Systems Approach to Project Management Essay Example

both productivity and the social aspect referred to as 'human capital'.

Systems theorists see the economy and the construction industry as interconnected open systems. This means that they depend on each other. According to Ackoff (1974), who recognizes the importance of relationships and cause-effect connections, one factor or event can be seen as the reason for another. Therefore, the people, processes, and practices within the construction industry also play a significant role in the economy. Since the construction industry operates through projects, these projects bring about changes within the fundamental operations of organizations.

Projects are temporary endeavors that have a defined start and end date. They require collaboration between individuals from various teams, typically on a short-term basis. Project Management is the practice of overseeing and coordinating these projects. According to Winch (2007), Project Management emerged as a distinct field during the nineteenth century to fulfill the need for a coordinator among different trades at construction sites. Over the past three decades, the construction industry has increasingly utilized Project Management techniques to handle complex projects that operate within a fragmented industry and involve specialized contractors (Watts 2011).

According to Walker (2007), the success of construction projects depends on the collaboration between various professionals, including the architect, quantity surveyor, engineer, contractor, and project manager. These contractors work within their own systems but come together as a coalition to achieve the project objectives set by the client (Watts 2011; Walker 2007). It is crucial to prevent stagnation in the construction industry due to its financial and social significance.

This text discusses the extent to which the systems approach can assist in delivering innovative

solutions in a complex construction setting. It highlights various points to consider, including how project team members align their understanding of the clients' objectives with their own objectives, the limitations of rigid bureaucratic structures in allowing innovation to flourish, and the conflicts that arise due to human needs. The text also emphasizes the importance of the Project Manager's skills in solving interdependent interrelationships to meet client objectives and the value of applying the systems approach to Project Management according to Egan (1998) and Latham (1994). In addition, the text mentions Simple Processes and Systems Approach 2.1 as a related topic.

According to Atkinson (1999), "The Iron Triangle" is a method used in projects for monitoring and controlling cost, time, and quality. However, Atkinson argues that this approach is too simplistic for the construction industry. Successful projects need to go beyond simple processes (Walker 2007; Atkinson 1999).

Ackoff (1974) discusses the systems approach which involves three elements forming a whole but can be divided into parts. These elements must be considered collectively. Firstly, the behavior of each element affects the behavior of the entire system. Secondly, the behavior of each element depends on at least one other element within the system. Lastly, all elements are interconnected and cannot act independently; they collectively impact overall performance.

Within the systems approach, there are two perspectives: closed system and open system. The open system perspective emphasizes interdependencies between an organization and its environment in order to address mentioned complexities.

According to Loosemore et al (2012), the open system must be adaptable to its environment in order to survive. Drucker (1987) suggests that management has become a separate function within

society, resulting in a "society of organizations". Therefore, both Ackoff and Drucker agree that Project Management should examine and understand the various elements of a project.

By combining different elements, one can fully comprehend the overall situation, including the location and cause of the problem, as well as possible solutions (Ackoff 1974; Drucker 1987). Lock (2003) emphasizes in his analysis of Project Management that version two considers not only cost, time, and quality but also interactions with people. This inclusion of people by Lock introduces the soft systems approach, which complements the focus on hard systems in the Iron Triangle approach.

According to Kapsali (2011), the significance of transitioning from a closed hard system lies in the focus on outputs rather than outcomes in process management. This only aids top managers in monitoring process progress. Consequently, the rules implemented in the hard system solely serve to control and do not meet the present requirements of Project Management. In contrast, the soft system establishes a connection to human behavior. Atkinson (1999) elaborates on the notion that it is crucial for the Project Management Team to determine a strategy for measuring project objectives that is suitable for their team environment.

Relationships within projects are inherently complex due to the significant involvement of people. According to Lock, Winch, and Walker, it is crucial to consider the role of "people" in the construction process (Walker 2007). Walker (2007) also references Bennis's criticism of the classical approach, which focused solely on organizations and neglected the human element. Watts (2011) further supports this notion by stating that a behavioral approach that disregards organizations is also ineffective. This

highlights the importance of considering both people and organizations in project management (Winch 2007; Lock 2003).

The productivity and efficiency of a project team often rely on the individuals rather than the tasks themselves. This perspective is called the behavioural approach, which sees people as motivated systems. According to Maslow's Hierarchy of Needs, there are five levels of human motivation: 1. Physiological - basic needs like water, food, and shelter; 2. Security - job security and a steady income; 3. Social - a sense of belonging; 4. Esteem - recognition for doing well at work; and 5. Self-actualization (O'Bryan and Pick, 1995).

According to Maslow, individuals are considered as systems, so construction professionals aim to satisfy their needs within a project. This is significant because it increases the intricacy of each person; they have motivation not only to accomplish the company's or project's objectives, but also their own goals. However, a conflict arises as organizations that initiate projects are also systems, following their own codes of practice to attain profits or enhance their core business (O'Bryan and Pick 1995).

The project is typically viewed as a subordinate component within the client's organization rather than being the central focus of their primary operations. The client's overall vision and capacity to respond to external factors like the economy, politics, society, environment, technology, and legal aspects impact both their core business and the project objectives.

Lock (2003) adds that Project Management's main role is to establish the project's scope, comprehend the client's overall business plan, and anticipated schemes. This is a fundamental concept derived from systems theory (Winch 2007). Additionally, innovation occurs due to

a gap in a process, product, or service, creating an opportunity for new solutions to fulfill the need and provide added value. There are two distinct types of innovation: breakthrough, which involves a sudden addition, and incremental, where the solution is developed gradually.

Since the Egan (1998) and Latham (1994) reports, there has been a continuous drive to innovate in Project Management. This can be viewed as an incremental innovation. However, according to the systems approach, everything is interconnected and affects each other. Therefore, the very nature of Project Management brings about change and even uncertainty in the interconnected open system. As described by Williams et al (2012), there can be "known unknowns," which can lead to various problems. Ackoff (1974) also mentions that these problems have an impact on the whole.

These 'known unknowns' can present opportunities for creative solutions. However, Ackoff (1974) argues that following rules may not promote efficiency or innovation. To truly innovate, it is necessary to do something that has not been done before, which requires breaking the rules. In contrast, Webber emphasizes the importance of rules in bureaucratic management and suggests that organizational structures need rules in order for people to operate efficiently (Handy 1993, Walker 2007, Ackoff 1974).

According to Einstein, problems cannot be solved using the same type of thinking that created them. This quote emphasizes the importance of the thought process of Project Management professionals when approaching a problem. Additionally, the institutional approach argues that project professionals, influenced by their backgrounds, will have their own set of rules, methods, and patterns of influence. As a result, what may seem logical to one professional may not

be logical to another (Handy 1993).

The Project Manager is essential in understanding and interpreting the client's unclear objective, which helps the project team function efficiently (Williams et al 2012). Incorporating diverse viewpoints, such as complex team behaviors and construction professional 'logic', can lead to either significant advancements or complications (Handy 1993). The systems approach is valuable in comprehending the intricacies of the construction sector and the difficulties associated with achieving innovation.

Walker (2007) highlights the significance of both individuals and their perspectives, as well as the interactions between these individuals and their environments, in addressing problems or issues. Williams et al (2007) stresses the importance of identifying early warning signs in a project and comprehending these interconnections to effectively manage it. Moreover, Williams et al (2012) proposes three key aspects for understanding project management: 1. grasping project risk and uncertainty; 2. uncovering the complexity and implicit knowledge of those involved; 3. recognizing how individuals may respond and interact.

According to Johnson, Whittington, and Scholes (2011), individuals in organizations have the ability to be innovative and utilize their knowledge for creating new products, processes, or services that bring value to projects. Murphy et al (2012) argue that innovation is crucial in the construction industry as it drives development and growth in dynamic economies. However, Walker (2007) suggests that innovation can present challenges due to contractual links and accountability within the industry. These limitations hinder professionals from taking risks beyond what is specified in their contracts, which is particularly challenging considering the intricate relationships within the construction sector. Despite prioritizing time, cost, and quality, these conventional approaches do not always meet client expectations.

Consequently, project issues like failure, underperformance or cost overruns may arise (Dainty and Green 2007; Egan 1998; Latham 1994; Williams et al 2012).

Engwall (2003) suggests that the success of a project can be attributed to either the Project Management process or the Project Manager. Engwall emphasizes that positive outcomes rely on the abilities of Project Managers, including their selection of an appropriate team and implementation of proper procedures. However, achieving successful project outcomes may not always be possible if the client chooses to use an open tender for each role and specifies the procurement contract.

The Project Management process or Project Manager may not have the authority to pick the team or choose the procedures, which can result in less control and a possible hostile working environment (Walker 2007; Ackoff 1974; Williams et al 2012). According to Winch (2010), the complexity of interrelationships is heightened by the construction industry's employment structure, which consists of numerous independent companies and self-employed individuals. A significant portion of these entities specialize in certain areas of construction and often cater to niche segments of the market.

According to Horine (2005), it is crucial to maximize the organization's innovative capabilities and create environments of focus and open communication in order to add value to projects. Merely meeting time, cost, and quality requirements is insufficient for project success. Additionally, Walker (2007) emphasizes that the systems approach complements the classical and behavioural approaches by highlighting the interrelationships of subgroups and offering a framework for understanding complex procedures.

According to Loosemore et al (2007), merely solving the present situation does not completely tackle the problem. They perceive organizations as

living entities that must continuously and organically adapt to changes in order to survive in a dynamic environment. Pryke and Smyth (2006) concur, emphasizing that each approach should update its toolkit in response to emerging conditions. They argue that individuals have the ability to create intricate tools and systems, handle complex information, and exhibit creativity. Ackoff adds that mistakes serve as valuable learning experiences for individuals and allowing them to innovate can also result in success.

Society does not often support the idea of construction professionals focusing on their specific area due to the increase in contractual arrangements. The construction industry is made up of a complex network of systems and sub systems, making these professionals very vulnerable. Factors such as political influence can affect legislation, regulatory bodies, and contractual relationships which in turn impact the culture and social aspects of the industry. According to Walker (2007) and Winch (2010), these changes have not encouraged the new influx of post modern professionalism as highlighted by Dainty and Green (2007).

According to Dainty and Green (2007), the concept of "post modern professionalism" encompasses the new knowledge economy, which is driven by technology. This technological advancement plays a crucial role in fostering innovation and addressing complexity. Additionally, Egan argues that the stagnation of the construction industry can be attributed in part to its macho attitude. However, Building Information Modeling (BIM) technologies offer standardized functions that can be automated and promote transparency. As a potential solution, could BIM provide a platform for facilitating open communication among all construction team members?

The idea of automation can be seen as moving away from a systems thinking approach

and resembling a bureaucratic or scientific approach. However, one alternative solution is to create a platform for open idea sharing, without contractual restrictions. This can help in identifying early warning signs and fostering an environment conducive to innovation. In conclusion, this literature review has focused on the construction industry to discuss project management.

The provided framework enabled the discussion to connect complexity, innovation, system approach, and simple processes. It demonstrated that construction professionals function as subsystems on multiple levels, attending to their own needs, the needs of their core business, and the needs of the project. As for Project Managers, they encompass all of these elements and additionally need to comprehend the clients' business. The systems approach's advantage is also its drawback: it allows for viewing the subsystems as distinct entities.

The systems can adapt and adjust without disrupting the overall operation if there is a need for change, but it's crucial to not make changes independently. This is because the systems approach emphasizes the relationship and interdependencies between subsystems. The objectives of the business, construction professionals, and the project are all interconnected as they respond to internal and external environmental pressures. As a result, the entire project team becomes integrated into a complex network of contractually binding systems and subsystems.

Managing conflicts in Project Management is a challenging undertaking that involves addressing the diverse needs of project stakeholders. These conflicts stem from the convergence of project requirements, client's business objectives, team members' expectations, and individual preferences. The main aim of Project Management is to address internal conflicts that arise due to people responding to information based on their unique human needs.

As a result, Project Managers must possess the ability to resolve interconnected relationships described by the systems approach in order to successfully accomplish the client's goals.

The Project Manager's effective communication relies on aligning the clients' objectives with those of the individual project team members. While the simple process does not consider this, the systems approach recognizes its significance for project success. Construction contracts create multiple contractual relationships that establish accountability. However, this rigid bureaucratic structure restricts the organic growth of innovation by emphasizing the need to prioritize doing the right thing over exploring unconventional approaches that may yield positive outcomes.

Both the simple process and the systems approach have some value in Project Management, but neither can fully solve the rapidly changing landscape of this field. As Project Management continues to expand, new systems are needed to better understand and define it. Building Information Modeling, however, could be a potential solution. It is evident that traditional approaches such as classical, behavioural, bureaucratic, and intuitive systems are not sufficient for the current era.

The postmodern professional age exposes individuals to a higher level of complexity. As a result, theoretical frameworks only provide concepts and do not offer practical solutions for this upcoming innovative era. References include Ackoff, R. (1974) The Systems Revolution, Atkinson, R. (1999) Project Management: Cost, Time and Quality, Two Best Guesses and a Phenomenon, Book Rags Media Network (2011), Dainty, A., Bagilhole, B., & Green, S. (2007) People and Culture in Construction, Dainty, A., Moore, D., & Murray, M. (2007) Communication in Construction: Theory and Practice, Drucker, P. (1987) Social Innovation- Management’s New Dimension, Egan, Sir J. (1998) Rethinking

Construction: The Report of the Construction Task Force to the Deputy Prime Minister, and Engwall, M. (2003) No project is an island: linking projects to history and context.

Handy, C. (1999) Understanding Organisations, 4th Edition, Penguin, London
Horine, G. (2005) Absolute Beginners Guide to Project Management, Que Publishing
Johnson, G. ; K. Scholes (1998) Exploring Corporate Strategy, Pearson Education Ltd. , Harlow
Kapsali, M. (2011) Systems thinking in innovation project management: A match that works. International Journal of Project Management Vol. 29 (2011) pp 396-407
Latham, Sir M. (1994) Constructing the Team: Joint review of Procurement and Contractual Arrangements in the UK Construction Industry, HMSO, London
Lock, D. (2003) Project Management (8th Ed) Aldershot, Gower
Loosemore, M. , Dainty, A. amp; Lingard, H. (2007) Human Resource Management in Construction Projects: Strategic and Operational Approaches, Spon Press, London
Mingers, J. ; White, L. (2010) A review of the recent contribution of systems thinking to operational research and management science. European Journal of Operational Research Vol. 207 (2010) pp 1147-1161
Murphy, M. , Heaney, G. , ; Perera, S. (2011) A methodology for evaluating construction innovation constraints through project stakeholders competencies and FMEA. Construction Innovation Vol. 11, No. 3, 2011, pp 416-440
O’Bryan, B. ; Pick, A. (2005) Keeping information systems staff (happy).

The following references are cited in the International Journal of Career Management:
- Pryke, S. ; Smyth, H. (2006) - The Management of Complex Projects: A Relationship Approach, Blackwell Science Ltd. , Oxford
- Walker, A. (2007) - Project Management in Construction 5th Edition, Blackwell Publishing, Oxford
- Watts et al (2011) - Watts Pocket Handbook, Watts Group Plc
- Williams, T. , Klakegg, O. , Walker, D.

, Andersen, B. and Magnussen, O. (2012) - Identifying and Acting on Early Warning Signs in Complex Projects. Project Management Journal, Vol. 43, No 2, pp 37-53
- Winch, G. W. (2010) (2nd Ed) - Managing Construction Projects, Wiley Blackwell Ltd. , Oxford