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 considered 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’ . It has been acknowledged by Ludwig von Bertalanffy’s General Systems Theory , and it brought to the creation of Project Management tools as network chart or Gantt chart.

The reason why Systems Theory looks at the whole instead of considering singularly each element and going in deep with the analysis of those, is because when the system is broken into its parts its properties and dynamics get lost.(REF)

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 are to always try to self-correct themselves each time they are deviating from their equilibrium even if system’ ideal state does 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 focus within the Project Management a project itself can be thought of 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 which are supervised by performing organizations.

Figure X: Example of complex systems in Project Management, figure inspired by A Project Manager's Guide to Systems Thinking: Part I, J. Alex Sherrer

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 addition, 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 progress.

Strictly related to this, it is worth to mention that changing an element within the system will bring collateral effects influencing other elements within the same. It is thus necessary to understand the interconnections which govern each system in order to minimize the undesired consequences. This shows how the Systems Theory is linked to the complexity of project management and risk management. In addition to the already mentioned benefits, Systems Theory can help in raising the awareness of wider business objectives and in designing better products or services.

Engineering systems can be defined either “soft” or “hard” systems. This distinction is mainly due to the type of approach of the system. As project management is more people focused (the list of the Best Practices include: personnel management, motivation, team performance, team structure, stakeholder management, negotiation, communications management, and leadership) the approach to the systems is considered soft compared to hard systems which concern with products and are focused on technology. Soft systems and hard systems are different also in the methodology they follow. Soft systems methodology (SSM) is “systemic” while hard systems methodology is “systematic”. SSM becomes quite relevant when dealing with changes. Considering that in large projects and mega-projects change is inevitable, the use of systemic mythology helps to learn what changes are feasible and desirable from the problem context.

Another characteristic of systems is that they can be either open or closed. In this article only he open system are taken into consideration since close systems cannot interact with external factor and result being not adaptable to changes. Open systems, instead, can interact with the external environment and with other systems, and they result in this way being more complex to understand but also adaptable to changes.

Applications

The aim of this section is to illustrate how the Systems Theory can be applied within Project Management. First of all, a system is composed of five primary elements:

• Objects: These are the parts, components, variables, subsystems, or elements that make up a system.

Figure X: https://www.projectsmart.co.uk/project-managers-guide-to-systems-thinking-part-1.php

• Attributes: These are the properties and qualities of a system, which may be measurements of effects or behaviours at a point in time.

Figure X: https://www.projectsmart.co.uk/project-managers-guide-to-systems-thinking-part-1.php

• 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.

Figure X: https://www.projectsmart.co.uk/project-managers-guide-to-systems-thinking-part-1.php

• 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.

Figure X: https://www.projectsmart.co.uk/project-managers-guide-to-systems-thinking-part-1.php

• 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.

Figure X: https://www.projectsmart.co.uk/project-managers-guide-to-systems-thinking-part-1.php

The interactions of all these elements make the project not only complex and dynamic but also unique.

It is possible to divide the project lifecycle into three main phases and associate different systems thinking tools and techniques.

figure

Systems Theory can be applied from the initial phase of project management, “the concept and design phase”, 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.

Brainstorming can be particularly 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.

As it has been affirmed before for the systems thinking, these tools are used as a supplement to the tools recommended as Best Practices by professional project management institutes such as PMI. In case “wicked problems” arise in projects, standard tools are ineffective because they follow a linear approach useful when dealing with static objectives and well-understood interconnections.

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.

The application of the Systems Theory can be done mainly in two ways: through stories and diagrams. They aim to illustrate the behaviour and the effects of systems by understanding the five elements previously mentioned. Stories and diagrams represent only conceptual generalizations of the systems which cannot be used in order to understand the systems themselves but as a support. The main issue is the simultaneity which rules project actions that is hard to represent in a diagram.

As it has been said previously, there are several types of diagrams and one of those is the causal loop diagram (CLD) which is illustrated in the following section.

By studying causal loops, it is possible to identify recurring patterns called system archetypes which help in detecting leverage points and root causes which lie behind a complex problem. This relationship is shown in the following figure in which the four levels of thinking, from the general mental model to the specific events, are reported.

figure

CLD in Project Management

System thinking has a circular perspective on how to look at cause-and-effect. CLD is a tool which uses arrows and labels in order to show those causes-and-effects, the relationships and the time delays for the elements of systems.

A CDL is composed of variables and loop.

• Variables: These are the specific causes, effects and influences within the system of what is occurring and what is desired. It's often difficult to uncover all variables, but we need to be thorough to ensure that we're not overlooking an effect, influence, or behaviour. In our example, the primary variables are her main goal of passing the PMP exam, her objective to spend more time studying, her actual study time, her overtime, and her amount of free time available to devote to her study time. We'll find more variables as we look deeper at causes and effects.

• Loops: Loops show the relationships in the system by linking the variables together. The causation or influence link between the variables is either:
  • Same: An increase in one results in an increase in the other, or a decrease in one results in a decrease in the other. This can be shown with an "S" on the loop or with a plus sign.
  • Opposite: An increase in one results in a decrease in the other, or a decrease in one results in an increase in the other. This can be shown as an "O" on the loop or with a minus sign.

CLD aims to understand the fundamental dynamics of the system and to develop policy levers to control variation in the system by looking for leverage points.

When analysing causal loops there is the need to understand the concept of Behaviour Over Time (BOT).