Leeds Beckett University

School of the Built Environment & Engineering

Course: MSc Project management

Module: Project Contemporary Issues

Prepared by
Ahmed A. El zawawi
Student ID: C7161589

Supervised by
John Heathcote

©2016

0
 Abstract.

Project Management has been an established discipline decades by Professional Project

Management communities recognize PMI (Project Management Institute)’s body of
Knowledge (PMBOK) as the standards of project management across the World. At the same
time, during recent years many research communities, including PMI itself, have been carrying
out initiatives pushing boundaries of the project management. Yet emerging contemporary
project management issues has been discussed in researches and academic journals. This paper
examines the contemporary issue of project management and their impact on the overall
success and performance of the project. It provides and discusses the contemporary issue in
project management including project management issue, business case issue, project value,
managing risks and opportunities. The paper finally takes a deeper look into stockholder
management and engagement in early stage of the project and its impact in project success,
also the paper tests and evaluate the degree of the project complexity issue in the end of the
essay.

1
 Table of content

Abstract

1. Introduction …………………………………………………………….. ( 3)
2. Project management contemporary issues ……………………………… (3)
2.1 Project / problem definition ………………………………………… (4)
2.2. Project management methodology issue ………………………….. (5)
2.3 Risk management issue …………………………………………….. (6)
2.4 Business case issue …………………………………………………. (8)
2.5 Planning fallacy issue ………………………………………………. (10)
2.6 Project Stakeholder issue …………………………………………… (11)
2.7 Project complexity issue ……………………………………………. (13)

3. Discussion ……………………………………………………………… (15)

4. Conclusion / Recommendations ……………………………………….. (15)

References.

2
 1. Introduction

In the recent years, there might be many project contemporary issues which the project
steering teams and the project managers should consider in order to drive the project to
achieve its objectives. A serious of lectures was conducted within February-march 2016
regarding to the project’s contemporary issues and the possible solutions which revealed to
some of issues with their possible future solutions. in this paper, it has been indicated to the
growth on the project management considering the importance of define the project
problem and achievable objectives, also project business case, risk and uncertainty
management, whereas the paper try to focus in deeper the important of project stakeholders
management and engagement in term of decision making to find the right approach to
manage level of their expectation , discover their potential influence on the project, whether
it is positive or negative, to understand each individual degree of interest in the project, and
so on.
This paper also has highlighted that many of the project success factors was associated with
aware of project complexity issue which can be characterized through some factors, so
project managers should be consider those issues in order to accomplish the projects
successfully. In discussion section the author tried to focus on the impact of project‘s
stakeholders in managing the risk and the project complexity as well.

Project management contemporary issues.

A lot of emerging and contemporary project management topics have been discussed in.
These involved activities such as integration of knowledge from other traditional
Management disciplines, Here some of project management contemporary issues raised by
Lecturers during the course, the source of information from university google drive.

Project contemporary issues Possible solution

Client does not know what he/she wants. Problem structuring/ negotiation.

Agency theory. Agent issue is explicitly understood, self-awareness,

irrationality.

Projects end with a product! Pros end with benefit realization.

3
 1st good idea error. Innovation, more options, 2nd good idea.

Projects should be seen as investments PFI ROI.

Transactional thinking Value.

Bus. Case exaggerated (funding is the objective). Right project not just projects right.

Not learning. Knowledge management

Governance. Negotiation.

Partisan Interests/ Dept. rivalry. Have Some appropriate Governance/ project board
organizations’ wide representation.

Deterministic planning estimates, unrealistic, Use this Gov. to deal with dept. rivalry
expectation, wrong.

Flag in the ground assumptions, held on to. Probabilistic planning, using risk here too.

Buy on price not on value. Risk Uncertainty.

‘Budget thinking’. Whole life costs: impact of the project on operation

(OPEX).

Adversarial approaches in contracting. (Team Business case that represents value = benefits/£.
cooperation compromised).

Supply chain lost. ‘Partnering’ (NEC3).

Stakeholder interest dominates some projects. Involve stakeholders.

2.1 Project / problem definition.

Some of project might be just waste of time and money, is it worthy to do it? So we have to
understand project better and keep to looking to problem of project always. Let starts to look
at project definition. Many authors define project as refers to the ‘objective focused’ work that
applies a ‘systems’ approach as well as characteristically perceives contributors as part of a
team. According to Reiss (2007) project management entails tacking of the new ground, taking
a group of people and trying to achieve some very clear objective quickly and efficiently.
Heathcote (2008) has defined the project as the term project is a portmanteau concept applied
widely and without clear definition to a variety of activities in contemporary society.

4
There has been a growing acknowledgement of the significance of project definition by
researchers and industry practitioners. Researchers (e.g., Kelly et al. 1992, Smith et al.
1998, CII 1999, Green 1994, 1999, and MacMillan et al. 2001) have highlighted the
importance of early phase project planning and design. Initiatives for understanding the
project definition process exist in various disciplines: process re-engineering, client
requirements processing & briefing, strategic management, design methodology, value
methodology, architectural theory and programming, collaborative planning theory,
rational problem solving.

The only reason of engaging in any project or problem is the creation of value or
benefits. If undertaking of a project destroys the value, there is no need of even starting that
project (Ducros & Fernet, 2010). An efficient project management requires a good
understanding of the value of the project, and there is a need for focusing on the activities of
creating value for the successful completion of a given project. The value may have numerous
diverse meanings. Some of the undertaken projects result in significant intangible benefits
including minimized risk, enhanced prestige, positive financial returns as well as other
intangible returns (Ducros & Fernet, 2010).

There is a need first to select the right project, and then the project manager should
ensure that there are changes in the manner in which the whole team works so that the intended
benefits can be realized (Chin, 2004).

1.2 Project management methodology issue.

Ferraro (2012) reiterates that project management methodology refers to the firmly
defined combining linked practices, techniques as well as processes that aids in the
determination of how to effectively plan, grow, deliver and manage a project via the continued
process of implementation until successful termination as well as completion. The management
methodology is proven scientifically as well as well-organized approach regarding project
design, conclusion and execution. The primary objective of the project management
methodology is to enable the control of the whole process of management by efficient decision-
making and problem-solving while ensuring the success of a particular method, approaches
technologies as well as techniques (Ferraro, 2012). Usually, a project methodology gives a
framework regarding the description of every step in depth. This in a great way enables the

5
project manager to know what he/she is supposed to do so that to deliver as well as implement
the required tasks about the schedule and the specification of the budget.

1.3 Risk management issue.

Risk management are widely used today. A number of approaches and Methods for how to
Assess and manage risk are well-established, and supported by approved Standards and
Guidelines Figure (1). However, the issue of the risk management fields still suffer from a
lack of Clarity On many key scientific pillars. Lack of consensus on even basic Terminology
and Principles (Aven1& Zio, 2014). Another aspect of the risk concept is its dual
characteristic From the Negative perspective (as a threat), but also from the point of view
of positivity (as An Opportunity). Risks are related to uncertain events that can affect project
performance Objectives negatively or positively. For each risk perspective different
administrative process Strategies are demanded according to the type of risk.

 Negative Risk management :

Negative risks are unwanted and potentially risk can cause serious problems and derail
the project, on the other hand can affect the project, such as be the plan behind the
schedule or over cost, Lack of value function. etc.
1. Identify the risk: The risk identification process must be comprehensive, as risks that
have not been identified cannot be assessed, and their emergence at a later time may
threaten the success of the project and cause unpleasant surprises. The process should
be structured using the key elements to examine risks systematically Cooper & et.al
(2005).

2. Analyses and evaluate: Risk analysis and evaluate is the systematic use of available
information to determine how often specified events may occur and the magnitude of
their consequences. Cooper & et.al (2005).

3. Treat of mitigate the risk: in order to reduce the overall risk exposure. Unless action is
taken, the risk identification and assessment process has been wasted. Risk treatment
converts the earlier analyses into substantive actions to reduce risks. Cooper & et.al
(2005).

6
4. Monitor and review: Monitoring and review activities link risk management to other
management processes. They also facilitate better risk management and continuous
improvement. Cooper & et.al (2005).

 Positive risk (opportunity) management.

The opportunity in the project can be identified and exploited in just the same way as
the risks or negative outcomes can be Identified and treated.
The criteria of risk are the same of negative risk, but the focus is on improvement of
Outcomes rather than Minimizing detrimental effects.
1. Identification of opportunities :
The process of identifying project risks and associated treatment actions will also
Result in the identification of opportunities. For instance, the successful resolution of
A Particular risk may open up significant opportunities for the project. Workshop and
Brainstorming sessions should be flexible enough to allow for this. Cooper & et.al
(2005).
2. Analysis of opportunities:
The risk management approach can be used to identify and prioritize opportunities (or
‘positive’ risks) with little change to the analysis, but the consequence scales must be
adjusted using analysis matrix (likelihood and impact) model Cooper & et.al (2005).
3. Treatment :
The priorities that are generated for opportunities in the analysis and evaluation process
Can be interpreted in much the same way as risk priorities, with the focus of action
Being on capturing and exploiting the opportunities rather than avoiding or mitigating
The problems Cooper & et.al (2005).

7
 identify risk

moniter and analyze and

review evoulate

implement
plan action
mitigate

Figure (1) Risk management process.

On other hand, other challenging contemporary issue in Risk management has raised, that
project people in different disciplines may have various perceptions of risks. For instance,
in economics, the risk is introduced to explain the individual behavior in an uncertain
environment to pursue the maximization of satisfaction. Furthermore, based on the attitude
towards risk, people can be hypothesized as risk seeker, risk dislike. While the sociologists
will argue that economic rationally is just only one way to explain the attitude towards risks,
other factors such as, culture, personality, education and personal experience will also
contribute to shaping the perception of people risks Cooper & et.al (2005).

2.4 Business case issue.

The business case gives a justification for doing a given project. It usually provides an
evaluation of the cost, benefits, and alternative options risks as well as offers a rationale
regarding the preferred solution (Ahuja et al., 2013). It is vital for all projects to have a business
case that shows the work’s value. Usually, a persuasive business case sufficiently captures both
the quantifiable as well as non-quantifiable features regarding the project which is proposed.
The attitude of the business, as well as its volume, enhances the business case (Ahuja et al.,
2013). The business case represents the requirements of stockholders in term of functionality
and benefits over the resource of cost, time and quality.

Business Case = stratification of need / use of resource

8
 But the first step in project business case life cycle is to know the why we need a project.

Need Project Business Project Project Project Project

Project Initiate Case Selection Approval Implant Performance

Need Market Identify Implement Risk & Approval by Benefits tracking

scope Project plan. Reward Phase.

Business
Ongoing
need and
Comparison. performance
object. Cancellation
Legal need

Stockholder Project
request Finical impact Select On-hold
Documents.
Technology Criteria ROI, etc.
Complete.
advance

Business
Stakeholders Sponsors Project Team PM Financial Team
participant
Fig (1) Business case life cycle.

Figure (2) Business case life cycle.

The creation of the business cases also is undertaken to aid the decision maker in
ensuring that the initiative which is proposed has value and should be given priority in
comparison to the alternative projects regarding the goals as well as the expected importance
laid out in the business case. There is a need for the business case content to be adopted so that
to reflect a given requirement as well as the context of a particular project (Ahuja et al., 2013).
For instance, in the case of large projects, it is assumed that large percentage of risk is involved
in the projects that are much smaller. Thus, there is a need for the project manager as well as
the relevant stakeholders to have a greater degree of details within the business case so that to
give them the necessary confidence (Ahuja et al., 2013). The problem with project business
case is the development of the convincing business cases regarding big data. It is vital to note
that the development of the compelling business cases regarding information technology
related projects varies greatly. One approach is through the packaging of the persuasive metrics
of costs and benefits in a form that the relevant stakeholders can understand in a better way
(Ahuja et al., 2013). This in itself can be a problem if the developer of the business case has

9
analytical as well as technical competencies but not accustomed regarding thinking in business
terms as opposed to the orientation of data. There is also a challenge of convincing the relevant
stakeholders the value of something more so those involving risks and uncertainties (Ahuja et
al., 2013). This is because there is the application of the novel tools as well as techniques so
that to aid in taking advantage of the increased volume of data and variety. Therefore,
understanding in advance regarding the results of novel data analysis is more challenging to
address more so when the relevant stakeholders do not have analytical knowledge (Ahuja et
al., 2013).

2.5 Planning fallacy issue.

Buehler, R & et.al (2010) has argued that planning fallacy refers to a prediction phenomenon,
all too familiar to many, wherein people underestimate the time it will take to complete a
future task, despite knowledge that previous tasks have generally taken longer than planned.
The term was first introduced to the psychological literature by Kahneman and Tversky
(1979) Kahneman and Tversky did not conduct empirical studies of the planning fallacy, but
offered a single case study that still stands as a defining test case for theory and research on
this phenomenon.
The tendency for project time estimation to show marked optimism seems to hold for projects
in the private and public sectors, as well as for projects estimated to take from a few days to
years to complete, and with budgets from a few thousand to millions of dollars. However,
there are two major barriers to interpreting these applied real-world data in terms of the
Planning fallacy.
First, we have no direct measures of planners’ beliefs about the distribution of relevant past
outcomes. Although many surveys indicate cost and time overruns are considered to be
endemic in the high-tech and project-management world, we are lacking the data that would
tie beliefs about the past to predictions about the future.
Second, the apparently optimistic time estimates for commercial projects may represent
duplicitous attempts to manipulate an audience for political ends rather than true predictions
about the future. Flyvbjerg et al. (2003, 2004, 2005) have argued that large public works are
plagued by estimates that are deliberately deceptive, either because politicians wish to
develop major projects but know that their true cost will not be borne by the taxpayer, or
because contractors lowball the estimated cost or effort prediction to gain the contract, or

10
because employees underestimate the cost and scope of projects to gain political favor and
project approval from their managers.

2.6 Project Stakeholder issue.

The success of any project is based on its ability to achieve the goals as well as meet
the stakeholders’ expectations. Stakeholders refer to the people who have vested interest in a
given project. Usually, they are individuals who are involved aggressively with the project’s
work, or they can lose or gain depending on the projects’ results (Staples, 2010). It should be
noted that the sponsor of the project, usually an organizational executive having an authority
of assigning resources as well as implementing the project’s decisions, is the stakeholder. It is
vital to identify all the involved interested parties in a given project since leaving out them as
well as not recognizing error until the completion of the project will eventually kill it. In most
Cases, the stakeholders of the project have a conflicting interest (Staples, 2010). Therefore, the
manager of the project has the responsibility of ensuring that the expectations of the
stakeholders are managed effectively.

This can be undertaken through the identification as well as meeting all the key players
at the start of the project so that he/she can be able to comprehend their constraints a well as
requirements. Normally, the managers of projects are just like politicians (Staples, 2010). Just
like politicians, there is a need for the project managers to appropriate exercise their influence
over others, if they are to succeeding in managing a project. In a successful completion of a
given project, a project manager should first recognize all the stakeholders involved (Knutson
& Bitz, 2012). This is because any relevant stakeholders can derail a given project; hence, there
is a need to give a consideration regarding the interest they have in the project.

Organizational process Identify stakeholders

asset Stakeholder
register
Enterprise environmental Identifying all people
Fact Or organizations whose Stakeholder
management
Interests are impacted strategy
Procurement document
By the project

Fig (3) Identify stakeholders according to PMBoK.

11
STOCKHOLDER ENGAGEMENT IN EARLY STAGE AND ITS IMPACT IN PROJECT
SUCCESS.

According to Harrison & Lock (2014), project stakeholders refer to the individuals or
organizations that are affected by the resolution, or project’s outcome. There is a need for the
project manager to engage all the relevant stakeholders in the early stage of the project (Murch,
2004). This involves the identification of the relevant stakeholders, analysing their expectations
and other influences and coming up with strategies of working with the stakeholders.
According to Murch (2004), it is vital to note that involving the stakeholders in the key decision
of the project at an early stage is critical to the overall success of the project. This is because
the decisions whether is risk or opportunity that are undertaken early minimize the unnecessary
alteration during the later development as well as the total cost of the project lifecycle.

Winch (2004) suggested that mapping the interest and impact of the project stakeholder should
be the first step taken in managing and engaging them. It also provides path to find ways of
changing opponents to supporters by offering appropriate changes to the project mission while
hindering the supporters to turn the other side through accommodating solutions to their
problems, which comprises of two-dimensions; the power of stakeholder and the level of their
interest.

Manage
High

Keep
Stockholder power

Satisfied Closely

Monitor Keep
Low

Informed

Low High
S Stockholder Interest
Fig (4) Stakeholder mapping using power/interest matrix is adapted from (Winch, 2004).

12
2.7 Project complexity issue.

Project management has then grown up and spread around the world to become what it is today,
that is to say a set of theories, principles, methodologies and practices, sometimes included
in standard body of knowledge as Project.

For all practical purposes, lots of studies have been done, based on statistical calculations or
surveys. Their conclusion is that current methods have shown their limits, since they cannot
face anymore the stakes of ever growing project complexity. Limits and lacks have indeed
been detected in research as well as in industry about the project predictability, since usual
parameters (time, cost and quality) are clearly not sufficient to describe properly the
complete situation at a given time (Meijer, 2002; Jaafari, 2003; Williams, 1999).

Edmonds (1999 cited in VIDAL, L. AND MARLE, F, 2008) proposes an overview of the
concept of complexity within different fields and finally tries to give a generic definition of
Complexity is that property of a model which makes it difficult to formulate its overall
behavior in a given language, even when given reasonably complete information about its
atomic components and their inter-relations. Complexity can thus have both a negative
aspect (in terms of difficulty to be understood or controlled) and a positive influence on the
project system (due to the emergence of opportunities).

Baccarini (1996) proposes a definition of project complexity as “consisting of many varied

interrelated parts and can be operationalized in terms of differentiation and
interdependency.”

Baccarini & et.al (1996) argues that project complexity issue can be characterized through
some factors that can be classified into four factors (Figure 1). All are necessary but non-
sufficient conditions for project complexity.

 The size of the project system: size of the project system gives a first list of drivers of
project complexity when one focuses on what project size means.
 The variety of the project system : As mentioned by Sherwood and Anderson (2005),
“diversity relates closely to the number of emergent properties” and is a necessary
condition for project complexity
 Interdependencies within the project system: Suggesting that traditional project
management tools cannot be sufficient to catch the reality of interdependence. This

13
 seems all the more problematic since “there is a complete interdependence between the
components of the complexity: each element will depend and influence on the others”
 Context-dependence: Koivu et.al. (2004) who notably insist on the fact that the context
and practices that apply to one project are not directly transferable to other projects with
different institutional and cultural configurations, which have to be taken into account
in the processes of project management and leadership.

Project Interdependencies Project size

Project complexity

Element of context Project verity

Figure (5) project complexity factors.

In addition, Practice Guide PMI (2014) provides valuable insight about the kinds of

Complexity encountered by project teams. It observes that project teams encounter three

Major categories of complexity, complexities that are based on human behavior,

System behavior and ambiguity (Heaslip, 2015).

1. Complexity based on human behavior results from Human behaviors that are varied,
unpredictable, and uncontrollable make project management more difficult. They lead
to complex issues because stakeholders sometimes misunderstand or disagree, which
leads them to express views or take actions that are unexpected.
2. Complexity based on system behavior results from the need for projects or their
components, to interact dynamically with “systems” that exist within their environment.
Such systems might include governance committees, functional departments, and
business management groups.
3. Complexity based on ambiguity results from “not knowing what to expect or how to
comprehend a situation, it results from uncertainty about what will happen and how one
will need to respond to it.

14
3 Discussion.

This paper aims to providing better appreciation and clearer understanding of project
contemporary issues and it’s strategies by setting up a comprehensive management
approach to project’s stakeholder and meeting their expectations and then deliver the
projects outcomes in alignment with those ‘managed expectations’.

The stakeholder management issues such as relationship, communications, leadership,

Commitment, interests and influences, incentives and motivations should be identified and
addressed earlier, this certainly will reduces the risks and mitigates the negative influence
On the Project within Project life cycle further than dealing with the iron triangle of time,
Cost and output of Project.
Other issue of Project Complexity also driven the risks, its source of uncertainties
Caused by Project system complexity mainly due to the high number and variety of
Elements an Interactions that cannot be completely neither identified nor understood.
Whilst, when dealing with “project stakeholders’ and assuming the initial question is to
What extent does complexity show us the limits of the traditional approach, is it enough
Today to identify stakeholders and collect their requirements?
In fact, after identifying them, it is necessary to know them thoroughly to be able to get
Into a deep relationship with them, thereby establishing effective communication. In other
Words, the project shall be considered as a real temporary social organization
Characterized by interactions among interests, knowledge, and cultures of all the
Internal and external Stakeholders involved.

4 Conclusion / Recommendations.

In the whole, to compete in global business market, organizations are increasingly using
project management techniques and tools to implement projects aligned with business
case objectives. Yet despite using formal approaches and innovative techniques, many
projects are failing to meet outlined objectives, the reasons behind that always was how
can tackle effectively the above examined project contemporary issues.

Eventually, perhaps this paper was just open a door to conduct further research to tackle
And find appropriate solutions of project contemporary issues. It could be argued that
Further research should focus on which I consider the key factors of contemporary project

15
 Management, managing uncertainties, managing stockholders and dealing with project
Complexity day by day task by task.

References

Ahmed,S and Bakhsheshi,A (2009), Improving Risk Management in Projects: Stakeholder

Management in Perspective of Risk Management, NTNU University,[online]<
http://www.prosjektnorge.no/PUS/files/pages> accessed [14/04/2016].

16
Aven,T & Zio,E (2014) Foundational Issues in Risk Assessment and Risk Management. An
International Journal is the property of Wiley-Blackwell. [Online], 34 (7). Available at: <
https://my.leedsbeckett.ac.uk/webapps > [accessed 10/04/2016].

Ahuja, H. N., Dozzi, S. P., & ABourizk, S. M. (2013). Project management: techniques in
planning and controlling construction projects. New York, N.Y., J. Wiley and Sons.

Baccarini, D. (1996) the concept of project complexity - a review. International Journal of

Construction Management.

Buehler, R & et.al (2010) The Planning Fallacy: Cognitive,

Motivational, and Social Origins [online] < http//: resershgate.net/publications/> [accessed
12/04/2016].

Chin, G. (2004). Agile project management how to succeed in the face of changing project
requirements. New York, AMACOM.
http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&A
N=148993.

Cooper, D & et.al (2005) Managing Risk in Large Projects and Complex Procurements:
Project Risk Management Guidelines, John widely &Sons, Ltd.

Ducros, M., & Fernet, G. (2010). Project management guide. Paris, France, Editions Technip

Erkun, S. (2008). Making things happen mastering project management. Sebastopol, Calif,
O'Reilly Media.

Harrison, F. L., & Lock, D. (2014). Advanced project management: a structured approach.
Aldershot, England, Gower

Hamilton, A. (2004). Handbook of project management procedures. London, Thomas Telford.

Heaslip, R. (2015) Managing Organizational Complexity: How to Optimize the Governance of

Programs and Projects to Improve Decision Making, PMI [online], available at :<
http://www.pmi.org/media/PDF/learning/project-complexity/Managing-org-
complexity.ashx> [accessed 10 Apr. 2016].

Heathcote, J. (2008). Project strategy, Lecture note in project Brief and project definition, at
School of the Built Environment & Engineering, Leeds Beckett University, 2016.

17
Knutson, J., & Bitz, I. (2012). Project management: how to plan and manage successful
projects. New York, NY, Amacom.

Lewis, J. P. (2013). Team-based project management. New York, American Management

Association.

Murch, R. (2004). Project management: best practices for IT professionals. Upper Saddle
River, NJ, Prentice Hall PTR.

Nagarajan, K. (2005). Project management. New Delhi, New Age International.

Reiss.G (2007). Project Management Demystified. 3rd ed. Oxon: Taylor & Francis

Snyder, C. (2013). A project manager's book of forms a companion to the PMBOK guide, fifth
edition. Hoboken, N.J., Wiley.

Staples, L. (2010). Project management: a technician guide. Research Triangle Park, NC,
International Society of Automation.

VIDAL, L. AND MARLE, F (2008), Understanding project Complexity: implications on

project management, Kybernetes, Vol. 37 Iss 8 pp. 1094 – 1110.

Winch, G. M. (2004). A Wiley guide to managing project: Managing project stakeholders.

[Online] < http://onlinelibrary.wiley.com/> [accessed 20/04/2016].

Woodward, J. F. (2015). Construction project management: getting it right first time. London,
T. Telford.

Young, T. L. (2006). Successful project management. London, Kogan Page Ltd.

Thank you

18