Best tips for risk management


Distinguishing Features of Project Management in the 21st Century

The purpose of this article is to investigateperceived probabilities and magnitudes,
the current hot topics of project management.thereby altering them", a definition that
In the 21st century, there is a clear swiftdiffers from the traditional quantitive
from hard systems approach of projectanalysis of risk. Green broads even more the
management to soft factors, a demand forscope of risk management and includes the
strategic thinking in project managementclients. He thinks that "the process of risk
(Buttrick, 2000), new success factorsmanagement only becomes meaningful through
(Atkinson, 1999) and project uncertaintythe active participation of the client's
management (Ward & Chapman, 2003). Broaderproject stakeholders". In his point of view
project management theory and more intensethere is a new way of assessing risk
research efforts are also a trend in themanagement that "depends less upon
field (Winter & Smith, 2005).Human beingsprobabilistic forecasting and more upon the
have been executing projects from ancientneed to maintain a viable political
times (Kwak, 2003). From relocating a tribeconsistency within the client
to constructing enormous buildings such asorganisation".The conventional theory of
the pyramids, projects were a dominantproject management consists of a narrow focus
element of history. Not long ago, thoseon projects as unique and totally separated
involved in projects understood that theyunits of work. But current projects tend to
needed methods and processes to help thembe integrated smoothly in the general context
manage these projects more efficiently. Toof organizations in order to "develop the
meet this need, scientists and practitioners«management of project portfolios» and
worked together to form a new concept which«programme management» which are more
was called «project management».strategically orientated towards «doing
According to the PMBOK's definition "projectthe right projects»" (Winter & Smith,
management is the application of knowledge,2005).
skills, tools and techniques to project
activities to meet project requirements". (AIt is common ground in the literature that
Guide to Project Management Body ofthe theory of project management needs more
Knowledge, 2004). There are many differentresearch. Koskela and Howell (2002) suggest
views in the literature concerning the birththat the theoretical base "has been implicit
of project management. Maylor (2005) mentionsand it rests on a faulty understanding of the
that "project management in the way that wenature of work in projects, and deficient
would understand it today did not exist untildefinitions of planning, execution and
the 1950s" and Wideman (2001) tracks thecontrol". From their point of view,
first use of project management in the UK'senrichment of project management with new
Institution of Civil Engineers report on UKmethods and techniques cannot be done with
post war national development first publishedany stable theoretical background. As a
in 1944.Since then, there have been a lot ofresult, there is a trend of putting more
changes. "The hard systems approach, whicheffort in research and rethinking the way
treated the project as a mechanical activity,which «bodies of knowledge» is written
has been shown to be flawed" (Maylor, 2005).so that complex projects' actions will be
The soft skills of project management arebetter documented.As a conclusion, we could
getting more attention because it is nowuse the words of D.T. Jones (2005) who writes
clear that "the ability to apply these skillsthat "project management is no longer about
effectively throughout the life cycle of amanaging the sequence of steps required to
project will enhance the success of a projectcomplete the project on time". He adds that
exponentially" (Belzer). In spite of the"it is about systematically incorporating the
perfect understanding of planning, schedulingvoice of the customer, creating a disciplined
and controlling, projects have still a highway of prioritising effort and resolving
rate of failure. Belzer points out that "moretrade-offs, working concurrently on all
often they fail because of a projectaspects of the projects in multi-functional
manager's inability to communicateteams".References1. A Guide to Project
effectively, work within the organization'sManagement Body of Knowledge, 2004, 3rd
culture, motivate the project team, manageEdition, Project Management
stakeholder expectations, understand theInstitute2. Adams, Review for THES Risk
business objectives, solve problemsDecision and Policy, Cambridge University
effectively, and make clear and knowledgeablePress, [Electronic]3. Atkinson, 1999, Project
decisions". To address these problems in themanagement: cost, time and quality, two best
21st century, a project team needs to developguesses and a phenomenon, its time to accept
a series of soft skills such asother success criteria, International Journal
"communication, team building, flexibilityof Project Management Vol. 17, No. 6, pp.
and creativity, leadership and the ability to337±342, [Electronic]4. Belzer, Project
manage stress and conflict". (Sukhoo et. al,Management : Still More Art than Science,
2005).In addition, project management[Electronic]5. Buttrick, 2000, The project
requires a stronger strategy orientation.workout, 2nd edition6. Engwall, 2003, No
"More than 80 per cent of all problems at theproject is an island: linking projects to
project level are caused by failures at ahistory and context, Research Policy 32, pp.
board level in firms to provide clear policy789-808, [Electronic]7. Ferguson, 2005, First
and priorities" (Maylor, 2001). The approachTutorial on Strategic Management, Full Time
that Maylor suggests is very different fromMSc in Project Management, Lancaster
the traditional link between strategy andUniversity8. Green, Towards an integrated
projects, as he proposes a "coherent,script for risk and value management,
co-ordinated, focused, strategic competenceDepartment of Construction Management &
in project management which eventuallyEngineering, The University of Reading,
provides source of competitive advantage".UK9. Jones, 2005, Foreward to Maylor's book
This two-way methodology that relatesProject Management, FT Prentice Hall,
organisational and project strategy isUK10. Koskela & Howell, 2002, The underlying
illustrated in figure 1. To better understandtheory of project management is obsolete,
the project's strategy, there is also a needProject Management Institute,
to analyse "the experiences from past[Electronic]11. Kwak, 2003, The Story of
activities, politics during the pre-projectManaging Projects, Quorum Books,
phases, parallel courses of events happening[Electronic]12. Maylor, 2005, Project
during project execution and ideas about theManagement, FT Prentice Hall, UK13. Maylor,
post-project future" (Mats Engwall,2001, Beyond the Gantt Chart:: Project
2002).Moreover, Maylor highlights a change inManagement Moving on, European Management
project's success criteria, from conformanceJournal Vol. 19, No. 1, pp. 92-100, 2001, UK,
to performance. In 1960s project managers[Electronic]14. Sukhoo, Barnard, Eloff, Van
seek to comply only with the documentedder Poll Accommodating Soft Skills in
specifications of the project, while currentSoftware Project Management, Issues in
projects require real performance. In otherInforming Science and Information Technology,
words, the success criteria of the 21stUniversity of South Africa, Pretoria, South
century as indicated by Maylor have changedAfrica, [Electronic]15. Ward, 2003,
to as short time as possible, as cheaply asTransforming project risk management into
possible and towards a maximum customerproject uncertainty management, International
delight. Other academics imply nowadays aJournal of Project Management vol.21, pp.
much simpler view of success criteria which97-105, [Electronic]16. Wideman, 2001,
is focused only in keeping the client happyCriteria for a Project Management body of
(Ferguson, 2005) in contrast with the 90sknowledge, [Electronic]17. Winter & Smith,
view of just finishing the project on time2005, 'Rethinking Project Management, Making
and on budget.Changes in risk management areSense So Far: Emerging Directions and Future
also one of the hot topics of projectResearch', Rethinking Project Management
management in the new century. Ward (2003)(EPSRC Network 2004-2006),
propose the term «uncertainty[Electronic]Dimitris Litsikakis is currently
management» and recommends that a "focusstudying MSc Project Management in one of the
on «uncertainty» rather than risk couldtop business schools in UK, Lancaster
enhance project risk management". Adams hasUniversity. He has published a series of
an interesting view of risk as he describesarticles in Ne.O (New Technology Observer).
it as "a reflexive phenomenon - we respond to



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