Risk managements' communicative effects influencing IT project success

The central question of this research is if, and how, risk management contributes to the success of IS/IT projects. Risk management is used regularly in IT projects, despite indications in literature that risk management only occasionally contributes to IT project success. Drawing on Habermas we distinguish between instrumental and communicative effects of risk management. Stakeholders from seven ERP implementation projects indicate that in addition to the instrumental effects of risk management, being direct risk mitigating actions by stakeholders, individual risk management activities are able to generate communicative effects. Communicative effects create a commonly shared definition of the situation by influencing stakeholders' perceptions and expectations and by defining the inter-stakeholder project relations. These effects contribute to the effectiveness of instrumental action, and consequently to project success. Stakeholders consider risk identification to be the most influential risk management activity, both in number and in strength of the effects.     

Why projects fail? How contingency theory can provide new insights – A comparative analysis of NASA’s Mars Climate Orbiter loss

When important projects fail, the investigation is often focused on the engineering and technical reasons for the failure. That was the case in NASA’s Mars Climate Orbiter (MCO) that was lost in space after completing its nine-month journey to Mars. Yet, in many cases the root cause of the failure is not technical, but managerial. Often the problem is rooted in management’s failure to select the right approach to the specific project. The objective of this paper is to enrich our understanding of project failure due to managerial reasons by utilizing different contingency theory frameworks for a retrospective look at unsuccessful projects and perhaps more important, potential prevention of future failures. The evolving field of project management contingency theory provides an opportunity at this time to re-examine the concept of fit between project characteristics and project management, and offer deeper insights on why projects fail. After outlining several existing contingency studies, we use three distinct frameworks for analyzing the MCO project. These frameworks include Henderson and Clark’s categorization of change and innovation, Shenhar and Dvir’s NTCP diamond framework, and Pich, Loch, and De Meyer’s strategies for managing uncertainty. While each framework provides a different perspective, collectively, they demonstrate that in the MCO program, the choices made by managers, or more accurately, the constraints imposed on them under the policy of ‘better, faster, cheaper’, led the program to its inevitable failure. This paper shows that project management contingency theory can indeed provide new insights for a deeper understanding of project failure. Furthermore, it suggests implications for a richer upfront analysis of a project’s unique characteristics of uncertainty and risk, as well as additional directions of research. Such research may help establish new and different conceptions on project success and failure beyond the traditional success factors, and subsequently develop more refined contingency frameworks. The results of such research may enable future project managers to rely less on heuristics and possibly lead to a new application of “project management design.”     

Escalation of commitment in troubled IT projects: Influence of project risk factors and self-efficacy on the perception of risk and the commitment to a failing project

Past studies have indicated that project managers may be less likely to continue failing IT projects if they are able to perceive project risks accurately. Using the scenario of a failing IT project, a computer simulation-based experiment investigated the influence of individual self-efficacy and project risk factors on the perception of risk. Participants played the role of a project manager and managed a simulated IT project. The results suggest that project managers are likely to underestimate the risks of a project with endogenous risk factors as compared to a project with exogenous risk factors. Results of this study point to a ‘self-efficacy bias’ where project managers with higher self-efficacy may underestimate the risks of a troubled IT project as compared to project managers with lower self-efficacy. Further, risk perception mediated the influence of self-efficacy on the commitment to a failing IT project.     

Implementing strategic change through projects

Senior managers spend a lot of time and effort trying to change their organisations. All too often it turns out to be a waste of time. Somewhere along the way, the force behind their ideas and objectives drains away. This paper looks at what gets in the way of strategic change. It shows how using projects, programmes and the associated management processes can guarantee a greater level of success. This paper does not propose that project management is a simple solution. Indeed, this is one of the most commonly-cited reasons for failure of ‘business process re-engineering’ initiatives.     

Deliberate ignorance in project risk management

The management of project risk is considered a key discipline by most organisations involved in projects. Best practice project risk management processes are claimed to be self-evidently correct. However, project risk management involves a choice between which information is utilized and which is deemed to be irrelevant and hence excluded. Little research has been carried out to ascertain the manifestation of barriers to optimal project risk management such as ‘irrelevance’; the deliberate inattention of risk actors to risk. This paper presents the results of a qualitative study of IT project managers, investigating their reasons for deeming certain known risks to be irrelevant. The results both confirm and expand on Smithson’s [Smithson, M., 1989. Ignorance and Uncertainty. Springer-Verlag, New York] taxonomy of ignorance and uncertainty and in particular offer further context related insights into the phenomenon of ‘irrelevance’ in project risk management. We suggest that coping with ‘irrelevance’ requires defence mechanisms, the effective management of relevance as well as the setting of, and sticking to priorities.     

Conceptual determinants of construction project management competence: A Chinese perspective

In recent years Western project management theories and practices have become increasingly recognized and dispersed in China, particularly in construction-related work. The assessment and development of project management competence in China are driven by attempts to follow the Western standards-based competence certification programmes. Yet little is known about whether and how the predefined set of knowledge embodied in the Western standards are used by Chinese project managers in their workplace. In this paper we report an empirical exploration of Chinese construction project managers’ ways of conceiving and accomplishing their work. We replicate in the Chinese context the previous UK-based phenomenographic study of construction project management competence, which revealed three different conceptions arranged in a hierarchy of performance. The results of this China-based study confirm the conceptual determinants of construction project management competence first revealed in the UK, and provide practical implications for effective training and professional certification of project management competence in China. Meanwhile, the replication of the phenomenographic approach to understanding project management competence in China enhances the cross-cultural validity of the approach and highlights its potential for explorative management research.     

How to go global: A transformative process model for the transition towards globally distributed software development projects

We employ design science research to develop a process model for the management of globally distributed software development (GDSD) projects. The model provides guidance for transforming established project frameworks in organizations to cope with additional challenges that a global project scale entails. The model integrates extant GDSD project management knowledge and makes it actionable for project managers, especially those with limited GDSD experience. The model was evaluated and found to be effective in transforming an actual GDSD project with teams in Germany, Poland, and India. Interviews with project managers with and without GDSD experience support the model's wider applicability to other contexts and IT project types. The model can also be used in GDSD project retrospectives to identify areas for improvement. In a research perspective, our model constitutes a novel type and instance of a social meta-artefact intended to transform existing social artefacts to retain their usefulness in evolving contexts.     

Beyond content and control: project vulnerability and the process agenda

Project management is conventionally defined in terms of deadlines, budgets and technical specifications. Project managers are normally chosen for their expertise in these areas. Research suggests, however, that the contexts of some projects demand a different set of priorities. The paper reports the findings of a competence-based study of the project-management role. The focus of the study was on projects involving strategic combinations of information technology and organizational change. With respect to the management of the implementation process, 15 competences are identified, in five clusters. The findings further suggest how the significance of these process competences depends on the project context, which is shown to vary between high and low levels of ‘vulnerability’. Vulnerability influences the project manager's ‘agenda priorities’, which in turn determine the competences that are critical to effectiveness. The implications of these findings are discussed, in terms of the selection of appropriately skilled managers for projects, the selection of appropriate projects for managers, and the design of relevant approaches to project-management development.     

Modeling project criticality in IT project portfolios

Today's IT project portfolios (ITPP) contain many projects and varied interdependencies. Depending on a project's criticality to the ITPP, a failure can have massive consequences. However, existing methods usually only assess overall project portfolio risk and do not account for the criticality of single projects and their dependencies. Applying Bayesian network modeling to ITPPs, we bridge this gap and extend the current body of knowledge for the information systems and project management literatures. Our new method analyzes single projects' criticality in a portfolio context by considering both transitive dependencies and different dependency types in an integrated way. Since we demonstrate that single projects' criticality can vary substantially, being aware of which projects are critical is a key success factor for ITPP management. For practitioners, our method provides a straightforward procedure to enhance ITPP risk management.     

Project risk management methodology for small firms

We present a project management methodology designed for small businesses (SMEs), who need to run projects beyond their normal operations. These projects are critical to the survival of these organisations, such as the development of new products to adapt to the market or new legislation, management system implementations, etc. Very frequently, the managers of these projects are not project management professionals, so they need guidance to have autonomy, using minimal time and documentation resources. The risk management method outlined in this paper is based on extensive research with a large number (72) of Spanish companies. This new methodology considers the factors that are usually neglected by SMEs; i.e., project alignment with the company's strategy and results management. The methodology, based on project risk management, includes simple tools, templates and risk checklists with recommended actions and indicators. For validation it was tested in five different types of real projects (innovation, management systems and ICT implementation) of industrial and service companies with different characteristics.     

A multicriteria satisfaction analysis approach in the assessment of operational programmes

Ex-post evaluation European Operational Programmes could provide useful information and knowledge that can be used as a guide in future planning.The different concerns of the operational programme stakeholders along with the operating constraints make programme evaluation a difficult and fuzzy task. This paper presents the application of concepts and methodologies of multicriteria data analysis to identify critical success and risk factors in achieving the strategic objectives of a programme. The MUSA (multicriteria satisfaction analysis) method was used for analyzing the satisfaction of project managers with respect to satisfaction criteria associated with four dimensions: the project’s results, the operations of the programme organization, the support of the project organization and the performance of the project team.The specific case study refers to a sample of projects in the Operational Programme for Education and Initial Training in Greece which was funded by the 3rd Common Support Framework. The results show that the proposed methodology can be a valuable tool for programme organizations, especially in the case of “soft” action projects where the deliverables are intangible and project management at beneficiary organizations is provided at an ad-hoc basis.     

Project stakeholder analysis as an environmental interpretation process

International projects face a variety of pressures from their uncertain and complex external stakeholder environments. In order to reduce uncertainty, a project management team builds up interpretations about their environment by conducting stakeholder analysis. This study aims to examine the interpretation processes, through which project management teams come to know their external stakeholder environment. The point of departure for the study is Daft and Weick’s (1984) typology about organizational interpretation modes. The paper identifies and describes distinctive interpretation modes of external stakeholder environments in four international projects. The interpretation modes differ in their stakeholder analysis characteristics. The project managers’ beliefs about the stakeholder environment and the project’s intrusiveness towards its stakeholder environment are hypothesized to be associated with the identified differences in the interpretation modes.     

Does risk management contribute to IT project success? A meta-analysis of empirical evidence

The question whether risk management contributes to IT project success is considered relevant by people from both academic and practitioners’ communities already for a long time. This paper presents a meta-analysis of the empirical evidence that either supports or opposes the claim that risk management contributes to IT project success. In addition, this paper also investigates the validity of the assumptions on which risk management is based. The analysis leads to remarkable conclusions. Over the last 10 years, much has become known about what causes IT projects to fail. However, there is still very little empirical evidence that this knowledge is actually used in projects for managing risks in IT projects.     

Maximizing strategic value from megaprojects: The influence of information-feed on decision-making by the project manager

Large projects are notorious for erosion of value during execution. Decisions made by project managers have a significant impact on the strategic value of the asset delivered, and those decisions depend on the information feed on which they are based. This study uses theories of organizational behavior, decision-making and program management to investigate the impact of information feed used by project managers on the strategic value delivered by mega projects in the oil and gas industry. A global survey of 69 managers of mega-projects was conducted. Results showed that information feed to project managers significantly influences the strategic value created by megaprojects. Also some moderating effects of contextual factors on this relationship were found. The contextual factors that influenced project manager decision-making relate to what they perceived to be Senior Management drivers for their projects. However the hypothesized moderating influence of project manager experience on decision-making was not found—an interesting observation. It was found that the extent to which project managers feel in control should influence the scope and quality of information-feed that should be sought. Four risk areas were observed as significant to long-term value creation from megaprojects: government relations; host community relations; contract management and procurement; and the influence of multi-location execution.     

Project manager's perception of the local communities' stakeholder in megaprojects. An empirical investigation in the UK

Based on an exploratory study conducted in the UK using thematic and cluster analysis, this paper investigates how the local communities' stakeholder is perceived, defined and categorized by project managers in major public infrastructure and construction projects (MPIC), and how their involvement could improve the performance of these projects. Due to the perceived benefits shortfall of MPIC, well organized actions from ‘secondary stakeholder’ groups have led to delays, cost overruns, and significant damage to the organization's reputation. Stakeholder management is an essential process which aims to maximize positive inputs and minimize detrimental attitudes by taking into account the needs and requirements of all project stakeholders. However, current project stakeholder management mechanisms are reactive rather than proactive, mainly offering an instrumental perspective, which aims to make the stakeholders comply with project needs. Therefore, a broader inclusiveness of secondary stakeholders who could be harmed by the organization's strategy, such as the local communities, is required to enhance the performance of MPIC.     

Managing risks in mega defense acquisition projects: Performance, policy, and opportunities

This research explores key aspects involved in the process of managing risk associated with acquisition projects within the US Department of Defense (DOD). First, various US Government Accountability Office reports are analyzed to identify the strengths and weaknesses of the DOD’s overall program management practices, as well as individual projects. Then, the evolution and progress of United States Army’s Future Combat Systems project is examined in detail as a case study to substantiate the argument that insufficient risk management has contributed to project delays and cost overruns significantly.Poor risk management performance and practices are not unique to the Army, but arises from a system bred into the process of gaining approval to implement projects in the DOD. Incorporating a comprehensive risk management plan in the planning phase and filling key project management positions with personnel trained to recognize sound proposals from contractors would make significant strides toward improving overall project management practices in the DOD.     

Project portfolio management information systems’ positive influence on performance – the importance of process maturity

Companies increasingly support their project portfolio management processes with specific software, and the market for IT solutions is growing. While project portfolio management information systems (PPMIS) promise to improve the quality of the management process and eventually portfolio performance, it is unclear whether they actually deliver on this promise. We lack empirical evidence regarding the actual benefits of PPMIS and knowledge on the conditions under which PPMIS application is most beneficial. Using a sample of 181 project portfolios, this study shows for the first time that PPMIS application is overall positively associated with the quality of portfolio management processes and project portfolio success. However, moderation analyses further reveal that these effects only materialize when formalization of single project management, project portfolio management, and risk management are sufficiently high. Surprisingly, the benefits of PPMIS application do not depend on portfolio complexity (size, project interdependency, dynamics).     

Multi-criteria performance analysis for decision making in project management

This study is focused on decision support in the context of product and service development projects. Decision support requires the capacity to characterize the current state of the project (performance evaluation) and the decision-maker's point of view. However, the different projects’ stakeholders do not have the same needs in terms of performance evaluation to support their decision-making processes. Furthermore, in some cases controlling project performance using the elementary components of the Iron Triangle (Cost, Time and Quality) alone seems inefficient. This paper proposes a new multi-dimensional Project Performance Measurement System that would enable managers to deal with the volume of data. The proposition integrates the only character of each project (tasks, objectives, decision-makers personality and competences), several good practices in terms of universal project management dimensions on the one hand, and in terms of performance analysis on the other hand. Then, we show how an aggregation tool called MACBETH is used to analyze the performance measures according to project managers’ own performance interests. A case study illustrates the proposed system.     

Competing management approaches in large engineering projects: The Dutch RandstadRail project

The management of large engineering projects is often a combination of the focus on planning and control, and the ambition to be flexible given the complexity and uncertainties that characterises these kinds of projects. However, control and flexibility impose contradictory requirements upon the management of these projects. The literature on project management reflects this contradiction. Some authors underline that projects require firm planning and control, thus downplaying the role of flexibility. Others emphasise that projects require flexibility and responsiveness, thus moving away from rigid planning and control. In this contribution, we suggest that in practice project managers acknowledge the weakness of both extremes and therefore strive to combine the two. Moreover, we argue that project success is at risk when project managers do not succeed in meeting the requirements of control and flexibility. To be able to investigate how these competing requirements are dealt with in practice, a framework is developed. The usefulness of the framework is explored by applying the framework to the large engineering project Randstadrail—a light rail project in The Netherlands.