43, 5458, 150, 151, 181, 192

government department case study 174

history 109111

importance of institutional theory to 144

institutional theory and 151152

OPM assessment 184, 185192

OPM systems design 195, 196, 198199

in ProcOOs 20

project leadership 109, 121128

project success 120121

Project Management Institute (PMI) 3, 111

Practice Guide for Governance of Portfolios, Programs and Projects 50

Standard for Portfolio Management 63, 64, 69, 70

project management offices (PMOs) 2, 26, 27, 30, 92, 102

OPM systems design 195, 196

organizational PMOs

see organizational PMOs (OPMOs)

project management standards 3, 119

project management success 120

project managers

education of 5556

qualities 103104

role 111

project networks 145146

project office (PO) 30

project-oriented organizations (POOs) 140, 154

institutional theory 148149

OPM assessment 178, 187189, 192

organizational philosophy 11, 2122, 25

project portfolio management (PPM) 60, 6163, 6570, 7677, 101, 181182, 192

project portfolio management office (PPMO) 67, 68

project portfolio optimization 60, 7073, 7677, 182, 192

project portfolio strategy 2930, 60, 6365, 7677, 181, 192

project sponsor 92, 104105

project steering groups/committees 92, 101, 103104

project success 120121

project types 4647

projectification 78, 9, 25, 5859

dimensions of 3738

OPM approach 26, 27, 3538, 40

OPM assessment 17980, 192

phases at Renault 3536

projects 2, 61, 8091

application of institutional theory to 145147

institutional theory and 142144

OPM assessment 182183, 192

organizational integration 78, 80, 8889, 90, 91

protocols 105

public sector 176177

government department case study 170175

ranking 65, 66, 70

regulative elements 142143, 150151

relations 94, 107

OPM assessment 183184, 192

Renault 3536

requirements 114115

resource-based view (RBV) 14, 1617, 130139

fundamentals and evolution 130134

institutional theory and 147148

OPM and 134139

OPM as a process 135136

OPM as a resource 134135

OPM as a resource orchestration 137139

resource management 63, 68

resource orchestration 133134

OPM as 137139

responsibility 4344, 96, 100

risk assessment 118

risk management 63, 67, 118

risk mitigation 118

risk sharing 96, 107

roles in project governance 101105, 183, 192

Rose, N. 54

Rowlinson, S. 51, 98, 100

rules-based governance 5051

Sankaran, S. 137138

Scandinavian School of Project Studies 119120

scheduling 117

scientific management 16

Scott, W. R. 142143, 147148

Sedlmayer, M. 64

Segon, M. 51, 98, 100

Serra, C. E. M. 7576

Shapira, A. 85

shared leadership 124127

shareholder orientation 18, 4750, 99

Shehab, E. 145

Shenhar, A. J. 85

Shuen, A. 132133

Siemens 87

Sirmon, D. G. 133, 137

SMART requirements 115

social intelligence 123

social responsibility 82

Söderlund, J. 24, 136, 144

soft and hard governance model 98, 100

software programs for portfolio optimization 7172

sponsor 92, 104105

Staber, U. 145146

stage-gates 112, 113

stakeholder management 63, 67

stakeholder orientation 1819, 4750, 99

standardization 33, 106

standards 3, 119

Standish Group 119

star model 23

steering groups/committees 92, 101, 103104

stewardship theory 97

strategic alignment 7071

strategic capabilities 133

strategic PMOs

see organizational PMOs (OPMOs)

strategic surveillance 64

strategy

development of 15

hybrid strategy 2930

multi-project strategy 2730

portfolio strategy 2930, 60, 6365, 7677, 181, 192

programme strategy 2930

strategies for the multi-project organization 2627, 3940

structure, organizational 8183

structuring 137139

sub-systems 194196

success, project 120121

success criteria 121

success factors 121

Sydow, J. 24, 8283, 145146

symbolic processes 143

systems theory perspective 193196

designing OPM systems 196199

Taylor, F. W. 16

techne 157160

Teece, D. J. 132133

Tell, F. 24

temporary organizations 3637

theory of the OPM model 153160

between-layer relationships 156

within- and between-layer interactions 156160

within-layer relationships 154156

Thuillier, D. 3, 33

titanium dioxide 38

Too, E. G. 52, 9899, 100

tools and techniques 3

transaction cost economics (TCE) 9798

transactional leadership 122, 123

transformation 33

transformational leadership 122123

transitions of (O)PMOs 3335

transparency 4344, 95, 100

Tsoukas, H. 1314, 15

Turner, J. R. 22, 23, 51, 98, 100, 115116, 154

Type A projects 46

Type B projects 46

Type C projects 4647

typology of (O)PMOs 3233

U-Form organizations 16

understanding 63, 65

Unger, B. N. 68

Vaagaasar, A. L. 136

value maximization 7071

Van de Ven, A. 1718

versatile artist paradigm 48, 4950, 99, 189, 190

vertical leadership 122124, 126127

viable systems model (VSM) 193, 194196

visibility 157160

Voisey, C. A. 133

Volden, G. H. 102, 106

Walker, D. 51, 80, 98, 100

Wang, A. 54

waterfall models 107

Weaver, P. 52, 9899, 100

Weber, M. 15

Weick, K. 15

Welcomer, S. A. 18

Williamson, O. 9798

within-layer interactions 156160

within-layer relationships 154156

work breakdown structure (WBS) 112, 115

Zahra, S. A. 132, 133

Zhai, L. 54

Zwikael, O. 74, 76