Systems thinking for complex project management: A new paradigm for boundary management

- September 2024

Parbery Partner Kim Moeller shares key insights from the ICCPM roundtable in Canberra, highlighting why traditional project management methods don’t cut it anymore.

I recently had the pleasure of attending and contributing to the ICCPM Roundtable Series in the ACT, where discussions revolved around the increasing complexity of projects and the need for a new approach to better manage these complexities and set the stage for long-term success.

One of the key takeaways for me was the growing recognition that traditional project or program methods—where projects are treated as closed systems with fixed boundaries—are no longer meeting the needs of organisations that seek a step change in delivering capabilities at speed, such as Defence. As projects and programs continue to expand in size and complexity, it’s becoming clear that a shift towards seeing projects as dynamic, interconnected systems, requiring a more adaptive way of managing boundaries is needed to achieve the benefits sought from these programs.

The ICCPM Roundtable discussions highlighted how systems thinking can offer a more holistic view, treating projects not just as a sequence of tasks but as complex ecosystems with various interdependent parts. This approach encourages complex projects to move away from rigid boundaries and adopt a more flexible mindset that allows project parameters to evolve as the project progresses. This approach to “boundary spanning” can provide the flexibility to help project managers better handle the unpredictable nature of complex projects, adapting to changes in scope, stakeholder needs, and external factors as they arise.

For me, boundary spanning requires systemic stakeholder engagement. This was another key theme discussed. Systems thinking places a strong emphasis on involving stakeholders early and often, not just as spectators but as active participants in defining and negotiating project boundaries as an ongoing activity. By bringing them into the process, we can ensure that the project boundaries reflect the diverse needs and expectations of everyone involved, making it easier to adapt when circumstances change (as they always do for complex projects). This collaborative approach can lead to more realistic and flexible project boundaries, which are essential for navigating complex project landscapes.

We also explored adaptive management, a key component of systems thinking. In the fast-paced, ever-changing environments we work in today, the ability to pivot and adjust project boundaries and processes is incredibly valuable. Adaptive management gives project teams the flexibility to tweak plans, shift resources, and redefine goals as new information comes in or conditions change. This not only helps to mitigate risks but also creates room for innovation, ultimately leading to better project performance and long-term success.

Finding the right balance between delivering minimum viable products and maintaining a flexible, systems-based approach is challenging, but perhaps the outcome is worth it. It’s about striking a balance—delivering the capabilities needed in the short term while also keeping an eye on the bigger picture and the project’s long-term value. Adopting a life-cycle perspective that includes asset management and sustainment from the outset can help align project activities with the organisation’s long-term goals, ensuring that the benefits extend well beyond the initial project scope.

For me, as a transformation program manager, I think the challenge is not just implementing a systems thinking framework that systemically challenges project boundaries; it’s about implementing a way of working that requires a complete change in an organisation’s culture and the way program managers, sponsors, users and suppliers need to work. As projects grow in complexity and we need a way to navigate the multifaceted nature of modern projects, I think it is time to rethink how we define and manage boundaries. By moving from a rigid, linear approach to a more integrated, adaptive practice, systems thinking in managing boundaries may well be worth the effort to better manage the complexities of today’s project environments and set the stage for long-term success.

I’m pleased to say that my Adelaide-based Parbery colleagues will be hosting an ICCPM Roundtable Series in September 2024 to continue the exploration of project boundaries. The value of the ICCPM Roundtable Series isn’t just about exploring how we do things—it’s about evolving our approach to meet the demands of increasingly complex projects. Have fun Adelaide, you’re in for a treat.

By Kim Moeller, Partner