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Home > Resources > White Papers
Managing project complexity.
Complexity is one of those words that are difficult to define. Some say complexity is the opposite of simplicity; others say complicated is the opposite of simple, while complex is the opposite of independent. A complex structure is said to use interwoven components that introduce mutual dependencies and produce more than a sum of their parts. In today’s systems, this is the difference between a myriad of connecting “stovepipes” and an effective set of “integrated” solutions (Lissack and Roos, 2002). A complex system can also be described as one in which there are multiple interactions between many different components (D. Rind, 1999). In the context of a design that is difficult to understand or implement, complexity is the quality of being intricate and compounded (IEEE, 2006).
In the twenty-first century, business processes have become more complex – i.e., more interconnected, interdependent, and interrelated – than ever before. In addition, businesses today are rejecting traditional management structures to create complex organizational communities comprised of alliances with strategic suppliers, networks of customers, and partnerships with key political groups, regulatory entities, and even competitors. Through these alliances, organizations are addressing the pressures of unprecedented change, global competition, time-to-market compression, rapidly changing technologies, and yes, increasing complexity. As a result, business systems are significantly more complex than in the past; therefore, the projects that implement new business systems are more complex. Huge cost and schedule overruns have been commonplace in the past (New York Times, 11 July 2002). To reap the rewards of significant, large-scale change initiatives designed to not only keep organizations in the game but make them a major player, we must find new ways to manage project complexity.
The Project Complexity Model©
There are many different ways projects can become both complicated and complex. The business problem might be difficult to define. The solution may be elusive and difficult to determine, describe, or grasp. Business boundaries might be unclear. Business process relationships are likely to be non-linear and contain multiple feedback loops. Today’s complex business systems will change over time, and therefore need to be dynamic, adaptive, and flexible. Some business systems are nested—i.e., the components of the system may themselves be complex. There are a number of dimensions of project complexity, including team size and composition, project duration, schedule, cost and scope flexibility, clarity of the problem and solution, stability of requirements, strategic importance, level of organizational change, inter-project dependencies, political sensitivity, and unproven technology.
The Project Complexity Model presented here is used to evaluate project size, complexity, and risk and determine the specific dimensions of complexity that are present on a project. The project complexity model describes the project characteristics in terms of complexity dimensions for projects that are (1) small, independent, and low risk, (2) medium-sized with moderate complexity and risk, and (3) large, with high complexity and risk. (Refer to Exhibit 1.)
Exhibit 1: Project Complexity Model
Directions for Using the Project Complexity Model
To use the model to diagnose the size, complexity and risk of a particular project, shade the boxes that describe the project and apply the complexity formula below. (Refer to Exhibit 2.)
Exhibit 2: Project Complexity Formula
Applying complexity thinking to help manage complex projects should be used during many phases of the project life cycle. Take your project leadership team through the analysis recommended in the remaining sections of this paper to apply complexity thinking to the major decisions you make about your project. Specifically, adopt the project cmoplexity management approaches outline here when you are:
Managing projects:
Preparing the business case for a new project proposal
Initiating and planning a new project
Initiating and planning a new major phase of a project
Recovering a troubled project
Managing programs consisting of groups of related projects of varying complexity:
Initiating and planning a new program
Recovering troubled project within a program
Refer to Exhibit 3 for another view of the Project Complexity Model. This view incorporates the concept of program management. As you diagnose the complexity of each project within the program, it is wise to focus on the high-risk, highly complex projects first, before investing time and resources on the less complex projects, to ensure the risks and complexities can be managed.
 Applying Complexity Thinking to Manage Projects
Applying complexity thinking to projects involves selecting methods and techniques, and assigning project leadership based on the project profile and the complexity dimensions that are present. There are three steps in the process:
Select the project cycle based on the project profile. Based on the project profile, the project team first determines the appropriate project cycle to use. All projects have a cycle, a sequence of stages through which the project passes. Typical cycles have a series of periods and phases, each with a defined output that guides research, development, construction, and/or acquisition of goods and services (Mooz, Forsberg, and Cotterman, 2003). As projects have become more complex, project cycles have evolved to address the various levels of complexity.
Select appropriate management techniques based on complexity dimensions.
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