ADVISORY ARTICLE
By Bob Prieto
Florida, USA
Introduction
This paper is the second of a three-part series that covers three interrelated topics essential for successful management, execution, and delivery of today’s engineering and construction projects:
- Comprehensive planning
- Organization, and
- Governance
Each of these topics could be an extended paper in their own right, but in this series we will touch on many of the aspects of each but know there is much more to each aspect. This series is driven in part by a recognition that later, larger problems on projects can trace their roots back to foundational activities that either have not been sufficiently thought through or in some case not even really considered.
The papers in this series are drawn from a script for a class the author previously taught, so the style is conversational.
Let’s continue Part 2 of the series, organization.
Organization
There are five important organizational design considerations.
The first is culture. Culture is about values, behaviors, willingness and capacity to change. Culture matters. Strong cultures are hallmarks of good teams and organizations.
The second is leadership. Leadership entails having a clear vision and a sharp focus on desired outcomes and objectives. The SBOs if you will. Leadership is about having and setting priorities and executing on them. Leaders can’t do this by themselves. They require and must build and sustain an aligned team.
The third organizational design consideration deals with decision making and organizational structure. A clear RACI must be established and used. The value of time must be understood. On one struggling project what one minute of time was worth was calculated. The PM used it in his meeting to see how much time should be invested in making a decision. Think about the “return on time” on your projects. Finally, the organization and the organizational structure must support the SBOs
Fourth, people are valued and challenged for growth. The company, project team, and individuals have the talent required for success. You need to support them in achieving success by aligning performance measures and incentives to objectives.
The fifth and final consideration revolves around processes and systems. Organizational design must ensure that project work processes are executed at the highest achievable levels. The organization must be supported by efficient systems and support processes and be committed to continuous process improvement.
So, what constitutes the right organizational structure?
More…
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How to cite this paper: Prieto, R. (2025). Foundations of Project Success: Part 2 – Organization, PM World Journal, Vol. XIV, Issue IX, September. Available online at https://pmworldlibrary.net/wp-content/uploads/2025/09/pmwj156-Sep2025-Prieto-Foundations-of-Project-Success-Part-2-Organization.pdf
About the Author
Bob Prieto
Chairman & CEO
Strategic Program Management LLC
Jupiter, Florida, USA
Bob Prieto is Chairman & CEO of Strategic Program Management LLC focused on strengthening engineering and construction organizations and improving capital efficiency in large capital construction programs. Previously, Bob was a senior vice president of Fluor, focused on the development, delivery, and turnaround of large, complex projects worldwide across all of the firm’s business lines; and Chairman of Parsons Brinckerhoff, where he led growth initiatives throughout his career with the firm.
Bob’s board level experience includes Parsons Brinckerhoff (Chairman); Cardno (ASX listed; non-executive director); Mott MacDonald (Independent Member of the Shareholders Committee); and Dar al Riyadh Group (current)
Bob consults with owners of large, complex capital asset programs in the development of programmatic delivery strategies encompassing planning, engineering, procurement, construction, financing, and enterprise asset management. He has assisted engineering and construction organizations to improve their strategy and execution and has served as an executive coach to a new CEO. He is author of eleven books, over 1000 papers and National Academy of Construction Executive Insights, and an inventor on 4 issued patents.
Bob’s industry involvement includes the National Academy of Construction and Fellow of the Construction Management Association of America (CMAA). He serves on the New York University Tandon School of Engineering Department of Civil and Urban Engineering Advisory Board and New York University Abu Dhabi Engineering Academic Advisory Council and previously served as a trustee of Polytechnic University. He has served on the Millennium Challenge Corporation Advisory Board and ASCE Industry Leaders Council. He received the ASCE Outstanding Projects and Leaders (OPAL) award in Management (2024). He was appointed as an honorary global advisor for the PM World Journal and Library.
Bob served until 2006 as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC). He chaired the World Economic Forum’s Engineering & Construction Governors and co-chaired the infrastructure task force in New York after 9/11. He can be contacted at rpstrategic@comcast.net.
To see more works by Bob Prieto, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/bob-prieto/
