What does project organisation mean?

Project organisation, derived from the term “organisation”, describes the design, regulation and execution of processes within a project and ensures efficient collaboration based on established rules, norms and values.

Which areas is project organisation divided into?

Project organisation is usually divided into three areas of responsibility: project leadership, which handles project management, the project team, which delivers the project, and the steering committee, which decides on the project's success or termination.

Which forms of project organisation are there?

There are primarily three forms: the dedicated (autonomous) project organisation, in which the team is fully separated from the line, the staff or influence project organisation, in which the project manager only coordinates and advises, and the matrix project organisation, in which project leadership and line managers share authority.

What is the difference between structural and process organisation?

Structural organisation defines the structure of a project, meaning roles, committees and responsibilities. Process organisation, by contrast, governs the processes, phases and workflows through which the project is delivered. Both are aligned with each other during project planning.

What does good project organisation ensure?

Good project organisation ensures efficient collaboration within the project, previously established through rules, norms and values.

Project Organisation - Definition

What is Project Organisation? Definition and meaning

Project organisation, derived from the term “organisation”, describes the design and regulation, as well as the execution of processes within a project. Project organisation ensures efficient collaboration, which was previously established through rules, norms and values.

It thereby creates the organisational framework within which a project is planned, managed and delivered. A clear project organisation governs who takes on which tasks, how decisions are made and how team, leadership and client work together. It is therefore an important foundation for successful project management and robust project planning.

Structural and process organisation in a project

Project organisation can be considered along two dimensions:

Structural organisation: It defines the structure of the project, meaning roles, committees, hierarchies and responsibilities. It answers the question of who holds which task and authority within the project.
Process organisation: It governs the processes, phases and workflows of a project. It answers the question of how and in which order the work in the project is carried out.

Both dimensions interlock: only once the roles are clearly assigned and the workflows are defined can a project be delivered smoothly.

Types of Project Organisation

Project organisation is usually divided into three areas of responsibility:

The project leadership is responsible for project management.
The project team delivers the project.
The steering committee determines the project’s success or termination.

Forms of Project Organisation at a glance

How a project is embedded into the existing company structure depends above all on the project manager’s authority. In practice, three basic forms have become established.

Dedicated (autonomous) project organisation

In the dedicated project organisation, also known as autonomous project organisation or task force, the project staff are fully separated from their line department and report solely to the project manager. The latter holds full functional and disciplinary authority.

Advantages: clear responsibility, short decision paths, strong identification of the team with the project.
Disadvantages: heavy commitment of resources, difficult reintegration of staff after the project ends, usually only economical for large projects.

Staff project organisation (influence project organisation)

In the staff or influence project organisation, the project manager is deployed as a staff position without any authority of their own. They coordinate, advise and inform, while the staff remain in their line departments.

Advantages: flexible, no reorganisation required, low organisational effort.
Disadvantages: limited assertiveness of the project leadership, slower decisions, the project competes with day-to-day operations.

Matrix project organisation

The matrix project organisation is a compromise between the two forms. Authority is shared: the project manager is functionally responsible for the project, while the line manager remains responsible in disciplinary terms. The staff are therefore subject to a dual reporting line.

Advantages: flexible deployment of resources, the expertise of the line is retained, balanced distribution of responsibility.
Disadvantages: risk of competence conflicts due to the dual reporting line, as well as a high need for coordination.

Project Organisation in practice

Which form is the right one depends on the size, duration and importance of the project: small undertakings can often be represented in a staff or matrix form, whereas strategically important large projects tend to justify a dedicated project organisation. Regardless of the form, every project organisation benefits when roles, responsibilities and workflows are visible in one central place.

A software for project management helps to map the project organisation: tasks and those responsible are transparently assigned, project planning records phases and deadlines, and everyone involved, from the project leadership through the team to the steering committee, works from the same data basis.