Systems Thinking In Project Management: Importance And Tools

Benefits of system thinking in project management

Discuss about the Systems Thinking in Project Management .

Project management can be defined as the use of knowledge, skills, together with the relevant tools and techniques in the activities of projects in order to fulfil project objectives.  All business activities that involve provision of goods and services are typically projects, and therefore tight management practices are necessary from their initiation to their closure stage. Effective project management should be professionally conducted in accordance to the project management best practices so that projects attain their original objective (Harrison & Lock, 2017). The concept of systems thinking in a very important technic in project management that makes complex projects easier by viewing large projects in terms of their component parts (Sebok, 2016). System thinking tools are beneficial in project management because they provide a simple way of framing and solving problems especially those that are caused by multiple relationships and perspectives.

Recognizing the need to apply system thinking techniques in project management, this essay discusses their importance in project management and the entire organization. It goes ahead to identify and discuss the tools and techniques that are analogous to systems thinking. It is worth noting that there exists an overlap between project management activities and systems thinking (Heagney, 2016). It beats logic to understand that most project managers even though they understand the important contribution that systems thinking can bring to project management, still do not apply. The essay also takes a practical approach by studying project problems that have happened in the past such as the Deep water Horizon project error and identifies tools that project managers should embrace in order to successfully manage projects and prevent the occurrence of similar problems.

The project management processes is wide an involve project initiation, planning, execution, monitoring, control, and closure. A system approach enables the project managers to see the constituent parts of the project as processes that work together to build a complex whole. System engineering offers a practical approach to project management in different disciplines. It proposes processes and methods that are specific to particular domains by identifying risks, opportunities, and problems relevant to that particular area (Kerzner & Kerzner, 2017) .The system approach to project management can be applied in many fields of practice such as technology, construction, and enterprise development among other projects. System procedures might vary depending on specific projects however, some basic principles are known to enhance effectiveness of systems irrespective of domain. The application of integrated systems in project management provides a framework for different domains of practice to efficiently work together towards a common goals.

Systems Thinking Tools and Techniques

Systems praxis are the whole intellectual and actual processes that enable creation of efficient solutions to present complex system problems. It proposes problem solving approaches that integrate the necessary theory and practice arising from various sources.  Systems thinking is the main binding element of the Praxis framework (Sebok, 2017). It unites the foundations and theories of systems science with the practical hardware and software components that make up the system. Systems thinking is recognized as a continuous process that involves assessing and taking in to consideration the context of the system, and thereafter initiating appropriate procedures on all the sections of the praxis cycle (Kerzner, 2013). The application of integrative systems in project management allows managers and other stakeholders to identify, explore, and effectively understand project patterns and address problems through appropriate methods and frameworks.

Effective communication is a necessity in project management so that all stakeholders work for a common goal. Communication as part of the system of ensuring that project management processes are done effectively ensure successful project implementation. The whole project management process from initiation to closure might involve many stakeholders working under one project or functional manager. The movement of information from one person to another should therefore be efficient so that appropriate actions are undertaken at each stage of the system. The best practice is to engage project stakeholders early and continuously throughout the lifecycle of the project (Standards Association of Australia, 2003 ). The use of technology in communication becomes essential where stakeholders are operating across the globes.  It is important especially for project managers to take note of the cultures of different project stakeholders in order build rapport with them. The objective of communication in project management is achieve effective and efficient communication and not constant communication that compromises on the project activities.

Communication breakdown between stakeholders might be so much detrimental to the whole project management system. Poor communications causes misunderstanding within and between project teams and at the end causes a system breakdown. Common areas of misunderstanding in project management include project goals, project schedule, and procedures that resultantly lead to decline in productivity, missing of deadlines, and generation of a substandard product (Binder, 2016). Meetings are the main channel of communication in project management. Project meetings are basically events that involve various participants in the project management process where they come together to discuss issues with an aim of generating group decisions that result to quicker and successful project delivery. The major types of meetings are the project kick-off meeting, status meeting, stakeholder meetings, and the project review meeting. The project managers should therefore learn meeting processes so as to ensure that they conduct meetings that are productive. According to the National Commission report on the BP Deepwater Horizon Oil Spill and Offshore Drilling, inadequate communication together with too much compartmentalization of information contributed to the blowout. Onshore engineers for instance did not inform other stakeholders such as site leaders on some material aspects that could have informed their decisions.

Organizational structures of companies determine how they conduct their project management functions. There are different project management organizational structures namely; functional, autonomous, and matrix with each having their own advantages and disadvantages. The matrix structure occur in three forms as weak, balanced, and strong organizational structures depending on the relative power between functional managers, and project managers (Lock, 2017).The functional organizational structure benefits from the use of personnel with higher flexibility. There structure divides the company in to several specialized departments that contain employees who are trained along the same line to be able to provide necessary technical support to the project manager (Phillips, 2018). The disadvantage with this kind of structure is that the project might lack focus.

The matric organizational structure is characterized by the presence of more than one manager controlling the chain of command. The roles of the project manager relative to that of functional managers vary leading to the different types of matric structures. The powers of the project managers are less than, equal to, and greater than those of the functional manager in weak, balanced, and strong organizational structures respectively. There is no specific structure that is appropriate for all kind of projects but a structure such as the matrix has a higher chance of working effectively compared to the rest provided it is designed to conform to the needs of the specific project ( Mills & Koliba, 2015). The appropriate structure should be set up while implementing a systems that would ensure that the project is done effective.

Organizational culture in a very important aspect that influences the success of projects by affecting the decision patterns, actions, and influencing individual member behavior. Culture of an organization defines believes, norms, values and attitudes that are common in all parts of the organization. A company that has a well-defined culture assures customers and other stakeholders that do business with the company with stability and equal treatment (Harrison Lock, 2017). A strong culture can also create barriers that limit the competitiveness of the company by blocking its projects success. Project managers who do not possess cultural awareness can be restricted by the companies they are transacting business with.  They might possess problems adapting to various norms and cultures across different sections of the company. On the other hand, leaders who are knowledgeable concerning organization cultures easily interact and adapt to different cultures.

Risk is the deviation from the expected outcome. There are many possible risks that can occur in the project management processes. These risks include financial risks, physical risks, operational risks, environmental risks, and schedule risks.  The practice of carrying out proper risk analysis and management in carrying out the systems approach to project management ensures that little or no losses are incurred until the project is finished (Weick, 2017). Although the future might not be predicted certainly, risk management enables the project managers to predict possible risks and minimize their frequency and severity.  The analysis of risks arising from the main decisions made in project management and development of strategies that would minimize chances of losses are essential in ensuring the success of projects using a systems approach (Walden,  Roedler, Forsberg, Hamelin, & Shortell, 2015 ).The potential risks that might arise in the execution of the project plan should be listed based on brainstorming and experience and necessary management put in place to reduce risk. Risk management can be executed through risk avoidance, risk acceptance, and risk transfer through insurance.

The risk management process consists of risk identification, risk evaluation, risk handling, and risk controlling. When the project is initiated, the risk management plan that contains a list of possible sources of risk, their impact mitigation plan, and their metrics. The identification of possible risks is conducted throughout the life cycle of the project at hand especially during the most important milestones (Nejib Beyer & Yakabovicz, 2017). During project meetings, stakeholders make discussions aimed at identifying risks. Risk analysis is aimed at determining the possible impacts of risk on project plans. During handling, the managers make decisions on how to deal with the risk using the management techniques. Risk control occurs as the last process and involves comparing expectations and actual performance to determine deviations and then launching processes aimed at limiting their severity

The determination of which project to undertake in essential in basically based on the business value of the project. Business value is the benefits that can be accrued from undertaking the project, a construction company for instance while bidding for a tender to carry out construction of an advertised project tender shall quote a price that is above the cost of construction in order to secure a profit. In the investor’s point of view, business value is the possibility of the project to break even. Project managers work to deliver an already identified business value to client through execution ( Fleming & Koppelman, 2016). The determination of the project value is beneficial since it prevents the execution of projects that do not possess an economic value. The project manager should always ensure that he carries out his part of implementing the project efficiently according to the needs of the initiators so as not to contribute to reducing business value.

Portfolio alignment is the act of undertaking projects that promote the overall business strategy of the organization. The alignment promotes project portfolio management by ensuring that projects are managed effectively because they generate business value to the company. The portfolio management process cycle provides stages that are necessary in successfully carrying out project management processes (Tabibzadeh & Meshkati, 2014). The process consist of four stages namely inventory, analyzing, alignment, and management. During inventory stage, the strategic objectives of the project are identified and mapped to the company strategy. The metrics such as schedule, cost, and resources are determined at analysis stage. The mitigation of risks, prioritization activities, and balancing of economic resources is conducted at the alignment stage in order to facilitate rescheduling, redeployment, and project launch to be conducted at portfolio management level.

Conclusion

In conclusion, the need to employ system thinking techniques in project management is essential since it ensures that projects are managed successfully.  Proper project management promoted by systems management procedures also ensure that project problems arising due to poor project management are minimized. Systems management enable the recognition of every process as part of a whole complex project and therefore, every stage should be completed with recognition of its contribution to the success of the whole project. This essay emphasized on the benefits of efficient communication, portfolio alignment, proper risk management, good organizational structure and culture, among others as tools that promote systems thinking as a solution to proper project management. It is worth noting that proper achievement of these minor parts of the system would minimize the occurrence of project management problems such as those that happened at Deep water horizon.

References

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