The AMA Handbook of Project Management

By Paul C. Dinsmore; Jeannette Cabanis-Brewin | Go to book overview

CHAPTER 25
A Process of Organizational Change: From
Bureaucracy to Project Management Orientation

ROBERT J. GRAHAM, PHD, PMP, R. J. GRAHAM AND ASSOCIATES

Once upon a time … there was an organization that was attempting to change from a functional to a project management organization. The organization flourished in the bureaucratic mode with limited competition and stable products and services. However, it found itself in the intensive world of deregulated financial services. As more and more projects were developed to respond to the new environment, the company executives discovered that their project management practices were reflections of their bureaucratic past rather than of their project management future.

Attempts to teach managers the basics of project management were not successful. The newly-trained people found that the practices necessary for successful project management were not supported by the departments in the organization. From this experience, company executives came to realize that the organization needed to be changed in order to respond effectively to the new business environment. The process they followed in order to achieve that change is presented here as an example of the steps needed to install sound project management practices into a functional organization.


AN ORGANIZATIONAL CHANGE MODEL

Research on organizational change indicates that most people in organizations will not change their behavior unless they see a clear need for such a change. Some people come to realize the need for change because their culture is not consistent with their business strategy. However, just realizing this does not

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