This website or its third-party tools use cookies which are necessary to its functioning and required to improve your experience. By clicking the consent button, you agree to allow the site to use, collect and/or store cookies.
Please click the consent button to view this website.
I accept
Deny cookies Go Back

Intelligent Management

Deming and Theory of Constraints for CEOs and Executive Teams for the Age of Complexity. Ess3ntial Critical Chain Project Management

  • THE DECALOGUE METHOD
    • The Problem for Every Business
    • The Systemic Solution
    • synchronize competencies
    • How It Works
    • business insight and foresight through systemic cause and effect reasoning
    • Our Education Modules for Systemic Management
  • about us
    • Dr. Domenico Lepore
    • the founders
    • Intelligent Management Success Stories
    • Our Books
    • Clients
    • Expanding Spiral of Positive Systemic Results with Intelligent Management
  • blog & books
    • Blog Theory of Constraints and Deming
    • Our publications
  • ITALIA
  • Contact
You are here: Home / Network of Projects / Every Project is a System – Don’t Ignore these Systemic Principles for Effective Project Management

Jun 08 2019

Every Project is a System – Don’t Ignore these Systemic Principles for Effective Project Management

This week we delivered an over-subscribed webinar for the Project Management Institute (PMI) global platform. It is always a privilege to address people in many different countries on such a vital subject matter. Project Management affects every single one of us, as citizens and consumers.  Today’s post introduces some critical concepts when it comes to effective project management.

A project is a system

Sadly, poor project management has to be one of the major causes of unnecessary economic losses in our world today. In spite of the existence of various official bodies and an abundance of certifications for Project Management, the fact remains that the majority of projects fail to be completed as planned, incurring huge losses due to delays, fines, lost business and opportunities. Lose, lose. This failure is due to a lack of understanding of the fact that projects are intrinsically systems and systems need to be understood and managed accordingly.

 The challenge of effective project management  is not just a question of adopting better techniques. It is a matter of correcting wrong behaviors and adopting a systemic mindset and  vision of the project as an interconnected whole, not as something made up of separate parts.

A project is a set of actions that are required to satisfy some specifications, like those set by clients, in an established timeframe and within a precise budget. Actually, a project is a set of interdependent tasks that must be carried out within precise specifications. A system, as Dr. W. Edwards Deming taught us,  is a set of interdependent components that work together toward a goal. We can definitely say that a project is a system. If a project is a system, then like all other systems it has a constraint and it is affected by variation.

What is the constraint of a project?

We can thank Dr. Eliyahu Goldratt for challenging assumptions about Project Management in order to generate a breakthrough solution for effective project management. As a physicist, Goldratt was educated to ask fundamental questions. He explores this process regarding project management  in his groundbreaking business novel ‘Critical Chain’. By asking the right questions, Goldratt identified the way to manage projects without falling into the traps that so many projects do. Understanding that a project is a system, Goldratt had to figure out what the constraint of a project is. His answer is simple and yet revolutionary. The constraint of a project (that, like any constraint, we ignore at our peril) is:

The longest chain of dependent events considering the use of available resources on which the duration of the project depends.

This work led Goldratt to develop the Critical Chain algorithm for managing projects and it is widely recognized as a highly effective way to accelerate project completion reliably.

Projects and flow

Effective Project Management is what enables Flow. Why is creating Flow in an organization so important? Because not only does it provide a unique competitive edge, it also feeds the entire value chain we are part of, enabling others in it to achieve more by speeding up the way we transform ideas and materials into quality products and services. It is the opposite of hedging. i.e. artificially holding back supply to the market in order to make a profit, an unethical practice for which in recent years (in)famous Investment Banks have been fined billions of dollars.

A project is a system and it is a network. Actually, it is an “oriented network”. The goal of the project is the “cause” of its orientation. If the tasks and the resources, human and non, are not oriented toward the goal, we may continue to think that achieving a “local” success (e.g. completing a task in three days instead of 5 days) means something.

Changing the mindset

If Critical Chain is so effective, why doesn’t everyone use it?

As usual, the blockage is a cognitive one. To manage a project systemically requires people to leave behind a “mechanical” way of thinking where projects (and organizations) are made up of parts that are essentially separate. The mindset for Critical Chain is one of interconnectedness and wholeness. It contradicts many of the common practices that affect project management today. This is why it is hard for people to adopt. they have to be willing to unlearn.

The main differences int the systemic mindset behind Critical Chain approach are:

•Protect the project not tasks (whole system)
•No milestones
•No student syndrome
•No multitasking

•FINITE CAPACITY SCHEDULING

These relatively straightforward concepts challenge the status quo of how projects are managed in so many settings. By embracing them, we can radically improve the way projects are delivered and reduce the waste of time, money and energy that failing projects incur. As always, it’s up to us.

Since 1999, we have been presenting a new model for a systemic organization in detail, both in terms of the mindset and how to conduct operations. We work alongside CEOs and Executive Teams to support the shift towards more effective, systemic strategy and operations. Our books include ‘Deming and Goldratt: The Decalogue‘, ‘Sechel: Logic, Language and Tools to Manage Any Organization as a Network’, ‘The Human Constraint‘ and most recently,  ‘Quality, Involvement and Flow: The Systemic Organization’ .  We support our international clients through education, training and the Ess3ntial multi-project software using Critical Chain to schedule competencies and unlock the potential of human resources. Based on our proprietary Decalogue methodology.

Written by angela montgomery · Categorized: Network of Projects, project management, Systems Thinking, systems view of the world, Theory of Constraints · Tagged: constraint, critical chain, PMI, project management

Search Form

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sign Up For Our Systems View Blog!

Fields marked with a * are required.

Search Form

Recent Posts

  • Beyond Continuous Improvement: Deming and Goldratt together March 8, 2023
  • Confused about the Theory of Constraints? Don’t be! February 16, 2023
  • Why We Need Intelligent Management from Humans More than Ever February 2, 2023
  • Why Complexity Impacts Your Organization January 20, 2023
  • Continuous Learning is a Must for Organizations Today – A Systemic Approach Part 18 January 11, 2023
  • Why HR Is So Much More than a Department – A Systemic Approach Part 17 December 21, 2022
  • Are Your Management Methods and Style Obsolete? December 2, 2022
  • Sell More of What Your Company Does with the Resources You Already Have (External Constraint) – A Systemic Approach Part 16 November 3, 2022
  • The Science of Thinking Breakthroughs from Dr. Domenico Lepore for Today’s Complex Business Environment October 10, 2022
  • Shifting Your Focus from Cost to Throughput is How You Can Thrive – a Systemic Approach Part 15 September 29, 2022
  • Are Companies with a Hierarchical/Functional Mindset Dinosaurs? A Systemic Approach Part 14 September 22, 2022
  • Company Functions Are Limiting Your Organization’s Performance – A Systemic Approach Part 13 September 13, 2022
  • End Silos and Dissatisfaction: Learn to Operate as a Network of Projects Organization August 29, 2022
  • Leading and Managing Change Effectively: It’s A Process that Includes You – A Systemic Approach Part 11 August 21, 2022
  • Controlling the Whole Organization through the Constraint – A Systemic Approach Part 10 August 14, 2022

Social Icons

  • LinkedIn
  • Twitter
  • Vimeo

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • March 2014
  • February 2014
  • January 2014
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • March 2013
  • February 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011

Our Blog

  • Beyond Continuous Improvement: Deming and Goldratt together
  • Confused about the Theory of Constraints? Don’t be!
  • Why We Need Intelligent Management from Humans More than Ever
  • Why Complexity Impacts Your Organization
  • Continuous Learning is a Must for Organizations Today – A Systemic Approach Part 18

Recent Posts

  • Beyond Continuous Improvement: Deming and Goldratt together March 8, 2023
  • Confused about the Theory of Constraints? Don’t be! February 16, 2023
  • Why We Need Intelligent Management from Humans More than Ever February 2, 2023
  • Why Complexity Impacts Your Organization January 20, 2023
  • Continuous Learning is a Must for Organizations Today – A Systemic Approach Part 18 January 11, 2023

Connect with us on LinkedIn and Twitter

  • LinkedIn
  • Twitter

Sign Up For Our Systems View Blog!

Fields marked with a * are required.
  • Home
  • Blog Theory of Constraints and Deming
  • Library
  • How to adopt systemic organization management
  • Knowledge Base for ‘The Human Constraint’
  • Contact Us

© 2021 Intelligent Management Inc. Canada

Privacy Policy