Organisational learning through the usage of project models in a multi- project environment

During the last decade an increased focus on multiproject environments and management of projects can be observed in research literature and reports presented at seminars around the world [1]. As a support for this management of projects, it is common to apply a project model. There is a question if this usage of project models really helps at all. To find an answer we can investigate if any organisational learning occurs in the application of project models. The research outlined in this paper is based on two cornerstones: The multiproject organisations’ usage of a project model and Argyris’[2] theories on organisational learning. 1 The multiproject environment 1.1 The project definition It has been proven difficult to find a definition of the expression project that excludes other assignments undertaken in an organisation [3]. Definitions like “a project is a temporary endeavour undertaken to create a unique product or service” [4], or usually suggested characteristics like “a well-defined goal”, “involvement of different organisational units” and “specified leadership”, can be applied on other assignments as well. One problem is that the expression project can refer to many different tasks. To make a definition possible and more useful, a demarcation must be done. In this report, the expression project refers to an assignment being carried out in an organisation that applies the project work form as a normal way of working, that is, in a multiproject environment. Following this demarcation, the characteristics that all together are needed to exclude other assignments are: • Temporary nature. The assignment is not on going. Temporary means that the assignment has a time frame of limited length (that is, not going on for several years). • Specified goal. The typical goal for a project assignment consists of three parameters; specified end-result, time-limit and cost-limit. Any of the three parameters could be considered as constraints. A project goal can be considered dynamic over time, but is static in every given moment. • Non-recurrent procedure. The “non-recurrent character” is a criterion for the procedure (the execution) in the assignment. For instance, even if a product is being developed a second time, the assignment could still be considered a project if the procedure is non-recurrent. If all activities (and the result) in an assignment are standardised and specified beforehand, then it is not a project, it is a specified process. • Scope and complexity. A certain degree of scope and complexity is a criterion as well. Often the scope and complexity actually gives the project procedure its non-recurrent character feature. • Significance. To be considered a project assignment in a multiproject environment, and to motivate usage of the project work form, the assignment must be significant – or important – for the organisation. Significance refers not just to income, value or customer relations, but also to the influence on the organisational operations. An assignment is also significant when several individuals and many resources are affected by the assignment. Table 1 shows the characteristics of the project assignment compared to other (some almost similar) assignments. Table 1: Assignment characteristics – a comparison between different assignment types Temporary nature Specified end-result Non-recurrency Complexity Significance Project Yes Yes Yes Yes Yes A ”one man investigation” Yes Yes Yes Yes No The presentation of a new product to a important customer Yes Yes Yes No Yes A process for important business decisions Yes Yes No Yes Yes A 3-day PM course (the 25 time this year) Yes Yes No Yes No Management, administration, maintenance, production and sales “as a whole” No No Yes Yes Yes 1.2 The multiproject organisation Today, projects are not carried out just in rare occasions apart from the normal organisational operations. Many organisations apply the project work form in customer orders, product developments and internal improvement work. That is, in many cases the project work form is applied as a normal way of handling assignments within the ordinary operations. These organisations could be named multiproject organisations. To position different project assignments and to illustrate a multiproject environment, an organisational model is needed that focuses on the purpose of the organisational assignments. The reason is that it is not possible to generally confine projects to certain levels in the organisational hierarchy, certain functions, departments or business areas, certain stakeholders in the organisation or a certain length of duration. In the suggested model (figure 1) the assignments in an organisation is divided into two main parts, operative and support activities. Operative activities are development of new products, production and sales. The support activities comprise, for instance, management, maintenance and administration. Support activities also include organisational development, such as improvements of competence, structure, processes, environment, climate and project culture. Improvement of methods, quality and organization Construction and delivery of a product to a customer Removal of operations to another location Development of a new product for a customer Development of a new product for the market Building of a new factory Production and sales Management, Administration and Maintenance Organizational Development Product Development Support activities Operative activities Figure 1. Different project types in a multiproject environment The characteristics of a project assignment and the classification of the assignments in an organisation, is combined in figure 1, illustrating different project types in a multiproject environment.