Impacts of Complexity on Project Success

Commentary: This is the relevant portions of an extensive paper written in my Masters of Information Technology coursework.  The paper highlights a common concern among many project managers. That is the lack of quality information early in a project especially in complex projects.  The overall paper proposed research into project complexity and early planning efforts.

Impacts of Complexity on Project Success

by

JT Bogden, PMP

Introduction

Project management practice and principles have been maturing and continue to mature. The general paradigm to plan well applies to early project planning and has a significant influence on the success or failure of a project. This research is in support of identifying the key relationships between influential factors affecting scope and risk in complex projects during early project planning. Attention to the complexity is important since the nature of information technology, IT, projects are complex. Complexity tends to increases risk. "Project abandonment will continue to occur -- the risks of technology implementation and the imperfect nature of our IT development practices make it inevitable" (Iacovou and Dexter, 2005, 84). Therefore, this study is focused on the early information technology project planning practices when the project is vague and the outcomes are unknown and unforeseen. The purpose is to better manage scope gap early.

Problem Statement. Poor scope formulation and risk identification in complex projects during the early planning have lead to lower project performance and weakened viability. Therefore, project managers are challenged to manage these issues early in order to increase the project's viability and success.

Argument.  Project complexity influences performance just as taking shortcuts in a rush for results causes an outcome with complexity like characteristics. Lower performance outcomes may result from project essential factors relating to scope and risk objectives that are overlooked or not properly managed resulting in increased cost, delays, and/or quality issues that jeopardize the projects viability and success. 

Body of Works Review

This effort intends to explore the significant body of works that has emerged to date. Literature research was conducted across a diversity of project types in support of the research problem statement that poor scope formulation and risk identification of a complex project during the early planning affect project performance and project viability in relationship to complexity of the project. This is by no means the first time research of this nature has been explored in these three areas; scope definition, risk identification, and project complexity. 

The common threads in the body of works that has emerged spans decades to include project management as a whole, risk and scope factors that affect project success, information and communications challenges, and complexity impacts on scope and risk. The works researched in other disciplines provide many transferrable lessons learned. For example, construction and engineering projects have in common to information technology projects complexity issues as well as information reporting and sharing concerns. Other works from supporting disciplines contribute to factors on education, intellect, and learning in support of competency influences on risk. A 2001 trade publication article indicated that causes for failed projects tend to be universal.  The article's author, John Murray, concludes that information technology projects fail for a small set of problems rather than exotic causes (Murray, 2001, p 26-29).

In a 2008 construction project study, the researchers discussed the construction industries front end planning which is explained as the same as the project charter process. The works details a study of fourteen companies and their project planning processes then presents a model process. The study results are summarized into critical criterion of success. In conclusion, fifty percent of the projects did not have required information for front-end planning activities. Problem areas were identified in a follow on study to include weak scope and risk identification as well as other basic issues (Bell and Back, 2008).

The problems of scope definition researched in the body of works indicates that cooperative planning and information sharing have been key factors in developing scope. A 2007 study on concurrent design addressed the complexities and risk of concurrent design projects. The researchers posed a model of interdependent project variables. The linkages illustrate the direction of the communications or information sharing between the variables. In the researcher's analysis they conclude that through cooperative planning in the form of coupling and cross-functional involvement significantly reduce rework risk. Early uncertainty resolution depends on cross-functional participation (Mitchell and Nault, 2007).

The Technology Analysis and Strategic Management Journal published an article in 2003 discussing outsourcing as a means of risk mitigation. The outcome of the case under review was project failure due to a lack of clear requirements and poor project management. This was attributed to conflict and a loss of mutual trust between the outsourced vendor and the information technology client. The result was one vendor cutting losses due to weak commitment when compared to in house project support. The researcher suggested that shared risk may be effective in a partnership such as outsourcing but requires strong communication and some level of  ownership (Natovich, 2009, p 416).  This article's case study illustrates that cooperation is critical in information technology projects. A 1997 study discussed mobilizing the partnering process in engineering and construction projects during complex multinational projects. Researchers argued developing project charters fostered stronger partnerships and reduced risk. In general, the article promotes a shared purpose supported by a method based on vision, key thrusts, actions, and communication. The works offers management practices and predictors for conflict resolution and successful projects. One of the best predictors of success in high performance project managers is the ability to reconcile views rather than differentiate; influence through knowledge; and consider views over logic or preferences (Brooke and Litwin, 1997).

The literature has also indicated competencies of project members and conflict resolution have been key factors of interest. Northeastern University's explored strengthen information technology project competencies having conducted a survey of 190 employers finding that employers considered hands on experience, communications ability, and behavioral mannerism of the student among other attributes. The researcher makes a call for a mixture of improvements to student curriculum that involves project management skills both visionary and hand-on as well as group interaction (Kesner, 2008).  The efforts to strengthen competencies have not only been in traditional education institutions but also in professional organizations such as the American Institute of Certified Public Accountants (AICPA). A 2008 article discussed the accounting industry's approach to identifying and correctly placing information technology staff based on assessed competency levels. The AICPA is using a competency set that is found cross industry and levels of skill ("IT Competency", 2008).  Some dated literature is also indicating that in order to solve vague problem sets within complex project has centered on a willingness and ability to engage the vague circumstances, to think abstractly.  A 1999 psychology publication discussed the typical intellectual engagement involving a desire to engage and understand the world; interest in a wide variety of things; a preference for complete understandings of a complex problem; and a general need to know. The study associated intellect with the typical intellectual  engagement their environment in an intellectual manner, problem solve, believe they possess greater locust of control over the events in their lives (Ferguson, 1999, p 557-558).  Additional research is necessary in this area with this work being so dated.

In a 2006 article researchers sought to understand reporting to senior manager methodology regarding software development projects. The works discussed reporting and governance in an organization then break into four functional areas and further refine the best practices into a common view.  The researchers noted that little attention has been given to how senior managers and the board can be informed about project progress and offered several method of informing them. The researchers reported that senior managers need information grouped into three classes; support decisions, project management, and benefits realization assessments. The researcher then discusses a variety of reports and their attributes. The researchers concluded that senior managers and board members need effective reporting if they are to offer oversight to the software development project (Oliver and Walker, 2006).  Another 2006 study indicated that continuous reporting, information sharing, builds the case for compelling board member involvement based on four factors: cost overrun history, material expenditures, [software] complexity, and any adverse effects on the company (Oliver and Walker, 2006, p 58).

The challenges of project complexity management have utilized information technology governance as a key factor in project success.  Information technology governance has been sought as a framework to align organizational goals with project goals.  In a 2009 qualitative study, researchers sought to treat information technology governance, change management, and project management as closely related then stated a premise that information technology governance must be governed to ensure that problems due to weak governance are corrected.  They postulate the question how much information technology governance is a requirement. Then they organize information technology governance into three broad groups; corporate governance, scope economies, and absorptive capacity exploring these groupings. The researchers finally relate information technology governance to the enterprise at all levels discussing results of a survey given to numerous actors in the organization's CRM [Customer Relationship Management] projects. They also found that most companies surveyed had risk and problem management programs that were mature rather than given lip service. The problem areas that stood out were communicating with senior management as well as consultants and vendors. In conclusion, the researchers remark that information technology governance depends on senior management involvement and sound project management ability (Sharma, Stone, and Ekinci, 2009).

Given scope, risk and project complexity, information technology governance offers a framework for unifying organizational objectives.  Research completed in 2009 showed that information technology governance covers all the assets that may be involved in information technology, whether human, financial, and physical, data, or intellectual property (Sharma, Stone, Ekinci, 2009, p 30).  The same research has also shown that information technology governance required top down involvement stating that successful implementations of information technology governance depends on senior management involvement, constancy, and positive project management abilities (Sharma, Stone, and Ekinci, 2009, p 43).  Senior management requires information to be shared and a 2006 project journal publication supports remarking that continuous reporting builds the case for compelling board member involvement based on four factors: cost overrun history, material expenditures, [software] complexity, and any adverse effects on the company (Oliver and Walker, 2006, pp 50-58).

The body of works while much broader than sampled and demonstrates support and strength in a number of areas of the problem statement.  The literature selected ranges in date from 1997 to 2010 with the greater portion of the works were more recent, 2007 or thereafter. Some of the areas of work are dated or sparse. This indicates a need additional research such as in the area of problem solving abilities in vague or unclear circumstances.  While much of the research was across several industries principally from industry and trade journals in information technology, general construction, or engineering the project management principles and findings transferrable between project types. The works were also with several academic studies and only two open source articles.  Most of the works were authoritative under peer review. The dated works were cited more frequently than the more current works as to be expected.

The compelling thread line in the body of works is that scope and risk concerns influenced by project complexity with cooperation, information sharing, conflict resolutions, and competencies as significant factors in project success.

Discussion

Technology projects are challenged with a variety of factors that contribute towards the performance of the project. The body of works indicates that risk and scope complicated by project complexity directly influence project success from the outset. Thus, early project planning is crucial toward success. The body of works relating to the elemental aspects of competencies, information, cooperation, and conflict management offers historical support to risk and scope formulation. The one point that seemed to standout is information sharing and flow at all levels.  Additional research is necessary into the body of knowledge behind successful project managers and the relationship to the ability to reason through complex and obscure project problem sets as related to project related competencies. Dated literature indicates a relationship between the positive locust of control and willingness to engage abstract problems.

Commentary: I suggest that compartmentalizing a complex project into smaller projects should strengthen the locust of control and improve problem solving challenges. In short, the smaller problem set is more easily grasp than an overwhelming large set of problems. Thus, reducing risk and strengthening scope definition.  In breaking a complex project into smaller achievable projects, the organization will gain greater control over the entire process and gain incremental successes towards the ultimate goal. Continuous improvement would characterize such an evolution.  The master project manager must assess the order in which the smaller projects are completed. Some may be completed simultaneously while others may be completed sequentially. 

A risk of scope creep may be introduced as an outcome of mitigating scope gap. To remain focused all the projects must align with the organizational strategic objectives as they take strategy-to-task. New ideas need to be vetted in meaningful ways for the organization and aligned with the overall objectives in a comprehensive change management plan. 


Communication is also essential in managing complex projects. The use of a Wiki as a point of  foundational policies and information is often a best practice. 

Large scale sudden disruptions of an organization are required under certain circumstances. However, in most circumstances complex projects need to be properly broken into smaller manageable efforts then become part of a continuous improvement effort within the organization. 

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