Project based organisations

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=== The PBO terminology ===
 
=== The PBO terminology ===
  
The definition of a project based organisation can be hard to determine. This is because in litterature there are several terms and forms of project based organisations. This is partly because the project based organisation is dependent on context and therefore changes with it, which makes it difficult to define. Furthermore, the PBO can exist as a pure form like described above, but can also be diluted. In the diluted form ''"in which the needs of the project outweigh the functional influence on decision making"''
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The definition of a project based organisation can be hard to determine. This is because in litterature there are several terms and forms of project based organisations. This is partly because the project based organisation is dependent on context and therefore changes with it, which makes it difficult to define. Furthermore, the PBO can exist as a pure form like described above, but can also be diluted. In the diluted form ''"in which the needs of the project outweigh the functional influence on decision making"''<ref name="DaviesHobday"/>.
  
In the following will be given an overview of some of the terms that can refer to a form of PBO.   
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In the following will be given an overview of some of the terms that can refer to a form of PBO or organisational form that uses similar core principles <ref name="Bakker"> <ref name="Thiry_Deguire"><ref name="Leiringer_Zhang">:
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*Project based organisations
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* Project led organisations
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* Project based enterprises
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* Project based industry
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* Project based firms
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* Multiple project organisation
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* Temporary organisations
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The different terms are often used in different context and highlight a specific field of study, eg. temporary organisations are often PBO's but refer to the study of the organisational structures whereas literature using the term project based organisation is often in the crossing between the two fields of study; project management and organisational structures<ref name="Bakker">.   
  
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In this article we will adopt the terminology of Davies, A. and Hobday, M.<ref name="DaviesHobday"/>, where project based organisations are the closest to the pure form whilst the diluted form i.e. some functional and formal units outside the project frame, will be called project led organisation. 
  
In this article we will adopt the terminology of Davies, A. and Hobday, M.<ref name="DaviesHobday"/>, where project based organisations are the closest to the pure form whilst the diluted form i.e. some functional and formal units outside the project frame, will be called project led organisation.
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=== The key characteristics of project based organisations ===
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The article has already given an overview of some the characteristics of project based organisations. This paragraph will present these in more detail, and explain the underlying mechanisms and principles of the characteristics.  
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- byg op hvilke og i hvilken rækkefølge
  
  
=== What are the key characteristics of project based organisations? ===
 
 
*Knowledge- transfer is one of the key things to utilised to reap the benefits of PBOs, but is really hard(Sundqvist et al., 2014)
 
*Knowledge- transfer is one of the key things to utilised to reap the benefits of PBOs, but is really hard(Sundqvist et al., 2014)
 
*Innovation (creativity) in PBO's (Söderlund et al., 2014)(Thiry and Deguire, 2007)
 
*Innovation (creativity) in PBO's (Söderlund et al., 2014)(Thiry and Deguire, 2007)
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<references>
 
<references>
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<ref name="Bakker">Bakker, R.M., 2010. Taking Stock of Temporary Organizational Forms: A Systematic Review and Research Agenda. Int. J. Manag. Rev. 12, 466–486. https://doi.org/10.1111/j.1468-2370.2010.00281.x</ref>
 
<ref name="DaviesHobday">Davies, A., Hobday, M., 2005. The project-based organisation, in: The Business of Projects: Managing Innovation in Complex Products and Systems. Cambridge University Press, pp. 117–147. https://doi.org/10.1017/CBO9780511493294.007</ref>
 
<ref name="DaviesHobday">Davies, A., Hobday, M., 2005. The project-based organisation, in: The Business of Projects: Managing Innovation in Complex Products and Systems. Cambridge University Press, pp. 117–147. https://doi.org/10.1017/CBO9780511493294.007</ref>
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<ref name="Leiringer_Zhang">Leiringer, R., Zhang, S., 2021. Organisational capabilities and project organising research. Int. J. Proj. Manag. 39, 422–436. https://doi.org/10.1016/j.ijproman.2021.02.003</ref>
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<ref name="Thiry_Deguire">Thiry, M., Deguire, M., 2007. Recent developments in project-based organisations. Int. J. Proj. Manag. 25, 649–658. https://doi.org/10.1016/j.ijproman.2007.02.001</ref>

Revision as of 16:07, 9 April 2023


Contents

Big Idea

What are project based organisations?

Project based organisation (PBO) is an organisational structure where projects are the main driver of business. In a pure project based organisation the project manager will have control over all functions of the project, with only senior management to refer to. This means that the functional units, ie. R&D, finance, marketing etc. are integrated in each project in the PBO instead of going across multiple projects. Furthermore, because projects are the main driving force, each project organisation structure looks different. This is because projects drive the business and therefore also shapes the organisational structure. Figure 1 illustrates that projects are the driving force of the project based organisation, whilst the functional units and their expertise is the driving force of a functional unit, they are respectivly in the top of the organisational diagram. Furthermore it illlustrates how in the PBO, the functional units are integrated under each project and that each project in the PBO looks slightly different in the organisational structure, i.e. the functional units may be placed differently and some may be more important to some projects than others. The project based organisation stucture gives the project manager authority over resources. This high level of control that lie with the project managers of each project in the PBO leads to high flexibility within the project. [1]

Figure 1: Project based organisation structure and functional organisation structure (Created by J. Steinfurth, inspired by [1]


Why choose a project based organisational structure?

The purpose of introducing a project based organisation is that it has the ability to deal with fast change as well as being proactive to uncertainty and project risk. Furthermore, PBO's have an openness in the organisational structure that makes it easier to work across organisations and include external stakeholders in the project process. Thus the PBO becomes an enabler for co-creation in projects. PBO's are proven to be useful when dealing with complex products or systems where the clients needs may change through the progression of the project as they gain more knowledge. [1]

The PBO terminology

The definition of a project based organisation can be hard to determine. This is because in litterature there are several terms and forms of project based organisations. This is partly because the project based organisation is dependent on context and therefore changes with it, which makes it difficult to define. Furthermore, the PBO can exist as a pure form like described above, but can also be diluted. In the diluted form "in which the needs of the project outweigh the functional influence on decision making"[1].

In the following will be given an overview of some of the terms that can refer to a form of PBO or organisational form that uses similar core principles Cite error: Closing </ref> missing for <ref> tag [1] [2] [3]


Cite error: <ref> tags exist, but no <references/> tag was found
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