By Hans J. Thamhain
Management Department, Bentley University, Waltham, USA.
Forces that Shape the Project Environment
We have seen major changes in the business environment, most
pronounced over the past two decades that have shaped the competitive landscape
and shifted the paradigm of project management, the way we organize, charter
and lead our project teams today.
1. Shift from Linear Processes to Dynamic
Systems.
Traditionally, management concepts were based predominately on
linear models, typically exemplified by production lines, sequential product
developments, scheduled services, and discovery-oriented R & D. Today’s
more complex projects and dynamic business environment requires a much more
interactive management style to deal with complex sets of interrelated,
nonlinear, and often difficult-to-define processes. To be effective, project
leadership has become more sophisticated, relying strongly on group
interaction, resource and power sharing, individual accountability, commitment,
self-direction, and control. That is, contemporary management relies to a
considerable extent on member-generated performance norms and evaluations,
rather than on hierarchical guidelines, policies, and procedures. While this
paradigm shift is driven by changing organizational complexities, capabilities,
demands, and cultures, it also leads to a radical departures from traditional management
philosophy on organizational structure, motivation, leadership, and project
control. As a result, traditional “hardwired” organizations and processes are
replaced by more flexible and nimble networks that are usually derivatives of
the conventional matrix organization. However, these networks have more
permeable boundaries, more power and resource sharing, and more concurrent
operational processes.
2. Shift from Efficiency toward Effectiveness
Many companies have broadened their focus from efficient execution
of their operations and projects—emphasizing job skills, teamwork,
communications, and resource optimization at the operational level—to include
organizational effectiveness. This shift responds to the need for better
integration of ongoing activities and projects into the overall enterprise,
making sure that “we are doing the right thing”. As an example, companies are
leveraging project management as a core competency, integrating
project-oriented activities closely with other functions, such as marketing, R
& D, field services, and strategic business planning. While this shift is
enhancing the status and value of certain business functions within the
enterprise, it raises the overall level of responsibility and accountability,
and puts higher demands on previously more autonomous functions, such as R
& D and product development, to perform as a full partner within the
integrated enterprise system.
3. Shift from Executing Projects to
Enterprise-Wide Project Management
Many companies use project management extensively today for far
more than just implementing specific projects. These companies leverage the
full capabilities of project management, enterprise-wide, as a core competency,
achieving accelerated product developments, higher levels of innovation, better
quality, and better overall resource utilization. To achieve this level of
competency, project operations must be integrated with the strategic planning
system and business processes across the total enterprise. Managerial focus has
shifted from the mechanics of controlling projects according to established
schedules and budgets to optimizing desired results across a wide spectrum of
performance measures that span the total enterprise.
4. Shift from Managing Information to Fully
Utilizing Information Technology
Today’s technology provides managers in any part of the enterprise
with push-button access to critical information on operational status and
performance. The availability and promise of technology has led to the
development of an enormous variety of powerful IT-based tools and techniques,
and the acquisition of these tools by managers at all levels. With the powerful
promise for increasing operational effectiveness managers are eager to use
these tools in support of their activities, ranging from resource estimating,
to scheduling, risk analysis, and decision support.
5. Shift from Managerial Control to
Self-Direction and Accountability
With increasing business complexities, advances in information
technology, changing organizational cultures, and new market structures,
companies look beyond traditional managerial control for effective execution of
their projects, operations, and missions. Especially top-down controls, based
on centralized command and communications, while critically important, are no
longer sufficient for generating satisfactory results. Organizational
activities are increasing project-oriented, relying on technology, innovation,
cross-functional teamwork, and decision making, intricate multi-company
alliances and highly complex forms of work integration. The dynamics of these
environments create pressures toward member generated performance norms and
work processes, and a shift toward more team ownership, empowerment, and
self-control. All of this has a profound impact on the way managers must manage
and lead, and analyze the work environment for effective intervention. The
methods of communication, decision making, soliciting commitment, and risk
sharing are constantly shifting away from a centralized, autocratic management
style to a team-centered, more self-directed form of control.
A complex environment? Yes! But it is just the beginning of
understanding the great challenges that managers face in our global businesses
environment. It is a starting point understanding the interaction of
organizational, behavioral, technical, and social variables that create the
dynamics of this continuously changing landscape.
Source: American Journal of Industrial and Business Management
Vol.3 No.2(2013), Article ID:29899 LINK