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- Light vs. Heavy: Which Business Structure is Right for Your Project?
Light vs. Heavy: Which Business Structure is Right for Your Project?
In this issue, you will learn:
How to structure your projects
How to identify the right approach for them
How to link this to the 12 systems
Reading time: 3 minutes.
Choosing the Right Approach
The structures we talked about in the last issue were for doing operations that are usually pretty long-lasting.
There are also organizational structures for projects. And these structures are also crucial to the success of these projects.
Project structures are temporary; they are taken down when the project is done.
And since this happens a lot, you need a permanent organization to keep track of all these groups that keep forming and breaking up.
The PMO stands for "project management office."
If your company has fewer than 50 workers, you don't need this organization.
And you don't need it if you don't work on a lot of projects.
Choosing an approach is the first step in figuring out how to structure your project.
I've started a detailed thread about this here.
Poor project management wastes $122 million for every $1 billion spent globally.
I've taught 100s, advised 10s of firms, helped develop worldwide project management standards, and led multimillion-dollar projects on three continents.
1 secret strategy I always used 👇
— Luqman Shantal (@luqmanshantal)
1:34 PM • Jul 28, 2022
Light structure
When you take a light approach to managing a project, the structure is simple:
One person is in charge of gathering client use cases.
While another is in charge of turning them into actionable work chunks and supporting the team.
One or more people are working on turning this stack of work chunks into a minimum viable product.
They set a certain amount of time and then set their pace to fit it. They stand and talk for a few minutes every day to make sure everything is going well.
This team shouldn't have more than nine people, and it works with other similar teams to make the big picture of what the project will produce.
So, there are three principles at play here: small teams, a network of them to quickly create value for customers, and a lean approach.
Heavy strucutre
When we choose the heavy approach, scales vary, but one thing they all have in common is that the project needs:
A manager who keeps things in order.
You need a sponsor who can get rid of problems that are bigger than what the project manager can do.
And that manager needs help from a team.
This team is split into two parts:
The team that makes the project's output
and the team that helps manage the project's output.
The roles are more detailed, the bigger the project.
so that there will be someone to help the project manager use management practices correctly.
You will also need someone to do health checks on the project team to see if they are using these best practices.
Reports also tend to get more frequent and more detailed, and there are many new types of reports that show how different roles in a project talk to each other.
The sponsor turns into a board with at least three members who represent the main seller, the buyer's executives, and end users.
And there you have it: a project structure that changes depending on how the project is done.
If you combine the two approaches, the roles from the lighter approach will be part of the team for the heavier approach.
12 systems mapping
4% of the world's businesses make over $1 million.
Only 0.4% make over $10 million.
12 systems to help you get there.
I worked in a $40 Billion company (and saw them in action).👇🏻
— Luqman Shantal (@luqmanshantal)
2:00 PM • Jul 13, 2022
Make sure you define who is accountable, responsible, and authorized. To learn more about these three roles, see the previous issue.
And to connect this to our 12 systems, the "service to satisfaction" system includes project management.
And that's all for this Friday. Reply to this thread if you have any questions.
Ways I can help
I work with small and medium-sized business owners (SMBs) to help them set up 12 systems for their business so that it can run without them. When that happens, their business will be able to grow. Without it, this would slow things down.
I do this through:
Masterclasses
Coaching sessions
Consulting projects
I was recently chosen among 10% of experts globally to build on MavenHQ.
I'm preparing for my first international cohort, where I'll share my experience coaching 12 SMBs in tech, internet, pharma, food supplements, fitness, engineering, and shipping.
How can I improve the Business Builder?
Hit reply and let me know!
- Luqman