How organizational culture can influence project management
In every company, project management happens within the much larger context of the
company’s organizational culture. Having a good understanding of this broader context can help
to keep the work of project management in synch with the objectives of the organization, and
aligned with already-established practices. Often discredited, we underestimate how corporate
culture can affect a project’s progress – for better or worse.
This is especially important in a teleworking environment where the corporate culture is
more difficult to communicate. It becomes essential that the organization's culture is strong and
clear so that each project is managed the same way. It also allows for a better integration of new
employees who, working from home, will not have the exact pulse of the entire organization.
Even within similar industries, there are often differences in the way that companies treat
the life cycle of a project, documentation, resources, etc. that stem from differences in corporate
culture. There is no one type of organizational culture that’s better or more productive than the
rest. They are simply different, and these differences have an impact on project managers.
In this article, we will explain how organizational structure and corporate culture influence
project management.
Organizational influences on project management
Things like the culture and structure of an organization can influence the way projects are
managed and executed.
Along the same lines, the level of maturity of project management within an organization
and the management processes in place can also impact how smoothly a project is carried out.
As soon as a project involves multiple third parties such as partners, sub-contractors or
even clients, the success of the project quickly becomes dependant on the contributions of each
stakeholder. Also, with teleworking, it can be more difficult to interpret a partner's maturity,
which makes it all the more important to have a strong corporate culture.
For example, if a project depends upon the active participation of a sub-contractor whose
project management processes are less mature, the progress of the project could slow down
significantly, which in turn would prevent it from being delivered on time.
What is corporate culture?
Corporate culture, also known as organizational culture, refers to the full range of a
company’s characteristics and components. The goal is to differentiate a company from its
competitors, but also to act as a unifying force by improving the lines of communication between
company employees.
Corporate culture is based in part on employees’ shared values, and is in part defined by
management, company history, employees’ professional culture, etc.
Where does project management fit in all this?
Now that you’ve gotten a bit of a definition of what organizational culture is, we’re going
to explore why an understanding of corporate culture matters for project managers.
As described in the PMI Guide to the Project Management Body of Knowledge (PMBOK
Guide), 5th edition, “The culture of an organization is created by the experiences of its members.
The majority of organizations have developed their own unique cultures through years of
practice and common usage.”
These experiences include the following elements:
• Vision, mission, values, beliefs and common expectations
• Policies, methods and procedures
• Incentives and reward systems instituted within a company
• High or low risk tolerance
• View of leadership, hierarchy and relationship to authority
• Code of conduct, ethics and work hours
• Work environment
Projects considered to be aligned with organizational culture may have smoother
implementations and higher success rates than projects that challenge these cultural norms. Also,
understanding the organizational culture and its relationship to project management can help
companies figure out which projects to pursue and which to put aside. This is a priority at Adviso
that we apply to understanding our clients’ realities, aligning ourselves with their values and
corporate culture, and getting involved on that level.
Organizational culture and conflict
Project managers therefore need to interact with a wide range of cultural systems, often
simultaneously. They aren’t always familiar with the cultural influences, and often run into
conflicts and misunderstandings when dealing with different resources, providers and clients.
Often rooted in differences in values, conflicts can also result from communications
problems within a single company, events that are amplified by working at home. For example,
when a company has offices and teams worldwide, the language or vocabulary used might have
very different meanings or interpretations, which could lead to misunderstandings and frustration
within a team. Project managers, often the intermediaries, can find themselves stuck between a
rock and a hard place. Here, the best practice would be to identify the communications tools to
be used from the outset of the project (email, calls, terms to be used, definitions, etc.) and apply
and maintain clear communication throughout the project. Communications methods can be built
into organizational culture.
Although a certain amount of conflict is inevitable, it can often be minimized by
understanding the cultural frameworks, personalities, and personal and organizational
motivations within the team. It’s important to make a concerted effort to speak and listen in a
way that takes these differences into account. A reactive, oppositional approach to obstacles to
the project or another person’s inflexibility can polarize differences, escalate conflicts and make
it challenging or even impossible to complete a project. Distance and lack of physical connection
can also accentuate the conflict, making it even more difficult to complete the project.
It is therefore important to identify the factors that can help create an organizational culture
that incorporates project management, including: understanding the value and benefits that
project management brings to both the project and the organization itself, as well as aligning
projects with the organizational and business strategies.
In conclusion, several elements of a company’s structure and culture can have an impact on
how smoothly projects can be managed. Having a good understanding of this broader context
during the planning phases of a project allows you to ensure that the work of project
management is carried out in harmony with the objectives of the organization and managed in
alignment with established practices.
