Elmar Kutsch

The Titanic sunk, so what? Project manager response to unexpected events

Projects are inherently uncertain and face unexpected events, from small changes in scope to unforeseen client’s bankruptcy. This paper studies how project managers respond to such events and how successful and unsuccessful responses differ from the perspective of the practitioner. We analysed 44 unexpected events faced by 22 experienced project managers in defence and defence-related organisations. The project managers compared two unexpected events that they faced, one that they considered the response successful and the other unsuccessful. We identified three pillars supporting successful responses to unexpected events: (1) responsive and functioning structure at the organisational level, (2) good interpersonal relationship at the group level and (3) competent people at the individual level. The events and respective responses analysed suggest that improvement in project management can be achieved by better managing these three pillars, allowing project and programme managers to “create their own luck”.

The rational choice of not applying project risk management in information technology projects

The management of risk is considered a key discipline by the Project Management Institute and the Association for Project Management. However, knowledge of what needs to be done frequently fails to result in action consistent with that knowledge. The reasons for this seem to have received little attention. This study researched the degree of use of project risk management and barriers that prevent IT project managers from using risk management. Interviews and a survey were carried out. The results show that, in one-third of cases, because of the problem of cost justification, no formal project risk management process was applied.

Ambidexterity and Knowledge Strategy in Major Projects: A Framework and Illustrative Case Study

We develop a framework to analyze the multilevel knowledge requirements of complex, major projects in terms of ambidexterity–-the ability to exploit (refine existing knowledge) and explore (develop new knowledge). This is an important theme within the wider literature, yet practical operationalization methods for managers and researchers are not evident. We demonstrate the ambidexterity view through an illustrative case study of telecommunications delivery for the London 2012 Olympic Games and show how these concepts can be used to create an effective knowledge strategy. We offer a structure for the analysis of knowledge utilization in projects.

The effect of intervening conditions on the management of project risk

Purpose – The purpose of this paper is to highlight the main findings of a successfully defended doctoral thesis that studied factors or interventions causing the discrepancy between how adequate project risks should be managed and how project risks are actually managed. Design/methodology/approach – The approach involved interviews and a survey using questionnaires gathered data from project managers about their experiences with project risk management during two phases of fieldwork. The first phase included in-depth interviews with information technology (IT) project managers in order to explore patterns involving risk mediators and their influence on project risk management. A web-based survey was used in the second phase for the purpose of testing these patterns on a wider range of project managers. Findings – Specific risk-related interventions strongly influence the effective use of project risk management: project managers tended to deny, avoid, ignore risks and to delay the management of risk. Risks were perceived as discomforting, not agreed upon. IT project managers were unaware of risks and considered them to be outside their scope of influence and preferred to let risks resolve themselves rather than proactively engaging with them. As a consequence, factors such as the lack of awareness of risks by IT project managers appeared to constrain the application of project risk management with the result that risk had an adverse influence on the outcome of IT projects. Practical implications – The underlying rational assumptions of project risk management and the usefulness of best practice project risk management standards as a whole need to be questioned because of the occurrence of interventions such as the lack of information. IT project managers should first prevent risk-related interventions from influencing the use of project risk management. However, if this is not possible, they should be prepared to adapt to risks influencing the project outcome. Originality/value – The paper contradicts the myth of a “self-evidently” correct project risk management approach. It defines interventions that constrain project manager’s ability to manage project risk.

Relating the Zone of Tolerance to Service Failure in the Hospitality Industry

ABSTRACT The purpose of this study was to explore the zone of tolerance concept in relation to perceptions of service encounters, specifically when service failures are likely to occur. A simulated restaurant experience consisting of a series of dining service encounters was conducted with a sample of academic staff and research students. Results showed that individuals have different perceptions with different variability in their zone of tolerance; individuals appear to have a larger zone of tolerance when dealing with negative encounters and a narrower zone of tolerance for positive encounters. In addition, an initial negative encounter predisposes customers to future negative encounters. Failure is seen as a difficult concept to judge as individuals have diverse perceptions of what constitutes a failure and when it starts. Further research directions are proposed.

Does risk matter? Disengagement from risk management practices in information systems projects

Risk management and ‘routine-based reliability’ is considered fundamental to project performance. Existing theories of project risk management do not fully explain why project managers stop practicing risk management information systems (IS); however, constructs drawn from organisation theory offer insights into how and why such disengagement occurs. The study examines risk management practices in 21 IS projects within 10 organisations. By focusing on risks that resulted in significant events and mapping backwards over time the practices associated with those risks, we identify that in all but five projects the manager had disengaged from prescribed risk management before executing risk responses. In most projects, the majority of formally identified and assessed risks remained unallocated and untreated. A laddering technique was used to help explain why this transpired. We found five key underlying beliefs that governed project managers’ risk management attitudes and actions.

An innovative uncertainty management framework to support contracting for product-service availability

Purpose – In the light of challenges experienced in cost estimation at the bidding stage of complex engineering services in the defence industry (e.g. contracting for availability), the purpose of this paper is to present a framework to manage the influence of uncertainty on cost estimates. Design/methodology/approach – The research applied the Soft Systems Methodology and benefitted from interaction with four major organisations in the defence industry through document sharing, semi-structured interviews, workshops, and case studies. Findings – The framework is composed of seven stages to plan, identify, prioritise, classify, and manage cost uncertainties. Through the validation of three case studies some of the key benefits of the framework were realised in project planning, uncertainty visualisation, and capability management. Research limitations/implications – The research has been applied in the defence sector in the UK and focuses on the bidding stage. Further research needs to be applied to confir...

Bridging the Risk Gap: The Failure of Risk Management in Information Systems Projects

OVERVIEW: New product development projects are highly risky technical undertakings. Organizations frequently seek to manage the risk involved using standard risk management procedures, knowing that a company that better manages risks is less vulnerable. Nevertheless, NPD projects continue to fail to meet expectations for delivery time, budget, and outcomes. In this paper, we explore reasons why, despite employing self-evidently correct risk management procedures, adversities occurred in 19 major information systems projects. Project managers focused on the familiar, the measurable, the favorable, the noncommittal, and the controllable while excluding other risks that significantly affected their project performance. We have characterized this tendency as a series of five lures that leave projects vulnerable to risks.

The Contribution of the Project Management Office: A Balanced Scorecard Perspective

Many organizations turn to project management offices (PMOs) in order to increase project efficiency, cut costs, and improve success rates in project delivery. However, many PMOs face the challenge of a lack of recognition of their contribution, leading to the need to repeatedly justify their existence. This article provides new insights into the success and failure of PMOs and also provides the rationale and structure for a holistic approach to establishing and sustaining a PMO.

Rethinking project reliability using the ambidexterity and mindfulness perspectives

Purpose The purpose of this paper is to bring together two seemingly disparate bodies of literature – ambidexterity (the ability both to exploit and explore) and mindfulness – to take a fresh perspective on the management of uncertainty. The authors differentiate between “rule-based” and “mindfulness-based” reliability and explore project risk responses in environments characterised by varying degrees of uncertainty. Design/methodology/approach Five case organisations across a range of industries are used to illustrate how uncertainty may be prepared for and suitable responses activated. This also adds to the understanding of the nature of ambidexterity, which has previously been characterised primarily at the organisational level with relatively few studies looking at managerial actions and “switches” between modes. The data consist of initial survey responses to indicate the level of mindfulness under conditions of normality, followed by interviews studying particular incidents and the nature of the responses. Findings Key practices are identified that support high reliability in complex projects, with four managerial modes (“Traditional”, “Just-in-time”, “Infusion”, and “Entrepreneurial”) that emerged from the data. Practical implications The findings offer managers a practical framework to choose between different modes of reliable performance by considering the uncertainty of the environment and whether the primary driver of the work is efficiency or effectiveness. This allows managers to reflect on their own organisations and practices and identify whether their current approach is suitable. Originality/value This work offers new insight into risk responses in complex environments and shows how the mindfulness and ambidexterity literatures may be used as beneficial lenses to increase understanding. Blending these two schools also offers opportunities for future research.