THE SAN FRANSISCO PMI COS COFERENCE 2011
Through scientific projects of high complexity, CONSTELLATION BY PRIMAFRANCE ® offers interesting opportunities to work independently in several work units, while maintaining a level high consistency and coordination.
Systemic semi-automatisation data reconciliation process provides a significant performance gain and significantly reduces input errors.
(The San Francisco PMI COS Conference presentation 2011 - the ITER CASE STUDY -http://www.pmicosconference.com/abstracts.html)
lundi 29 novembre 2010
jeudi 5 août 2010
Constellation by PrimaFrance (PMI COS)
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Constellation by PrimaFrance (PMI COS)
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mardi 3 août 2010
EPISOD 8 - CONCLUSION
CONSTELLATION BY PRIMAFRANCE
As illustrated in the previous paragraphs, effective development and management of complex project schedules requires the organizations to take decisions early, about which management approach they intend to implement and how the approach will change as the corporate organization matures.
As software module of the “Constellation Method” is build upon existing scheduling tools, using standard scheduling practices, it requires minor modifications on the procedures governing schedule development and management. Moreover as it transmits information via compressed and encrypted messages, it does not require very fast network connection between the units. In fact, the software module had been developed to be able to work on a standalone mode, and to be able to replace the messaging system with other media capable of transferring files, like e-mail, FTP, etc.
Centrally managing all processes requires the necessary PMO organization to be implemented, ensuring the IT support, etc. Development of these organizations takes considerable time and requires early, steady and long term commitment from the Management, keeping in mind that, no tangible results will appear within considerable time period.
On contrary, the “Constellation Method” by PrimaFrance/PrimaConsulting requires simple modifications on the processes and on the IT system; it can be implemented rather quickly and will provide results right from the start.
As illustrated in the previous paragraphs, effective development and management of complex project schedules requires the organizations to take decisions early, about which management approach they intend to implement and how the approach will change as the corporate organization matures.
As software module of the “Constellation Method” is build upon existing scheduling tools, using standard scheduling practices, it requires minor modifications on the procedures governing schedule development and management. Moreover as it transmits information via compressed and encrypted messages, it does not require very fast network connection between the units. In fact, the software module had been developed to be able to work on a standalone mode, and to be able to replace the messaging system with other media capable of transferring files, like e-mail, FTP, etc.
Centrally managing all processes requires the necessary PMO organization to be implemented, ensuring the IT support, etc. Development of these organizations takes considerable time and requires early, steady and long term commitment from the Management, keeping in mind that, no tangible results will appear within considerable time period.
On contrary, the “Constellation Method” by PrimaFrance/PrimaConsulting requires simple modifications on the processes and on the IT system; it can be implemented rather quickly and will provide results right from the start.
lundi 2 août 2010
EPISOD 7 - PROCESSES OF CONSTELLATION
CONSTELLATION BY PRIMAFRANCE
Update Connection
Project schedules are changing at both, Leading Unit and Participating Unit sides as the project execution progresses. Such changes, mainly caused by the progress recorded, are affecting the established project connections between units. Dates, when information required or provided, are changing according to the progress, and requires the connections to be updated in both directions. Since the connections between units can be complicated, a simple change in one of the project schedule will trigger a connection update to all schedules of all Constellations.
Recall Connection
Project progress can also make information demand obsolete. The Recall Connection module of the “Constellation Method” allows the unit, who requested information, to recall (delete) the demand (connection). This will cut the connection between the demanding and providing units. All recalled connections can be recreated if the need appears again via a new connection demand.
Processes of Constellation
Delegation
Once the scope definition of the project is completed and resource requirements are established by the Leading Unit, the actors and their roles are fixed in the high-level schedule. This high level schedule is used for reporting towards the sponsors, the steering committee and to the Client.
As defined in the Project Management Plan and in the Schedule Management plan, the different tasks then assigned to the selected Participating Units who are in charge of the delivery. During the Delegation, the tasks defined by the Leading Unit become projects at the Participating Units side. Project boundaries (for the Participating Unit) are specified by the characteristics of the task which been delegated. These boundaries are the Start and Finish dates and the assigned budget.
Update Delegation
Project scope changes, in a well managed project, with controlled manner. If the “Constellation Method” is applied on the project, this change is managed by the Leading Unit which then transfers the information to the Participating Units. When a scope change affects a task which had been delegated already, the changes are transferred via the Update Delegation process of the “Constellation Method”. Such change can include a modification in the start date, duration or the finish date of the task, or in the allocated budget.
Recall Delegation
Project are being cancelled or postponed even after their start. The Recall Delegation module of the “Constellation Method” allows the Leading Unit to cancel an existing delegation. When the Recall Delegation message is accepted, the project at the Participating Unit side becomes a deleted project but remains in the scheduling system (with a special attribute) in order to provide historical information about the resources consumed till the date of the recall. Once a task is recalled from a Participating Unit, it will become available for a new delegation.
Progress Update
Timely availability of accurate and credible information is mandatory to take decisions on time. As detailed project schedules are being developed and managed at various geographical locations, collecting progress related data becomes more and more difficult to manage. Progress Update executed at the Participating Unit side creates a specific message which contains all progress related information from each activity inserted into the schedule by the Participating Unit. It includes the start and finish dates, progress % and cost related information. But the message does not contain the task itself and after acceptance by the Leading Unit these tasks are not being recreated. Without modification on the original schedule (at the Leading Unit side) the planning system displays the float (negative, positive) which is associated with the delegated task.
Project Connection
There might be cases when Participating Unit A needs information in order to start one of his tasks. However this information is not available within this organization. If such situation happens, Participating Unit A can send a demand to its Leading Unit. After analyzing the demand, the Leading Unit can decide whether he is able to provide the information from his own schedule or other project or the demand should be delegated further to other Participating Units within the organization. Due to the fact that contractual relationship only exists between the Leading Unit and Participating Unit, the Leading Unit is acting as a broker between the demanding and providing units, ensuring that the demand is fulfilled.
Once the scope definition of the project is completed and resource requirements are established by the Leading Unit, the actors and their roles are fixed in the high-level schedule. This high level schedule is used for reporting towards the sponsors, the steering committee and to the Client.
As defined in the Project Management Plan and in the Schedule Management plan, the different tasks then assigned to the selected Participating Units who are in charge of the delivery. During the Delegation, the tasks defined by the Leading Unit become projects at the Participating Units side. Project boundaries (for the Participating Unit) are specified by the characteristics of the task which been delegated. These boundaries are the Start and Finish dates and the assigned budget.
Update Delegation
Project scope changes, in a well managed project, with controlled manner. If the “Constellation Method” is applied on the project, this change is managed by the Leading Unit which then transfers the information to the Participating Units. When a scope change affects a task which had been delegated already, the changes are transferred via the Update Delegation process of the “Constellation Method”. Such change can include a modification in the start date, duration or the finish date of the task, or in the allocated budget.
Recall Delegation
Project are being cancelled or postponed even after their start. The Recall Delegation module of the “Constellation Method” allows the Leading Unit to cancel an existing delegation. When the Recall Delegation message is accepted, the project at the Participating Unit side becomes a deleted project but remains in the scheduling system (with a special attribute) in order to provide historical information about the resources consumed till the date of the recall. Once a task is recalled from a Participating Unit, it will become available for a new delegation.
Progress Update
Timely availability of accurate and credible information is mandatory to take decisions on time. As detailed project schedules are being developed and managed at various geographical locations, collecting progress related data becomes more and more difficult to manage. Progress Update executed at the Participating Unit side creates a specific message which contains all progress related information from each activity inserted into the schedule by the Participating Unit. It includes the start and finish dates, progress % and cost related information. But the message does not contain the task itself and after acceptance by the Leading Unit these tasks are not being recreated. Without modification on the original schedule (at the Leading Unit side) the planning system displays the float (negative, positive) which is associated with the delegated task.
Project Connection
There might be cases when Participating Unit A needs information in order to start one of his tasks. However this information is not available within this organization. If such situation happens, Participating Unit A can send a demand to its Leading Unit. After analyzing the demand, the Leading Unit can decide whether he is able to provide the information from his own schedule or other project or the demand should be delegated further to other Participating Units within the organization. Due to the fact that contractual relationship only exists between the Leading Unit and Participating Unit, the Leading Unit is acting as a broker between the demanding and providing units, ensuring that the demand is fulfilled.
Update Connection
Project schedules are changing at both, Leading Unit and Participating Unit sides as the project execution progresses. Such changes, mainly caused by the progress recorded, are affecting the established project connections between units. Dates, when information required or provided, are changing according to the progress, and requires the connections to be updated in both directions. Since the connections between units can be complicated, a simple change in one of the project schedule will trigger a connection update to all schedules of all Constellations.
Recall Connection
Project progress can also make information demand obsolete. The Recall Connection module of the “Constellation Method” allows the unit, who requested information, to recall (delete) the demand (connection). This will cut the connection between the demanding and providing units. All recalled connections can be recreated if the need appears again via a new connection demand.
mercredi 28 juillet 2010
EPISOD 6 - AUDIENCE AND ACTORS OF CONSTELLATION
CONSTELLATION BY PRIMAFRANCE
Audience
Collecting and integrating different project schedules into one consistent schedule is a time consuming activity. Not only the scheduler, who manages the master schedule, should have the knowledge about the scope elements executed by the other units, but also he/she should be able to think the way the other planners thought while developing the schedule.
In order to provide additional security over the data exchanged, the processes of the “Constellation Method” are grouped and related to different project roles. The two main roles are the Project Manager and Scheduler. Access to project schedule data is governed by corporate policies and project processes, therefore no other roles were identified and connected to Constellation.
Constellation is being developed to help project schedule consolidation and targeting of project planners and project managers.
Actors of a Constellation
Constellations are visible on the sky because they are composed from bright stars. If we follow this analogy, each organization playing active role in the project execution is a bright star. However in project management this will create chaos, we need to identify a bright star, which is actually brighter than the others. Let us call this star as the Leading Unit.
The Leading Unit
This Leading Unit is the point where the different “constellations” which are created following the method, are connected to each other to form even more complex structures. To illustrate this, imagine the organization chart of a project, where the Project Manager is the connector between the Client’s organization and the project organization. Each organization is a “constellation” of resources, including their relations, proximities, power and influences.
By following the previous analogy, the Leading Unit is the unit which takes the sole responsibility towards the final Client for the project and its deliverables. All other units are revolving around the Leading Unit.
Before we go any further, we need to identify and name all the other bright stars which are part of the Constellation. These stars are the Participating Units.
The Participating Unit
Participating Units are the “other stars” of the constellation; they are visible to the trained eyes and those, who are familiar with the project, but remain accessible only via the Leading Unit.
Participating Units are responsible for certain scope elements delegated to them by the Leading Unit.
Nested Constellations
Today we only know a certain number of constellations. Imagine that a powerful tool is available and the human kind is able to look beyond the currently known stars. There might be other constellations…
Units within a corporation are playing different roles in different projects, which means that Unit A plays the role of Leading Unit in Project A, but a Participating Unit for Project B. Possibilities are only limited by the computing power of the used hardware and software and by the capacity of the team members to control complex structures.
Audience
Collecting and integrating different project schedules into one consistent schedule is a time consuming activity. Not only the scheduler, who manages the master schedule, should have the knowledge about the scope elements executed by the other units, but also he/she should be able to think the way the other planners thought while developing the schedule.
In order to provide additional security over the data exchanged, the processes of the “Constellation Method” are grouped and related to different project roles. The two main roles are the Project Manager and Scheduler. Access to project schedule data is governed by corporate policies and project processes, therefore no other roles were identified and connected to Constellation.
Constellation is being developed to help project schedule consolidation and targeting of project planners and project managers.
Actors of a Constellation
Constellations are visible on the sky because they are composed from bright stars. If we follow this analogy, each organization playing active role in the project execution is a bright star. However in project management this will create chaos, we need to identify a bright star, which is actually brighter than the others. Let us call this star as the Leading Unit.
The Leading Unit
This Leading Unit is the point where the different “constellations” which are created following the method, are connected to each other to form even more complex structures. To illustrate this, imagine the organization chart of a project, where the Project Manager is the connector between the Client’s organization and the project organization. Each organization is a “constellation” of resources, including their relations, proximities, power and influences.
By following the previous analogy, the Leading Unit is the unit which takes the sole responsibility towards the final Client for the project and its deliverables. All other units are revolving around the Leading Unit.
Before we go any further, we need to identify and name all the other bright stars which are part of the Constellation. These stars are the Participating Units.
The Participating Unit
Participating Units are the “other stars” of the constellation; they are visible to the trained eyes and those, who are familiar with the project, but remain accessible only via the Leading Unit.
Participating Units are responsible for certain scope elements delegated to them by the Leading Unit.
Nested Constellations
Today we only know a certain number of constellations. Imagine that a powerful tool is available and the human kind is able to look beyond the currently known stars. There might be other constellations…
Units within a corporation are playing different roles in different projects, which means that Unit A plays the role of Leading Unit in Project A, but a Participating Unit for Project B. Possibilities are only limited by the computing power of the used hardware and software and by the capacity of the team members to control complex structures.
mardi 27 juillet 2010
EPISOD 5 - THE CONSTELLATION METHOD
CONSTELLATION BY PRIMAFRANCE
The “Constellation Method” developed by PrimaFrance/PrimaConsulting blends into a coherent structure the top-down/bottom-up scheduling techniques and the advantages of the De-centralized Management method. The De-centralized Management Approach where each unit follows the guidelines issued by the corporate and the relevant project procedures ensuring data aggregation and centralized reporting towards the Client and HQ, remains possible.
As will be explained in subsequent paragraphs, the main process of the “Constellation Method” is the delegation. During a delegation, a task from the high level project schedule becomes a project at level of the other unit, where it is further decomposed into smaller elements. This process can be seen as the Top-Bottom scheduling method. The progress sent by the unit in charge of the delivery is incorporated into the master schedule where the data is verified against the original project schedule. This process is the equivalent of the Bottom-Up approach. The Constellation Method allows the project teams to execute the Top-Down/Bottom-Up planning within the same, well defined environment.
Although the idea behind the previously defined method is well known and researched by many schedulers, what makes Constellation different is the mechanism and related software tool build on top of the scheduling engine.
The “Constellation Approach” by PrimaFrance/PrimaConsulting has three major elements:
Procedures: which are based on the corporate management procedures, and dictates the minimum requirements each schedule to fulfill, to allow connection between them and aggregation at the Leading Unit level.
Standard schedule elements: as it was stated before, the Constellation Method is not revolutionary but evolutionary. In order to achieve quick return, only schedule elements are used, as defined in the PMI’s Practice Standard for Scheduling (2007). By doing so, the units will remain within a well known environment, therefore facilitating acceptation and allowing quick utilization. The applied schedule elements are: WBS, Start and Finish Milestones.
Software: all the above allows units in different countries to share schedules by exporting and importing them from and into their systems. However this causes some problems. When the schedule is imported, usually the whole project is imported with all additional attributes, which will create the same structure at the receiver side. Moreover, as the whole schedule is being imported, the receiving unit will have to integrate this “new” schedule into his/her schedule, connect it together and ensure that these two work seamlessly. In case of a complex project, this is an enormous task as the receiver should be able to understand the logic of the other schedule and take the right decisions without having in his/her possession all the information.
On the other hand, the “Constellation Method” contains a software element sitting above the existing scheduling tool used by the unit, and the procedures which simplifies the importation of data.
While the main purpose of the software application is to help the schedulers at the units with as much automation as possible, when Constellation was designed, we made sure that none of the crucial process is being executed without acknowledgement and acceptation from the unit.
Communications between the different units are done via an industry standard messaging system. Each data exchange contains an XML based, encrypted and compressed message. The message format ensures that the files are small and the encryption provides protection of the sensitive data.
Nevertheless of these elements, traditional communication between project team members cannot be and shall not be replaced by tools. It is mandatory that project communication is governed and monitored by processes, and encouraged by the project management team.
The “Constellation Method” developed by PrimaFrance/PrimaConsulting blends into a coherent structure the top-down/bottom-up scheduling techniques and the advantages of the De-centralized Management method. The De-centralized Management Approach where each unit follows the guidelines issued by the corporate and the relevant project procedures ensuring data aggregation and centralized reporting towards the Client and HQ, remains possible.
As will be explained in subsequent paragraphs, the main process of the “Constellation Method” is the delegation. During a delegation, a task from the high level project schedule becomes a project at level of the other unit, where it is further decomposed into smaller elements. This process can be seen as the Top-Bottom scheduling method. The progress sent by the unit in charge of the delivery is incorporated into the master schedule where the data is verified against the original project schedule. This process is the equivalent of the Bottom-Up approach. The Constellation Method allows the project teams to execute the Top-Down/Bottom-Up planning within the same, well defined environment.
Although the idea behind the previously defined method is well known and researched by many schedulers, what makes Constellation different is the mechanism and related software tool build on top of the scheduling engine.
The “Constellation Approach” by PrimaFrance/PrimaConsulting has three major elements:
Procedures: which are based on the corporate management procedures, and dictates the minimum requirements each schedule to fulfill, to allow connection between them and aggregation at the Leading Unit level.
Standard schedule elements: as it was stated before, the Constellation Method is not revolutionary but evolutionary. In order to achieve quick return, only schedule elements are used, as defined in the PMI’s Practice Standard for Scheduling (2007). By doing so, the units will remain within a well known environment, therefore facilitating acceptation and allowing quick utilization. The applied schedule elements are: WBS, Start and Finish Milestones.
Software: all the above allows units in different countries to share schedules by exporting and importing them from and into their systems. However this causes some problems. When the schedule is imported, usually the whole project is imported with all additional attributes, which will create the same structure at the receiver side. Moreover, as the whole schedule is being imported, the receiving unit will have to integrate this “new” schedule into his/her schedule, connect it together and ensure that these two work seamlessly. In case of a complex project, this is an enormous task as the receiver should be able to understand the logic of the other schedule and take the right decisions without having in his/her possession all the information.
On the other hand, the “Constellation Method” contains a software element sitting above the existing scheduling tool used by the unit, and the procedures which simplifies the importation of data.
While the main purpose of the software application is to help the schedulers at the units with as much automation as possible, when Constellation was designed, we made sure that none of the crucial process is being executed without acknowledgement and acceptation from the unit.
Communications between the different units are done via an industry standard messaging system. Each data exchange contains an XML based, encrypted and compressed message. The message format ensures that the files are small and the encryption provides protection of the sensitive data.
Nevertheless of these elements, traditional communication between project team members cannot be and shall not be replaced by tools. It is mandatory that project communication is governed and monitored by processes, and encouraged by the project management team.
lundi 26 juillet 2010
EPISOD 4 - CONTROLLING APPROACHES
CONSTELLATION BY PRIMAFRANCE
“Choreography is the art of designing sequences of movements in which motion, form, or both are specified.” (http://en.wikipedia.org/wiki/Choreography)
The elements of the constellation shall move together according to a well defined choreography, this choreography is defined in the project schedule by the sequence of the activities. In the scenario that we are examining, the actors are located in the different continents, different countries and, moreover, in different time zones. The Project Manager, who is acting as a choreographer, is tasked to create a “show”, casting the different actors.
Nevertheless, the audience – the Client – should only see a world class performance, lead by the ballerina, supported by the other actors. How to achieve this?
There is no question about the necessity of centralization in controlling complex projects with many actors; however we shall differentiate and apply only the necessary amount of centralization to the project. We are going to analyze briefly the two approaches in the following paragraphs.
Centralized Management
While the title used might be misleading, as a certain degree of centralization is essential in each corporation and project, the Centralized Management Approach and De-centralized Management Approach titles are used to illustrate the differences between the two.
In the Centralized Management Approach, the corporate, via the HQ dictates and enforces heavily the usage of processes, procedures and tools.
As organizations mature, their processes and tools are become more and more effective and tuned. This maturity brings increased level of centralization. While centralization has several advantages over a de-centralized model, we would like to discuss briefly only the following points.
As corporations are changing, changes in the processes, workflows and tools should follow the evolution. All these change requests are expressed by the users at various units, but the final decision is taken by the central team, usually managed at HQ level. While this team is composed from subject matter experts and all units are represented, the decision making process can take long time from identifying the need to the final decision. Since decisions are taken away from the site, the units are somehow obliged to find “shortcuts” to answer their needs while decision is being taken.
Examples, like Google Inc. show, that encouraged innovation can bring benefits to the company. The example used is called the 20 percent time project rule. This rule allows programmers and other Google employees to spend one of their five work days per week working on something of their own design.
The centralized management approach can also discourage employees to take up initiatives on their own. Having a team, located far away from the units, to take all decisions will project unnecessary bureaucracy towards the units. They will have the impression, which is sometimes false, that their voice is not heard and that no matter what they do, the decision will be taken above them.
Such belief can also take away the feeling of responsibility. People might question why they should feel responsible for decisions they were not part of it.
Some key points to consider while considering the Centralized Management model:
· Centralized control using defined processes.
· Centralized systems entail a high initial cost disadvantage.
· System inflexibility causes costs escalation.
· Might be slow, due to one central system carrying out all the requested tasks.
· Local independent processing is not allowed and system is dependent on the one CPU.
· Centralized information systems are isolated from real business priorities and concerns.
· Centralization and bureaucratic system can reduce innovation and feeling of responsibility.
· Cost increase and extended time to integrate newly acquired companies into the structure.
De-centralized Management
When an organization enjoys a greater level of independence, it can respond to business needs faster and more effectively. It also increases the capability of innovation, not only the individuals but also the unit as a whole.
Even the De-centralized Management depends on a certain level of centralization. While policies and procedures are created and managed locally, it is inevitable, that certain level of co-ordination should be implemented to ensure reporting at higher level. Unfortunately, this leads to have as many policies and procedures as many units are in the organization.
As each unit acts in an independent way, unit based organizations have to be built to answer all needs of the unit in question. Resource duplication not only occurs in supporting roles, but each organization should build their resource pool of specialized skills.
Key points to consider while considering the De-centralized Management model:
· Start-up cost relatively low (compared to the Centralized Management model).
· Tailoring and scaling to individual needs is possible.
· Increased organizational flexibility and responsiveness due to autonomy.
· System reliability increased.
· Lack of centralized control.
· Clashes in policy lead to delay and inefficiency.
· Different vendors for different system components.
· High degree of duplication of resources, efforts and expertise causing cost increase.
“Choreography is the art of designing sequences of movements in which motion, form, or both are specified.” (http://en.wikipedia.org/wiki/Choreography)
The elements of the constellation shall move together according to a well defined choreography, this choreography is defined in the project schedule by the sequence of the activities. In the scenario that we are examining, the actors are located in the different continents, different countries and, moreover, in different time zones. The Project Manager, who is acting as a choreographer, is tasked to create a “show”, casting the different actors.
Nevertheless, the audience – the Client – should only see a world class performance, lead by the ballerina, supported by the other actors. How to achieve this?
There is no question about the necessity of centralization in controlling complex projects with many actors; however we shall differentiate and apply only the necessary amount of centralization to the project. We are going to analyze briefly the two approaches in the following paragraphs.
Centralized Management
While the title used might be misleading, as a certain degree of centralization is essential in each corporation and project, the Centralized Management Approach and De-centralized Management Approach titles are used to illustrate the differences between the two.
In the Centralized Management Approach, the corporate, via the HQ dictates and enforces heavily the usage of processes, procedures and tools.
As organizations mature, their processes and tools are become more and more effective and tuned. This maturity brings increased level of centralization. While centralization has several advantages over a de-centralized model, we would like to discuss briefly only the following points.
As corporations are changing, changes in the processes, workflows and tools should follow the evolution. All these change requests are expressed by the users at various units, but the final decision is taken by the central team, usually managed at HQ level. While this team is composed from subject matter experts and all units are represented, the decision making process can take long time from identifying the need to the final decision. Since decisions are taken away from the site, the units are somehow obliged to find “shortcuts” to answer their needs while decision is being taken.
Examples, like Google Inc. show, that encouraged innovation can bring benefits to the company. The example used is called the 20 percent time project rule. This rule allows programmers and other Google employees to spend one of their five work days per week working on something of their own design.
The centralized management approach can also discourage employees to take up initiatives on their own. Having a team, located far away from the units, to take all decisions will project unnecessary bureaucracy towards the units. They will have the impression, which is sometimes false, that their voice is not heard and that no matter what they do, the decision will be taken above them.
Such belief can also take away the feeling of responsibility. People might question why they should feel responsible for decisions they were not part of it.
Some key points to consider while considering the Centralized Management model:
· Centralized control using defined processes.
· Centralized systems entail a high initial cost disadvantage.
· System inflexibility causes costs escalation.
· Might be slow, due to one central system carrying out all the requested tasks.
· Local independent processing is not allowed and system is dependent on the one CPU.
· Centralized information systems are isolated from real business priorities and concerns.
· Centralization and bureaucratic system can reduce innovation and feeling of responsibility.
· Cost increase and extended time to integrate newly acquired companies into the structure.
De-centralized Management
When an organization enjoys a greater level of independence, it can respond to business needs faster and more effectively. It also increases the capability of innovation, not only the individuals but also the unit as a whole.
Even the De-centralized Management depends on a certain level of centralization. While policies and procedures are created and managed locally, it is inevitable, that certain level of co-ordination should be implemented to ensure reporting at higher level. Unfortunately, this leads to have as many policies and procedures as many units are in the organization.
As each unit acts in an independent way, unit based organizations have to be built to answer all needs of the unit in question. Resource duplication not only occurs in supporting roles, but each organization should build their resource pool of specialized skills.
Key points to consider while considering the De-centralized Management model:
· Start-up cost relatively low (compared to the Centralized Management model).
· Tailoring and scaling to individual needs is possible.
· Increased organizational flexibility and responsiveness due to autonomy.
· System reliability increased.
· Lack of centralized control.
· Clashes in policy lead to delay and inefficiency.
· Different vendors for different system components.
· High degree of duplication of resources, efforts and expertise causing cost increase.
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