Strategic management of complex projects: a case study using system dynamics

TLDR

System dynamics models have been used for two decades to improve complex development projects, enabling better planning, risk assessment, and learning from past projects. The authors illustrate the approach with a Peace Shield Air Defense System case, using a system dynamics model to support bidding, risk management, and evaluate process and organizational changes, then comparing outcomes to a prior project. The study systematized the lessons into a management learning system. © 2001 John Wiley & Sons, Ltd.

Abstract

Abstract System dynamics models have been used extensively over the last 20 years on complex development projects and have proven their value in contributing to significantly improved project performance. System dynamics models facilitate the strategic management of projects, including planning the project (setting the initial schedule and budget, the organization structure, process model, etc. ), determining measurement and reward systems, evaluating risks, and learning from past projects. The use of system dynamics for strategic project management is illustrated with a case study of the Peace Shield Air Defense System. On this project, the model was used to support the project bid, to identify and manage risks, and to assess the benefit of several process and organization changes which were implemented on the project. Upon completion, the project results were systematically compared to an earlier project to assess the management lessons—what worked and what did not, and what was the benefit. These lessons were systematized in a management learning system. Copyright © 2001 John Wiley & Sons, Ltd.