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I am trying to understand why using the functional elements of the parent organization as the administrative home for a project offers a number of potential advantages. In theory, this allows maximum flexibility in the use of in-house staff. In practice, this is not always the case. What causes this apparent advantage to become a liability in some organizations?

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If by functional elements you mean the existing organizations such as marketing, operations, and engineering, the advantages of locating project management in the organization that benefits most from the result are pretty clear. Presumably the organization gains the talents ...

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