A NEW terminology is introduced in PMBOK version 5 – PBO (Project Based Organization). Is this something new?
Actually, this terminology was first introduced by Mike Hobday in 2000. At that moment, it was described as pure projectized organizations with no functional links.
In 2011, Michel Thiry re-defined it as “conducting the majority of their activities as projects and/or privilege project over functional approaches, they can include: departments with functional organizations; matrix organizations; projectized organizations and other forms of organizations that privilege a project approach for conducting their activities”.
A typical PBO structure can be illustrated by the following chart:
Nowadays, PBO emerges as an ideal alternative of organizational structure to deal with the emerging features of the temporary and unique demands, within a complex market. It could provide horizontal integration from business strategy to operational benefits and vertical integration between corporate objectives and the prioritized portfolio of projects.
Project Based Organization – An Integrated Approach by Claudiu George BOCEAN (University of Craiova)
By Peter Ng – Satorutrain Trainer