System dynamics in project management: a comparative analysis with traditional methods

Recent dramatic project failures have weaknesses in the traditional approaches to project management and in particular their failure to cope System dynamics models provide a useful tool for a more systematic management of these strategic issues. There have been a number of applications of system dynamics in project management; this experience permits a tentative comparison with the more traditional approaches and to examine the particular benefits of system dynamics. The conflicts of opinion between their supporters stress the different perspectives underlying the two approaches. The comparison of the approaches is focused on the “view” of the project management process. Although, ultimately, they both assume a system perspective, a cycle of planning, implementation and control, the level of detail in which they consider the project system is different. Traditional models . highlighted The increasing rate of change and the complexity of the new technologies and markets impose the need for quick and effective responses. As a consequence many organisations are now adopting “management by projects” as a general approach (Turner 1993) and project success is a primary factor for the survival and prosperity of organisations. However, projects are also becoming more complex and project failure is unfortunately another major trend. Over-runs of 40 to 200 per cent are common, while other projects are cancelled before completion but after considerable expenditure (Morris and Hough 1987). The important role of project management in modern life has highlighted some of the deficiencies of traditional techniques and the search for an alternative. Traditional techniques can encourage a narrow, operational view of the project, concentrating on the detailed planning and several studies (Davidson and Huot 1991; Morris and Hough 1987) have identified the need for a more strategic approach. Systems dynamics appears to offer this strategic alternative, assuming a holistic view of the organisation with an emphasis on the behavioural aspects of projects and their relation with managerial strategies. This paper addresses the need for a better understanding of the nature, differences, similarities, and purposes of traditional and system dynamics approaches. If system dynamics models are to play a core role in the future developments of project management, it is important to understand their distinctive contribution to the current body of knowledge and their place in a future methodology.