Strategic Business Unit SBU Project management

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During the past ten years, large companies have restructured into strategic business units (SBUs). An grouping of functional units that have the responsibility for profit (or loss) of part of the organization' businesses. Figure 3-18 shows how one of the automotive suppliers restructured into three SBUs; one Ford, Chrysler, and General Motors. Each strategic business unit is large enough to maintain its own program managers. The executive in charge of the strategic business unit may act as the sponsor for a program and project managers within the SBU. The major benefit of these types of project manageme that it allows the SBU to work more closely with the customer. It is a customer-focused organizations

It is possible for some resources to be shared across several SBUs. Manufacturing plants can end up s more than one SBU. Also, corporate may provide the resources for cost accounting, human resource management, and training.

A more recent organizational structure, and a more complex one, is shown in Figure 3-19. In this stru SBU may end up using the same platform (i.e., powertrain, chassis, and other underneath components platform managers are responsible for the design and enhancements of each platform, whereas

Figure 3-18. Strategic business unit project management.

the SBU program managers must adapt this platform to a new model car. This type of matrix is multidimensional inasmuch as each SBU could already have an internal matrix. Also, each manufacturing plant could be located outside of the continental United States, making this structure a multinational, multidimensional matrix.

Strategic Business Unit Structure

Figure 3-19.

SBU project management using platform management.

Figure 3-19.

SBU project management using platform management.

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