PREVAILING MARKET FORCES and recent advancements in Information Technology (IT) are placing new demands on project management techniques. These forces, combined with new awareness regarding quality and productivity, are pushing for fundamental changes in the ways projects are managed. The revolution taking place in the fields of data sharing and transmission, information processing, and telecommunication technology is opening up new possibilities for project-oriented businesses. Current and emerging information technologies are having a profound impact on the science as well as on the art of project management. These technologies can enhance the technical aspects, as well as the human attributes, of project management.
Inherently complex, projects entail carrying out multiple, interrelated activities simultaneously but separately: exactly the kind of task at which information technologies excel. Just glancing through the list of project management tasks and responsibilities shows the many ways in which IT can support or improve the process of project management: supervision, delegation, procurement of resources, coordination of tasks; monitoring specifications changes, keeping track of changes to project plans and their effect on tasks and their interdependencies; schedule maintenance; tracking budget revisions; and continual measurement and monitoring of project progress—the heart of the control process.
In other words, project management functions—controlling, planning, organizing, scheduling, budgeting— have some common features that make the task of project management particularly appropriate for applications of IT tools.
Because project management is a dynamic process, the work atmosphere under which projects are managed continually changes, requiring exchange of information in different forms. The project management environment needs to be flexible enough to facilitate communication and reduce bureaucracy. IT can enable quick communication not only through voice-media, but also by facilitating transmission of text and graphic information on a real-time basis.
The project management process is based on complex interrelationships, and the interdependence of process segments can be critical to the success of the project. Interaction among project team members can be helpful in providing effective leadership and in motivating team members. IT can reduce the need for bureaucracy and hierarchy of interaction and can enhance integration of organizational activities.
Because projects have definite start and end points, ad hoc teams are usually needed to carry out project management functions; therefore, flexibility is needed in forming and dismantling these teams as needs arise. IT's computer-connected networks can be employed as a facilitator to build teams, overcoming the barriers of time and distance.
Exhibit 1. This matrix can be used as a model to identify the appropriate IT tools for specific project management needs. For example, electronic data interchange, a computer-to-computer data transfer technology, can greatly improve the project control functions because the barriers of time and distance can be overcome by electronically transmitting data.
Most project management functions are people-intensive and cannot be completely automated. IT can be employed to coordinate the activities of many participants involved in various project management functions.
Projects depend upon the experience and judgment of professionals and frequently involve uncertainty. IT can be used to deal with the uncertainty and risk involved in developing systems that capture and store knowledge for rendering judgments, opinions and recommendations.
The technical aspects of project management are directly dependent on three major components of today's information technology: management of data/information, systems to process data/information, sharing and communication of data/information.
IT offers unique opportunities for managing projects effectively by utilizing automated means to capture, store and retrieve data. IT also provides effective ways to process data into information and employs powerful techniques to transmit data/information quickly and in vast quantities. For example, electronic data exchange, bar code technology, digital mapping and document imaging, and 3-D graphics and animation provide effective, user-friendly ways of representing, retrieving and transmitting data in visually conceivable forms.
Systems that incorporate models for processing data are essential for carrying out and supporting critical project management functions. With artificial intelligence techniques and knowledge-based systems, data and information can be effectively processed for planning and decision-making purposes. With the modular approach of programming afforded by object-oriented computing techniques, estimating and budgeting functions of project management can be supported. Prediction and forecasting can be modeled using artificial neural net programming techniques. Quantitative models like CPM and PERT can be made more effective, practical, and appropriate with the help of decision support systems and executive information systems.
Data and information must also be communicated by physical means. Transmission of graphic images requires powerful communication media and devices. Information technologies such as multimedia, groupware, and networks can satisfy management needs for providing training and supervision. IT technologies such as e-mail, voice-mail, fax, electronic data interchange, and client/server computing can support physically transporting textual as well as graphic information.
The matrix shown in Exhibit 1 helps to identify IT tools and/or processes appropriate for specific project management needs, indicated by highlighted intersections with solid squares. For example, electronic data interchange, a computer-to-computer data transfer technology, can greatly improve the project control functions because the barriers of time and distance can be overcome by electronically transmitting data. Leaders of organizations can look critically at the type of projects they manage and decide which IT tools or processes they might want to invest in.
Note that several of these tools and processes can be and should be employed in combination, such as database systems and object-oriented programming. Some are improvements over others, such as the client/ server architecture which is an improvement over conventional network architecture, and some provide different alternatives for performing the same function. Therefore, the task of selecting IT tools and processes, particularly when technology is changing at a rate never known before, should be based on careful analysis and assessment of current availability as well as future potentials.
Let's take a more detailed look at just two of the IT tools/processes that are appropriate to managing projects—EDI and bar coding.
Electronic Data Interchange. EDI is the direct computer-to-computer exchange of business data in a standard format that eliminates the need for the re-keying of information. In construction projects, for instance, there is a need to electronically transmit standard documents such as requests for quotations, invoices, material lists, and payment transfers among designers, owners, contractors, and material suppliers. These documents may include requisitions, requests for quotations, purchase orders, invoices, shipping notifications, material lists and payment transfers. Clearly, EDI can be useful as a project control tool in other projects where project participants need to interact from geographically separated places.
The identifiable benefits derived from EDI technology include reduced paper costs, improved information processing accuracy, elimination of postal or physical transportation expenses, and the probable reduction of labor and resource requirements. Additional benefits may develop as a result of internal changes, such as improved quality control capability and improved interdepartmental communication.
Bar Code Technology. Material handling in construction projects, document control in large engineering projects, and identification of the nature and location of parts in inventory control systems can become difficult, labor-intensive and time-consuming. In the past, huge ledger books were used to manually coordinate the flow of supplies, goods and shipping information. Now, modern bar code technology enormously increases the efficiency of these processes. A 2-D bar code containing multiple lines of information can be stored on a single 2-inch-square patch and scanned by laser readers in a single pass. With this higher information density, distribution systems can operate much more efficiently. For example, at a receiving warehouse, a loading dock employee wearing a wrist-mounted laser reader can instantly tell who manufactured incoming supplies, their part numbers, cost, transit method, and even the designated storage location.
As an automatic identification system, bar coding is a natural complement for the electronic data interchange systems. For example, while EDI can eliminate most external purchasing documents, bar coding can be used to integrate the receiving function electronically with the computerized purchasing, materials controls, and accounts payable systems. Bar coding improves efficiency and significantly reduces the time to perform certain tasks, and it improves information accuracy.
New Project Management Trends and IT. Renewed demand for quality, productivity, and performance is forcing organizations to question traditional management philosophies and principles. Total quality management, business process reengineering, empowerment, partnering and outsourcing are some of the main principles around which modern management processes are being redesigned. The crucial question is, “Can IT help implement these new principles in the domain of project management?” For the most part the answer is yes.
In a 1994 article (Project Management Journal, 25 (4), 6–7) Hans Thamhain states, “An effective management system must be able to, among other things, make collective multifunctional decisions, share power and resources, and develop solutions incrementally and concurrently.” This observation is central to defining the role of people in today's project management. These facets of management philosophy can be effectively practiced by prudent applications of IT because the technology enables management to make decisions collectively, to share power and authority, and to develop incremental solutions concurrently. But the question persists: Will management also be willing to do so? Success of IT depends on a positive answer to this question and favorable responses to other organizational and behavioral issues.
IT may displace many lower-level management and clerical workers as the workplace becomes more automated and traditional job designs, work flow, reporting systems, accounting procedures and control mechanisms are reengineered. Michael Hammer cautions us not to view IT implementation as a mere technical enhancement: instead, he suggests, IT should be considered managerial change.
IT will be adopted by organizations to react to prevalent market forces, and management styles will change and new styles will emerge as a result. And, as with any new style, there will be a period of reaction and adjustment.
As IT becomes more prevalent in business, certain changes can be expected to occur. For instance, project organizations will be more networked. It is conceivable that IT will displace many lower-level management and clerical workers as the workplace becomes more automated. Also, the reengineering of traditional job designs, work flow, reporting systems, accounting procedures and control mechanisms may occur. In “Reengineering Work: Don't Automate, Obliterate” (1990, Harvard Business Review, 68 (4), 104-112), Michael Hammer cautions about viewing IT implementation as a mere technical enhancement and suggests that IT be considered as a managerial change.
Outsourcing may become the preferred method for businesses to deal with large-scale projects. This will create more need for inter-organizational communication and exchange of data and information. Forming joint ventures or consortiums among geographically separated and commercially diversified companies in order to undertake projects would be a prevalent trend in the arena of international business. With IT communication capabilities the obstacles of geographical distance and organization size are not a problem; powerful communication technology such as EDI can be employed to establish business-to-business communications through computer-to-computer links.
The movement of corporations from large mainframe-based systems to smaller and cheaper client/server systems is another form of downsizing. By moving information and knowledge closer to workers and managers and by distributing the information widely, decision-making will move down the organizational line and enable and empower workers and managers to do their jobs better, thereby increasing their quality and productivity.
The Total Quality Management movement must be considered, too. Quality is now the No. 1 weapon in a world of fierce competition. In Quality Is Free (1979, McGraw-Hill), Phil Crosby mentions management understanding, quality organization, problem handling procedures, and quality improvement programs as areas where maturity must be gained in order to achieve quality. For the TQM process to be successful, certain elements must be present; these elements can be grouped under environment, knowledge and skill, organization, and system.
Can IT help promote TQM in the context of project management by enhancing these elements? Yes! IT can help establish a flexible organizational structure, which in turn would greatly improve the project management environment. IT can provide user-friendly ways of training for team members (via multimedia, for example). IT can facilitate teamwork and help carry out organizational tasks. And IT can be instrumental in putting systems in place for measuring progress.
THE COMPETITIVE GLOBAL market forces us to move toward more flexible organizations. The major implication of this for project management functions is that any member of the project team can easily link via the available information technology to any other person or workstation for any information, anytime and from almost anywhere around the world. IT offers tremendous potential to make possible the integration of functions and the coordination of project management tasks. Well-defined and easy-to-share data, effective inter- and intraorganizational networks and integrated information processing capability are fundamental to achieving such integration of functions and coordination of activities.
Changing market dynamics and continuing advancements in IT will continue to change the environments in which projects are managed. Projects of the future will be managed in fundamentally different ways and IT will be increasingly applied to bring these changes about. With IT, projects can be managed with greater effectiveness, efficiency and quality. However, traditional project management will have to change, as well. Change will be necessary in performance measurement, leadership style, interaction among individuals, management of interdependencies, and in the skills required of managers. The success of employing IT in managing projects will depend on how well we assimilate these IT-induced requirements in project management organizations. ■