Systems Approach To

Project Management

Dr. K. V. Subramanian

LoB 1
 Climber
or
Mountaineer

Stone cutter
or
Cathedral Builder
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What is a System?

No. of interconnected parts that feed each

other
Collective output is more than the sum of
the output of the parts

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A System involves
 Elements
 Large in number of different variety
 Complex Interplay of Elements
 Context Specific Variations

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Examples of System

 The Human Body – circulation, nervous,

muscular, systems …..
 An automobile – comprising wheels,
steering, electricals, chassis, engine,
brakes…

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Examples of System

 Air transport system – airplane,

navigation, security system, cabin crew,
communication, safety, finance, …
 IT & ITES – PC hardware, IT security,
people, software, network/ communication
system

LoB 6
Systems Thinking Paradigm

 An automobile company is in the business

of facilitating collaboration among people
 B & C dept. under PWD (now R & B) -
communication enabled by road network
 Transport & communication are
substitutes to achieve collaboration
among people & businesses

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Systems Thinking Paradigm

 A Hotel is in the business of providing

hospitality services – not just food/ rooms
 A hospital provides health care services -
not just surgery, ….

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 Traditional Approach

 Fragment the whole (problem) into parts

 Specialist for each part
 Optimal/perfect solution for each part
 Assemble back the parts to obtain
“optimised” solution for the whole
(problem)

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 Traditional Approach

 Banks on Specialists who know “more &

more of less & less”
 Ignores effects of Entropy
 Assumes individual efficiency will always
lead to group efficiency, eg. Marketing/
Design/ Production/ Support

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Entropy / Cacophony?

 Whole is less than the

sum of parts

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Systems Approach
 Natural (everyday experience)
 Less used in Projects (fragmented
approach)
 Everyone has it but not consciously
used
 Career choice
 Joining a project
 Event Manager

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 Systems Approach

 Holistic View
 Problem solving Methodology
 Multi-dimensional perspective
 Outscoping - beyond the obvious

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 Systems Approach

 Multiple Solutions for the same

objective
 Context Specific Appropriateness
 “Choice” based on available information
 Fallibility of the Decision-maker

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 9 Status Report 84 Allocated
6 IT Industry's 7 Project Nature
Growth Manpower Assessment 8 Feedback Time &
85 Team Size
81 Coding Quality 75 Reusability
79 Internal Reviews
1 Client's Knowledge
77 Process
37 H/W & S/W 14 Resource Measurements
36 Tools
Availability Estimation 74 Quality Factors
Availability
2 Client's 27 Client-Consultant
Expectations Interaction 78 System Design
82 Testing
86 Team Composition
10 Client's 70 Validation By
Participation 11 Requirments Client
19 Project Specific 12 Technology Elicitation
3 Clients Commitment
Skills 35 Reallocation 83 Documentation Planning

71 Project Planning
4 Client's 23 Team Skills 62 Study Of Existing
80 Creative Thinking 72 Methodology
26 Learning System
Satisfaction
13 URS 42 Technical
Environment 44 Work Environment
25 Errors
18 QA
28 Productivity
16 Manpower 65 Request for 63 International 15 Team 48 On-Going Projects
Allocated Change Laws Communication
24 Work Progress
29 Rework 52 Scheduling
69 Organisation's
Growth 47 Profit 41 Corporate
45 Manpower Turnover Realization Policies 46 Manpower
Availability
20 Standards & 50 Project Priority
33 Schedule Pressure
Guidelines 51 Training
17 Project Training Programmes
32 Motivation
39 Allocation
5 Business
Requirments Procedures
21 SRS
55 Post Project 76 Risk Management
Appraisal
38 Support 43 Organization's
Facilities 31 Quality Image
58 Clients Budget
22 Team Organisation 60 Configuration 57 Project
Management Monitoring
73 Project Strategy
40 Govt Policies
67 Project Scope
64 Benefits 53 Recruitment
49 Knowledge
Perceived by Client
Consolidation
59 Undetected Errors 34 Time and Cost
68 Anticipated
Skills 54 Business Overruns 30 Maintenance
66 Identified
61 Productivity Environment Requirments
Norms 56 Work Brakedown
Process

LoB Influence Diagram 15

LoB 16
Synergy / Symphony !!

Whole is greater than

the sum of parts

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Contrast

 Division of Labour

Vs

 Union of Minds

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Principles of “Systems Approach”

 Addresses the problem situation from

different angles
 Recognizes the interconnectedness of all
components and arrive at the problem
boundary

LoB 19
Principles of “Systems Approach”
 Addresses the problem situation from
different angles
 Recognizes the interconnectedness of all
components and arrive at the problem
boundary

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Principles of “Systems Approach”

 Studies the dynamic behavior of the

system
 Possess ability to represent complex
system
 Systematic but Probabilistic method of
Analysis and synthesis

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 Why “Systems Approach”

 As a Team Member
 “You Tell” - “I Do”
 As a PM
 What to “Tell”?
 “How to Tell” so that it is done?
 Attitude of “Enquire/Challenge”
 Understanding the larger picture

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 Why “Systems Approach”
 As a Team Member
 Criterion - “Success”
 Motivated & Driven
 As a PM
 Criterion - Achievement
 Self Driven & Motivating

LoB 23
References

2. HEART OF THE ENTERPRISE – Stafford

Beer
3. BRAIN OF THE FIRM – Stafford Beer
4. SOCIETIAL SYSTEMS – John Warfield
5. LIVING SYSTEMS THEORY – James Grier
Miller

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Project Management components

 Contractual compliance with

 Scope of work
 Quality acceptance
 Timelines
 Insurance
 Others

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Commercial

 Costs

 Revenues

 Billing

 Collections

 Reconciliation

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Financial

 Cash flow
 Source and sink
 Utilisation
 CoC – Cost of Capital
 Working Capital Management
 Insurance Premia
 Claims raising / follow up / Settlement
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Budgetary monitoring of resources

 Costs

 Cash flows

 Manpower

 Other resources

 Interest During Construction (IDC)

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Environmental

 Affected population
 Right of way
 Resettlement & Rehabilitation
 Land acquisition
 Pollution- Water, Air, Soil, Noise
 Political interference

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Human Resources

 Training / induction
 Manpower Planning- Quality, Quantity,
Time
 Manpower utilization tracking
 Attrition
 Basic needs
 Temp. accommodation

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Human Resources

 Children- Crèche, schools,

 Accidents
 Quarrels
 Grievances
 Insurance
 Risks (personnel, injury, theft, sabotage
etc)
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Regulatory Agencies

 Filing Returns
 Accidents reporting
 Compliances
 External stake holder management

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Legal

 Dispute handling
 Tracking hearing
 Preparing for hearing / presentation
 Taking action
 Arbitration / settlement

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Organizational
 Internal reporting
 Internal resource seeking
 Management Reviews
 Problem escalation / Resolution

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Organizational

 Interdepartmental cooperation
 Collaboration for construction/ quality/
knowledge/ problem resolving
 Regular communication

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Site management

 Material acquisition, transport, stocking,

issues, handling, accounting
 Quality assurance, Record keeping
 Seasonal issues (rain, land slides, access,
sinking)
 Various technical issues at site

LoB 36
Site management

 Local inconvenience , diversification,

accidents to locals, theft etc…
 Protection of works, material, ……
 Averting accidents – precautionary
measures
 Sign boards, warning – announcement,
safety precautions

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Project progress

 Progress parameter / indicators

 Data collection, inputs analysis
 Monitoring against schedules, Cost,
resource utilization
 Progress Report Generation periodically

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 Tools

 Project evaluation review technique (PERT)

 Critical path method (CPM)
 Project management software - MS Project /
Primavera

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Tools

 Other- use IT for tracking/ communication/

analysis/ reporting/ collaboration
 Professional certification – by project
management institute (PMI)

LoB 40
Key drivers to effective PM

 Objective / Achievement orientation vs

task orientation
 Holistic view of one’s role
 Respect and take pride in one’s profession
/ role
 Joy of achievement vs material
enrichment
 Team work/sharing/collaboration
LoB 41
Key drivers to effective PM

 Openness and assertion

 Dare to question : rules are only tools to
assist in work, not barriers
 Go beyond the obvious
 Stretch one’s boundary
 Right Attitude : attitude more important
than tools/ knowledge/resources

LoB 42
 Thank You

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