Abstract
Capital intensive organizations around the world have been facing significant pressure due to budget constraints. The success of capital expenditure projects is significantly influenced by good project management including project management structure. This paper is on how the roles of functional and project managers can positively influence project performance in a matrix structure. A case study was conducted in a Technology organization which have restructured their software department from a top-down reporting structure to a Matrix Structure (dual management system). The Functional managers who were inherited from the previous structure questioned their role in the matrix structure and needed to understand their new role and if they were being effective. The managers and team operating in the matrix structure had to change their mindsets to allow the co-existents of two managers working together to implement projects which have uncertain complex requirements (agile mentality). Using Project Management standards (ISO21500 (ISO, 2012) and GAPPS (GAPPS, 2003)), the measure of the effectiveness of the roles of both Functional and Project Managers was achieved. This article identified gaps in the current roles of the managers and in the matrix structure itself. The focus of the research was to identify the factors that were negatively influenced by the project structure such as quality of the projects, level of risk engaged and return on investment from the projects delivered. The retention of top employees is the responsibility of the functional managers and it was found that the software team had haemorrhaged top employees at a rate of 9.56 percent through resignations in the last year. The projects delivered by the team did not meet the company’s objectives of 100 percent deliverables on projects and achieved only 94.17 percent. The change management process was not handled well in the matrix structure and resulted in the organization sacrificing time and quality. The better use of Project Management standards and practices will allow the organization to improve their project deliverables in respect to quality, time, cost management and value (customer satisfaction). The managers must seek to achieve a balanced matrix by adequately communicating with each other and have ground rules to reduce conflict in the project structure.
M.Ing. (Engineering Management)