Critical Factors in Project Implementation: A Comparison of Construction and R&D Projects
Critical Factors in Project Implementation: A Comparison of Construction and R&D Projects
Jeffrey K. Pinto
College of Business Administration, Universitv of Maine, Orono, ME w469 IU. S. A. /
Jeffrey G. Covin
College of Management, Georgia Institute of Technology, Atlanta, GA 30332 CU. S. A. I
ABSTRACT
The theoretical literature on project management tends to assume that certain
organizational rules, executive procedures, and environmental conditions (we call
them ‘critical success factors’) are essential to the success of all types of projects.
Mean while, management practitioners frequently ignore such general rules, because
they are convinced that their particular projects pose entirely unique kinds of prob-
lems. This study, based on 408 responses to an extensive questionnaire, explores
managerial perceptions about project characteristics. For this purpose. we chose two
types of projects apparently lying at opposite ends of a spectrum of characteristics-
construction and R&D. We were interested additionally in whether/actors considered
crucial to successful execution varied over the life cycles of projects. The findings
suggest that while some critical success factors appear to be common to both types
of projects, there also exist significant differences; and, furthermore, that these fac-
tors tend to vary with stages in the Ii/e cycle. We conclude that practitioners may
derive benefit from paying attention to normative project-management theory, but
that theoreticians must also descend from the level of broad generalizations to take
into account the peculiarities of various classes of projects.
INTRODUCTION
Research on project management and the implementation of projects in organiza-
tions has shown evidence of a curious dichotomy in the approaches employed by
academic researchers and practitioners. The prevailing tendency among the majority
of academics has been to characterize all projects as fundamentally similar. In other
words, for the purpose of project management research, the implicit view of many
academics could be represented by the axiom ‘a project is a project is a project.’
Except for differences in goals and in the degree of uncertainty confronted, all are
assumed to have similar characteristics and properties. Indeed, it could be argued
that many academics lose sight of the individual trees by focusing their efforts too
broadly on the larger forest. They tend to perceive and study organizational projects
in the aggregate rather than pursuing their research issues with a more overt regard
for the fundamental differences among various classes or types of projects.
Practitioners (principally project managers), on the other hand, can exhibit an
entirely different perspective: they are convinced that the properties, characteristics,
and problems relating to their projects are unique and impossible to reproduce
within a larger framework. Because each project is, in their view, fundamentally
unique, little in the way of general project management prescriptions and theory can
be carried over and made applicable to their own specific situation.
The purpose of this study is to attempt to blend the perspectives of both
academics and practitioners within a research framework for assessing project
managers’ perceptions of the critical success factors in project implementation.
Specifically. this research attempts to determine if there are systematic differences in
managerial perceptions about the factors influencing success and failure of various
types of projects. Two distinct research questions are addressed: (i) what are the dif-
ferences in the opinions of project managers about factors critical to the successful
implementation of two different types of projects (R&D and construction)?; (ii) do
these opinions vary with the stages in a project’s life cycle?
Answers to these questions would go far toward reconciling the approaches to
project management and implementation currently exhibited by researchers and
practitioners. A fundamental finding of this study is that all projects are not, in fact,
similar. Rather, care must be taken to consider their underlying differences, lest one
attempt to draw overly general conclusions. For managers, the results demonstrate
that, while there are characteristic differences between classes of projects, there are
also patterns of similarities within project types which may apply to their projects.
Such a finding enables project managers to make use of a wider range of decision
rules and project management techniques which they may have previously con-
sidered inappropriate for their particular ventures.
THEORETICAL BACKGROUND
It has long been acknowledged that the effectiveness of an organization depends,
in large part, upon the successful management of its projects. As a result, the search
for factors and issues that influence project success has been of interest to both
managers and researchers. A large body of research suggests that many of the
reasons behind project success can be found in the existence (or lack) of several
critica success factors (e.g., top management support, communication, sufficient
resources) [1,2]. Unfortunately, the use of these factors as predictors of project suc-
cess may be contingent upon an additional set of issues often ignored by researchers.
We are referring to the importance of the type of project being studied and the stage
of its development.
Critical/actors in project implementation 51
Recent research has demonstrated that the importance of project success factors
can vary dramatically as projects move through their life cycles [3]. This finding
reinforces the need to adopt a contingency approach to project management theory
and practice. Some critical success factors are most important early in the project’s
life, while other factors become ‘critical’ at later project life cycle stages.
Because the constructs of critical success factors, project life cycle, and project
type are central to our model, each of these constructs will be discussed in detail in
the following sections.
2 Top Munugement Support - Willingness of top management to provide the necessary resources and
authority/power for project success.
3 Project Schedule/Pluns - A detailed specification of the individual action steps required for project
implementation.
Client Consultation - Communication. consultation, and active listening to all impacted parties.
Personnel - Selection, recruitment, and training of the necessary personnel for the project team.
Technicul Tasks - Availability of the required technology and expertise to accomplish the specific
technical action steps.
7 Client Acceptonce - The act of ‘selling’ the final project to its ultimate intended users.
g Monitoring und Feedbuck - Timely provision of comprehensive control information at each stage in
the implementation process.
9 Communicufion - The provision of an appropriate network and necessary data to all key actors in
the project implementation.
10 Troubleshoofing - The ability to handle unexpected crises and deviations from plan.
II Churucferisficr 01 the frojecf Team Leuder - Competence of the project leader (administratively,
interpersonally, and technically) and the amount of authority available to perform his/her duties.
12 Power und Polifics - The degree of political activity within the organization and the perception of
the project as furthering an organization member’s self-interests.
14 Urgency -The perception of the importance of the project or the need to implement the project as
soon as possible.
plans, and (ii) the provision of the resources required to implement the project. The
second project stage is referred to as PI4nning. During this stage, detailed plans are
developed specifying how the stated goals are to be accomplished, and budgets are
established to provide direction and control for these plans. Among the important
activities in this stage is the enlistment of top management support to commit a
variety of organizational resources (budgetary, human, technical, and so forth) to
the project.
The third stage in the project life cycle is referred to as the Execution stage. Dur-
ing this stage the actual ‘work’ of the project is performed. Specifically, materials
and resources are procured, the project is carried out, and performance capabilities
are verified. Finally, during the Termination stage, the activities and concerns in-
volving project completion are of highest priority. Unused resources assigned to the
project are released for other organizational purposes, project team members may
be reassigned to other duties, and the project is transferred to its intended users.
- Overt risk. R&D projects often involve greater overt risks than construction pro-
jects throughout their development process. Risk has been defined by Alter [ 111,
54 Jeffrey K. Pinto and Jeffrey G. Covin
METHODS
Sample
Questionnaires were mailed to 586 members of the Project Management Insti-
tute-a national organization of project managers. Usable questionnaires were
returned by 408 project managers, for a response rate of over 69%. Of the 408 pro-
jects described by the respondents, 335 (82%) were used in the particular research
study. 184 (55 Vo) of these were construction projects and 151 (45 Vo) were R&D pro-
jects. This sample includes projects from both manufacturing and service firms, as
well as private and public-sector projects. The remaining 73 projects not examined
in this study included such miscellaneous types as studies, moves to new facilities,
and special services or tests.
Measures
The questionnaire included measures of the I4 previously mentioned project
critical success factors, project success, and project life cycle stage.
56 Jeffrey K. Pinto and Jeffrey G. Covin
The Project Implementation Profile (PIP) [14] was used to identify critical success
factor scores over the project life cycle. The PIP uses a seven-point Likert scale in
the assessment of 72 questions, covering the 14 critical success factors. Project suc-
cess was measured using an aggregate of 13 items. These multiple items assess pro-
ject success based on a variety of criteria, including adherence to budget and
schedule, perceived quality and utility of the completed project, and client satisfac-
tion with the project. Finally, a four-stage project life cycle measure was used; brief
descriptions of the stages were presented to the participants, who were asked to
classify their projects as currently being in one of these four stages.
The questionnaire asked participants to think of a project in which they were cur-
rently involved or which they had recently completed. This project was to be their
frame of reference in completing the questionnaire. The participants were instructed
to indicate the importance of the items included in the PIP to project success during
the particular life cycle stage in which they had classified their project. This ap-
proach ensured that the participants would respond to the questionnaire with a
specific life-cycle stage in mind.
Stepwise regression analysis was used to identify the most important critical suc-
cess factors at each stage of the construction and R&D project life cycles.
RESULTS
Table 2 presents a summary of the stepwise regression results of the significant
predictors of construction and R&D project success for each life cycle stage. As can
be seen, while there are some similarities in factors across the project life cycle for
the two project types, there also are significant differences between the regression
models at each project stage. The most notable similarity between the two types of
projects is in the perceived importance of Project Mission. A clearly stated mission
was found to be highly important for implementation success across each stage of
the project life cycle. In fact, Mission is the only factor consistently and significantly
related to project success.
For construction projects, in the conceptual stage of the project life cycle, project
mission was the only significant predictor of success, explaining 54% of the total
variance. Project mission, power, politics and technical tasks are the significant
predictors of project success in the planning stage, collectively explaining 84% of the
variance in success. The critical factors in the execution stage of the project life cycle
are project mission. schedules/plans, client consultation, and client acceptance. The
factors have a cumulative r-square of 0.70. Finally, technical tasks, mission, com-
munication, and troubleshooting are the significant critical factors in the termina-
tion stage. Fifty-four percent of the variance in project success is explained by these
four factors. All critical factors which loaded in the various regression models were
significant at fWO.01.
Table 2 also presents the results of the stepwise regression analysis of the signifi-
cant predictors of R&D project success at each life cycle stage. The key predictors of
project success in the conceptual stage are project mission, client consultation,
TABLE 2. A comparison of critical success factors in each stage of the project life cycles of construction and R&D
projecfs
personnel, and urgency. These four factors explain 92% of the variance in project
success. During the planning stage, 63% of the variance in project success is ex-
plained by project mission, environmental effects, schedule/plans, monitoring and
feedback, and client acceptance. Project mission, technical tasks, and top manage-
ment support are the significant critical success factors during the execution stage,
having a cumulative r-square of 0.54. Finally, during the termination stage, project
mission, schedule/plans, client acceptance, technical tasks, and personnel explain
72% of the variance in success.
DISCUSSION
The purpose of this study was to compare changes in the perceived importance of
critical success factors at each stage in the life cycle of two common, yet fundamen-
tally different, types of organizational projects-construction and R&D. The results
of the analysis revealed that, as theory would suggest, the importance of factors
varies widely, depending upon the stage in its life cycle a project occupies. It was fur-
ther shown that different sets of factors predict success in the various life cycle
stages of the two project types. These findings corroborate many of the conceptual
distinctions between R&D and construction projects which have been discussed
previously.
R&D and construction projects were argued to differ in terms of a variety of
characteristics, including those involving degree of innovation, risk, and scheduling.
It was found that there exist systematic differences in the factors which managers
perceive to be critical to the success of these projects. To illustrate, consider the mat-
ter of the recruitment, selection, and training of project team personnel. It was
argued previously that ‘personnel,’ as a critical success factor, has a considerably
greater impact on the success or failure of R&D projects than on construction pro-
jects. The results of our study bear out this contention. In fact, they show that per-
sonnel (the assessment of availability and subsequent recruitment) are crucial during
the conceptualization phase of R&D projects. Further, the personnel factor was
perceived as key during the termination phase, when project team members are
typically reassigned to other duties. On the other hand, at no point in the life cycle of
a construction project was the factor ‘personnel’ perceived as critical to successful
implementation.
In addition to demonstrating fundamental differences in perceived importance of
critical success factors between construction and R&D projects, this study reinforces
earlier work in the area of project implementation. Our research confirms earlier
theory used in the development of lists of critical success factors. In general, these
factors were perceived by project managers to be important to the implementation
process, but differentially so, depending on the stage in its life cycle at which the pro-
ject resides. In other words, the importance of these critical factors varied not only
ucross project type, but also within the stages of these projects. Many of those factors
that were critical at one life cycle stage changed markedly from those perceived as
critical at other life cycle stages.
Criticalfactors in project implementation 59
The findings of this study have important implications both for project manage-
ment researchers and for practitioners. The first implication highlights the need to
adopt a more project-specific, contingency approach to the study of project im-
plementation in organizations. Both project type and stage in the organizational life
cycle are important contingency variables in the perceived importance of various
critical success factors. As a result, this study reinforces the view that different
managerial approaches are essential to the effective implementation of projects in-
volving fundamentally different goals and techniques. Clearly, management
theorists and researchers must be cautious in offering general prescriptions for the
management of diverse types of projects.
An additional finding of this study suggests, however, that while there exist
significant differences between project type, there are fundamental similarities in
perceived importance of critical factors within classes of projects. For example,
follow-up interviews with a group of construction project managers indicated a high
level of agreement with the critical success factors uncovered, in spite of the fact
that, as a group, they were involved in a wide variety of different construction pro-
jects. As a result, it may be possible for many project managers, heretofore con-
vinced of the fundamentally distinct nature of their projects, to make use of a range
of project management theories, prescriptions, or process frameworks that they may
have, at one time, considered too general to be useful in addressing their specific
concerns.
CONCLUSIONS
Successful implementation of projects by organizations requires a wide range of
skills, expertise, technology, and resources. The difficulties involved in this process
have often been exacerbated by the implicit, yet fundamentally opposite, ap-
proaches to project management and to the implementation of innovations that are
taken by theoreticians and practitioners. Too often academics have sought par-
simony in generalizable decision rules for organizational phenomena, while practi-
tioners have insisted on the unique nature of their concerns, rendering many such
decision rules and generalized frameworks unusable.
This study has demonstrated a useful middle ground between the attitudes of
academics and practitioners when applied to the field of project implementation.
Our research demonstrates that while there are basic similarities within classes of
projects with similar task objectives (i.e., construction and R&D), there arecharacter-
istic differences between those factors perceived as critical to thesuccessful implement-
ation of construction and R&D projects, supporting the use of different managerial
approaches in attempting to implement these different types of projects. Further,
this study demonstrates how the perceived importance of these critical factors is sub-
ject to dramatic change at different stages in the project life cycle.
In conclusion, the effectiveness of project management activities is, to a large
degree, contingent upon both the life cycle stage and specific attributes, or task ob-
jectives, of the project. Clearly, the successful implementation of projects requires
60 Jeffrey K. Pinto and Jeffrey G. Covin
that the consequences of any managerial action be considered in light of the specific
circumstances surrounding the project. Though the identification of a set of general
critical success factors is of benefit both to managers and to academics, indiscrim-
inate or rigid adherence to these factors may not always facilitate effective project
implementation. Therefore, future research efforts might continue to focus fruitfully
on the identification and verification of those contingency factors which affect pro-
ject success.
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