14 Questions
What is the primary goal of PM theory and education according to the presentation?
To develop a learning community and encourage critical self-reflection
Which type of bias involves deliberate distortion of information for strategic purposes?
Strategic Misrepresentation
What is the term for believing that past events were predictable?
Hindsight Bias
Which bias involves ignoring risks that manifest slowly?
Evolutionist Bias
What is the term for excessive confidence in one's own answers?
Overconfidence Bias
Which bias involves relying too heavily on one piece of information?
Anchoring Bias
What percentage of project spend is wasted due to poor performance?
12%
What is the forecasted contribution of project-oriented industries to the global GDP over the next 20 years?
US$20.2 trillion
What is the focus of traditional project management?
Cost, Scope, Risk, Human Resources, Communication, Time, Quality, Procurement
What type of project can use traditional project management methods?
Simple
What is required to manage complicated projects?
Experts and systems thinking
What is the primary focus of the modern view of project management?
Managing complexity and uncertainty
What is a key characteristic of complex systems?
Unpredictable interactions and 'unknown unknowns'
What is a required competency for project managers in VUCA environments?
Emotional intelligence
Study Notes
The Importance of Projects
- The global economy is increasingly driven by project-based work, with project-oriented industries forecast to contribute $20.2 trillion to the global GDP over the next 20 years.
- Approximately 12% of project spend is wasted due to poor performance, equating to $120 million for every $1 billion invested.
Traditional Project Management
- Focus areas: Cost, Scope, Risk, Human Resources, Communication, Time, Quality, Procurement.
- Emphasis on standardization and the 'one best way' approach, which does not prepare future project managers for change or unexpected difficulties.
Modern View of Project Management
- Projects can be simple, complicated, or complex systems.
- Simple projects can use traditional PM methods, but complicated or complex projects require a 'systemic pluralist' approach.
- Project managers should be reflective and reflexive, asking, "How can I get this done?"
Types of Systems
- Simple System: Stable properties, predictable interactions, 'known knowns,' use best practices.
- Complicated System: Cause-and-effect relationships are identifiable but complex, 'known unknowns,' require experts and systems thinking.
- Complex System: Unpredictable interactions, 'unknown unknowns,' require experimental approaches and diversity.
Complexity Theory
- Recognizes the dynamic and unstable nature of systems.
- Project management education should embrace complexities and uncertainties.
New Project Manager Competencies
- Required competencies in VUCA environments: Humility, Shared leadership, Social competence, Emotional intelligence, Communication, Vision, Understanding of values and beliefs.
Behavioural Biases
- Cognitive Bias: Unconscious tendency to lean in a certain direction.
- Political Bias: Conscious misrepresentation of facts due to political pressure.
Common Behavioural Biases in Project Management
- Strategic Misrepresentation: Deliberate distortion of information for strategic purposes.
- Optimism Bias: Overly bullish about outcomes, non-deliberate.
- Uniqueness Bias: Seeing one's project as more singular than it is.
- Planning Fallacy: Underestimating costs and time, overestimating benefits.
- Overconfidence Bias: Excessive confidence in one's own answers.
- Hindsight Bias: Believing that past events were predictable.
- Availability Bias: Overweighting whatever comes to mind.
- Base Rate Fallacy: Ignoring general statistical information in favor of specific cases.
- Anchoring Bias: Relying too heavily on one piece of information.
- Escalation of Commitment Bias: Justifying increased investment despite negative evidence.
Other Biases
- Evolutionist Bias: Ignoring risks that manifest slowly.
- Groupthink Bias: Desire for harmony leads to irrational decision-making.
Learn about the importance of project-based work in the global economy and the need for better education and development of project managers to handle complexity and uncertainty.
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