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How do you eat an elephant? Answer: One bite at a time.
How do you manage a company? Answer: One level of focus at a time.
The business of managing an entire company is extremely broad and deep. It consists of addressing a wide range of critical issues, from the very large (What business should we be in?) to the very small (How should we categorize this particular item of cost?). Although these two questions pertain to dramatically different levels of detail and focus, both are valid questions within the broad spectrum of issues that comprise the world of organizational management.
In this chapter, we cover that spectrum and examine how companies are managed, from top to bottom. We begin by defining organizational management. We'll also review some of the historical perspectives and classic models that have gotten us to this stage in our collective understanding of organizational management. Finally, we'll look at some of the key principles and practices, from the highest- level strategic aspects to some of the ways costs are managed on a day-to-day basis.
As always, we focus our attention on issues that are most germane to projects and project management. As you read on, though, please keep in mind that this chapter will not necessarily be loaded with specific, direct references to ties between the worlds of organizational management and project management. In fact, organizational management may strike you as a knowledge area that is a considerable distance from cultivating the ability to manage projects in an effective manner.
It most definitely is not.
Possessing a general understanding of organizational management principles and practices is one of the most valuable compo- nents that project managers can have in their overall repository of business knowledge. The perspective and insights that a good working knowledge of organizational management provides will greatly enhance your ability to make sound project decisions. Understanding the principles and practices for your particular company is an absolute necessity, if you wish to function as an effective, business-savvy project manager within it. This chapter provides you with the structure and context needed to help you develop that understanding. Additionally, many of the principles embodied in organizational management are critical precursors in understanding topics such as portfolio management, which...