The PMI initiated a study on the value of the discipline in 2008 and the study confirmed that project management creates value for business and the value is also easily identified in organizations where project management processes are more mature (Thomas and Mullaly 2008a, b). It is reasoned that an organization’s success with project management is attributed to the organization’s project management maturity (Ibbs and Reginato 2002). In other words, established project management processes and procedures contrib- ute to perceived success of a project and its business value.
Past studies identified several factors that can enhance project performance. They are clearly defined goals, top management sup- port of resources, detailed plan and implementation processes, con- sultation with clients and stakeholders to determine expectations, monitoring and feedback, adequate communication with all the stakeholders, including the project team, and ability to handle un- expected problems (Schultz et al. 1987; Pinto and Slevin 1987). Larsen and Gobeli (1989) considered top management support and a clearly defined project mission as predictors of project success. Among many factors, project size, type of project, project plans and procedures, project organization are considered as critical factors that can affect project success (Park 2009). Analysis of Park’s find- ings, in conjunction with earlier research findings that underline the role of top management, suggests that project size and project type influence its priority in garnering top management support. Top management support was positively associated with project success (Fedor et al. 2003).
Hartman and Ashrafi (2002) identified clearly defined mission, top management support, detailed plan, and communication as critical for project success. When a project mission is not clearly defined, it will have a negative impact on project performance (Lechler 1997). These two studies underline the importance of a clearly defined mission. Additionally, it is detrimental to change project the mission or goals.
Different sets of success factors, metrics, and priorities were important for different industries and ranking of the 10 success factors was different for different industries (Hartman and Ashrafi 1996). These 10 factors are on time, within budget, completed to
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specification, stakeholder satisfaction, achievement of business purpose, communications, customer satisfaction, technology and expertise, project mission, and owner approval. The first five fac- tors contribute to project success. Further, different factors among them are considered important in different phases of the project; time and cost are important for project definition and execution phases and customer satisfaction is important for the project close- out phase.
A research study of 500 development projects confirmed that the success of development projects does vary according to which project management structure is used and that project structure does have a significant effect on success even when other determinants are considered. Although significant, project structure explained only a modest amount of success variance (Larson and Gobeli 1989). Among several factors, Larson and Gobeli identified top management support, clearly defined project mission, and cohesive project team as critical success factors for development projects. Together, factors consisting of top management support, clearly de- fined project mission, and cohesive project team, underline the im- portance of collaboration among different levels in the organization and suggest that a collaborative culture and participation in deci- sion making as significant influencing factors. Related to project teams, communication is considered a critical success factor in project performance and it is important to establish effective com- munication and cooperation among the project manager, stakehold- ers, and team members (Anantatmula and Thomas 2010).
Project execution invariably requires a strong team effort and team performance is considered to be the driving force for promot- ing project success (Lechler 1997). Lechler also suggested that if conflicts are not managed well, they are likely to have a strong neg- ative impact on project performance. The reasons are obvious; a good performing team is actively involved in decision making, in- formation flow among the team members, and knowledge sharing. Lechler suggested that top management plays an important role in the formation of a project team; additionally, top management can transfer the requisite formal authority to the project manager and create a favorable work environment for the project team to com- plete the project.
Contrary to popular belief, project planning and controlling ac- tivities have a low impact on project success (Lechler 1997) and it attributed to the ad hoc nature of activities to meet changing re- quirements and situations. It is an accepted and established fact that planning and controlling project activities are essential and critical to manage any project irrespective of its size. Their absence could impact project performance decisively and projects fail, but their presence may not have a direct relation on project success.
Likewise, three organization structures—functional, project matrix, and balanced matrix—are relatively equal in terms of the
Table 1. Contributing Factors of Project Success Contributing factors
technical and overall performance of development projects (Larson and Gobeli 1989). Without a doubt, organizational structure is es- sential to manage projects and critical for large and complex proj- ects; their absence can impact project performance decisively and projects fail, but their presence may not have a direct relation on project success.