Introduction: The risk for P3M and the industrial revolution
With the rapid
industrial revolution and urbanization, the competition in the market regarding
the efficiency of systems also increasing. The current trends and future are
heading towards the great industrial revolution which will incorporate more and
more technology to not only bring ease to human life but also speed up the
processes. With the concept of industry 4.0, we are now certain that the future
will be more AI (Artificial Intelligence) based and we will see less and less
human interaction. Then the question arises: will it replace the Project
Management models or the P3M will mature with the system?
Companies are
facing substantial issues regarding this industrial revolution. Consequently,
the complexities of systems are also increasing, which is creating a level of
uncertainty about technological and organizational capabilities and sufficient
strategies for project development. To cater to the problems arising due to
advancements in technology and future trends, companies are also
revolutionizing their management strategies. Now they are more inclined toward
the project-driven businesses than the operation centred approach of business. To
make sure that this change competes with the future problems that may arise,
evolution in project management is also required
Given the
advancement in technology and the future inclination of industry, it is very
tough to predict how P3M and business will be structured for the next few
years. However, it will be too early to put the nail in the coffin of P3M just
by looking at the technological advancement graph. Management has passed
through many stages and has always been there, practiced until the advanced
scientific understanding. This industrial development was inevitable as the
need for industrial evolution has increased for social, economic, and
environmental activities due to more and more urbanization and a rapid increase
in population
Objectives Of Study
The study is intended to conduct a literature review
that evaluates critically the 3 potential future scenarios facing the
effectiveness of P3M in the future:
1)
Scenario 1 - “Leaders establish the vision for the future and
set the strategy for getting there” - John P. Kotter
2) Scenario 2 - Industry 4.0
3)
Scenario 3 - The Future
of Work: Jobs and Skills in 2030
We live in an ever-changing and complex
world that impact every aspect of life and business area, most important
project management. Due to this rapidly changing environment, companies are
constantly trying to adapt to the changes and then respond to the market
demands is an essential criterion of P3M (project, portfolio, and program)
success. The digital modern world necessitates the work to be done in the shortest
period to accomplish the defined targets of the business and to meet the time
pressure to ensure business expansion.
Today more managers and stakeholders of
P3M have inclined to the IT (Information Technology) tools for P3M. With the
advancement in information technology and the emergence of Industry 4.0, the software
seems to be the only and best solution for managing and optimizing projects.
Will it put P3M on the verge of risk? This is what we are going to investigate in
light of the above rationales in this paper.
Definition of a Project:
It is essential to define a project first
in order to get a depth analysis of the potential risks it is going to face. It
is also important to see why the project is so important and handled as a
priority.
An organization is a business in which
several projects are handled at the same time. Many writers tried to pen down
the definition of the project and they attempted several ways to describe it. A
project, as per the definition of the PMBOK guide (4th edition) is a
temporary journey taken to produce a certain result, service, or product. Butterick
et al (2000) provide us with a similar understanding of a project, he defined
it as a piece of work, which is for a short time, and it has a beginning as
well as an ending
The project, Program, and Portfolio Management:
PMBOK (2017) explained Project Program
and Portfolio Management as a set of tools, governance, and policy models that
are designed to equip the organization in a way to achieve its strategic aims
and objectives. The P3 term is utilized to signify program, portfolio, and
project as described in the definition given in the APM knowledge body. APM
body of knowledge (2019) explained a project as a “Single” certain endeavor
that is to achieve a specific output and a tangible result. Furthering the P3M
definition by breaking it into the acronym, then it explained the program as a “
several objects that are destined to achieve a single output”. If we link it to
the definition of the APM book of knowledge (2012) then we see that a project
is similar to a journey taken by an organization. A program, on the other hand,
is related to a group. APM book of knowledge (2019) said that a project is a
sole endeavor in comparison to the APM book of knowledge (2012) definition that
does not consider a project as singular. Portfolio management is, on the other
hand, the science and art of overseeing and selecting an investment that imposes
long-term benefits that strengthen the company’s policies and help It achieve
the final objectives. It also helps in mitigating risk, creating tolerance of the
company, an institution, and or client
Literature Review
Scenario 1: Leaders establish the vision for the future and set the strategy for getting there
The whole world
is facing the biggest change in its modern history, with the global pandemic
hit the world is getting more and more artificial intelligence oriented.
Perhaps Kotter is correct in suggesting that there is a need now, for
“Leaders to establish the vision for the future and set the strategy for
getting there”.
If businesses and
projects (large, medium, and small) have been struggling with the rate of
change, then things are not likely to improve anytime soon, or perhaps we will
soon see a revolution in project management and organizational leadership.
Change is
everywhere and with all the intellectual energy that has gone into change
management over the last 2,000 years, it is not going to be mastered any time
soon. Let's conduct a literature review to analyze the possible
responsibilities towards leadership on the organizational level to incorporate
with the rapidly changing world.
Dr. Thomas
Danborg et al (2011)
Jennifer Whyte et
al (2022)
Hussain Ali et al
(2021) look into the impact of revolutionized leadership style on the success
of the project. It researches the leadership style and its indirect effect on
teamwork quality and team-building. He used a quantitative research approach to
conduct this study. Data was collected from 374 professional ISD (information
system development) project managers. He finds that transformational leadership
is linked with project success via serial mediation of teamwork and
teambuilding
Riaz Ahmed et al
(2013) investigated what is currently the key topic of our discussion that what
is the significance of leader and leadership skills to manage the project
efficiently and effectively and how they are important for the project
managers. In the developing world, it becomes more important to adopt and
understand leadership competence and leadership skills to cope with the
uprising modern challenges of projects. This defines the success and failure of
an organization and project. With the more technological-dependent system, the
function of an effective project manager is to rapidly evolve from merely
directing and managing to leading the projects with skills, knowledge, and
newly introduced concepts of leadership. This will become more challenging in
the coming years
Scenario 2 - Industry 4.0
With the rapidly
advancing technology, the question arises of how P3M must change or what sort
of changes it needed to be implemented to become more future-ready and align
with the technological change
Zafer Tarık Taner
et al (2020) wrote a conference paper that explains the possible risks project
management and project management systems are most likely to face in the coming
years due to the revolution of industry 4.0. He performed an analysis on the industry
4.0 return and see the management factors in its context. He explained that,
with the use of new modern technologies associated with industry 4.0 in the
systems of project management, the successful map of project management can be
sketched. It can only be ensured if we utilize the resources correctly for the
upcoming years. By using the machine and workforce a successful project
management system can be achieved even in this evolving world
Martin Hirman et
al (2019) analyzed the processes involved in the implementation of industry 4.0
in organizations. The main aspect of this paper was to see the framework of
project management for the implementation of the concept of Industry 4.0. The
paper is divided into two parts, the first part describes the basic concept of
industry 4.0 and its implementation process In industry. The second part is
what is of our concern, it deals with the status of project management in an
organization along with industry 4.0. Martin also covers different aspects of
industry 4.0 by dividing the paper into more parts
Gabriel Gheorghiu
(2020) explained that the project management software are in use for more than
50 years but the industry 4.0, the Internet of things (IoT) and IIOT, and
artificial intelligence (AI) changed everything by providing a new approach to
see things and giving a guideline ton automate even the project management
processes. He also debated the point of whether will this new industrial
evolution make the existing software of project management; obsolete? He
explained that to find these answers in depth we need to understand that the
project management and processes are defined for humans and made to fit in
software by adapting the changes. The same can be expected of automation. It is
very unlikely that Artificial intelligence and robots will be programmed in a
way to adapt to ourselves, on the other hand, we can conveniently change our
working ways. Humans can be easily adapted to the change unlike robots and
artificial intelligence. Hence, if we ask about the risks the P3M can face in the
future due to industry 4.0 is unlikely that the automation will be able to take
over the project and program management if humans try to focus on modern level
strategies and project optimization
Scenario 3 - The Future of Work: Jobs and Skills in 2030
The job market
has got much more diverse and equally saturated. Now the always changing
priorities, multidimensional methodologies, high pressure to deliver, increased
turnover in an employee, and ethical dilemmas are making the workplaces go
through massive transformations. There is a lot of information now for humans
to handle so more and more machines and software and replacing humans. But it
is to keep in mind that, those are the humans that operate them but will those
machines be able to replace humans even for operating? From learning how to
integrate and manage generation Y and Generation X, using social media, deal
with the economy, and much more hitting at once the project managers cause new
risks, challenges as well as opportunities to the companies
Eckhard Störmer
et al (2014) put a lot of details in the “UK Commission for Employment and
Skills” journal about the future of jobs and market trends. He explained the
uncertainty of the future and that it is unpredictable. What was our firm
belief 20 years ago is now a myth, similarly we cannot predict the labor market
just by looking at the previous market trends. He did analyze the past trends
and concluded that there has been a sort of stable trend in the jobs and skills
market of the UK. But these trends are most likely to be disrupted In the
coming 10-20 years depending on various factors
James Manyika et
al (2017) analyzed the possible risks the job market will face due to the rapid
advancement in artificial intelligence and automation. He explained it by
providing examples that how technology is taking over all things. Now where the
world is filled with promises, in the meantime, it is welcoming us with many
challenges also, especially in the job market. Cars now drive themselves,
machines can themselves analyze the X-Rays, and algorithms are there to replace
the customer services. These technologies are improving our lives and save out
time but they are also taking over many human activities which are making the
job market very saturated. McKinsey Global Institute’s latest report, “Jobs
lost, jobs gained: Workforce transitions in a time of automation” enlisted a
detail of what jobs are substituted by the machines and what other
opportunities they have created for humans. The new jobs that are generated by
this machine evolution are less visible and spread to various geographies and
sectors. But there is a great chance of a spur of job creation in the future
Conclusion:
The future is
always uncertain but with the rapid shift in artificial intelligence and
industrial automation, it becomes more uncertain. Still, if we talk about P3M,
then it is not new in this game. It is the fourth decade of project management
which is also now evolved beyond cost objectives and meeting quality and
technical standards. Today we see many important changes organizations are
making to manage projects, they are utilizing more and more tools to increase
efficiency. Although, we cannot cast aside the risks it has to face and
currently facing in any organization which is the influence of changing
automation environment.
After scrutinizing
the literature review on different scenarios we can easily see a battle between
technology and project management. However, we also examined that if the
current trends are incorporated and adapted in a timely then not only we be
able to create effective leadership but also we can diversify the job market. Industrial
advancement has undoubtedly many advantages like improved efficiency, increased
customer satisfaction, enhanced product value, increase in productivity, faster
response, and reduction in prices. But, it is to be kept in mind that behind
every machine there is a human brain that can not be replaced.
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