Systems Theory in Project Management

Abstract

This article aims to explore how the Systems Theory can be applied to Project Management and how it helps to deal with project complexity. In particular, it starts with a general description of the Systems Theory, from the definition of a system to the development of the system thinking in engineering . It is not clear if engineering systems constitute a new discipline with theorems and frameworks that could be applied to every type of engineering systems. The article, then, continues discussing if it is licit to use this theory in the project management field. Here different points of view arise and a discussion in depth reveals the limits of the theory as well as the points of strengths like the capacity of adaptation of the system in order to always seek for the equilibrium. The main limitations that the Systems Theory faces are the undefined nature of relationships between the different parts of the system and the fact that it may be not applicable or hard to apply to smaller organizations. At this point, the different components of a system in the project manager field are presented: objectives, boundaries, attributes, relationships, and environment. A big role is played by the interconnections and the relationships within the different parts of the same system which characterize and defines the system itself. Defining them correctly may have a great impact on the effectiveness and efficiency of the Systems Theory. In the paragraph related to the application, the main tools used to translate the system thinking in graphics are reported (for example causal mapping, concept mapping, fishbone diagrams, and trend maps). The article will then focus on how to solve problems in Project Management using the Systems Theory. It ends with considerations about when the Systems Theory is generally used in the real cases together with some examples.

Big idea

Starting from the definition of system:

“A set of things working together as parts of a mechanism or an interconnecting network; a complex whole”

Systems Theory is a general concept developed in the biology field and then extended to many other fields including engineering. An engineering system is defined as:

“A class of systems characterized by a high degree of technical complexity, social intricacy, and elaborate processes, aimed at fulfilling important functions in society”

Systems theory, known also as systems thinking, consists of applying the rules and properties which govern systems to other objects that can be thought similar.

In particular, when dealing with Project Management a project itself can be thought as a complex system. This is due to the fact that a project is made by people and it constitutes a network with a precise scope: a purpose.

Systems theory, known also as systems thinking, is as ‘a discipline for seeing wholes rather than parts, for seeing patterns of change rather than static snapshots, and for understanding the subtle interconnectedness that gives (living) systems their unique character’ (Senge, 1990). It has been acknowledged by Ludwig von Bertalanffy’s General Systems Theory (von Bertalanffy, 1968), and it brought to the creation of Project Management tools as network chart or Gantt chart.

Due to the fact that systems theory is a concept rather than a tool, usually, it is not explicitly included in the project management education. A reason could be that when dealing with the System Thinking in the engineering field, it is not known yet if the engineering systems are ruled by their own right, principles, theorems and axioms constituting a new discipline or if they are taking concepts from other fields like management, economics, policy or technology. Moreover, the actual use of systems thinking techniques in projects has not previously been researched.

It is also important to know that all systems have an ideal state of equilibrium based on current conditions, object values, environmental influences and relationships. Their characteristics is to always try to self-correct themselves each time they are deviating from their equilibrium even if system’ ideal state do not match the desired ideal state. Consequently, systems far from their state of equilibrium have the tendency to be more chaotic and unpredictable that systems close to their ideal state which tend to be more predictable and stabler.

Narrowing down the the focus within the Project Management a project itself can be thought as a complex system. This is due to the fact that a project is made by people and it constitutes a network with a precise scope: a purpose. Projects are complex also because everything, from people, businesses and environments, is interconnected internally and externally. Moreover, often systems are themselves part of more complex systems as in this case projects can be part of programs that can, in their turn, be part of portfolios.

Systems thinking approach benefits projects by not considering projects in a deterministic way improving cost and schedule realism, anticipating possible challenges, and improving the understanding of stakeholders’ needs throughout the (extended) project life-cycle. It is worth to remark that Systems Theory does not aim to substitute the traditional top-down thinking but rather complement it. System thinking in fact, could not work without understanding before the system in all its parts, but it enables a more flexible approach which allows deviations from the project plan and it is very useful when dealing with projects with high degree of complexity. In addiction it encourages communications through boundaries and innovations providing project managers with skills that can help them handling complexities rather than limit their work to track the progresses.

Applications

Systems Theory can be applied from the initial phase of project management which consists of understanding the problem-solving process and then be extended to other two main phases: implementation and evaluation, through the system life cycle. At each stage of the system life-cycle is possible to associate different systems thinking tools and techniques. Brainstorming can be particular efficient at the beginning in order to see the whole system and avoiding a top-down approach. Through the following stages there are mainly other six tools that can be used: Fishbone diagram, Rich picture, Actor map, Concept map, Trend map, Causal loop diagram. What is important in system thinking is to not look only at the process themselves but to think more widely of their inputs, outputs, relationships, dependencies and influences in relation with the system itself and all the other systems before coming out with conclusions. System thinking has a circular perspective about how to look at cause-and-effects. A system is composed of five primary elements:

• Objects: These are the parts, components, variables, subsystems, or elements that make up a system.
• Attributes: These are the properties and qualities of a system, which may be measurements of effects or behaviors at a point in time.
• Relationships: All the objects within a system have relationships with other objects in the system, and in open systems the system itself will have relationships with other systems.
• Boundaries: A system is restricted by a boundary. In an open system this is a permeable boundary since information, energy, or matter is exchanged with and received from outside, but in a closed system its boundary can't be penetrated.
• Environmental Influences: All systems, even closed systems, exist in larger environments. Open systems exert influences on the external environments and are themselves influenced by their environments.