Functional organizations

Functional organizations are a bit dysfunctional for project managers in the respect that all work is done in a siloed approach to business. The functional organizational dynamic has been around for hundreds of years and was very effective during the industrial revolution. Since functional organizations have been around so long, many businesses are still structured that way, making it difficult for project management to truly be a part of day-to-day life. If a functional department takes on a project, generally the functional manager runs it, rather than a project manager.

Some of the key aspects of functional organizations include the following:

• The manager of each department is in charge, rather than a project manager.
• If a project is managed in the department, someone may be assigned to help with the project but may not be given the title of project manager. They may instead function as an expeditor who helps move work along and supports the functional manager on a part-time basis. In some cases, it may be a coordinator who has a bit more responsibility but still reports to the functional manager.
• If there is a project manager, they may be part-time and have very little authority over project work or project team members.

It may sound like this type of dynamic is impossible for project managers to work with and the project is automatically set up for failure. That isn't the case at all. If you are working on a project in a functional department, you know you have your real job to do but you are also helping your department get something new accomplished. This helps the department become more successful. This is also where a lot of newer project managers get their start, either coordinating or, in part, managing a functional project.

There may also be a large project in a department that would best be executed with a full-time project manager who would then return to their day job once the project has ended. In short, functional departments may not be the best place to manage projects but it is done successfully every day. Often, jumping in to help run a project that involves a smaller base of similar stakeholders allows for better best practices to evolve organically. Team collaboration and communication are important aspects for success in any project environment, but highly necessary in a functional dynamic.

In Figure 2.1, you can see a functional organization based on individual departments: