Rebecca Agent Business Consultant

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A brief history of Project Management

Prior to 1958 (Stage 1)

Although references to project management can be traced back to historical examples like the Pyramids or the Great Wall, it wasn't until the two world wars that project management techniques began to emerge as a distinct discipline. The rise of modern mass production and construction, coupled with ambitious projects driven by wartime efforts, necessitated a more organised approach to project delivery.

Before 1958, project management was primarily considered a skill rather than a separate discipline. However, with landmark projects such as the Manhattan Project, there arose a need for better organisation and coordination due to the increased significance of project success beyond mere profit or meeting deadlines. During this period, various tools and techniques were developed, including:

  1. Gantt chart: Henry Gantt popularised this visual representation of tasks and their dependencies in the early 1900s. It gained widespread recognition after being utilised in projects like the Hoover Dam and Interstate Highway construction.

  2. Critical Path Method (CPM): A network analysis technique used to identify the longest-duration path and estimate project duration.

  3. Precedence Diagramming Method: A visual method, also known as the 'action-on-node' (AON) network, for illustrating task dependencies throughout a project.

  4. Project Evaluation Review Technique (PERT): A system used to estimate task completion time, aiding in scheduling and coordination. PERT was employed in projects such as the Polaris missile program and space programs.

Noteworthy projects of this era included:

  • Manhattan Project, where project leadership focused on administrative aspects rather than engineering or research tasks.

  • Polaris project, which involved scheduling management.

  • Construction of the Interstate highway system, where project leadership ensured progress across multiple locations.

1958-1979 (Stage 2)

This period is widely recognised as the time when modern project management was formalised. In 1965, the International Project Management Association (IPMA) was established in Europe, followed by the founding of the Project Management Institute (PMI) in North America in 1969.

During this era, the role of the project manager gained significance and became distinct from that of the chief engineer. Major projects like the space program, particularly the Apollo moon mission, played a vital role in refining techniques such as CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique). While project management initially found its application in defence, construction, and aerospace industries, it gradually expanded to other sectors. The extensive use of CPM also established a connection between project management and systems analysis.

Notable developments in this period included the introduction of the Work Breakdown Structure (WBS), which is now considered essential, and the emergence of early agile concepts such as iterative working. Conflict management also became crucial in project management, leading to the adoption of matrix organisational techniques.

Prominent projects of this era included:

  • The space program and Apollo missions, which heavily relied on project scheduling models and planning tools.

  • ARPANET, which laid the foundation for the internet.

1980 – 1994 (Stage 3)

During the 1980s, project managers began adopting new approaches to project risk management. Until then, the focus had primarily been on resolving issues as they arose, leading to costly project failures. The need for methods that could anticipate and avoid risks led to the development of what is now known as the Waterfall method, which emphasised spending more time on planning complex projects from the start.

Simultaneously, software engineering was becoming valuable across various fields. Since software development projects often involved complexity and didn't require large administrative teams, leaner methodologies started emerging.

In 1981, the Project Management Institute (PMI) released the Ethics, Standards, and Accreditation project report, along with the initial project management process groups. In 1986, an expanded version was published as the first edition of the Project Management Body of Knowledge (PMBOK) in the Project Management Journal, an international publication.

The era saw the emergence of "lightweight" methodologies, although the term "agile" wouldn't be used for nearly a decade. Experiments with agile approaches were underway, such as the introduction of Scrum in 1986, rapid application development in 1991, and the inception of crystal methods in the same year.

The recognition of risk management as a core project discipline gained prominence after project failures following the Challenger disaster. A new version of the PMBOK in 1987 introduced risk management as a business process and knowledge area.

The widespread adoption of project management software became possible with the rise of large mainframe computers, replacing smaller personal models. These advanced systems supported more sophisticated project management practices and techniques.

Certification programs also gained momentum during this period. The PMI conducted the first certification test for project management in 1984, followed by the introduction of more stringent certifications globally. Management science was formally acknowledged as its own discipline, encompassing sub-disciplines like program management.

Defining projects of this era included:

  • English-France Channel Tunnel: A complex project that required coordination between governments, financial institutions, and others on an international scale. It involved two groups digging from opposite sides of the English Channel, meeting in the middle.

  • Challenger Investigation: A project aimed at investigating the failure of another project. It emphasised managing risk and quality assurance.

1995-now (Stage 4):

The internet, which defines the modern age, revolutionised methods of organising and performing work. The role of the project manager has evolved into a specialised career filled by project management professionals. The demands of software development prompted the emergence of flexible project approaches, leading to the birth of the Agile Manifesto in 2001.

Project management principles are now applied to corporate management, shaping overall business strategy and benefiting strategic management. The impact of globalisation necessitates considering multi-cultural aspects in projects.

Agile methodologies, initially designed for software development, prioritise collaboration and iterative processes. These self-directed methods aim to deliver working products quickly.

Critical chain project management (CCPM) emerged as a refinement of the critical path method (CPM). Unlike CPM, CCPM takes resource availability into account, enabling project managers to consider resource constraints.

In addition to professional certifications, bachelor's degrees in project management are now offered by some universities, recognising project management as a distinct discipline.

Remote work, which previously played a role in offshoring tech work, has gained significance beyond local borders. With the recent increase in work-from-home arrangements, remote work has become instrumental in overcoming constraints related to team location, ensuring access to the best talent regardless of geographical boundaries.

Defining projects of this era include:

  • Y2K: In the years leading up to 2000, it was discovered that the fundamental software architecture was unable to process dates starting with a "2." This realisation led to a multitude of parallel software projects worldwide, requiring coordination, talent sharing, and resource allocation.

  • Panama Canal Expansion: Due to the increasing levels of global trade, the Panama Canal became a bottleneck. A series of complex projects were undertaken to widen and expand the canal while keeping it operational. The project, which eventually cost $5 billion, faced a delay of over a year in completion.

  • Large Hadron Collider: The world's largest and most powerful particle accelerator was a project spanning over half a century. Multiple governments provided funding for this project, which involved significant ongoing research requirements.

Looking forward

Although project management became specialised in the past, modern tools have become more accessible and widely available. This accessibility may lead to project management once again becoming an integrated process and, to some extent, a part of everyone's job. Three significant trends can indicate the sophisticated use of project management methods in various aspects of life:

  1. Digitisation: Successfully managing projects will involve challenges related to storing and accessing information. Solutions such as cloud storage, scalable IT infrastructure, machine learning, and artificial intelligence modelling can assist in decision-making processes.

  2. Employment: Technological advancements like AI, robotics, 3D printing, and others are capable of performing repetitive, low-level tasks. This frees up time for individuals to focus on more creative aspects of their roles. Additionally, collaboration among individuals in geographically distant locations can now occur meaningfully in real-time. As a result, management practices will need to consider these changes and remain sensitive to local issues that can influence project outcomes.

  3. Enhanced data: With digitisation, data analysis can delve deeper into statistics to uncover the factors that contribute to project failures or successes. Analysis can also identify opportunities for cost reduction and more efficient ways to manage project activities.

Researched and written by Rebecca Agent with editorial support from Grammarly (English AUS) and ChatGPT


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