SEARCHING
FOR
AND
THE
INTERPRETATION OF EVIDENCE
OF MISMANAGEMENT BY
PROJECT
MANAGERS
IN
IT
PROJECTS:
A
MULTI CASE STUDY
B
YM
ICHELR.
F
OLKERTSA
UGUST2012
U
NIVERSITY OFG
RONINGENF
ACULTY OF ECONOMICS AND BUSINESSSupervisors
Prof. dr. E.W. Berghout
Faculty of economics and business University of Groningen
Prof. dr. A. Boonstra
Faculty of economics and business University of Groningen
Mr. P. Kristel
2
P
REFACE
This thesis is the final project of my master of science in the Business Administration program at the University of Groningen. Specialization course Business & ICT, this thesis focuses on the project manager of IT projects and his or her leadership style and -responsibilities, and their influence on project success.
The assignment was supervised by Pieter Kristel, who is a project manager at O&I Services. He has helped me a lot during this assignment, and was especially helpful during the interviews, despite his busy schedule. Knowing that a biased point of view would hurt case studies' results, he provided constructive support and, where needed, unbiased criticism. For this I’d like to thank him for his support.
During the assignment I came to realise the complex working environment of the project manager, which made this assignment even more challenging. Especially the different case studies' environments, and all factors attributing to project success, made it a complex, yet interesting subject to research.
I'd like to thank Prof. dr. Egon Berghout for his initial constructive support on how to approach such a research subject, and helping to design the data collection phase of this paper. Also input on the draft version, and motivation to finish, merits his thanks.
Finally, I’d like to thank both O&I Services and Prof. dr. Egon Berghout for their patience, as this assignment took over four years to complete. I was glad that in the end I realised I had to finish this paper no matter what, because otherwise it would follow me for the rest of my life.
3
M
ANAGEMENT
S
UMMARY
This thesis focuses on the leadership styles and -competencies of a project manager of complex IT projects, and how these influence responsibilities and in turn project success. The goal is to find out if and how these factors influence predetermined project criteria, such as costs, time, scope, and quality. Therefore, the main research question of this assignment is as follows:
“In what way do leadership styles and -competencies of project managers in IT projects influence their responsibilities, and what is the effect on project’s predefined success criteria?”
Initial request was to research the mismanagement of responsibilities, and its effect on project’s predefined success criteria, as this was witnessed in the field of O&I Services, the organization which initiated this research. As it became evident that mismanagement in essence results in a negative effect, the research subject had to be modified in order to be scientifically accepted. As mismanagement can be seen as part of the management style of the project manager, and as the successful management of a project requires the fulfilment of certain responsibilities, the combination of these elements and the influence of the first element on the second, will be the essence of this thesis.
In order to answer the main research question, three cases are selected for study, while existing papers on these subjects such as leadership styles and responsibilities will provide a theoretical foundation. Moreover, these will also help improve the validity of this paper by providing (rivalling) theories for the case studies. To support the main research question, several sub-questions have been formulated which should help answer our main research question. Moreover, these sub-questions can provide extra insight useful for analysing results and formulating conclusions.
Several key aspects from the main research question needed to be defined, in order to formulate a proper theoretical foundation. First, the term responsibility needed further research, as it quickly became evident that scholars were not all on the same page regarding its definition. Moreover, several concepts of responsibilities exist, which are in turn influenced or moderated by several factors. Three concepts are explored in this thesis; (1) the concept that responsibilities are described and defined by scholars and institutes, (2) the concept that responsibilities are defined in a project mandate, describing exactly the responsibilities of the project manager, and (3) the concept that responsibilities are defined by personal ideas and beliefs on the notion. These different concepts of responsibilities are in turn moderated by factors such as culture, the organizational culture and professional culture, and leadership styles and -competencies of the project manager. The combination of the three concepts together with these moderating factors ultimately decides how the project manager will interpret and execute his or her responsibilities. The main research question is thus focussed on how leadership styles and -competencies influence the conception on responsibilities, meaning all three concepts combined.
Project management methodologies describe responsibilities in relation to the project manager in more detail, and OGC (2009) defines the responsibility of a project manager as “delivering all products, with the predefined
quality, within the predefined time-frame, and within the budget”. This also sheds some light on the second key
aspect of our main research question which require a more in depth definition; the predetermined criteria of the project.
4 too difficult to measure, especially with limited resources available and the required maximum age of the project – being a maximum of three years old.
Case studies have been selected based on Yin’s (2003) best practices, as well as in regard to research design and method. Several actions have been taken to improve different types of validity, such as reliability, construct-, internal-, and external validity. These actions include predefining expected results, demonstrating selected measures indeed reflect specific types of change, and pattern matching. Due to the nature of this research the decision was made to present the cases anonymously. This will harm internal validity, as well as the reliability of this research. However, using this course of action, evidence gathered from the cases would yield more accurate results, especially evidence from the interview with the project manager.
According to the theory, the interpretation and execution of responsibilities is influenced by leadership style and -competencies, project type, culture, and methodology. Although other factors also influence responsibility, these are outside the scope of this research and have been noted in the research limitations. When related to our research field, complex projects related to IT, theory by Turner and Müller (2005) and Dulewicz and Higgs (2005) conclude that different leadership styles are suitable for different type of change project, and are to a lesser degree influenced by complexity and IT related projects. They describe fifteen leadership competencies, and categorize these in three different groups: Intellectual (IQ), Managerial (MQ), and Emotional (EQ). According to their findings, EQ and MQ competencies impacts projects positively and directly, and in turn, project results. The fifteen leadership competencies have also been selected on their influence on responsibilities. Six leadership competencies were found that influence responsibilities – whether the interpretation or execution of it – more than the others. These six are “critical analysis and judgment”, “strategic perspective”, “resource management”, “empowering”, “developing”, and “achieving”. Using this data, project managers from the case studies are categorized using these leadership styles and -competencies, in order to provide insight in our case study results.
As a sub research question, the six mismanagement syndromes from Hogan and Fernandez (2002) were used and applied to case study results. Theoretically, these syndromes can have a severe effect on project success, especially when project managers are under pressure. Case study C showed evidence similar to what Hogan and Fernandez (2002) describe as the “stubborn manager”. When under pressure, they withdraw and do the bare minimum of their responsibilities. When asked for additional work, they slow down even further, while seeming to cooperate. In addition, teamwork breaks down as to unresponsiveness and failure to deliver on time. Although these mismanagement styles do not seem related or influenced by the leadership style of the project manager, a mismatch in leadership style and project type could create extra pressure, and in turn increase the effect of this mismanagement style on project success.
5 It can be concluded that, when analysing all available data from the theory and cases, and relate these to our main research question; a misfit in leadership style and -competencies influence the perception and execution of responsibilities negatively, and theoretically influence project’s predefined success criteria negatively. Theoretically, since no concrete evidence is found in the cases that supports this statement.
6
T
ABLE OF CONTENTS
Chapter 1 Introduction ... 9
1.1 Initial Motive... 9
1.2 Research Scope and Context ... 10
1.3 Problem Definition ... 11
1.4 Research Design... 12
1.4.1 Research Method ... 12
1.4.2 Research setting ... 14
Chapter 2 Literature Research ... 16
2.1 Search Method ... 16
2.2 Researching Project Management and Responsibility ... 16
2.3 Researching Research Method and Evaluation ... 17
2.4 Researching Project Management and PRINCE2 or IPMA ... 18
2.5 Collected Research ... 20
Chapter 3 Project Management ... 21
3.1 Defining Project Management... 21
3.2 The Project Manager ... 23
3.2.1 Responsibilities and Roles ... 25
3.2.2 Existing Theories on Responsibilities ... 26
3.3 Discussion ... 26
Chapter 4 Project Management Methodologies ... 28
4. 1 PRINCE2 ... 29
4. 2 IPMA ... 31
4. 3 Other Methodologies ... 32
4. 4 Discussion ... 33
Chapter 5 Existing Theories on Project Success and Failure ... 35
5. 1 Defining Success ... 35
5.1.1 Project Failure ... 39
5. 2 Defining Project Manager Success ... 41
5. 3 Leadership style vs. Project type ... 41
5.4 Mismanagement ... 45
5.5 Organizational culture ... 46
5.6 Discussion ... 48
Chapter 6 Case Study Set-up ... 51
6.1 Research Conduct ... 51
7
6.1.2 Anonymity ... 52
6.1.3 Research Design Components ... 52
6.1.4 Validity... 53
6.1.5 Case Study Design ... 55
6.2 The Organizations ... 56 6.3 The Projects ... 56 6.4 Sources of Evidence ... 56 6.4.1 Documents ... 56 6.4.2 Open-ended interviews ... 58 6.4.3 Focus interviews ... 58 6.4.4 Direct Observations ... 58 6.4.5 surveys ... 59 6.5 Research Limitations ... 60 6.5.1 Scope ... 60 6.5.2 Domain ... 60 6.5.3 Organization Selection ... 60 6.5.4 Project Selection ... 60
Chapter 7 Case Study A ... 61
7.1 Project Description ... 61
7.2 Project Manager Background ... 61
7.3 Available Sources of Evidence ... 62
7.3.1 Project Plan ... 62
7.3.2 Project Manager ... 63
7.3.3 End-user ... 63
7.4 Project Results ... 63
7.5 Discussion ... 63
7.5.1 Project Type vs. Leadership Style ... 64
7.5.2 Culture aspect ... 68
7.5.3 Methodology aspect ... 69
7.5.4 Mismanagement aspect ... 69
7.6 Conclusion ... 69
Chapter 8 Case Study B ... 71
8.1 Project Description ... 71
8.2 Project Manager Background ... 71
8.3 Available Sources of Evidence ... 71
8.3.1 Project Plan ... 71
8 8.3.3 Project Mandate ... 72 8.3.4 Time Table ... 72 8.3.5 Project Manager ... 72 8.3.6 End-user ... 72 8.4 Project Results ... 72 8.5 Discussion ... 73
8.5.1 Project Type vs. Leadership Style ... 73
8.5.2 Culture aspect ... 77
8.5.3 Methodology aspect ... 78
8.5.4 Mismanagement aspect ... 78
8.6 Conclusion ... 78
Chapter 9 Case Study C ... 80
9.1 Project Description ... 80
9.2 Project Manager Background ... 80
9.3 Available Sources of Evidence ... 81
9.3.1 Project Plan ... 81
9.3.2 Project Manager ... 81
9.4 Project Results ... 81
9.5 Discussion ... 82
9.5.1 Project Type vs. Leadership Style ... 82
9.5.2 Culture aspect ... 87
9.5.3 Methodology aspect ... 88
9.5.4 Mismanagement aspect ... 88
9.6 Conclusion ... 88
Chapter 10 Discussion of Results ... 91
10.1 Managerial Effectiveness According to Theory ... 91
10.2 Key Findings and Discussion ... 92
10.3 Research Limitations ... 97
Chapter 11 Conclusions and Recommendations ... 98
11.1 Conclusion ... 98
11.2 Future Research ... 100
References 101
9
C
HAPTER
1 I
NTRODUCTION
In this chapter, contemporary problems regarding the managerial aspects of complex IT projects are presented, and described how these will be defined, discussed, and researched. This will also include the reasoning behind this report and its scientific relevance. Other aspects discussed in this chapter are the problem definition, research context and -design, and the research method used in conducting this research.
Before these aspects are elaborated, the background of this researched will be given in the initial motive.
1.1 I
NITIAL
M
OTIVE
O&I Services, a relative small IT company offering consultancy and project managing services is currently focused mostly on Microsoft SharePoint implementations. However, at the time of this research – four years ago – they were offering a wider range of IT products and services. During that time, Mr Pieter Kristel had built up quite a few years of experience as a project manager, and in that time as a project manager, he has encountered many project managers on different projects mostly throughout the northern of the Netherlands. What he thought he found was something to be a common trait amongst many project managers, although according to him some seem to have it more than others: project managers not honouring their responsibilities, or managing them in such a way that they become the responsibility of someone else. Mismanagement is what he calls this.
He wanted to research this subject further, as he had several concepts regarding this subject that required a theoretical basis and if possible practical data collected from the field to further support his theory. To this end, a research proposal request was made at the University of Groningen to research this hypothesis.
The initial goal was to research this encountered mismanagement by project managers, and what effect it has on project results. However, as mismanagement is an undesirable action or activity, it can only have a negative impact on project results, and is therefore unsuitable for a research subject. Looking at a wider angle on the term mismanagement, it can be seen as being part of someone’s leadership style. Indeed, as a project manager has his or her own method, or style, of leading, or managing a project, both the terms mismanagement and leadership styles are closely related to each other. As this research subject is focussed on the mismanagement of responsibilities, looking at this from a scientific viewpoint, and incorporating this with the leadership style and -competencies as being a greater whole of mismanagement, the subject of this research will be focussed on the effect the leadership style and -competencies of a project manager have on the interpretation and execution of their responsibilities.
10 Most papers on this subject are based on literature research (Turner and Muller, 2005) or data from qualitative (Sutterfield, J. S., et al. 2006) or quantitative research (Muller et al., 2012, Gottschalk, P. and Karlsen, J.T., 2005), but conclusions are too general to be applied to the field in which O&I Services operates: mostly complex IT projects located in the northern of the Netherlands. Conclusions were also to general by looking at success or failure factors instead of – in our case – focussing on leadership styles and responsibilities. Moreover, as Information Technology (IT) evolves at such a high pace, results and conclusions of older theory on IT projects might not be fully applicable to contemporary IT projects.
This research has been initiated to examine to what extent the project manager’s leadership style and -competencies related to responsibilities influences the results of a project. The results of this study could not only prove beneficial in improving project managers' managerial competences by making them aware of possible pitfalls, but also in helping organisation or line managers to select a project manager which suits their project best.
This research subject is closely related to what is called mismanagement. Mismanagement has been observed and researched for many years, often with managers as the main subject. This research subject on leadership styles, -competencies, and responsibilities that the role of project manager requires can be seen as part of that mismanagement notion.
1.2 R
ESEARCH
S
COPE AND
C
ONTEXT
This thesis will be based on both theoretical and empirical data, collected through literature study and thee case studies conducted in the Netherlands. Even though project management methodologies such as PRINCE2 are used for all types of projects all around the globe, the focus of this report will be on the projects related to IT within the Netherlands. Although O&I Services operates mostly in the northern of the Netherlands, it is impractical to select only IT projects and project managers from the northern of the Netherlands, as project managers, especially experienced ones, usually have done projects outside the northern part of the Netherlands. Furthermore, only projects with top-management’s involvement are used in this study, in order to make sure the projects are of tactical or strategic importance to the organization and rule out any operational IT projects. This is also semi-validated by selecting only complex projects. Defining the criteria to measure the complexity of projects will be discussed in chapter 3.
The scope of this research will be to gather theory on factors influencing project success related to the project manager, such as leadership style or leadership competencies, responsibilities of the project manager, and project management methodologies. Moreover, as this thesis is part of the Business & ICT master course, the project type will be included as a factor for the case studies as well, being complex IT related projects.
A survey by Ernst & Young (2009) indicated that most IT projects started by organizations were related to their website, their information system, their financing system, their Microsoft Office system, or their CRM system. This could either be upgrading the current system, implementing a new system, or merging existing systems. All these and other projects are within the scope of this research, as long as they are related to IT.
To summarize, selected projects for the case studies must be complex, be related to IT, have taken place in the Netherlands, be managed by a project manager according to the definition used in this paper, and must have been completed or cancelled in the past two years of conducting the case studies.
11
1.3 P
ROBLEM
D
EFINITION
Even though we now have extensive project-management methodologies or methods such as PRINCE2 and IPMA in the Netherlands, which claim to help project managers manage their project with more success and ease, figures by Ernst & Young (2007) indicate that only 48 per cent of IT related projects in the Netherlands are completely successful. Of the 52 per cent that are not completely successful, 4 per cent fail completely and the remaining 48 per cent are only partially successful. The goal of this research is to find out in what way leadership style or -competencies influence responsibilities, and in turn attribute to the failure or success of an IT related project. To achieve this, the following main research question has been formulated:
“In what way do leadership styles and -competencies of project managers in IT projects influence their
responsibilities, and what is the effect on project’s predefined success criteria?”
To support the main research question, several sub-questions have been formulated which logically follow from the main research question:
1. What are the different concepts of responsibilities in project management, and which are suitable for this research?
2. What are best-practice concepts of project management and in what way can they influence leadership style and –competencies, and responsibility?
3. What are, according to the theory, the leadership styles and -competencies of a project manager?
4. What are, according to the theory, existing concepts, theories, and notions on factors influencing project success?
5. What are, according to the theory, the effects of the project manager mismanaging their responsibilities to the project’s predefined success criteria?
6. What is, according to our case study, the match between the leadership style and –competencies of the project manager and the type of project?
7. What is, according to our case study, and if applicable, the effect of a project manager mismanaging their responsibilities to the project’s predefined success criteria?
The main research question raises several new questions which need to be researched, analysed, and answered before answering the main research question. Moreover, besides supporting the main research question, these sub questions are used to explore research closely related or possibly influencing the main research question.
12 Second, several sub-questions are given which are closely related or perhaps even influencing the effect these key components have on our main research question. These questions discuss best-practice concepts of project manager, also known as project management methodologies or -methods, and mismanagement. The first factor is incorporated in this research, for several reasons. Most importantly, project management methodologies such as PRINCE2 are widely used in our research domain which calls for further research. Moreover, these methodologies describe actions and procedures which can influence our key components: leadership style and -competencies, and responsibilities. The second factor – mismanagement – has been incorporated for its possible influence on responsibilities, and because it was the main motivator for starting this thesis. These two factors are being further explored in research questions 2 and 5. It should be noted that not all factors influencing the main research question have been researched, mostly due to resource
restrictions. These limitations are also described in paragraph 10.3: Research Limitations.
Finally, the case study will present us with information related to these sub-questions. Before directly
discussing and answering the main research question, two new sub questions have been formulated to provide a baseline for the results and present possible background information for findings. In order words, these questions are used to tell the story between the raw data from case study results and the discussion and conclusion of the main research question. These two sub questions are given in research questions 6 and 7 The main research question can only be answered if there is a correlation between leadership style and -competencies of the project manager, and the interpretation or execution of his or her conception of responsibilities during a project. For this reason responsibilities are further researched in the final (case) discussions, and include both the conception of the project manager on his or her responsibilities, as well as responsibilities defined in the project mandate. Moreover, both will be analysed according the general census of scholar on the responsibilities of the project manager.
1.4 R
ESEARCH
D
ESIGN
This paragraph will define the structure of this research, starting with the research method and continued with the research setting.
1.4.1 R
ESEARCH METHODThe format of this research will be one with a theoretical foundation followed with three case studies. The case studies in this particular research setting are required to improve the validity of the findings and conclusions, as the scope other related papers on this subject differ from ours. As our scope will only include the working environment of O&I Services, these case studies are required to either confirm or reject any theory gathered for this research. The main goal of this paper is to find evidence that leadership styles and –competencies influence the conception of responsibilities, and its effect on project results. Moreover, several sub questions require a wider research scope for the case studies as to include mismanagement, project management methodologies, and cultural influences.
To begin with, a main research question has been formulated that should cover the essence of our research goal. Then, several related sub-questions have been be formulated which closely follow the main theme of this research. These sub-questions will be used to cover related aspects of our main research theme.
13 After collecting all relevant papers, a selection process will start to identify the most usable papers, including ones found in the references of relevant papers. Based on these papers, their theory related to this research will be presented and discussed. Moreover, the theoretical data will also be used in developing the research design for the case studies.
Once the theory has been collected, processed and formulated, the research approach will be further elaborated. This not only includes defining key interest items and key interview roles, but also pre-defined interview questions or subjects.
The case studies will commence simultaneously with the collecting and processing of the theory. An online questionnaire will be used to only select projects which fall within our scope. From these results, three projects will be randomly selected to serve as a case for this study. This online questionnaire was sent to multiple project managers and did not state any information regarding the exact nature of the research, as this would most likely affect the outcome of this research. Moreover, it was possible for project manager to enter multiple projects, as long as they were within our scope.
Once all the case studies have been conducted, findings will be compared with the gathered theory, and discussion of these findings will ultimately result in the formulation of a conclusion based on the research questions given in paragraph 1.3.
The design of this research follows the overall model given by Baarda, de Goede and Teunissen (2005), while the case studies have been conducted using models and best-practices from the book “Case Study Research: Design and Methods” by Yin (2003).
14 Introduction Chapter 1 Introduction
Part I
Chapter 2 Literature Research Chapter 3 Project Management
Chapter 4 Project Management Methodologies
Chapter 5 Existing Theories on Project Success and Failure
Part II
Chapter 6 Case study set-up Chapter 7 Case study A Chapter 8 Case study B Chapter 9 Case study C Part III Chapter 10 Discussion of Results
Chapter 11 Conclusions and Recommendations Table 1.1 Overview of the chapters in this report
1.4.2 R
ESEARCH SETTINGThis sub-paragraph describes the setting in which the research has been conducted. This includes the time period in which the research has been conducted, as well as actors involved from both O&I Services and the University of Groningen.
As mentioned in the initial motive, O&I Services B.V. initiated the need for this paper in the beginning of 2008, by wanting to research project managers in O&I Services B.V. working domain – IT projects in the northern Netherlands – and to find any evidence of mismanagement. After this was accepted by the University of Groningen as a suitable research subject, preparations began in April 2008 by defining the problem definition, research questions and a research method. After these were approved by the University of Groningen a few weeks later, research began, starting with the theoretical foundation.
Case study research was initiated after the theoretical research was nearly finished, and the case studies themselves took place between July and September of 2008. Unfortunately, the two months available after the case studies were not enough to process findings and finish this thesis, and work halted for three years. Reopened in 2012, new theory – found using the original search parameters – have been added to improve the validity of this paper, as because noted earlier, the IT project environment can change quickly.
15
16
C
HAPTER
2 L
ITERATURE
R
ESEARCH
This chapter will focus on the method used to gather relevant literature. This should help provide a foundation on which the literature research is based on. As this research is based on multiple keywords, multiple searches have been conducted to gather all relevant papers. Searches have been conducted on the “Business Source Premier” and “Science Direct” websites. A manual search in the International Journal of Project Management was also part of the literature research.
2.1 S
EARCH
M
ETHOD
To refine results on both search engines, parameters were set to only show recent and usable results. The websites of Business Source Premier and Science Direct allow for several limiters, such as publishing date, type, and the possibility to only show academic journals. As mentioned before, IT is evolving rapidly and for this reason no papers were selected which are over 10 years old (measured in 2008). However, if any paper leads to anything important which is older than 10 years, that paper will not be discarded based on its age. The selection of academic journals is more obvious, as this paper requires a sound theoretical base which can be provided by academic journals, as they are fully reviewed by other academic before being published.
From Business Source Premier, the published date was set to 1998 and up, publication type was set to “Academic Journal” and the option to only show scholarly– also known as peer reviewed – journals, has been selected.
For Science Direct, the publishing date was set to 1998 and up, and the option to only show academic journals was set.
These parameters have been applied to all search results discussed in the paragraphs to come. The published date has been used to display only from 1998, as results were aplenty. Using only academic journals seems the logical choice, as they have a better chance of being accepted by the academic community.
Using advanced search options, it is possible to search keywords in different parts of the research paper. Figure 2.1 shows an overview of possible search fields for both search engines.
Using the right search term in the right field will optimize search results and diminish the possibility of an irrelevant paper. Only the most relevant papers derived from these searches were used, together with other relevant papers gathered by other means, such as references in used papers or recommendations by others.
2.2 R
ESEARCHING
P
ROJECT
M
ANAGEMENT AND
R
ESPONSIBILITY
17 Figure 2.1: Schematic representation of search for Project Management and Responsibility
As shown in figure 2.1, the search terms used are quite extensive and include many OR-statements. This is done as many different words can be used for the same subject we are searching. For example, information technology can also be called IT, information systems, communication technology, informatics or computer. The shown search terms in figure 2.1 were derived from several test runs and these seemed to give the most promising results.
2.3 R
ESEARCHING
R
ESEARCH
M
ETHOD AND
E
VALUATION
18 Figure 2.2 shows the graphical representation of the search query used.
Figure 2.2: Schematic representation of search for Research method and Evaluation
As the goal of this search was to find the best suited research method for this type of research, keyword such as evaluation, assessment, and research method were used. All results were then scanned for any relevant studies which can be used to define and setup the research methodology best suited for this paper. Besides scholar papers two books have been selected on their relevance: “Case Study Research: Design and Methods” by Robert K. Yin (2003, 3rd edition) and “Basisbook Kwalitatief Onderzoek” by Baarda, De Goede and Teunissen (2005, 2nd edition).
2.4 R
ESEARCHING
P
ROJECT
M
ANAGEMENT AND
PRINCE2
OR
IPMA
19 be used for elaborating on this subject with a more in-depth sight on project management and methods. Moreover, with any luck we might find papers discussing the pros and cons on these project management methods with possibly a link to responsibility, mismanagement or leadership styles and -competencies.
The graphical presentation of these search terms are shown in figure 2.3.
Figure 2.3: Schematic representation of search for Project Management and PRINCE2 or IPMA
20
2.5 C
OLLECTED
R
ESEARCH
A total of 95 articles were found using these three sources, 57 on Science Direct, 19 on Business Resource Premier, and 24 from the International Journal of Project Management. Appendix I shows these results, including their relevance and optionally the type of study and assessment method.
5 articles were duplicates, and another 51 were excluded for being not having enough relevance to the subject. This gives a total of 44 usable papers, as seen in figure 2.4 below.
Other sources: Dhr P.
Kristel Sort: relevance
Results: 95 Business Resource Premier: 19 Science Direct: 57 Duplication: 0 Duplication: 0 International Journal of
Project Management: 24 Duplication: 5
Full Text availability Business Resource
Premier: 19
Science Direct: 57
International Journal of
Project Management: 19 Results: 95
Abstract reviewed
Results: 44
Articles reviewed in detail Backward search Reference & Author
Forward search Reference & Author
Results: TBD
Excluded: TBD Addition: TBD
Articles included in report: TBD
Excluded: 51
Figure 2.4: Schematic representation of all search results combined
The final amount of papers used is 56, which can be found in the reference list of this paper. Although 44 papers were found using these searches, not all of these have been used, as papers these tend to discuss the same subject or use the same source for their research. However, many other papers used in this thesis were found because they were referred to by the 44 usable papers that were found. For example, all papers related to leadership styles and competencies were found this way.
21
C
HAPTER
3 P
ROJECT
M
ANAGEMENT
This chapter will look into the subject of project management, starting with its definition and continued by looking further into the subject and connecting the gathered theory with our research subject. Several project management methods such as PRINCE2 and IPMA will be discussed, as well as existing literature on the subject of project management, the project manager, and their influence on project results. All these items are important because they build the foundation of this research. Before we can investigate if leadership styles, -competencies, project types, and their relation to responsibilities and project success, we have to define the scope of this research related to projects, project management and the project managers themselves. Moreover, this chapter will look into one of the key aspects of this research, namely responsibilities. At the end of this chapter, the first research question given below will be discussed.
(1) What are the different concepts of responsibilities in project management, and which are suitable for
this research?
3.1 D
EFINING
P
ROJECT
M
ANAGEMENT
It would seem easy to say that project management is simply managing a project. Although in a sense this is of course completely true, it is important to define the two words and its combination in order to get a better understanding of project management.
Before starting to define project management, let us first look into the definition of a project. Turner and Müller (2003) define a project as:
“a temporary organization to which resources are assigned to undertake a unique, novel and transient endeavour managing the inherent uncertainty and need for integration in order to deliver beneficial objectives of change.”
This definition has three essential features, namely that it is unique, it is a novel process – meaning that no project before or after will use the exact same approach, and it is transient – meaning it has a beginning and an end. These three features create pressures as well. The first pressure is that the project is subject to uncertainty; it is not certain the project will deliver desired beneficial change. Second, they create the need for integration. Finally, these pressures are undertaken subject to urgency (Turner and Müller, 2003).
22 Project Attribute Project types per attribute
Application area Organizational change
Information and telecommunication technology Engineering and construction
Complexity High
Medium Low
Strategic importance Mandatory
Repositioning Renewal
Contract type Fixed price
Remeasurement Alliance
Table 3.1 Project attributes and their project types (Müller and Turner, 2009)
These project types and attributes will later serve us when analysing case study results, as collected data by Müller and Turner (2009) will be compared to our case study findings.
Combining project and management, the Project Management Institution (PMI) defines project management as “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (IPMA, 2009). Another definition is the one which is used in PRINCE2 – a project management method which will be discussed in the next chapter – which defines project management as “the planning, monitoring and
control of all aspects of the project and the motivation of all those involved in it to achieve the project objectives on time and to the specified cost, quality and performance” (OGC, 2009). Although the PRINCE2 definition is
more specific than the PMI definition, Turner and Müller’s (2003) definition of Project Management is more complete and stresses all major aspects of project management: “An endeavour in which human, material and
financial resources are organized in a novel way, to undertake a unique scope of work, of given specification, within constraints of cost and time, so as to achieve beneficial change defined by quantitative and qualitative objectives”. All definitions described above stress that the goal is to successfully achieve the projects
predefined goals.
To measure the usefulness of project management Bryde (2003) conducted an empirical study on the subject of project management. By conducting a study amongst different sectors such as Information Systems, Banking, and public Administration Services, and different project roles, such as project managers, members of the steering committee, and programme managers, results may be general, but at least gives us a general idea of its usefulness. The areas found to be perceived as being potential very useful in project management are “Meeting time project objectives”, “Co-ordination of work”, “Prioritizing work”, “Co-ordinating resources”, and “Meeting cost project objectives”. However, areas perceived to be less useful in project management are “Facilitating creativity”, “Measurement of continuous improvement”, “Management of continuous
improvement”, “Facilitating innovation”, and “Eliminating competing ideas”. These results should give an idea
which areas of project management, if undertaken correctly, can be beneficial to project results.
To support these areas Bryde (2003) also asked respondents to describe procedures which were used in project management. These procedures includes activities such as “Planning time, cost, scope of work”, “Defining
benefits, goals, objectives”, “Monitoring, controlling a project”, “Conception, initiation of a project idea”, and
23 The Project Management Institution defines the quality of project management as “fulfilling the requirements
agreed for the management of the project” (IPMA, 2009). They want to achieve this by creating “the optimum situation for a project organization which is that all people, the project teams, and resource providers involved in project management are competent to carry out their work and to take individual responsibility.” Although it
makes sense, defining the responsibilities for the project manager and project members might be more difficult, as we will find out when discussing responsibilities.
3.2 T
HE
P
ROJECT
M
ANAGER
Because this report solely focuses on the actions of the project manager, it is imperative to define the role that a project manager has within a project, to make sure the case studies are conducted under the right circumstances and with the right people. Figure 3.1 below shows the organizational chart of a project team, taken from the PRINCE2 guide by the Office of Government Commerce in the United Kingdom (OGC). Because a project can be seen as a ‘temporary organization’, using an organizational chart helps identify the project manager and its role in this temporary organization.
Corporate management or Program Management Project Board Senior User Business Executive Senior Suppliers
Project leader / Project Manager
Team Manager(s)
Project Support Quality
Assurance
Figure 3.1 Organizational chart of a project by OGC (2009)
As shown in figure 3.1, the project leader and project manager are both occupying the same function. There are however different ideas on the usage of project leader and project manager. In the Netherlands, the different level in experience and competence is in most cases addressed with the use of junior and senior – and sometimes even medior – project manager. On the other hand this difference is sometimes addressed by using leader or manager, while in other cases leader and manager are considered interchangeable (Day and Bobeva, 2003).
24 As project manager selection will be based on the complexity of a project, complexity described by scholars or institutes will be used to measure the complexity. A project can be defined as highly complex when the following criteria are met (IPMA, 2006):
Many interrelated sub-systems / sub-projects and elements should be taken into account within the structures of a complex project and in relation to its context in the organization,
Several organizations are involved in the project and/or different units in the same organization may benefit from or provide resources for a complex project,
Several different disciplines work on a complex project,
The management of a complex project involves several different, sometimes overlapping, phases, Many of the available project management methods, techniques and tools needed are applied in the
management of a complex project.
Müller et al. (2012) define complexity as a multidimensional construct, stemming from the trust in the ability to produce the project’s outcome, the amount of information to be processed, dynamic and uncertainty
engrained in projects, and the interaction of the actors involved, including both personal and political layers. During the analytical phase of the case studies, these definitions of complexity will be used to validate the complexity of the cases.
IPMA’s universal four-level-certification (4-L-C) system is widely used for assessing the competence level of a person executing project management activities. In the IPMA Certification System the following four categories are specified:
Certified Projects Director (IPMA Level A): means that the person is able to direct an important
portfolio or programme, with the corresponding resources, methodologies and tools, that is the subject of the certification rather than the management of a single project. To take on this responsibility an advanced level of knowledge and experience would be required.
Certified Senior Project Manager (IPMA Level B): means that the person is able to manage a complex
project for which the criteria are defined above. Sub-projects are normal, i.e. the project manager is managing by sub-project managers rather than leading the project team directly.
Certified Project Manager (IPMA Level C): means that the person is able to lead a project with limited
complexity which signifies that he has demonstrated the corresponding level of experience in addition to the ability to apply project management knowledge.
Certified Project Management Associate (IPMA Level D): means that the person is able to apply
project management knowledge when he participates in a project in any capacity and common knowledge is not sufficient to perform at a satisfactory level of competence.
The terms portfolio management and programme management given in the IPMA level A category are defined by Turner and Muller (2003) respectably as “an organization in which a group of projects are managed together
25 PRINCE2 has its own equivalent for the competence level of a project manager, but has only 2 levels. These are the foundation level and the more advance practitioner level.
Although PRINCE2 uses both project manager and project leader in their literature as the manager of a project, and IPMA uses only project manager to identify the manager of a project, the usage of these two terms differ in the real world, as noted before. This could mean that a person is a project leader in organization A, but would be described as a project manager in organization B.
According to Turner and Müller (2007), a project manager should not be assigned to projects that are below their management capabilities. This is because project managers seek challenging projects with high complexity and fixed price to increase their awareness on project predefined goals. Take away this challenge, and Turner and Müller believe a project manager will not be as much focused on the project’s success factors, and thus increasing risk of project failure.
Since this research is focused on the project manager, the IPMA’s Certification System will be used to select senior project managers. This is shown in figure 3.2. In this figure, it is important to understand that the IPMA levels and their names only imply the complexity of a project. In our case, we are looking for IPMA level B project managers.
Figure 3.2 The different types of projects according to IPMA (2006) and their respective managing role
It is of course possible for a project manager to manage a project which only requires the competence level of a project leader – although this is not recommended, as noted before. For this reason the project managers were asked to fill out a short questionnaire which was used to confirm the complexity of the project. This questionnaire can be found in Appendix III.
3.2.1 R
ESPONSIBILITIES AND ROLESThe responsibilities of the project manager are usually clarified to some extent in a document, depending on the project management method used. This could for example be described in the Project Initiation Document (PID). For example, according to PRINCE2, the project manager is responsible for “delivering all products, with
the predefined quality, within the predefined time-frame, and within the budget” (OGC, 2009).
On the other side, to quote Ericsson and Mirsberger (1973), “it would probably be a good idea if companies
tried to avoid using the word responsibility if it implies that one employee is solely responsible when, as a rule, several people really share the responsibility”.
As a project only has one project manager, there is only one person responsible for a project. A failed project might be the result of a project member not honouring its responsibility; it is the project manager's responsibility to keep the project running smooth, by managing project risks and keeping a close eye on the business case at all times.
Programme Manager Project Manager Project Leader
26 Another area which can be related to the project manager and its responsibility for the project, is when Turner and Müller (2003) describe the area of responsibility, meaning being responsible for an entire department or section. They conclude that “an area can simply be regarded as an abstract expression incorporating everything
that a manager is responsible for”. They continue: “the question then is how to describe this area – a task which seems impossibly difficult”. This department or section can easily be replaced by a project, according to Turner
and Müller (2003).
3.2.2 E
XISTING THEORIES ON RESPONSIBILITIESSince the subject responsibilities is a rather wide subject, and most of them are not relevant to this study, this paragraph will look into existing theories of responsibility in an organizational setting – an organizational theory, as Yin (2003) notes.
In an article by Müller and Turner (2007), they researched the influence of project managers on project success and noted that there were different success ratings depending on the complexity of a project:
“Project managers in high complexity projects, when compared with medium complexity projects assign
significantly higher importance to the satisfaction of customers, end-users, and other stakeholders. Compared with low complexity projects they assign significantly higher importance to team satisfaction, other stakeholder satisfaction, and their own success criteria. Project managers in medium complexity projects, when compared with low complexity projects, assign significantly more importance to team satisfaction, other stakeholder satisfaction and self-defined criteria.”
According to these findings by Müller and Turner (2007), in our complex projects, the project manager, on average, assigns higher importance to customer-, end-users-, and other stakeholders satisfaction.
3.3 D
ISCUSSION
In this chapter the term project management has been defined as a whole – project management – as well as its parts – project and management. Moreover, we looked into the manager of a project – the project manager – and his or her responsibilities.
All given definitions related to project, management, and project management by different scholars and organizations for these terms can be seen as complementary to each other. None of them are incorrect, however some might be considered incomplete when applied to our context.
The definitions and notions on responsibilities is a somewhat more difficult subject to define, and for this reason more complex to apply to the case studies. This is indeed why first sub question was formulated.
(1) What are the different concepts of responsibilities in project management, and which are suitable for
this research?
The complexity is due to the fact that on the one side responsibility is difficult to define, even according to scholars, while on the other side responsibility can be defined and/or interpreted differently in a project environment.
27 responsible for “delivering all products, with the predefined quality, within the predefined time-frame, and
within the budget”. In this paper we need to focus on the underlying responsibilities which are required to
accomplish these responsibilities given by OGC (2009). This needs to be done in order to exclude any interference or influence outside the domain of the project manager.
The second concept of responsibilities related to the project manager is the one defined by the client, or business executive. The business executive is ultimately responsible for the project meeting its objectives. As the business executive in essence hires the project manager to manage day to day operations, the responsibilities of the project manager are, or should be, clearly defined, for example in a project mandate. The final concept is the personal beliefs and ideas of the project manager on responsibilities. This concept has been formed, shaped, and influenced over the years as a project manager.
28
C
HAPTER
4 P
ROJECT
M
ANAGEMENT
M
ETHODOLOGIES
Project Management methodologies provide structure for a more effective management of projects. This is one of the reason PRINCE2 is the most common in the Netherlands amongst the project management methods, as 73% of the projects are using this methodology (Van Dijk, 2009). However, some organizations use their own method which in some cases is an adaptation of PRINCE2 which has been tailored to fit the organization. The next paragraphs will analyse these methods and look for any aspects that might be a factor of influence to any of the general themes of our research questions. It will also provide more information on documents created in these methods which will be further discussed in chapter six where they can serve as a source of evidence.
The first sub-question will also be discussed at the end of this chapter:
(2) What are best-practice concepts of project management and in what way can they influence
leadership styles and -competencies, and responsibility?
Derksen and Noordam (2007) describe five reasons as to why methodologies or methods should be used. These five are described below.
1. More demanding customers requiring its use
2. Process- and chain integration optimizing costs and quality
3. Networking in an environment where new people and new organizations connect 4. Knowledge is more and more important
5. New rules and regulations may force the use of a methodology
Anbari (2003) notes that a “Project Management method helps focus management's interest on projects that
need most attention and may aid the prioritizations and emphasis management gives projects within a portfolio, enhancing the enterprise's project portfolio management. A Project Management method provides important information for project or work package decision-making.”
According to Johns (1999), for a project method to be effective in an organization there are three system prerequisites:
1. Line managers, project managers and team should understand and be proficient in the use of tools, techniques and behaviours that are basic to the project management. As such, organizational development is geared toward the management of projects.
2. The way in which business is done and how work flows through the organization to the customer and recognizes teams as the organizational building blocks through which business is conducted. Therefore, the management system revolves around the needs of projects or in other words the company exists to support its projects rather the other way around.
29 For these reasons this chapter will look into the relevant methodologies and their possible effect on our research theme.
4.
1 PRINCE2
HI S T O R YPRINCE2 (PRojects IN Controlled Environments) is an structured project management method which was launched by the British Office of Government Commerce (OGC) in the year 1989, based on the PROMPT from Simpact Systems Ltd. In 1996 the OGC introduced the new version of Prince. This new version was called PRINCE2, and had several improvements compared to its predecessor, most notably the addition of a process model and the removal of terms reminding that it used to be an IT method (Onna and Koning, 2010). PRINCE2 is based on existing project management methods as well as a significant amount of case studies.
DE S C R I P T I O N
The difference between PRINCE2 and most other methods is that PRINCE2 uses a process model instead of a step-by-step approach (KP). This is because projects, in most cases, are not linear. These PRINCE2 processes are shown in figure 4.1.
Figure 4.1 The PRINCE2 processes (OGC, 2009)
In the next part of this description of PRINCE2, processes shown in the figure above are further described and analysed, starting with the first process Starting Up a Project (SU). At the end a short discussion on these processes will try to identify any factors that could be influencing one or more of the research questions in a positive or negative way.
Starting Up a Project (SU) describes the work which has to be done before the start of the project. The process starts with an idea or question, in the shape of a Project Mandate, to start the project. After which the project manager is selected and the project board is composed. The project manager then sets up the Project Brief in which a short description and the financial/business justification is given. The Project Brief is meant to inform the project board of the usefulness of the project for the organization.
The next process Initiating a Project (DP) describes all the activities that the project manager executes for the first project phase after a go from the project board. Based on the Project Brief, the Project Initiation Document
Directing a Project DP Planning PL Starting Up a Project SU Initiating a Project IP Controlling a Stage CS Closing a Project CP Managing Stage Boundaries SB Managing Product Delivery MP Project Board Project Manager Team Manager(s) Project Manager Initiation
Stage Plan Project Plan Stage Plan
Checkpoint Reports Quality Log Work Package Project Mandate
Project Brief Project Initiation
Document Reports
End Stage Exception Report
End Project Report Lessons Learned Recommendations
Authorization Advice
30 (PID) is created which describes, among other things, the deliverables and their quality. The PID is an agreement between the project manager and the project board.
The Directing a Project (DP) process describes the role of the project board. Before starting any phase, the project board either gives a go or no go to start. Besides this, the project board gives ad hoc advice and guidelines to the project manager whenever a project exceeds predefined tolerances. Here the principle of
management by exception – a management style wherein the project board intervenes only when the project
manager fails to meet their performance standards, is being used. The project board defines to what extent the project manager is allowed to make his or her own decisions by defining tolerances.
Controlling a Stage (SC) describes the daily work of the project manager. This includes activities such as deciding on what work has to be done, monitoring progress, and taking corrective action. To achieve this, the PRINCE2 technique change control is used to control and, if necessary, change the deliverables.
Managing Product Delivery (MP) includes carrying out the work done by the project employees, the acceptance of their work, ensuring that their work meets the quality standards, reporting on the quality and progress, and to obtain approval for finished products. The PRINCE2 quality review technique is applied for this. Managing Stage Boundaries (SB) describes the transition to the next project phase. In this process the project board is informed that the phase boundary is reached and the new phase is about to commence. The project board decides if the project continues or not. In the case that the predefined tolerances in the PID are exceeded, the project board decides whether or not to continue to the next phase. The project manager is responsible to report this in an Exception including a recommendation for continuation.
Planning (PL) is used by other processes to draft the global Project Plan and the more detailed Stage Plans. The PRINCE2 technique Product-based planning is applied.
In the final process, Closing a Project (CP), the project is being closed in a structured fashion. The project result is accepted by the users and given to the organization. The project manager prepares the Lessons Learned Report and recommends follow-up activities. The project organization is repealed.
During these processes many documents are created and updated by the project manager and important documents are sent to the project board for verification of or updating the current project’s status.
DI S C U S S I O N
As the PRINCE2 processes have been described in more detail, and the most important documents have been mentioned, it is time to analyse these and relate them to our research subject.
To begin with, the PRINCE2 methodology should be adapted to fit the project. This is based on the following three aspects of the project (Onna and Koning, 2010): its complexity, its size, and its risk.
31 The project manager’s activities and responsibilities have been described in several PRINCE2 processes. Most notably the process Controlling a Stage, in which his responsibilities are “decision making”, “monitoring the
progress”, and “taking corrective action”. But also in the other stages of the project it is clear what the project
manager’s responsibilities are, according to the PRINCE2 methodology.
4.
2 IPMA
The International Project Management Association (IPMA) issues their IPMA competence baseline in 1998. In 2006 IPMA released the 3rd version of the competence baseline. The competence baseline presents the technical, behavioural, and contextual competence elements of project management. This means that IPMA does not focus on the project itself, but the project manager managing the project. The ‘Eye of Competence’ represents the integration of all the elements of project management as seen through the eyes of the project manager when evaluating a specific situation (IPMA, 2009). This is shown in the figure 4.2.
32 As PRINCE2 focuses mostly on the processes of project management, IPMA describes the competencies required by the project manager. Therefor PRINCE2 and IPMA are complementary to each other instead of excluding one other from a project. Figure 4.2 shows a total of 46 competences in three different categories, where each competence element is composed of both knowledge and experience.
In chapter 3 the four levels of IPMA’s universal four-level-certification were explained and were depicted in figure 3.2. The assessment of those four levels is explained below.
Certified Projects Director (IPMA Level A): the candidate has to have demonstrated successful use of
one of the competence elements in the coordination of programmes and/or portfolios; guided programme and/or project managers in their development and in the use of the competence elements; been involved in implementing the competence elements or relevant methodology; techniques or tools in projects or programmes; and contributed to the development of the project manager’s profession by publishing articles or presenting papers on his experience or by outlining new concepts.
Certified Senior Project Manager (IPMA Level B): the candidate has to have demonstrated successful
use of the competence elements in complex project situations. The candidate has also guided (sub) project managers (project leaders) in their application and implementation of the competence.
Certified Project Manager (IPMA Level C): the candidate has to have demonstrated successful use of
the competence element in project situations with limited complexity. The candidate might need to be guided in the further development of the competence element.
Certified Project Management Associate (IPMA Level D): only knowledge related to the competence
element is assessed.
DI S C U S S I O N
Looking at the eye of competence as shown in figure 4.2, the behavioural competences category is most relevant to this research, as these competencies relate to the leadership styles and leadership competencies the most.
Starting with the Leadership competence element, IPMA notes a factor of adequate behaviour crucial to this research subject: “takes total responsibility, delegates responsibilities and tasks accordingly”. Thus, by taking total responsibility the project manager ensures him- or herself of all adequate behaviours of all relevant competencies needed and improving the ones which are lacking.
Giving at least several adequate and inadequate behaviours for each of the 46 competencies, the project manager should be more knowledgeable on most or any responsibilities that is expected of him or her, compared to a project manager not educated in IPMA or any other methodology, especially with the lower IPMA levels C and D.
4.
3 O
THER
M
ETHODOLOGIES
33 used, is the fact that PMPOK is used more in the United Stated and other parts of the word, and less in the domain of this case study. The main difference is that PMBOK is a framework (guide), whereas PRINCE2 is a methodology. PMBOK consists of tools and techniques of project management, and is a collection of recommendations and best practices (PMI, 2004). The differences between PMBOK en PRINCE2 are given by Siegelaub (2004) in table 4.1 below.
PMBOK PRINCE2
Comprehensive Focuses on key risk areas only; does not claim to be
complete
Largely descriptive, prescriptive on a high level Highly prescriptive, especially on Process Structure, but adaptable to any size project
Core and facilitating processes; need to be scaled to needs of project
All processes should be considered; also need to be scaled
Customer requirements driven Business case driven
Sponsors and stakeholders Clear project ownership and direction by senior management
US/International Standard UK standard (also Europe and Australia) Table 4.1 A Basic Contrast between PMBOK and PRINCE2 (Siegelaub, 2004)
Amongst the other methods currently used in the Netherlands are methods from the organization itself, which often is a tailored version of a well-known method such as PRINCE2 to better fit the organization. In most cases these methods use guidelines similar to PRINCE2, and usually the important documents required by PRINCE2 can also be found in those methods.
For example, in chapter three we discussed Bryde, D.J’s (2003) list of activities that were used to support project management, and almost 80 per cent used activities which are also described in project management methodologies such as PRINCE2, as being the most important.
Another possibility is that no project management method is used for a project. Even though believed effectiveness can be seen from the percentage of projects using methodologies, it can of course be possible that it is not in the organization’s best interest to use a project management method, due to its size or complexity (or lack thereof). However, since PRINCE2 is agile in its usage – many of its phases can be skipped and/or merged with others, to suit the project’s environment and complexity – it should be of importance during a case study to find the reason for not using a methodology.
4.
4 D
ISCUSSION
Returning to the research question which was stated at the beginning of this chapter:
(2) What are best-practice concepts of project management and in what way can they influence
