I believe the concept you're describing is quite common in vehicle development projects, which typically involve more than 1,000 people. Although the structure may vary slightly, the fundamental idea remains the same. The project team usually includes, in addition to the project manager, several sub-project leaders who are responsible for specific functions or domains. Common sub-project areas include Engineering, Purchasing, Manufacturing Engineering, and Sales/After-Sales.
These sub-project leaders work with teams made up of what we refer to as Functional Unit Representatives. For example, in truck development, a sub-project leader for Engineering would collaborate with representatives from Cabin Development, Chassis Development, Powertrain Development, and Mechatronics Development.
This structure allows the project manager to work closely with only a handful of people, rather than all 1,000 involved. Each of these key representatives brings the full expertise of their respective area to the table, effectively representing the broader team.
Thank you very much for your insightful reply, Uwe! Great that you see similarities.
In your example, do the sub-project leaders have mutual responsibility and accountability with their subject expert peers? I understand that the project is divided into sub-projects, and am I unsure about responsibility sharing in this example.
Responsibility and accountability are shared and cascaded throughout the whole project organization.
The Project Leader holds overall responsibility for achieving the project targets as defined in the Project Requirement Specification Book, which is formally signed by all project stakeholders. Sub-project leaders share responsibility for their respective domains with the Project Leader. For example, the Sub-project Leader for Purchasing jointly shares responsibility for meeting material cost targets with the Project Leader. This responsibility is further shared with the relevant Functional Unit Representative. For instance, the Functional Unit Representative for the forging and casting commodity shares responsibility for achieving material cost targets for forged and cast parts.
During the requirement specification phase, the project team breaks down the targets from the project level to the level of individual components. These targets are then reconsolidated at the domain and functional level.
This means that the core responsibility of the Functional Unit Representative is to ensure that the line organization (i.e., the team members) negotiates the specified prices with all suppliers. If deviations occur and team members or Functional Unit Representatives require support, the Sub-project Leader is responsible for involving line management (stakeholders at the domain level).
The Project Leader is responsible for mediating and negotiating compromises between domains. For example, if parts are designed too expensively and Purchasing is unable to obtain acceptable quotations from suppliers, the Project Leader will intervene at the project level.
This does not imply that team members do not collaborate. Rather, it highlights that different control levels within the project focus on different aspects, even though they all work toward the same overall objectives.
I believe the concept you're describing is quite common in vehicle development projects, which typically involve more than 1,000 people. Although the structure may vary slightly, the fundamental idea remains the same. The project team usually includes, in addition to the project manager, several sub-project leaders who are responsible for specific functions or domains. Common sub-project areas include Engineering, Purchasing, Manufacturing Engineering, and Sales/After-Sales.
These sub-project leaders work with teams made up of what we refer to as Functional Unit Representatives. For example, in truck development, a sub-project leader for Engineering would collaborate with representatives from Cabin Development, Chassis Development, Powertrain Development, and Mechatronics Development.
This structure allows the project manager to work closely with only a handful of people, rather than all 1,000 involved. Each of these key representatives brings the full expertise of their respective area to the table, effectively representing the broader team.
Thank you very much for your insightful reply, Uwe! Great that you see similarities.
In your example, do the sub-project leaders have mutual responsibility and accountability with their subject expert peers? I understand that the project is divided into sub-projects, and am I unsure about responsibility sharing in this example.
Responsibility and accountability are shared and cascaded throughout the whole project organization.
The Project Leader holds overall responsibility for achieving the project targets as defined in the Project Requirement Specification Book, which is formally signed by all project stakeholders. Sub-project leaders share responsibility for their respective domains with the Project Leader. For example, the Sub-project Leader for Purchasing jointly shares responsibility for meeting material cost targets with the Project Leader. This responsibility is further shared with the relevant Functional Unit Representative. For instance, the Functional Unit Representative for the forging and casting commodity shares responsibility for achieving material cost targets for forged and cast parts.
During the requirement specification phase, the project team breaks down the targets from the project level to the level of individual components. These targets are then reconsolidated at the domain and functional level.
This means that the core responsibility of the Functional Unit Representative is to ensure that the line organization (i.e., the team members) negotiates the specified prices with all suppliers. If deviations occur and team members or Functional Unit Representatives require support, the Sub-project Leader is responsible for involving line management (stakeholders at the domain level).
The Project Leader is responsible for mediating and negotiating compromises between domains. For example, if parts are designed too expensively and Purchasing is unable to obtain acceptable quotations from suppliers, the Project Leader will intervene at the project level.
This does not imply that team members do not collaborate. Rather, it highlights that different control levels within the project focus on different aspects, even though they all work toward the same overall objectives.
Does this make sense?
Wow, what a detailed breakdown! This is an entire post of its own!