Systems Approach to Project Management in Private and Public Sectors - Literature review Example

Systems Approach to Project Management in Private and Public Sectors Name: Course: Presented to: Date: Abstract In today’s business world, organizations have adopted and implemented project management as their main means of delivering more in less time, to superior quality standards and with a smaller amount of resources. This study sought to analyze project management in the public and private sectors. In so doing, it examined the rationale of systems approach to project management and its significance to projects undertaken in both public and private sectors. TABLE OF CONTENTS Abstract 1 Introduction 3 Systems theory 4 Systems Approach and Project Management in private and public sectors 5 Conclusion 10 References 11 Introduction The concept of project management has gained much publicity in recent times. Besides being widely research on, the business fraternity has increasingly recognized it as one of the key elements determining the competitiveness of any business; which if not taken into consideration may permanently affect its long-term viability. A research, which was done by Walesh (2000), indicated that project managers should carry out a project risk analysis, in order to determine the uncertainties that can hinder the attainment of the set objectives. According to Baker and Baker (as cited by Walesh, 2000), the systems approach assists the senior leadership team to manage the different elements of a project in an effective manner. This approach makes consideration of all interacting components needed for a project to be successful and the environment surrounding a project. It involves identification of the key elements that require careful analysis and close supervision in order to achieve set objectives. As Lawrence (1998) explains, this approach is increasingly becoming essential to the management of complex projects. It is based on the systems theory described by Katz and Kahn (as cited by Lawrence, 1998). In order to understand this better, it will be prudent to make a brief look at the systems theory. Systems theory The systems theory assumes that an organization can be analyzed as an open system, just like biological organisms. Biological organisms are considered open systems since they rely on the external environment for food and they return waste products to their environment. Katz and Kahn (as cited by Lawrence,1998) explain that just like the living organisms, an organization with an open system relies on the external environment for obtaining input resources and sending the end products back to the external environment. Additionally, an organization depends on its internal environment during transformation of inputs to end products. A system that is not able to adapt to changes in both internal and external environment will not be able to compete with others and will eventually die. In other words, an organization has to perform the processes of import-conversion-export in order to survive. In doing so, resources, people, time and scope must be properly managed to achieve success (Lawrence, 1998). The unique process leading to a desired outcome is called a project. Sometimes, these elements interact to form systems or projects that are complex and dynamic within organizations. To achieve a successful outcome in such projects, sub-systems should be created to deal with particular issues such as human resources, finance, communication and technical issues. All activities carried out at top management level should make consideration of information derived from these subsystems (Lawrence, 1998). In so doing, the top management would ensure that a project attains success and is secure from adversity that would occur as a result of ignoring the contribution of the internal environment. This approach is suitable in both private and public sectors. Systems Approach and Project Management in private and public sectors In every undertaking, there are many uncertainties that hinder the attainment of the set objectives (Bourne, 2007). Project risk analysis thus assesses the uncertainties that can jeopardize a project. Some of the main aspects that are included in a project risk analysis are cost, market segments, resource analysis among others. According to Bourne (2007), project managers have the role of managing uncertainties, delivering value and enhancing project relationships. The project management team should also take into account the shareholders’ expectations. In so doing, they should liaise with all the stakeholders in order to achieve success. A balanced view of success; the pillars of project success Figure 1- The three pillars of success. Source; adopted from Bourne (2007) Planning is an essential aspect in all public and private sectors’ projects. For undertaking involving largescale and complex operations, planning through the rublic of project management is necessary. According to Bianchi and Critchlow (2010), project management refers to “the framework within which the processes of organizing, planning, and managing resources occur for timely completion of a task.” This implies that projects are limited by size, time and cost. The systems approach to project management requires maximum utilization of all available methods and facilities to overcome those limitations and hence, realize a successful outcome. This process involves various tasks such as budgeting, allocating resources, setting of deadlines, tracking expenditure and assessing progress. According to Bianchi and Critchlow (2010), the systems approach involves a series of logical, interrelated processes/stages/steps that integrate to achieve the desired objectives. The systems approach requires organizations to form teams or logically related sub-systems to undertake various tasks at different levels of a project. The construction of Burj Khalifa demonstrates effective planning process of a largescale and complex project through the use of a systems approach to project management. Burj Khalifa, which is situated in Dubai, United Arab Emirates, is the tallest skyscraper across the globe. Project management of this tower was given to Emaar, a Public Joint Stock Company based in Dubai. Emaar put in place an organizational structure that effectively supported its venture (Emaar Properties, 2010). According to Emaar Properties (2010), they utilized both flat and hierarchical organizational structures models of management. The construction of this tower demonstrated a linkage between architecture, engineering and construction (Emaar Properties, 2010). From implementation to finalization of the project, Emaar utilized a five-stage project management process as represented in the following diagram; Source: Building Design Construction (2010) According to Emaar Properties (2010), tasks at every stage were broken down and allocated to various teams, starting with a team that dealt with formulation of the idea of the Burj Khalifa project. This was followed by the selection of teams that dealt with site selection, human resources management, finance, building materials control, codes management and risk management. Teams of contractors for the design, engineering and construction were chosen, and casual workers at various levels, were hired. Finally, sub-contractors for the inner construction work of aesthetic and pools were selected. According to Emaar Properties (2010), creation and effective management of teams in all stages of this project highly contributed to the success of this project. The importance of team working is also evident in the enterprise resource planning (ERP) system project implemented by Rolls-Royce plc in 1998. This company created three different teams to deal with the expected cultural, business and technical aspects during the course of this project. The high level of success achieved in this project demonstrates the importance of a systems approach to project management in both public and private sectors. According to Schermerhorn et al (2011), systems approach to project management requires effective communication via upward, horizontal and downward channels. Project managers should establish train the already working team in order to sharpen their skills, evaluate their performance, recognize top performing personnel and ensure that the workforce observes the rules and regulations that govern the project. Communication about any decision must cover all workers affected by it and must be open, encouraging and honest. Details must be provided about the pros and cons of any new tasks, the short-term and long-term goals and the implementation process. Thus, communication must be interactive in all directions and must cover all details related to every task undertaken to accomplish a project (Schermerhorn et al, 2011). The significance of communication is evident in a knowledge management project that has been implemented recently by National Thermal Power Corporation (NTPC), an Indian public listed company. According to Alok et al (2010) all individuals in this organization managed to contribute to the success of this project, mainly due to effective communication that occurred in all directions. Prior to the actual implementation, all individuals were adequately informed on the need and purpose of this project. The first step of the implientation process involved the selection of project leaders. The second step involved the hiring of affinity group members who were required to assist the project managers in filing documents, as well as electronic instruments. Thus, the members were required to collect and store information from various locations, and submit it to project managers. Project managers, on the other hand, approved the information obtained and placed it at various locations. Alok et al, (2010) noted that effective communication within this organization led to the development of trust and openness among individuals, and this was critical to the success of the project. A Recycle Zone project initiated in 2008 by Coca Cola Company shows the importance of communication in project management. The purpose of creating this project was to provide consumers of coke products with locations to dispose packaging waste (Werner & DeSimone, 2011). Communications between implementation teams and management was a critical factor to success of this project. According to Wernerand DeSimone (2011), communications within management levels, among workers in this company is excellent. Thus, effective communication during implementation of this project made teams feel as being part of this organization and to embrace and focus on achieving organizational objectives. According Werner & DeSimone (2011), the systems approach recognizes the fact that workers like to demonstrate their initiative. They do not like to always follow constant requirements or follow specific directions provided by managers, without their input or without questioning. Werner & DeSimone (2011) stated that staff involvement and working groups enhance communication and brainstorming. Staff involvement and working groups enable a problem to be viewed from different perspectives. Staff involvement allows the project managers to prepare in advance for the proposed changes. Also, it enables the project manager to identify the appropriate measures that require to be taken in good time. Creative solutions can thus be developed in order to deal with the anticipated problems. Where necessary, workers should be allowed to initiate changes in their own jobs. This will help to improve quality, and also, provide a chance for workers to show their creativity (Werner & DeSimone, 2011). During implementation of Coca Cola’s Recycle Zone project, managers in charge gave the selected teams autonomy, encouragement, trust and authority to accomplish tasks (Werner & DeSimone, 2011). The teams were allowed to promote and pursue new ideas in relation to the set goals. This encouraged the workers to embrace and support the project and to feel that it was part of their responsibility. However, Werner & DeSimone (2011) argues that successful implementation of a project requires balancing between human and technological factors. In some projects, there is a need to create a system of control that would facilitate the flow of information from lower to higher levels of hierarchy. This plays a crucial role of ensuring that issues raised are solved by well experienced persons. Additionally, it helps in measuring and monitoring employees’ performance. This explains why Emaar used the Earned Value Management (EVM) method of tracking and assessing project management throughout the construction of Burj Khalifa, (Emaar Properties, 2010). Conclusion In conclusion, the use of a systems approach is critical to success of project management in both private and public sectors. The main function of project management is to guide organizations in realizing their project goals. To achieve this, project managers should recognize the contribution of both the internal and external environments to a project. The systems theory describes a project as a system that has subsystems within it such as the control, finance, monitoring and communication systems. For a project to be successful, managers in charge should create systems or teams to deal with specific tasks. There should be effective interaction and communication among teams or systems. Where possible, teams should be allowed to, as much as possible, contribute to the outcome of a project through problem solving and contribution of ideas. Generally, the systems approach plays an important role to the success of projects in both private and public sectors, especially when undertaking large, complex projects. References Alok, K. G, Geeta, R. S & Renu, R. 2010. Knowledge management implementation in NTPC: an Indian PSU, Management Decision, 48(3), 383 – 395 Bianchi, S., & Critchlow, A. 2010. ‘Worlds Tallest Skyscraper Opens in Dubai.’ WallStreet Journal, Accessed April 7, 2013 From Bourne L. 2007. “Avoiding then successful failure. Hongkong: Mosaic Project services Pty Ltd.” Accessed April 7, 2013 From Building Design Construction. 2010. “Project Management.” Accessed April 7, 2013 From Chung, S. H. & Snyder, C.A. 2002. ERP adoption: A technological evolution approach. International Journal of Agile Management Systems 2 (1), 24–32. Emaar Properties. 2010. “Mission, Vision, Strategy, and Goals.” Accessed April 7, 2013 From Lawrence, G. W. 1998. Management development...some ideals, images and realties. In: Colman, A.D. and Geller, M. H. (eds.) Group relations reader 2, A. K. Rice Institute Series. 231-241. Schermerhorn, J.R., Davidson, P., Poole, D., Simon, A., Woods, P. & Chau, S.L.2011. Management foundations and applications: First Asia Pacific Edition. New York: John Wiley & Sons. Walesh, S. G. 2000. Engineering your future: the non-technical side of professional practice in engineering and other technical fields: project management. New York: ASCE Publications. Werner, J. M. & DeSimone, R. L. 2011. Human resources development. New York” Cengage Learning. Read More