Initiating Projects
Across the globe, organizations are lured by the opportunities to seek and pursue projects in all industries. The opportunities to impact the top line, bottom line, market share, be the first mover in the market are some reasons here.
In the hope of exploiting such mouth-watering opportunities, organizations many times make the mistake of bidding for and executing projects almost blindfold. The situation is real for organizations wanting to scale up and join the big league. The medium to large organizations does the same to be the Numero Uno or to outsmart the competition.
Do you see any problem with this? Maybe not!
You might consider it as being a risk seeker!
But, isn’t there more than meets the eye? The cost implications are high when projects don’t go as desired!
So, what is the point?
Different types of projects and different industries have different levels of complexities involved. If organizations do not review and assess the inherent complexities, project success ends up being a ‘mirage.’
What are the drivers of complexity?
Different researches approach complexity differently. However, there are a few parameters which are generally universal.
One way of understanding complexity is to review parameters such as:
Harvard research describes three levels of complexity namely:
Project Complexity | Product Complexity | Examples of Projects |
Assembly | Material, Component, Sub-system, Assembly | · Development of PDA · Post-It notes, · Design of a single service |
System | System, Platform of Systems | · Missile development · New computer development, · New automobile model, · A single building construction · Restructuring a production plant |
Array | Array, system of systems | · New neighborhood construction · Nationwide cellular network · Missile defense system · Large City Metro Train system |
Source: The Diamond Framework for Project Management, Harvard Business Press
However, current trends and research indicates that projects are categorized differently by organizations, and their complexities differ as well. These three categories include:
When we marry the complexity drivers discussed earlier with the above three types of projects, what we see is a definite matrix of project types.
Looking at projects this way, organizations would be better equipped to bid for, plan and execute projects thereby significantly reducing the impact of adverse risks to different classes of stakeholders.
SRISHA’s workshop on Project Evaluation and Selection is designed to address the above aspects.