The Organizational Breakdown Structure (OBS) is a hierarchical representation of an organization’s structure, showing the various departments, teams, and individuals responsible for carrying out project-related work. The Work Breakdown Structure (WBS), on the other hand, is a hierarchical decomposition of the project scope into smaller, manageable work packages. The OBS and WBS are both essential tools in project management, and they are interconnected in several ways. Here’s the importance of the OBS and its linkage to the WBS:
1. Defining Roles and Responsibilities:
- OBS Importance: The OBS defines the roles and responsibilities of individuals and teams within the organization. It clarifies who is accountable for specific aspects of the project and establishes reporting relationships.
- Link to WBS: The OBS links directly to the WBS by associating specific organizational units or individuals with the work packages in the WBS. This linkage ensures that there is clear accountability for each work package. When a project manager assigns work packages from the WBS to individuals or teams in the OBS, it becomes clear who is responsible for what.
2. Resource Allocation:
- OBS Importance: The OBS aids in resource allocation and management by showing which departments, teams, or individuals have the necessary skills and expertise to perform the work required for the project.
- Link to WBS: When creating the WBS, the project manager uses the OBS to assign the appropriate resources to each work package. This ensures that the right people are working on the right tasks. The linkage between the OBS and WBS allows for efficient resource allocation.
3. Communication and Reporting:
- OBS Importance: The OBS facilitates communication and reporting by defining the reporting structure within the organization. It outlines the flow of information, approvals, and decision-making.
- Link to WBS: The reporting relationships established in the OBS are closely related to the WBS. Project managers use the OBS to determine how progress, issues, and results will be communicated. They rely on the OBS to understand who to report to and who will provide updates on the status of specific work packages.
4. Risk Management:
- OBS Importance: The OBS is crucial for risk management as it helps identify potential risks related to the availability, capability, or workload of specific organizational units or individuals.
- Link to WBS: By linking the OBS to the WBS, project managers can assess the impact of risks associated with specific roles or departments on the successful completion of work packages. This linkage helps in developing risk mitigation plans and contingency strategies.
5. Accountability and Governance:
- OBS Importance: The OBS plays a fundamental role in establishing accountability and governance structures within the organization. It defines who has the authority to make decisions and approve project-related activities.
- Link to WBS: The OBS is closely connected to the WBS in terms of project governance. The individuals or teams identified in the OBS often have decision-making authority and oversight over the work packages in the WBS. This linkage helps ensure that decisions are made by the appropriate individuals or departments.
In summary, the Organizational Breakdown Structure (OBS) is vital for defining roles and responsibilities within an organization, allocating resources, enabling effective communication and reporting, managing risks, and establishing accountability and governance structures. The linkage between the OBS and the Work Breakdown Structure (WBS) is essential to ensure that project work packages are assigned to the right organizational units or individuals, creating a clear and effective structure for project execution and management.
