Dec 1998 PM217: Project Management (Question 3) Suggested Solutions

3.	Projects and project management have been subjected to unprecedented levels of change, and increasing levels of complexity over the last two decades.
	(a) List and describe five sources of change in project management.	[10]
	One mark should be awarded for each correctly named source, and a further mark should be awarded for each satisfactory elaboration (up to a maximum of ten marks). Examples include the following: Changing players: Companies and government agencies are constantly adjusting their organisation charts in an attempt to develop a formula that will enable them to function effectively. A significant problem with this juggling of players is the shifting of priorities that it engenders. Budgetary instability: Increases in global competition put enormous pressure on companies to watch their spending. Consequently, project workers in private companies often find that the budgets they were promised have been cut back. Changing technology: In an era when the life expectancy of new technology is extremely short, any project that has a time span of greater than six months must grapple with changing technology. Changing competitive environment: In a competitive world, the actions of competitors can have a large impact on how a company works. For example, resources which were previously dedicated to long-term goals may be used for short-term responses to actions of a competitor. People changing their minds: As a project evolves, customers, managers and technical staff will all alter their views of what they need and want. At the earliest stages of a project, their vision of the deliverable is vague and requirements are abstract; as the deliverable becomes more tangible and people see what they are likely to get, they tend to ask for change. Changing macroeconomic forces: Changing macroeconomic forces create enormous pressure for change on projects. For example, a sudden surge of inflation can invalidate cost estimates for projects.	[10]
	(b) There are four key steps to implementing methods and procedures for managing complexity. List and explain the importance of each of these four steps.	[8]
	Experience (1 mark): employees should be trained to identify any experiences (problems or improvements) which might influence the organisation’s business (1 mark). Learn (1 mark): once such an experience has been recognised, the organisation should ensure that it assesses fully the business implications (1 mark). Revise (1 mark): once the implications have been assessed, practices and procedures throughout the business should be revised to make full use of the insights gained (1 mark). Promulgate (1 mark): the experience, and its implications in terms of business practice, should be communicated to all staff to whom it is relevant (1 mark).	[8]
	(c) How can the phenomenon of ‘simplicity through increased complexity’ occur?	[2]
	One of the paradoxes of complexity is that it is often the case that the price that we pay to make something look simple is increased complexity – this is commonly seen in software applications (1 mark). If a routine is to be included in a user-friendly application that any computer-illiterate person might employ, it may be the case that hundreds or perhaps thousands of lines of code will have to be written to create features such as pull-down menus, data entry forms, help functions, mouse capabilities, etc. (1 mark).	[2]