Factors in designing  a project structure

The project's success is defined by a properly designed organisation chart. An organisation chart shows where each person is positioned in the project structure. An organisation chart is drawn in pyramid form where individuals positioned closer to the top of the pyramid have more authority and responsibility  than  members  located toward  the  bottom.  It  is  the  virtual locations of the individuals on the organisation chart that specifies the working relationships, and the lines relating the boxes  designate formal supervision and lines of communication between the individuals.

Creating the project structure is only a component of organising the project; it is the actual implementation and application that takes the most effort. The organisation chart sets up the formal relationships among project manager, the project team members, the development organisation, the project, beneficiaries and other project stakeholders. This organisation must make possible an effective interaction and integration among  the entire major project participants and achieve open and effective communication among them.

Figure: Organisational Chart

The project manager must plan a project structure that will meet the various project needs at different phases of the project. The structure should be designed to facilitate the interaction of people to achieve the project ultimate goals within the specified constraints of scope, schedule, budget and quality. The purpose in designing a project structure is to provide a formal environment that the project manager can use to influence team members to do their best in completing their assignment and duties. The structure needs to be designed to help build up collaboration among individual team members in a cost effective way with a minimum of replication of effort and overlaps.

The organisation chart provides a road map of the relationship among team members. Other detailed consideration that needs to be addressed includes communications, information flows, coordination and collaboration among its members.