Assessing the Project Organization of Repositioning Project in Ethiopian Airlines

Topics: Project management, Management, Strategic management Pages: 12 (3412 words) Published: June 7, 2008

Project management methodologies have significant role in the management of successful projects. One of the important parts of project management methodologies is project organization which one of the things to be dealt with at the start of a project. This research will take the Repositioning Project of Ethiopian Airlines (EAL), the Best 2006 African World Class Airline, and tries to compare the organizational structure of the project with what has been prescribed in PRINCE2(CCTA, 1998). PRINCE2 is a known project management methodology in UK and worldwide. Some additional literatures on project organization and governance are used to address the different aspects of project organization and governance. The results of the research show that the repositioning project of Ethiopian Airlines had good project organization except it lacks project assurance and support responsibilities in a systematic manner. Keywords: Project management methodology, project organization, project governance, project management team Introduction

Project management methodologies give a designed structure and framework with which organizations can run their various projects in "a controlled and efficient manner" (Gardiner, 2005). The more projects become an integral part of a society and the business world, the more is the need for the proper use of project management discipline. Good project management methodologies can bring about successful implementation of projects in organizations. A right project management method helps to assure every project member knows what should be done and how to do them (CCTA, 1998). This research is not going to use the whole package of project management methodology; it is neither feasible nor necessary. The three factors of PRINCE2 Project Management Team and the other related studies will be used as a framework to assess the project organization and governance of this project. It will focus on the organizational structure or governance part of project management methodology. It will give a brief review of literatures on project organization and structure. The research will then take the Airline Repositioning project of the Ethiopian Airlines. It will examine the organizational structure of the project using mainly PRINCE2. Literature Review


According to PM Solutions, Inc., project management consulting firm in USA, organizations with a good project management methodology has improved the successful delivery of their projects by 63%. PRINCE2 (CCTA, 1998) is known worldwide as a project management methodology and prescribes detailed processes and structures of managing projects effectively. It is a scalable methodology and can be applied to both large and small projects. It has identified some of the reasons why projects fail. These are a"

Resource and activity coordination problem
Communication problem resulting unwanted product for customers Time and cost estimation problem
Limited set of measurable objectives
Inadequate resources, activities, and scheduling Planning
Poor controlling mechanisms
Problems related with quality control

Most of these causes of project failures could have been avoided with a proper usage of project management methodologies. One of the crucial parts of project management methodologies is the organization and governance of projects. According to the APM BoK (Body of Knowledge), the organizational structure of a project determines the structure of reports, processes, systems and procedures of the project (APM, 2000). Projects in a large organization will certainly have their own project organization and structure. But it is important to see how the organizational structures of projects in large organizations are set up and made effective which is hardly touched in the studies of project management methods. The complexities of large organizations require more research as to how they organize and govern their projects.

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