# Presentation: 531103

## Role of knowledge management in project management of complex systems organizations

- NASA JSC Conference
- By *Arvind Gudi*
- Advisor: *Dr. Irma Becerra-Fernandez*
- March 2-3, 2006

## Outline

- Introduction
- Project management
- Research challenges
- Research objective
- Preliminary observations
- Research contributions

## Outline

***Introduction***
- Project management
- Research challenges
- Research objective
- Preliminary observations
- Research contributions

## Introduction

- As our technology develops and expands in its applicability, our experience shows that we create systems and organizations that are increasingly risk-prone
- At one extreme we have systems that can pose severe danger such as nuclear power plants, space missions, airways systems, and others
*Some examples are the core meltdown at Three Mile Island Unit 2 nuclear plant near Harrisburg Pennsylvania on March 28, 1978, and the NASA space shuttle Columbia accident on February 1, 2003.*
- There are also many other systems, that may not have catastrophic failures, but nonetheless can be risky and cause economic damage

## Introduction

*What can be done?*
- Conclusions by investigative reports usually determine that the mistakes were *not isolated failures, *the conditions that caused the accident existed prior to the failures
- The good news is: If we are able to understand the *nature of risky systems better*, we may be able to reduce or remove the risk of failure
- This research is driven by the motivation to reduce risk and preventing failures during the *development of such systems*, the focus being on the dynamic aspects of project management

**Notes:**
NASA CAIB report analysis

## Outline

- Introduction
***Project management***
- Research challenges
- Research objective
- Preliminary observations
- Research contributions

## Project management

- The project management function in large organizations is typically the key organizational function -- it is the nexus around which the project requirements are conceptualized and eventually implemented
- Projects are undertakings which are large, unique, expensive, and often involve risk
- Project management differs with environmental characteristics: Process-based or project-based

**Notes:**
The project characteristics that emerge are: temporary nature of the project organization, and specified results, which are of a non-recurrent character, might entail conflicting priorities, but which are of significance.

## Project management

- It is not sufficient for the project management function (including the architecture of support people, communication and information technologies, and collaboration practices) to be designed *only for consistency of processes*
- Instead, in a dynamic multi-project environment, project management needs to hinge around the key ingredient of *agility* (also adaptive)

## Project management of complex systems

- Prior research has pointed out that there is a growing need to manage the increasing complexity of  projects
- need to identify the dependencies related to the development of innovative products
- As project complexity increases, it becomes important to find the means to manage
- inter-relatedness of sub-projects
- along with related activities and events
- Increased project complexity implies that *no one individual or team can at a given time comprehend the entire system* that is being developed

## Project management of complex systems

- Projects in R&D environments can be considered one example of complex systems
- Limitations of basic human capabilities and hence we cannot depend on sheer ability for such undertakings
- We can *construct tools and design processes* for managing this complexity
- Knowledge management?
- Mechanisms and technologies

## Outline

- Introduction
- Project management
***Research challenges***
- Research objective
- Preliminary observations
- Research contributions

## Project management in R&D organizations

- Projects in R&D environments can be more challenging than multi-project environments
- Long duration of projects
- Many interacting components *may be in design stage simultaneously*
- Potential *loss of knowledge* of key personnel
- Degree of innovation
- Need to keep up with *frequent advancements of science and technology*
- Sources of new data and information are diverse
- Challenge for *resource integration, analysis and decision making*

**Notes:**
Example of NASA Hubble telescope program: Computer with 486 chip was customized
Called as “knowledge erosion” when key scientists or engineers retire or move out of project

## Project management in R&D organizations

- Projects in R&D environments can be more challenging than multi-project environments
- The need to take *more aspects into account*
- interoperability, industrial design, environmental, manufacturability
- The demand to cooperate and *interact with more actors* outside the traditional R&D
- Increased uncertainty
*Requirements, environmental, political...*

**Notes:**
“Open Innovation” paradigm by Chesbrough
Political: When President says we go to Mars...

## Research challenges

- It appears that the outcome of current system engineering practice is complexity
-   especially development of large-scale systems
- If the systems being developed are complexly interactive and tightly coupled, *by nature they are risky and prone to failure* *(Perrow)*
*“**The main problem is complexity itself”*
- This creates space for *effective project management practices facilitated by knowledge management* mechanisms & technologies

**Notes:**
As systems grow in size, serve diverse functions, built to function in ever more hostile environments

## Outline

- Introduction
- Project management
- Research challenges
***System accident theory***
- Research objective
- Preliminary observations
- Research contributions

## System accident theory

- The Normal Accident theory or _System Accident theory_ was proposed by Charles Perrow in an attempt to explain failures and accidents by trying to understand the *nature of the systems* themselves
- System accidents involve the *unanticipated interaction* of multiple failures
- Attention is *not on individual components* or isolated incidents that led to the failure
- To analyze the nature of systems in the context of accidents, Perrow uses two concepts, and mutually exclusive dimensions:
- 	*Complexity* and *Coupling*

## Complex interactions 

- One component can interact with one or more other components outside the normal production sequence
- By design (intended), or not by design (not intended)
- Even if intended, they may be *unfamiliar*
- Interactions may not always be *visible*
- May not be immediately *comprehensible*
- Can confuse the user, operator
- Emphasis on the *understanding and awareness of the connections and dependencies* between the parts and sub-systems

**Notes:**
Information about the state of the components and processes is indirect and inferential: for e.g. through instruments (gauges) and computers

## Tight/ loose coupling

- Tightly coupled systems
- Have more *time-dependent *processes
- The sequences are more *invariant*
- What happens in *one part directly affects* what happens in the other (little slack or buffer)
- Loosely coupled systems
*Buffers and redundancies can be found*, even though they were not planned ahead of time
*Can incorporate shocks and failures* without destabilization

## Interaction Coupling chart 

- T
- i
- g
- h
- t

- L
- o
- o
- s
- e

- COUPL
- I
- NG

- 				INTERACTIONS
- 			Linear		Complex

| 
                                  *
                           Power
                             Grids
            *
          Rail
           transport

                                        1 |  
                              *
                        Nuclear
                         plant
                          *
         Space mission 

2 |
| --- | --- |
|                                         3
                         *
                     Most 
               manufacturing                       
            *
      Single-goal Agencies
     (Post office, motor 
                        vehicles)                            | 4
                          *
                      Multi-goal
                     Agencies  
                 (DOE, Welfare)
                    *
                  Universities  

                                   |

- Figure 1: Interaction/ Coupling Chart (adapted from Perrow, 1999 p. 97)

## Outline

- Introduction
- Project management
- Research challenges
- System accident theory
***Research objective***
- Preliminary observations
- Research contributions

## Research objectives

- The aim of this research is to refine our understanding of how projects are impacted by *complex interactivity, coupling and innovation,* and explore the relationships between *team adaptivity* and the reduction of *risk of failure* in the system
- Further, the intent is to identify *knowledge management strategies* which organizations could institute in *project management practices* in the organization.

## Research objectives

- Interactive complexity: Property of interactiveness between parts of the system (planned or unplanned interactions)
- Coupling: Property based on how rigid the design is with regard to the sequence and timing of processes in order to reach the end goal
- Degree of innovation: The use of creative and novel ideas in the system
- Risk of failure: depends on the probability of an undesirable event and the severity of the consequences of that event
- Team adaptivity: a change in team performance, in response to a salient cue or cue stream, which leads to a functional outcome for the entire team

## Research questions

- 1) How does project management deal with issues related to the complex interactivity, coupling, and innovation that are inherent in systems being designed and developed?
- 	a) How do complex interactivity and coupling affect the risk of the system?
- 	b) What kind of impact does the factor of “innovation” have on complexity?
- 	c) What kind of impact does the factor of “team adaptability” have on risk of 	failure of projects?
- 2) What role can KM play in domains that are increasingly being characterized by organizational, design, and interactive complexity?
- 	a) Which elements of KM can be applied for preventing failures, or reducing 	the risk of failures during management of projects in such domains?
- 	b) How can these elements be operationalized?

## Outline

- Introduction
- Project management
- Research challenges
- System accident theory
- Research objective
***Preliminary approach***
- Research contributions

## Preliminary approach

- In this study, it is assumed that the term "system" is meant to indicate the *result of the project* work undertaken by the organization
- Project management: While this function will touch upon a multitude of activities and accountabilities in the organization, for the purpose of this study *we consider team adaptability as the most relevant aspect* and how the project management can mediate the potential of risk
- KM is the underlying theme for this study, and the research interest is generated by tying certain *KM mechanisms, processes, and technologies* which would be appropriate for the project management requirements

## Conceptual Model

## Outline

- Introduction
- Project management
- Research challenges
- System accident theory
- Research objective
- Preliminary approach
***Research contributions***

## Research contributions

- Extend the Normal Accident theory proposed by Perrow to include other factors besides complexity and coupling – such as degree of innovation.  Also the two dimensions of complexity and coupling will each be used for two perspectives: the technological system and the corresponding organizational structure.
- Recommend a *KM framework* (Liebowitz & Megbolugbe, 2003) which will be useful to project and program managers in conceptualizing, developing, and implementing KM initiatives, which can be further generalized for other organizations.

## Research contributions

- We anticipate that this research will allow us contribute and offer insights towards improved and *more effective performance* in the context of enterprise governance
- We expect that this work will provide *useful insights and guidelines* for project managers responsible for making crucial decisions in risky environments.  We hope to provide them with a methodology to evaluate their options, so that the choices they make are proactive, informed and deliberate, rather than simple enactments of past experiences.