2.0 STRUCTURAL FRAME
Turner & Townsend Thinc is a large multi-national global program management and construction consultancy. “The vision of Turner & Townsend Thinc is to be leading capital programs professional services provider operating across property, infrastructure and natural resources” (Turner & Townsend, 360 View Issue 6, 2016). Prior to the merger Thinc had flat organisation structure. Project managers were responsible for project delivery and directors were responsible for bringing projects. Directors set the financial goals accordingly. Turner & Townsend has predominantly been a matrix organisation. After the merger, Thinc adopted to the matrix organisation. In this case, finance, property, infrastructure, cost management and natural
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The basic advantage of the matrix structure is that it facilitates to the changing market and technical requirements. “The matrix combines a vertical structure with an equally strong horizontal overlay.” (N Anand & Richard L Daft 2007) The horizontal structure provides coordination while the vertical structure operating as silos provides traditional control within functional departments. The shifting emphasis from flat organisation to matrix organisation has reshaped the roles of Thinc directors. The biggest difference has been having direct control over resource utilisation and profit margin to achieve the target. An employment survey done in 2015 which showed 52% of employees didn’t know how individual roles fit into organisation goals. (Refer Table 2 Turner & Townsend Thinc Employment Survey Result 2015, point …show more content…
Before the merger, the existing culture of Turner & Townsend and Thinc were somewhat similar. Both were predominantly role cultures, formalized rules and regulation and a hierarchical power structure. The only perceptible difference between the two firms is reputation. Turner & Townsend had a reputation of cost management service provider and aggressive within the marketplace while Thinc had a reputation of project management service provider. 80% of senior managers of Turner & Townsend are promoted within the business who have cost management
The Mace Group Ltd was formed in 1990 by a small team of construction professionals in London, United Kingdom. It has over 4,000 employees. The company has three strategic sectors serving clients in the private, public and infrastructure sectors and five strategic hubs in Europe, Middle East & North Africa, the Americas, Asia Pacific and Sub-Sahara Africa that service over 70 countries. By the end of 2013, there were 214 operations directors, 82 directors and yearly turnover was 2.5 billion dollars. Today Mace is an international consultancy and construction company, offering integrated services across the full property and infrastructure life cycle. In North America area, Mace provides project management, cost consultancy and facilities management services across the country. It has regional hubs in New York, Newark, Atlanta, Chicago and San Francisco. In Engineering News Record’s Top 250 Global Contractors List for 2014, Mace has been ranked 10th in the list of top 20 non-U.S firms in international construction management and programme management fees, 9th in the list of the top 20 non-U.S. firms in total global construction management and programme management fees and 166th in the overall list of top 250 international contractors.
Alternative structures such as grouping by output/product or grouping by market are not options as they would result in “duplication of activities and resources, the erosion of deep technical expertise, missed opportunities for synergies and learning” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2009, p. M2-19). The matrix structure provided a potential positive aspect in that it would provide a needed cross-functional linking mechanism by mixing the functional structure with grouping by output/product, but the complexity, cost, dual systems, and dual roles resulting from the matrix structure historically resulted in either the functional or the output/product system becoming more powerful than the other.
In order for the adoption of a portfolio management process (which would be new to this unit) to be successful, the following steps must be followed under the guidance of the portfolio management, and in collaboration with the individual project managers and PMO:
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)
Lastly, the matrix structure is a combination of the functional and multidivisional structures (Rothaermel, 2013). It is most appropriate when an organization needs a structure which allows for both centralized and decentralized decision-making, and can be organized by geographic areas and product divisions (Rothaermel, 2013). While a global strategy does not automatically lend to a matrix structure, a transnational strategy which has the requirements above is better served through a matrix structure (Rothaermel, 2013).
In a matrix structure, each employee answers to two immediate supervisors: a department supervisor and a project manager. The department supervisor is charged with overseeing employees in a functional area such as marketing or engineering. Project supervisors manage a specific and often impermanent project. They absorb employees from various functional areas to complete their project teams. This kind of organizational structure has several advantages especially if the project managers identify their team strengths and weakness early. Directing the staff with effective leadership skills is a key role as a project manager. A clear direction of the project from start to completion is vital. Therefore, the project managers must carry top notch planning and organizational skills. To follow the WBS and have a clear understanding of the importance of remaining on budget throughout the entire project is mandatory. The experienced project manager must keep planning, staffing, budgeting and scheduling and other control techniques under wrap, by utilizing their administrative skill according to Project Management, (Kerzner, 2013). Although the administrative and other techniques are important, in this particular project, each project manager must work closely as a team member and example. Building the team and each departmental manager into a working cohesive team, could be the true
Multi Projects Inc. has moved away from the traditional hierarchy structure of organisations that have leaders and various sub departments reporting upward and opted on a new-economy approach by adopting a matrix organisational structure. Even though this is a very forwarding thinking approach, it does come with its own challenges that have been highlighted in detail under the section “Problems and their causes”.
Term Paper for Course MGMT 633 Submitted to the Worldwide Online Campus in Partial Fulfillment of the Requirements of the Degree of Masters of Project Management
BEC has taken on the matrix organizational structure. This type of structure combines functional and divisional organization structure styles. There are advantages and disadvantages in utilizing this
This case study analyzed five different projects Target Corporation had to decide on capital spent for which project created the most value and the most growth for the company and its shareholders. By analyzing the financial statements and exhibits of each project, I was able to determine the positives and negatives of each of these alternatives. The alternatives were Gopher Place, Whalen Court, The Barn, Goldie’s Square, or Stadium Remodel.
“A matrix organizational structure represents the middle ground between functional and project structures. Personnel often report both to a functional manager and one or more project managers” (Schwalbe, 2014). In the CDB project Corporate Banking, Corporate Trust, and Consumer banking involve to this project. Project Management Office is a good way to coordinate the contradiction between those divisions.
The objectives of PPM are to determine the optimal resource mix for delivery and to schedule activities to best achieve an organization’s operational and financial goals ― while honoring constraints imposed by customers, strategic objectives, or external real-world factors. Portfolio management can be seen as providing governance structures adopted to minimize the overall costs in converting ‘‘input’’ to ‘‘output’’ through projects. When viewing projects as transactions, these costs are known as transaction costs, which are the sum of all costs for governing projects. Several researchers, such as Müller and Turner (2005) and Blomquist and Müller (2006), have proposed that the transaction cost economics theory (TCE) provides one theoretical framework for explaining the project and portfolio phenomenon.
It is clear to see that throughout the project the tasks and progress were monitored very closely. The project is heavily dependent on the resources provided by its shareholders and in turn they rely on regular updates to reassure them on their investment. In the construction and building industry the methods and application of project management tools are very reliable and well tested. Therefore, it could benefit the project if the it was managed with detailed and defined practises and also follow standards set and agreed upon on a international level.
Your firm, Supreme Financial Solutions, have just won a £3 million contract from Deep Blue Seaways that will require you – the Project Manager – to execute. You are pretty certain from your experience with Deep Blue Seaways that this project is seriously underfunded by possibly as much as £1 million. You are to replace their outdated finance systems with your company’s renowned Finance Wizard product, a system that processes all financial information, and produces an infinite array of management information reports that have been proved to improve strategic decision making in
Although there are signs that the company has a matrix structure in place, they do not follow a programme management approach and numerous failures within the structure exist. Their approach to management is still that of a traditional organisational approach, which tends management to lack both strategic purpose and customer focus.