Complexity Management for Projects, Programmes, and Portfolios: An Engineering Systems Perspective

Oehmen, J. et al., 2015. Complexity Management for Projects, Programmes, and Portfolios: An Engineering Systems Perspective, PMI

“For every complex problem, there is an answer that is clear, simple, and wrong.” ~ Popular adaptation of a statement by H.L. Mencken (1917)

SUMMARY:

Complexity has received wide attention from practitioners and academics alike. We have made significant progress in understanding the different aspects of complexity in projects, programmes, and portfolios. Yet there is still significant work to be done in bridging complexity concepts and managerial reality. In this whitepaper, we discuss the aspects of complexity, how it impacts projects, programmes, and portfolios and what we can do about it. Drawing upon the emerging field of engineering systems, the paper helps us to understand the intricate nature of complexity, uncertainty, and human behaviour, covering both structural and dynamic dimensions. It further outlines the potential challenges in practices by connecting the abstract concepts and management approaches to concrete practical examples. Finally, it introduces cutting-edge tools and strategies for dealing with project complexity covering network analysis, systems dynamics, modularisation, antifragility, and mindfulness. It is important to note that complexity management is not a “finished” body of knowledge. We can, therefore, only propose solutions to some aspects of the challenges we face in complexity management (e.g., network analysis and system dynamics), while we have to support other areas with “sensemaking models” that form the basis for future development of tools and methods (e.g., the differentiation between simple, complex, and chaotic project, programme, and portfolio environments that require fundamentally different management approaches—some of which we know already, some of which we do not know yet). We are interested in moving this agenda forward and believe that a continued strong cooperation between research and practice is fundamental in discovering novel approaches to embracing complexity of projects, programmes, and portfolios.