Introduction
Information Technology (IT) is a rapidly developing sector that plays a significant role in both public and private organizations. The review of 1471 projects that were conducted recently shows that one out of six projects exceeds the initially set budget and timeframes (Hoang, Deegan & Rochford 2013). The problem of managing IT projects is largely associated with setting clear goals and measuring their outcomes. This paper aims to examine the case study related to a South Australian public sector organization, providing a range of services. In particular, they include housing services, domiciliary care, disability services, and so on. The need for applying project management to this case is caused by the need for cross-functional evaluation and decisions to improve customer service.
Identifying the Need for Project Management
A project is a one-time, complex process that focuses on setting achievable goals and providing relevant recommendations for their implementation. The case study by Hoang, Deegan, and Rochford (2013) explores the South Australian public sector organization in terms of measuring its current project success. In other words, the authors adopt the framework by Van Der Westhuizen and Fitzgerald to assess the organization against its benchmarks.
This framework involves such quality dimensions as customer satisfaction, information, and system, which, in combination, determine user satisfaction and net benefits. Since the success of this organization depends on the final service, it is rational to apply a customer-centered approach that is an integral part of project management.
The IT project links different parts of an organization and ensures that various employees and departments can communicate to achieve a common goal. To formulate, implement, and assess cross-functional decisions, it is critical to consider strategic management. The chosen case study clarifies that the current literature lacks appropriate guidance on how to measure the value that is given by IT projects.
In this connection, Hoang, Deegan, and Rochford (2013) claim that there is a need to research the ways to better understand the correlation between project outcome success and project management success. It is regarded that the latter affects the former; in fact, additional costs and schedule overrun can also alter the project outcomes (Project Management Institute 2013). Therefore, two-way interaction between various aspects of the IT project is to be taken into account.
A holistic approach to project management allowed the authors to modify a framework for defining success. The project leadership was determined as the key premise of project stakeholder satisfaction, while time, budget, and scope should also be noted as important aspects. The entire cycle of preparing a request for a project proposal was adopted and adjusted in the given case study. The classical structure comprises project inputs, boundaries, and outcomes.
The latter includes two dimensions: project deliverables to end-users as well as project records as assets (Pinto 2016). Accordingly, the project creation is followed by project experience and business benefits for the South Australian organization. The first step was conducted in the interviews with the representatives of the IT sphere to identify the current trends in the field. The second stage refers to designing and disseminating a survey across the organization’s departments. The final stage is based on undertaking and assessing a pilot project.
The first stage of the selected study is consistent with the basic steps in approaching a project team. The members of either permanent employees or functional groups are to be considered to identify those whose skills match the required ones. Furthermore, the functional supervisor can be contacted to talk to the potential team members. Hoang, Deegan, and Rochford (2013) assembled a team in terms of the third project stage to clarify the roles, methods, and practices that are associated with project outcome success. The intermediate results were continuously measured and documented to compare them with the expected benefits. In addition, one may suggest that developing employee skills and responsibility matrix can be taken into account to gather the team.
Speaking more precisely, it should be stressed that project management can be regarded as a methodology for organizing, planning, and coordinating the use of human and material resources throughout the project life cycle. It is aimed at effectively achieving the project goals by applying a system of modern management methods, techniques, and technologies (Pinto 2016). The project-oriented approach allows not only to understand what the organization needs to do to accomplish the expected results but also to determine who and what is needed.
Thus, using the project-oriented approach, one can move on to justified, calculated, and properly identified project parameters from unsystematic desires in the field of various social, economic, and organizational transformations (Project Management Institute 2013). It is obvious that in this case, the effectiveness of this type of purposeful activity increases by several times.
Evaluating the Application of Project Management as a Strategic Element
Strategic management develops the breadth of managerial thinking in project managers, making their performance more effective for the organizations. Strategic management allows project managers to quickly understand how an organization works, what the relationship of its structural components is, and what the role of individuals in making important organizational decisions is. Project managers’ knowledge of strategic management makes them seriously think about the future of the organization. For example, the case study represents that its authors objectively formulated possible strategies to determine to what extent the strategy is suitable for the organization and which projects should be implemented for its implementation.
The contents of the project included a range of essential components, such as purpose, high-level requirements, summary budget considerations, a stakeholder list, responsibility issues, as well as assumptions and constraints. More to the point, the plan for benefits realization is another critical point that seems to be associated with the key performance indicators (KPI), which promotes responsibility and project governance. The inclusion of this point demonstrates the appropriate planning approach.
By looking for alternative ways of project development in order to choose the best of them, managers use the opportunity to properly select the instruments and measure the outcomes. According to the International Project Management Association (IPMA), the use of modern methodology and project management tools can usually save about 20-30 percent of the time and about 15-20 percent of the money spent on projects (Kerzner 2019). As stated by the leading international experts, the widespread use of modern project and program management technologies is likely to improve an organization’s profit by at least 15 percent (Kerzner 2019). Consequently, this develops the ability to navigate in the future, which leads to a systematic consideration of the possible consequences of the decisions that are to be taken.
Based on the values of the planned and utilized budget and the real costs of the amount of work performed, it is possible to judge the nature of the problem. The failure to meet deadlines or budget overruns and information on employee productivity determine what needs to be done. For example, it is possible to increase the number of employees (breaking the budget) or extend the deadlines (breaking the plan) in order to fulfill the main requirement of a customer. One can also try to increase labor productivity, find additional funding, or reduce customer requirements for the system being created. Considering that a reduction in teams leads to an increase in the budget, and, conversely, a decrease in the budget leads to an increase in terms, the adjustment strategy should be aimed at one specific direction.
Tracking project progress is critical: it is best to post a similar schedule at the central office of the company so that a manager can quickly understand the basic principles of strategic project management. In this case, the more parameters will be under control, the easier it will be to manage the project, identifying the causes of any deviations. Project management as a new managerial culture and technology allows moving from spontaneous development from some abstract growth points to targeted, planned development.
The following movement is regarded as the most beneficial: from individual projects and programs through project-oriented organizations and companies to project-oriented businesses and society as a whole. The successful implementation of the strategy is possible when managers have the skills to manage organizational innovation and are able to overcome resistance to change (Hornstein 2015). When a team shows resistance, it is important to manage the expectations of people involved in the process of strategic change. Monitoring the implementation of the strategy can be effectively carried out through the monitoring of projects through which the strategy is implemented.
The use of project management enables managers and organizations to determine the priority areas of their activities, integrating them in the form of programs and projects. A clear and unambiguous formulation of goals and expected results of activities, as well as criteria for the success of project implementation, compose the benefits (Hornstein 2015). By consciously taking into account possible risks, it is possible to optimize the use of organizational resources.
The consideration of the project within the framework of strategic management gives project managers the opportunity to see the prospects for their development by predicting possible ways for the development of projects. In addition, an understanding of the basics of strategic management becomes an effective tool in the hands of managers who need to achieve the desired results. Thus, the successful management of the organization includes both effective strategic and project management.
Conclusion
To conclude, one should emphasize that this paper focuses on the case study that examines project management success on the example of the South Australian public sector organization. The critical review of the chosen case study shows that the authors rationally applied the concepts and frameworks of project management to determine the link between success in IT projects and project management aspects. It was found that project management implementation includes a range of stages and specific considerations, which were discussed based on the case study methodology and finings. In addition, the evaluation of project management as a strategic component shows that it helps in identifying potential risks, designing a well-organized evaluation process, and considering various alternatives.
Reference List
Hoang, N., Deegan, G. and Rochford, M. (2013) Managing IT project success: a case study in the public sector. Proceedings of the Nineteenth Americas Conference on Information Systems. Web.
Hornstein, H. A. (2015) ‘The integration of project management and organizational change management is now a necessity,’ International Journal of Project Management, 33(2), pp. 291-298.
Kerzner, H. (2019) Using the project management maturity model: strategic planning for project management. 3rd edn. Hoboken, NJ: John Wiley & Sons.
Pinto, J.K. (2016) Project management: achieving competitive advantage. Boston, MA: Pearson.
Project Management Institute. (2013) A guide to the project management body of knowledge (PMBOK guide). 5th edn. Newtown Square, PA: Project Management Institute.