With the delivery strategy selected, the project manager’s attention turns to establishing the project organizational structure needed to manage the project and carry out the project work done by the Agency’s own forces. Only the largest projects justify the assignment of full-time project staff in every function. Small to mid-size projects call for some form of matrix organization. In a matrix of project organizational structure , staff reports to the project manager through the project chain of command to receive direction on project work assignments (what work has to be done) and to their functional supervisor for direction on their technical performance (how the work is done).

The project manager for the example bus maintenance facility project requires Agency procurement staff to acquire GEC and CM consultants and construction contractors. The level of procurement effort to do this for the project is not full-time and the staff is assigned part-time to the project on a matrixorganization basis. The procurement staff takes project direction from the project manager on what procurements are needed and when, while the staff receives functional direction on how to undertake the procurements from the functional manager of the Agency’s procurement department. When not assigned to the example project, the staff undertakes procurement activities for operations and/or other Agency projects.

Experience has shown that a project team works better within an integrated project office concept. This means that irrespective of the project staff’s parent organization, the Agency’s organization or those of the GEC and CM organizations, the staff’s project reporting relationship with respect to project work assignments follows the project organization chain of command reporting to the project manager. When possible and in cases where staff is highly utilized, co-location of project staff within a single project office facility helps foster the integrated project office concept. Functional supervision remains the individual’s usual functional supervisor within their parent organization.