The second chapter is about the related literature and studies on project management. The chapter is focused primarily on project management, the eight domains of project management and project management in the IT, building and construction, banking and health industries.
2.1 Project ManagementProjects consist of activities, which have interrelationships among one another, produce quality-approved deliverables, and involve multiple resources. A project has an objective. There is usually a time scale attached to the objective of the project. A project has a specific start and end dates. Therefore, it can be argued that being on time is a crucial requirement to ensure the success of a project. The project should be kept on time in order for it to succeed (Rosen 2004). Now let us define what project management is.
Project management according to Reiss (1995) involves avoiding problems. It is about tackling new ground, taking a new group of people and trying to achieve some very clear objective quickly and efficiently (p. 2). Any process capable of being managed with a start and end point is a project. A project involves people and often it is the people who are the key to a successful project. If not enough care is taken over the people who have a stake in the project, it is more than likely to be perceived as having failed. The person who manages this process is the project manager. The task of managing a project is complex (Tansey, 2002, p.158). It involves a large number of interrelated activities, such as: planning and control, communicating with stakeholders, managing risk and quality and managing people.
Project management is a collection of loosely connected techniques, some of which are useful in bringing projects to a successful conclusion (Reiss 1995, p.16). Project management is viewed as an effective approach that addresses a wide variety of organizational opportunities and challenges. Project management focuses on reducing costs and product cycle times and provides an important link between an organization’s strategy and deployment of that strategy (Marchewka, 2006, p.4).
Laszlo (1999) acknowledged the amount of discussion that has taking place, extolling the virtues of project management and its great influence on the overall successful operation of organizations in all sectors. The author also asserts that project management can be also applied to any set of activities and in this context; it is no less than a universal management tool. Longman and Mullins (2004) also noted that project management requires deliberate planning and action to create the conditions for success and put in place the strategy, leadership, goals, process, skills, systems, issue resolution, and structure to direct and exploit the dynamic nature of project work. Several conditions fundamental for the success of any project that apply for all projects are: make it practical, relevant, and beneficial from day one; make systems and procedures project management-friendly; make project management a win for team members and managers; make project management an ongoing learning experience, and; make success public.
Thomas (1990) concluded that project management requires distinct skills and competencies and that these will be developed by project managers if they mean to be effective. Because project management is of growing importance as bureaucratic organisations pass through transition to be more flexible “network organisations,” work is increasingly undertaken by groups and teams, and the focus of assessment shifts from input to output. In certain sectors, companies are coming to resemble portfolios of projects.
Turner, Ledwith and Kelly (2009) studied and found out that companies of all sizes spend roughly the same proportion of turnover on projects, but the smaller the company, the smaller their projects, the less they use project management and its tools. On the other end of the spectrum, hi-tech companies spend less on projects than lo-tech or service companies, but have larger projects and use project management to a greater extent. These hi-tech companies also use gadgets of project management to a greater extent.
2.2 Modern Project ManagementWeaver (2008) noted that it was until the 20th century that people recognised the project management. Today, modern project management is described by the Association of Project Management (APM), Project Management Institute (PMI) and bodies of knowledge (BoKs) - both current and former. As we now practice it, the modern way of managing projects encompasses other elements such as quality, risk, technology, stakeholder management and communications other than the integration and control of time, cost and scope (Stretton, 1994; Kerzner, 2003).
As such, the evolution of project management makes use of the ideas, practices, principles and techniques developed from general management concepts and experiences. It was the American management theories that particularly underpinned the beginnings of modern project management. Reductionism, individualism and work ethic can be traced back to the 15th century which resonates strongly in the spirit of modern project management. These ideas were incorporated in liberalism and Newtoniasm philosophies where the former deals with division of labour and the latter involves scientific enquiry (Weaver, 2008; Stretton, 1994).
Around 1900 to 1920s, the classical school of thought made possible the emergence of scientific, bureaucratic and administrative management. Respectively, these have also gave way to focusing on “one best way” to do a job, on rational set of structuring guidelines like rules, procedures and hierarchy and division of labour and on the flow of information in the operation of the organisation. All of these traits are important to modern project management. In terms of decision-making in complex real-world problems concerned with coordination and execution of operations within an organisation, operations research then came into being. Further, the two key distinguishing features of early project management associations were a focus on techniques rather than outcomes (Stretton, 1994; Turner, 2006).
When it comes to planning, leading, organising and controlling, modern project management also differs with traditional project management. Project plans of modern projects are more focused on breaking down total effort into assignable units, estimating the work, defining the most efficient order in which the work should be performed and deploying available staff to specific work packets for specific windows of time (Turner, 2006). What is perhaps significant influence, according to Tryon (2008), is on project plans and the planning process since there are totally invalid set of expectations and strategies.
Due to diversity of skills needed for modern projects, it is impractical for modern project managers to be the task expert of all work that must be done. Instead, modern project managers work to solicit individual contributions, create consensus within the project team, facilitate group decisions and create an environment where it is possible for the people to accomplish their delegated works with a minimum of distractions (Kolltveit, Karlsen and Gronhug, 2007). Tryon (2008) concluded this by saying that modern project managers plan, organise and control the project with the team and not for the team.
Having said this, modern project managers also establish clear roles and responsibilities that are needed for the success of the project. What is expected of each of the member of the project team is also critical to establish. However, this does not necessarily mean that modern project managers have all the authority to control the project since there are occasional interferences of actual administrative managers. The project manager therefore must not be held responsible for deliverables and dates when they have limited and tainted authority over the project team. Addressing this condition means having well-defined roles and clearly stated responsibilities (Tryon, 2008; Kolltveit, Karlsen and Gronhug, 2007; Kerzner, 2003).
Rather than the quantity, modern project management is more focused on the quality of the project hence it is critical that verification of completion of promised deliverables must be performed first. Before modern project managers consider a deliverable done, objective criteria for completeness and quality must be met. Followed by, effective measuring of performance and productivity that can be carried out through planned hours, durations, start dates and finished dates against the actual (Tryon, 2008; Kolltveit, Karlsen and Gronhug, 2007). Nevertheless, measurements should be against revised and relevant baseline plans.
Koenig (2007) sets guideline for the implementation of modern project management which commence with creating the vision for modern project management. In this way, the implementation of the project will allow people to perform multiple projects in an increasingly complex environment and measure the performance improvements. When visioning, people should be put at the center that does not only focus on getting the best people but also getting the best from them. Objectives and measurable goals could then follow. Next critical step would be to review current standards and procedures, examine project workload, prepare the organisation, implement the support structure and commence training and project management roll out.
Tryon (2008) also noted that in general modern project management provides an effective means for an organisation to create a common definition and understanding of the project management discipline. This can be done through establishing a common understanding of the role project management will play for the organisation as a whole. Specifically, modern project management focuses on the responsibilities and contributions needed from each member of the project organisation (Turner, 2006). These roles are evaluated as the project moves through a predictable and repeatable project lifecycle.
2.3 Project Manager as LeadersLeadership and management style, together with the effective communication process is important. This is due to the fact that it can help in order to ensure that all of the stakeholders are properly connected with each other and receiving what they have expected regarding the project.
Leadership is considered as critical to high performance on a given project. Leadership focuses on the different factors such as the mission, vision and future state of the nature, goals and changes; high personal commitment as well as motivation to the said goals; actions that will help to achieve the said goals, together with the different strategies; as well as the process of inspiring and maintaining the commitment of others in order to achieve the said goals (Harrison & Lock 2004, p. 264).
In order to ensure success of the project, it will be important to focus on application of the employee-oriented leadership/management style. This is due to the fact that employee-oriented manager shows a high emphasis on the members of the team and focuses on participation and teamwork regarding the process of decision-making, problem-solving, planning as well as control. It can help the project manager to focus on the personal needs as well as interests of the stakeholders, particularly the team members that will help to increase the creativity and initiative of the members. Thus, it can help to increase the production and achievement of the group because the morale and satisfaction of the employees will be high, therefore, helping to strengthen the commitment of the employees. However, the decision-making process will take longer (Harrison & Lock 2004, p. 266).
According to Ng (2001), a good project manager is the key to a project’s success. Project managers work with the project sponsors, project team, and other people involved in delivering the project scope and goals. Each project is constrained by its scope, time goals, and costs goals. Scope deals with the question ‘what is the objective of the project?’ Time deals with the question ‘how long it takes the project to be completed?’ Cost deals with the question ‘what should it cost to complete the project?’ (p. 2).
Project manager is a vital entity in the entire process of project management. That is why it is important for the project managers to first understand the mission an vision of the organization and then see how the project meshes with the said mission and then steer the project in order to make sure that the interests of the organization are met (Lewis 2007, p. 26).
2.4 Eight Domains of Project Management
Resource Planning
Philips (2003, pp. 279-280) states that resource planning refers to the process of examining the project work and determining what resources, people and equipment are needed to complete the project. Such process also includes identifying the expected quantity of the needed resources to the predicted cost can be calculated. Familiar inputs are work breakdown structure, historical information, scope statement, resource pool description, organisational policies and activity duration estimates. Projectification of the project generally starts from planning and it is in this stage that the direction of the project could be initially determined.
Further, operation and projects are sometime mistaken as alike due to the work and means of achieving results that can help to the overall goals and objectives. In addition to that, both are performed by people, constrained by limited resources and it is planned, executed and controlled. Operations are composed of processes that are refined and repeatable, thus each and every step in the entire operation has been performed before, and it produces some predictable output. On the other hand, the Project Management Institute described a project as a temporary endeavor that is take on in order to create a unique product, services or even result (Dobie 2007, p. 4).
Project control
Project control, according to Lewis (2002, p. 93), is one single purpose in every action taken in project management. The duty of project controlling is generally vested on the project manager wherein the organisation resources are expected to be managed in such a way that critical results are achieved. Control system focuses on achieving project objectives with the aim of ensuring that the project mission is achieved. Control system should be therefore designed with the following questions in mind: Which aspects of the work are most important to track and control? What are the critical points in the process at which controls should be placed? Control should be exercised over what is important yet what is controlled tends to be important as well as this could determine the extent of the success of projectification. As such, if budgets and schedules are emphasised to the exclusion of quality, only those will be controlled, the quality of the project may suffer. Project managers must monitor performance carefully to ensure that quality will not be jeopardised.
Quality Management
Project managers understand that that failure to achieve quality can have devastating immediate and long term consequences on the entirety of the project. The effective management of quality directly impacts the project outcomes. Over the years, quality tools and techniques have been developed and refined, perceived as a mean to address the triple constraint of time, cost and scope. These three elements are of equal importance to project success. Quality processes that maintain cost and schedule constraints will ensure a quality project and outcomes (Rose, 2005, p. 8). When it comes to making projectification effective and successful, the three constraints should be addressed properly this is because such constraints could either be the basis of the success or failure of the project. Changes in each of these constraints will definitely affect the entire project.
Project Risk Management
Lewis (2002) noted that risk management is the systematic process to identify, quantify, analyse and respond to project risk. The management of risks includes maximising the probability and consequences of positive events and minimising the probability and consequences of adverse events to project objectives. Management of risk would be important in such a way that it can create value and a part of the decision-making process of project managers. As risk management is both systematic and structured, this will be relevant in projectification in terms that it can lead to continual improvement and enhancement of processes and activities relating to the project.
The responsibility of the project team is to identify and describe risks and assess the probability of risk occurrence in the site as well as assess the impact of the risk(s) identified. The project team will also perform the risk response and assist the project manager with risk monitoring and control. The risk owner, on the other hand, has the responsibility to develop and update the risk response strategies. S/he will also have the jurisdiction to monitor the risk and inform the project manager of the threat of emerging risks or opportunities for the project.
Risk will be identified based on applicable risk management handbook and sample risk list. The analysis of risk will be the quantitative risk analysis for the purpose of estimating the risk that the project will finish within objectives and estimating the contingency needed for the cost and schedule. Risk analysis will be used to identify the best decisions in the project site. The risk response strategy will center on deciding on th4 actions to be taken in response to residual risk, plan response to residual risk and then communicate mitigating strategy and response plan to risk review team. The risk management plan will be revised periodically and the changes will be reported to the project manager.
Project Communications
Project communications involves planning, executing and controlling the acquisition and dissemination of all information relevant to the needs of all project stakeholders. Information includes project status, accomplishments, events that may affect other stakeholder or projects and so on. Heerkens (2001, p. 204) mentions that communication and documentation are natural combination as they bind the project together from start to finish. The Project Management Configuration Plan (PMCP) serves as an excellent communication tool. When considering projectification, communication within project units and teams could command responsibility, coordination, status and authorisation. GREAT model would be the most appropriate to bear in mind, implicating goals, results, expectations, accountabilities and timing.
Constant and effective communication between all the stakeholders of the projects is considered as the most vital and crucial factors in order to ensure the success of the project. It is considered as the requirement of getting the right things done in the right manners. As knowledge is considered as power, it is also important to consider that the process of sharing knowledge helps to empower every each and every stakeholders of the project (Dobie, 2007).
That is why it is important to have a communication plan or the written strategy in getting the right information to the right person at the right time. In addition to that, it is also important to focus on how often to communicate with each stakeholder with respective information (Dobie, 2007).
This can be attain by having a visibility room that will display the different project documents such as the project charter, milestone chart and issues log; the current version of the statement of work, project plan, project scheduler, responsibility matrix, risk management plan and other important forms; and information about the development of the project.
It is also important to focus on communicating with the upper management together with the customers and other important external stakeholders. This can be done by informing them regarding the different changes or alteration of the project (Dobie, 2007).
At the end of the project, a close-out reporting will be presented in order finalize the project in the eyes of all the stakeholders as well as serve as a reference for future development.
Project Organisation Structures
Project organisation structures reflect the tasks and reporting structure from project managers, technical managers into schedule, quality, contract and material managers as well as system director and technical working group. Cleland (2007, p. 387) said that the project manager and the project technical manager generally managed the whole project while the two project vice managers and three project technical vice managers were responsible for a specific mission. In projectification, stratification is also critical not just to determine the reporting authorities but also to coordinate delegated tasks.
Project Teams
Project teams share a sense of common purpose while also determining individual talents and expertise and use them, depending on the needs of the project at any given time. Project team development passes through forming, storming, norming, performing and adjourning. It is the project manager’s duty to help the group evolve quickly to the productive performing phase while at the same time making the group understand its own development. Aside from recruiting team members with the necessary experience and knowledge/technical skills critical for completion, team members should have problem-solving ability, availability, technological expertise, credibility and political connections and also ambition, initiative and energy (Gray and Larson, 2002, pp. 350-355). Working groups are also imperative in projectification especially that these groups or teams will be the core of the project. Working teams will definitely influence the direction, strategies and outcomes of the project.
Project team members are those individual who plan, organize, implement as well as control the entire project in order to deliver the facility on the designated time and budget (Burke 2003, p. 45). The main demands and expectations of the team members are to have clear directions from the project leaders, as well as other stakeholders in the project.
The process of formulation of the project management team is considered as the first and the most vital process in the entire management of the project. This is due to the fact that it focuses on bringing together the different people whose talents, skills and abilities will help the entire team to accomplish the entire project in the desired time and budget. It is important for the project managers to focus on the demands and needs of the planner, engineer, accountant, secretary, procurement, expeditor, designer and draftsman in order to have a wide understanding regarding different issues that will help to have an ability to adapt the ever changing project requirements. Thus, the formulation of a strong team is considered as vital in the project. This is due to the fact that they must be able to talk and deal with the different issues mutually, then learn to negotiate any soft or shadow issues that may arise in order to resolve the different problems effectively.
This process will include the process of hiring and selecting different individuals that are considered as expert in their given professions. It will also be important to focus on the different aspects that are related with the connection and relationship between the different members of the team in order to prevent misunderstanding that can cause future problems in the project.
It is also important to consider that the project teams pass through a series of different development stages: forming, storming, norming, performing, maturing and declining (Burke 2003, p. 306).
During this stage, it is also important to focus on the different roles and responsibilities of each and every team members in order to ensure that each and everyone knows what’s their contribution as well as their importance in the group (Forsberg & Mooz 2005, p. 173). By doing this, it will help the entire team to prevent redundancy or repetition of actions or activities, thus saving time and effort.
Project Leadership
Project management goes hand in hand with leadership especially that the project manager’s job is dealing with people. Exercising leadership skills directly relates with the lack of authority of project managers and management skills since it deals with administrated aspects of the job such as budgets, schedules and logistics among others. Nevertheless, it is through leadership that project managers could get people to perform at optimum levels (Lewis, 2006, p. 30). In ensuring that effective justification would be achieved and aligned to specific roles, management and leadership should be considered thoroughly. Project managers and leaders are well aware of the aspects of project management including tasks, processes and sequences.
2.5 Project Management in the Four Industries 2.5.1 Project Management in ITWhittaker (1999) contends that IT project management is crucial for contemporary organisations. A 1995 study found out that 31% of software projects will be cancelled even before its completion and more than half the projects will cost an average of 189% of the original estimates. The three most common reasons for IT project failures are poor project planning, a weak business case, and a lack of top management involvement and support. When attributing IT project’s success or failure, IT support workers attribute failure to external factors, whilst attributing success to themselves. On the other hand, executive management took a more balanced perspective which attribute success to external factors and only partially to themselves, whereas they attribute significant personal responsibility for failure (Standing et al, 2006).
Gooch (1997) discussed how to manage effective IT projects. He started with the challenges for IT projects such as less tangible and less familiar than other projects, teams have (and require) a particularly diverse range of skills, experience, attitudes and expectations, project is accompanied by (and contributing to) significant organizational change and the perception that the requirements, scope and benefits are difficult to define in concrete terms.
Thite (1999) emphasised the nature and importance of leadership in technical projects. The author noted that there is a need to develop a leadership model incorporating the distinguishing personality and occupational characteristics of technical professionals. The rationale behind this is that a combination of transformational and technical leadership behaviours augments the effectiveness of transactional leadership leading to high project success. Since there is no single leadership style effective for all project situations, what could make projects successful are flexible style characterised by organisational catalyst, intellectual stimulation, behavioural charisma, and contingent reward behaviours for enhanced leadership effectiveness.
Zwikael (2008) claimed that top management’s support is considered to be an area that has high impact on project success. However, effective top management support practices may vary across industries. The author explained that project managers in the software industry focus more in non-critical processes than the critical ones. Project managers choose to perform easy-to-do processes.
2.5.2 Project Management in Building and ConstructionSenaratne and Sexton (2009) stress that unplanned changes in construction projects are common and lead to disruptive effects such as project delays, cost overruns and quality deviations. Rework due to unplanned changes can cost 10-15 per cent of contract value. By managing these changes more effectively, these disruptive effects can be minimised. One of the ways to minimise this is through effective knowledge management. Different forms of knowledge are created and shared between project team members during change events which is very much socially constructed and centred on tacit knowledge and experience of project personnel.
Lindahl and Ryd (2007), further, claim that innovative and effective communication and collaboration must not be only evident among project managers and teams but also between clients and construction project management professionals. Based on workshops conducted on construction clients, the need for better briefing with the focus on end-users is known to be increasing. Difficulties for construction projects to deliver what the user-clients need include lack of systems and methods to keep track of user client demands sufficiently and in a satisfactory way. As such, goals need to be iterated and validated on a regular and coherent basis throughout projects.
Chan and Chan (2004) noted that the construction industry is dynamic in nature wherein the concept of project success has remained ambiguously defined in the construction industry. Time, cost and quality have been fundamental to the success of construction projects. However, as time goes by, the criteria of project success changes which now include value and profit, health and safety, environmental performance, quality, functionality, user expectation and satisfaction and participants’ satisfaction.
Smith and Love (2001) opined to consider what type and structure of construction industry is most appropriate to meet the challenges posed by market driven economies. The rationale behind this is that client demands are responding more rapidly to changing organisational and market imperatives. As such, creative and innovative solutions are expected from client analysts, advisers and consultants, from within and outside the construction industry.
2.5.3 Project Management in BankingHeng (1996) investigated the methodology used by a UK-based multinational banking group to develop its business continuity plans. By describing the stages (modules) in the methodology sequentially, the author shows how this modularity is a key success factor, enabling a project manager to complete a module - with specific objectives, tasks and deliverables - within a specific time period, facilitating effective management of the overall project. Carey (2001), on the other hand, explored the importance of risk management in financial projects. The basis of banking and similar financial institutions is taking risk in conditions of uncertainty, making various Turnbull ideas have become the bedrock of risk management.
2.5.4 Project Management in HealthBudu and Welvaert (2006) highlight the need to invest more in health care management training as a catalyst for accelerating the restructuring of the sector especially in light of projects. By drawing on the existing change management program, the project is evaluated by investigating results achieved to date and the need for its services.
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