Today, in most large and small project-based organizations, senior managers, especially project managers, face many challenges in terms of resource allocation. Therefore, to reduce the cost and execution time as well as improve the quality of the project, the approach should be shifted from traditional management to scientific management to optimize the efficiency and performance of a project over its lifetime. To achieve this, an organized system for project management and planning will be needed. This study examines whether Iranian companies are familiar with project management in terms of cost, budget, and risk management. A questionnaire was designed to investigate how project funding (initial and during a project) is funded and how they manage risks throughout the project and are distributed to companies. Another reason is the severe international sanctions that have cast a heavy shadow over the Iranian economy and, unfortunately, cannot be ignored. No matter how economically self-sufficient a country is, the need for cooperation and exchange in neighboring or non-neighboring countries cannot be ignored. Therefore, this paper firstly reviews the theoretical framework of previous research on project management in Iran. Then the research methodology and how to collect and analyze the data are considered. The following is an overview of the problems encountered in the project management process in Iran. Finally, recommendations and suggestions will be provided.
implementation project management, Iranian projects, quantitative methods, time management, cost management
Научный руководитель:
Аньшин В.М.
Профессор, ФГАОУ ВО «Национальный исследователь-
ский университет “Высшая школа экономики”»,
Россия, 101000, г. Москва, ул. Мясницкая, д. 20
In recent years, project management has been extremely examined in different field of projects. Many industries established their project management approaches to enhance performance and benefit from advantages. But still, structured approaches and methods are not commonly used, and an absence of knowledge is another issue, which must be considered to project management.
During the previous research, the main problems of the projects in Iran were investigated. The first major problem in Iran is financing during project implementation. The second major problem is that projects are not completed promptly and are scheduled in advance. Unfortunately, the lack of time management and resource allocation has made this a routine and routine process of projects in Iran. The biggest and most important is the lack of transparency in work. The next problem is the lack of financial resources and the lack of attraction of foreign investment. After the Joint Comprehensive Plan of Action (JCPOA)[1], it was clear that the Iranian economy had the potential to grow. Still, the investment environment was not ready, and neither the government nor the private sector was willing and able to partner with an international investor. Prolonged project execution time perceived poor quality of implemented projects, extremely high cost of projects compared to initial estimates, etc. can be counted as part of the country's major project problem chain.
Define and reveal the significant problem of Iranian projects in terms of financing and facing risks during the project until the projects are completed promptly. To this end, the main objectives of this research have been conducted at the level of Iranian projects in the private and governmental sector, which are known as:
- Identifying and categorizing the major and most common problems in Iranian projects,
- Evaluating how project management process is used in Iranian companies,
- Propose a theoretical framework for the development of project management implementation in these companies.
This paper attempts to study the case of companies in terms of management weaknesses in the cost and time they face. For this reason, project-level case studies have been selected so that other companies in the future can use the right model and follow the correct project management process. Management science is in the field of social sciences and humanities, and for scientific research, it uses methods like other sciences in this field. But due to some specific issues and characteristics in organization and management, it is necessary to identify all kinds of research in this area.
In this research, as the title implies, this paper attempts to investigate the implementation of project management in Iranian organizations. Understanding of implementation of project management is needed first to define verbal, literal, and syntactic meanings of project management. According to the Project Management Body of Knowledge
As Doug DeCarlo presented in Extreme project management
The history of project management in the world is usually related to massive projects such as the construction of the Great Pyramid of Giza, the Great Wall of China, or the illustration of Persepolis[2] by order of Darius the Great[3]. Each of these projects is one of the largest and most complex projects in human history, built with high standard quality and the use of enormous human resources. By order of Cyrus[4], the engineers and builders of Pasargadae were obliged to write their descriptions of their work, as well as their work schedule for the next day, on tablets known as the «Karnamak» letter
In the present study, a much more general view of the problems and challenges of project management is presented based on the questionnaire and interviews taken, i.e., a statistical method. However, research has been done in the past; they have generally been particular and limited to certain types of projects, such as manufacturing or petrochemicals. For instance, in Article Systematic Analysis of Reasons for Delays in National Projects,
According to Kothari,
At first, the regression between these components is taken, and then the T-statistic is tested. Here is how to interpret this statute. Besides that, the ANOVA analysis of variance uses F-test to determine whether inter-laboratory variability is more considerable than intra-laboratory variability. If this ratio is large enough, it can be concluded that the average results of all laboratories are not the same.
Besides, VIF testing should also be performed. In statistics, the variance inflation factor (VIF) measures the multiple linear coefficients in ordinary least squares regression analysis. An index is introduced that indicates how much of the change in the estimated coefficients of the coefficient has increased. Multiple linear intensity can be analyzed by examining the magnitude of the VIF. If the VIF test statistic was close, it indicates that there is no correlation. As an experimental rule, the VIF value is greater than 8, and the multiple coincidences are high (note that in some cases, the number 8 is also introduced as a threshold).
To this end, three essential assumptions for future calculations are considered, which are as follows:
- There is a connection between the implementation of project management and how much their project will succeed.
- There is a connection between the corporate team performance and how much their project will succeed.
- There is a connection between Government Support and how much their project will succeed.
Obviously, it follows from the above hypothesis that the dependent variable is success in any society. For each of these hypotheses mentioned above, the following four steps are performed:
- Identifying variables
- Analysis of variance (ANOVA)
- Correlation test
- Coefficient of significance test
For testing these hypotheses, it should be used by t-statistics. If the confidence level of the 95% statistic obtained from the test is less than t obtained from the table with the same degree of freedom, H0 will be confirmed; otherwise, it will be rejected. In this test, the non-rejection of H0 means that the coefficient is meaningless, and the rejection of H0 implies that the coefficient is significant.
If H0 is rejected, it means the regression is adequate, and the variables are correlated. On the opposite, if H0 is not rejected, it means the regression is not appropriate, and the variables are not connected.
The rejection of H0 depends on the Significance F, which should be less than a 5% significance level.
- The number of observations on each variable;
- Average values of variables;
- Standard deviations;
- Minimum and maximum values.
Study Result
Undoubtedly, identifying the weaknesses and problems in each field is the first step in solving them. Without being aware of the existence of these problems and their importance and priority, trying to solve them will not have the desired result. Because without a clear and definite goal, it will be impossible to move towards it.
Many problems in project management in Iran are due to the lack of proper understanding of the project management culture and the lack of a positive view of up-to-date and modern management. According to Jones, Charles P.
As of the latest report on the Iranian economy (Eghtesad Online[1]), there are about 76,000 unfinished projects in Iran. The estimated total cost of these projects is approximately $ 16,625,103,600, which only 38.06 % of the total budget is dedicated so far, and the government cannot pay the rest. According to these reports, extracted from the official website of Eghtesad[2] Online, 72.2 percent of the economy is owned and managed by the government or quasi-government institutions. Even many companies that are called on paper and under private business law are run by a government or quasi-government agencies. Only 27 percent of Iran's economy is owned by the real private sector. The project industry in Iran also follows this general rule of the Iranian economy.
During an interview, Mr. Sharifi[3] stated that government culture dominates the Iranian project implementation system. In the national economy, the loss of resources is average and abundant, and the productivity of projects is at a lower level. According to Mr. Fakhr[4], the biggest problem for us is the lack of business in line with our strategy for investment. The right market is not found to fit the requirements. Second, there are problems with the lack of capital. Ms. Nowrouzi[5] stated that none of the standard projects in Iran, except for some specific companies, meet the standards and go the traditional way, but the tool is all CPM. Iran's sanctions are either severe and time-consuming or impossible in some cases). From Ms. Nowrouzi's perspective, it depends on what kind of success means. Success in terms of time, cost, in terms of performance. A project is successful when the client's primary need is met. For instance, if an employer wants to make a date like this, it rarely happens. Ms. Nowrouzi stated that, in her nine years of experience in the various oil, gas, shipbuilding, and construction industries, no one has been able to push through the contract. Done right but delayed or at a higher cost or lower quality.
According to
The cases related to management science in general and project management science particularity are not like technology and engineering standards. Project management style in the United States is different from Europe or Russia and China and Japan and Iran. Even in each country, in various industries such as oil and gas, IT, construction industry, and other industries, project management style is different; two project-oriented companies manage their projects with different styles.
The engineering team, the procurement team, the implementation team, the quality control team, the project planning, and the control team, the finance and accounting team, and the contractors and the project management team each work in separate islands. They do not interact well and do not even have common goals. Everyone is doing their best to make their organization successful and other teams inefficient, and there is no team-building spirit for project goals. According to
In the end, it is essential to note that being sick of a project is not necessarily a disaster. The art of project management is to identify the project's disease promptly, identify the root causes of the project, and try to remedy it. The main catastrophe is not paying attention to the project's condition and getting used to the symptoms of a patient project.
Conclusion
Management is the application of science and art in coordinating and directing financial or human resources, or both, in achieving the goal with maximum efficiency. The art sector itself needs to gain subjective practical and artistic experience. Since management is entirely different from other sciences, the approach to this science must be changed. The significant difference between management science and other sciences is about human beings which is very complex and behaves differently in various societies and cultures. A collection of Best Practices that can be a useful guide for project managers if tailoring.
It can be said, according to
It can also be inferred from the information obtained from this research that the success and failure of projects and companies are highly dependent on the culture and tradition of that country in addition to observing world standards. According to Harold Kerzner
Finally, the proper implementation of the project management office can help solve the organization's management challenges. The organization will undergo a significant overhaul. The purpose of this presentation is to get acquainted with the small and large topics of project management and its implementation in Iran, the challenges facing project managers, the level of familiarity and application of project management in project-based organizations, tasks, and goals of project managers and project management office.
Response to Research Aim
I. It was figured out that most of the threats in Iranian projects are divided into five groups: transparency, a political issue, severe sanction, the size of the government share in the economy, and different project management cultures like the traditional method. These five fundamental problems impact on three angles of time, cost, and quality are the main factors, which every project is related to them.
II. Nevertheless, in comparison to developed countries, over cost and over timing to deliver a high-quality result, it happens about 58 percent according to the EY.com report (Oil and gas megaproject development, 2017) to whole over the world but in Iran according to data obtained from this research more than 75 percent of construction projects in Iran is not completed. Based on the information obtained from the questionnaire, only a minority of them used a structured method in the field of project management in terms of monitoring performance, and level 2 came with the highest score of 52% vote (from level 1 to 5). This gap is due to the lack of expertise of a participant as well as their knowledge of why organizations need a structured plan from the beginning of the project.
III. The success of the project has many factors. It depends on the organization and the size and purpose of the project. It is possible to succeed in a project with strong teamwork and supervision of teamwork. However, in projects such as construction, it is necessary to comply with international standards, and the absence of each principle of engineering can pose irreparable risks to the project team, the employer, and the project stakeholders.
Adequate knowledge and up-to-date standards in international standards, along with knowledge of the project management culture in the organization, can both help the project progress. As can be seen from the questionnaire data, the success of the project certainly does not depend on the application of project management in all areas. Perhaps two or three of the principles of project management mentioned in the PMBOK® will help the success of the project, and probably all its policies will be needed to implement a project.
Therefore, it is imperative to know all the dimensions of the project before starting work and can avoid the exorbitant costs that they face during the project. The theoretical framework for developing project management also will be presented as recommendations in the following part.
Project Scheduling in Iran There is sometimes significant differences with project scheduling outside of Iran. Overall, the style of project planning and control and what we do in Iran as project planning and control differs from what is done in other countries. This, of course, is not an inherent flaw. Because every knowledge, tool, and standard can be localized for every state and every project, and we do not have to do the same as everyone else does. The following recommendations can be made to improve the project management process, especially in terms of cost and time:
All project managers know that what is called a successful project is done in the context of Scope, Time, and Cost. In other words, the strategy, the thinking, the plan, the performance, and all the decisions as a project manager should be in line with the STC of the project, and his main concern is the implementation of these three principles.
Choosing the best HR, experienced, responsible, accountable options is essential, at least for the most critical positions. Key positions are such as supervisors of engineering, business and logistics units, finance and administration, project planning and control, quality control, electrical and mechanical engineering, civil and piping, etc. Usually, good supervisors recruit suitable human resources. A key stakeholder, employer, consultant, or even within the organization that is not adequately identified and whose expectations are not met can cause severe damage to the project. Expectations in stakeholder management must be managed. Expectations are demands that the stakeholders may never have said, but they will eventually come true. According to
The project management office enhances the success of projects by adapting the necessary resources and tools
The recommendations for future studies proposed by the author are the following:
The other aspect of project management worth doing is to analyze Project Management Culture.
Besides, statistical methods like regression and impact success by using Stata[6] or MS Excel; there are innovative programs that speed up the process of cost and time management analysis, for instance, Primavera, Trello, Asana, and MS Project.
It would have been good to collect data separately from governmental and non-governmental and compared them to see which are the problematic ones in this specific case study.
It would have been better to study in a specific area, for instance, oil and gas, construction, or IT projects, as they are more crucial to investigate them.
By a combination of organizational culture and modern techniques, the framework of project management can be significantly progressed, if we have an STC on the Iranian projects.
Project management can be more organized and productive if further studies can find a way to improve the combination of organizational culture and individuals’ viewpoints since progress in this issue is necessary.
[1] https://www.eghtesadonline.com/
[2] https://www.eghtesadonline.com/
[3] Ahmad Sharifi Zemeydani: PMP degree from the PMI Institute, Project planning and control in contracting companies especially oil and gas.
[4] Vahid Fakhr: Master of Project Management, Lotus Investment Manager
[5] Helia Nowrouzi: Project Manager Several Mapna Development projects.
[6] Stata is a general-purpose statistical software package created in 1985 by StataCorp LLC. Most of its users work in research, especially in the fields of economics, sociology, political science, biomedicine, and epidemiology. (https://en.wikipedia.org/wiki/Stata)
[1] Comprehensive Plan of Action (JCPOA) is an agreement on the Iranian nuclear program reached in Vienna on July 14, 2015, between Iran and the P5+1 (the five permanent members of the United Nations Security Council—China, France, Russia, United Kingdom, United States—plus Germany) together with the European Union.
[2] Persepolis: Founded by Darius I (Darius the Great) in 518 B.C., Persepolis was the capital of the Achaemenid Empire. It was built on an immense half-artificial, half-natural terrace, where the king of kings created an impressive palace complex inspired by Mesopotamian models. The importance and quality of the monumental ruins make it a unique archaeological site
[3] Darius the Great (Darius I): Darius I, commonly known as Darius the Great, was the third Persian King of Kings of the Achaemenid Empire, reigning from 522 BCE until his death in 486 BCE
[4] Cyrus the Great, also known as Cyrus the Elder, was the founder of the Achaemenid Empire. Under his rule, the empire embraced all the previous civilized states of the ancient Near East, expanded vastly and eventually conquered most of Southwest Asia and much of Central Asia and the Caucasus. From the Mediterranean Sea and Hellespont in the west to the Indus River in the east, Cyrus the Great created the largest empire the world had yet seen which was transcribed onto the Cyrus Cylinder sometime between 539 and 530 BC
[5] Research Methodology, Research and Techniques
[6] The questions in this questionnaire are at the end of the survey in the Appendix.
1. Abbott, J. (1878). History of Darius the Great. New York: Harper & brothers.
2. Abbott, J. (2019). Cyrus the Great. New York: BookRix.
3. Batchelor, M. (2010). Project Management Secrets: The Collins Business Secrets Series. London: Harper Collins Publisher.
4. Biography.com Editors. (2014, April 2). Alexander the Great Biography. (A&E Television Networks) Retrieved April 2, 2020, from The Biography.com website: https://www.biography.com/political-figure/alexander-the-great
5. Blokdyk, G. (2019). Project Management Office PMO A Complete Guide (2019 Edition ed.). 5STARCooks, 2018.
6. DeCarlo, D. (2004). eXtreme Project Management (FIRST EDITION ed.). San Francisco: Jossey-Bass.
7. Fakhr, V. (2019, September). Investing in projects. (N. Naserizaker, Interviewer)
8. Haj Shirmohammadi, A. (2014). Project Management and Control: Application of CPM, Perth, Gareth, and PN Methods. Esfahan, Iran: University Jihad (Isfahan University of Technology).
9. Hyttinen, K. (2017). PROJECT MANAGEMENT HANDBOOK. (K. Hyttinen, Ed.) Vantaa, Finland: Laurea Julkaisut 76.
10. Jones, C. P. (November 8, 1999). Investments: Analysis and Management, 7th Edition. Wiley.
11. Kerzner, H. (2003). Project management: a systems approach to planning, scheduling, and controlling. Berea, Ohio: John Wiley & Sons, Inc.
12. Khabar Online/Tehran-North Freeway Premiere. (2020, February 16). Retrieved from Khabar Online: khabaronline.ir/news/1353214
13. Kothari, C. (2004). Research Methodology, Research and Techniques (Second Revise Edition) (2nd ed.). New Delhi: New Age International (P) Limited, Publishers.
14. Kousha, M., & Rafiei, M. (2004). Factors of success and failure of projects in organizations. Systems and MIS analysis.
15. Mahmoudi, B. (2020, April 30). Mehr News Agency/Tehran-North Freeway. Retrieved from Mehr News Agency: bit.ly/2WYJq7c
16. Managing Successful Projects with PRINCE2® (2017 Edition ed.). (2017). United Kingdom: TSO (The Stationery Office), part of Williams Lea Tag. Retrieved from www.tsoshop.co.uk
17. Merrow, E. (Mar 31, 2011). Industrial Megaprojects: Concepts, Strategies, and Practices for Success. Hoboken, New Jersey, United States of America: John Wiley & Sons Inc.
18. Nourinia, J., & Mokhtari, S. (2007). Systematic analysis of the causes of delays in national projects, case study: Urmia Lake. Strategic project management. Orumieh, Iran: Civilica. DOI:IPMC03_049
19. Nowrouzi, H. (2019, October). Success In Projects. (N. Naserizaker, Interviewer)
20. PMBOK® Guide. (2017). A guide to the project management body of knowledge (PMBOK® guide), Sixth Edition. Newtown Square: Project Management Institute, Inc.
21. Seymour, T., & Hussein, S. (2014, July 15). The History Of Project Management. International Journal of Management & Information Systems, 18. Retrieved from https://www.researchgate.net/publication/298341808
22. Sharifi, A. (2019, September). Strategy in doing projects. (N. Naserizaker, Interviewer)
23. Shayeste, A., Jalilian, H., & Shafaghat, A. (2018). Customer knowledge management in new product development. Tehran: Ghaed Leading Technology Company.
24. The Management Handbook For UN Field Missions. (2012). New York, United Nations: International Peace Institute. Retrieved from www.ipinst.org
25. Wisconsin Project on Nuclear Arms Control. (2011, May 2). MAPNA Group. Retrieved from Iran Watch: https://www.iranwatch.org/iranian-entities/mapna-group
26. World Heritage List: Persepolis. (1979). Retrieved November 16, 1945, from The United Nations Educational, Scientific and Cultural Organization: https://whc.unesco.org/en/list/114/
