Academic journal article Advances in Management

Case Study: Re-Visiting the Roles of Project Management Maturity and Organisational Culture for Perceived Performance – A Replication Based on German Data

Academic journal article Advances in Management

Case Study: Re-Visiting the Roles of Project Management Maturity and Organisational Culture for Perceived Performance – A Replication Based on German Data

Article excerpt

Introduction

Organisations are facing many challenges in an increasingly cut-throat marketplace and are trying to gain a competitive advantage. To improve their strategies, the companies assess project management as a factor of success.27 Nevertheless, only 2.5% of the companies successfully complete their projects. Most of the projects fail because of an exceedance of time (60%) or due to a breakdown in communications (57%). In addition, 39% of the projects fail due to lack of planning, resources and activities. Also, the cost overrun with 27% is a failure factor.38 This leads to high costs and reduced business performance. Therefore, the success factors for an efficient project management need to be identified.

The research question is derived and the research problem is explained. Furthermore, the business context is exposed and arguments for the implementation of this investigation are accentuated and conclude with the further course of the investigation.

The purpose of this research is to investigate whether project management maturity (PMM) is related to project and business performance. It is examined how organisational culture (OC) is a further factor for organisational performance by a survey-based research conducted only with project managers. This survey-based research has already been analysed by Yazici47 and Busse et al.4 Because both studies have a different outcome, a further investigation is implemented.

In addition to that, it is examined in which PMM levels, the different types of project management are and how it is impacting on the project and business performance. A further factor on the performance is the OC. The purpose is to identify which OC types strengthen the project and business performance.

To ascertain if PMM and perceived performance have a positive correlation, primary data from 78 project managers in different organisations in Germany were collected. This study-based research aimed to compare the different results from Yazici's47 and Busse et al4 investigation. As the study from Yazici47 was implemented only with U.S. project managers and Busse et al4 only with German project managers, the aim of this current investigation is to explore if these different outcomes are based on country differences. Furthermore, it might support evidence on the German study of 2018 or gather new perceptions.

Research Problem: The project failure rates in every enterprise cause loss of more than millions of dollars. Expensive consultants are often called to evaluate and recover failing projects without knowing the causes of a project failure, which was originally well-planned to reach success. A successful project implementation is a key factor for the organisation's future and to give them a competitive advantage. On the other side, poorly done projects might lead also to a failure of the business. According to Discenza and Forman,12 a reason for these failures can be that the organisations do not have sufficient time to mature their projects and therefore the failure rate ascends.

Accordingly, it is necessary to identify the PMM levels of the different areas of project management to show potentials for improvement. Furthermore, the study considers also important performance measures of the company. With this knowledge, it can be derived if high or low levels of PMM have an impact on the performance. As a result, the organisations can work on an improvement for their maturity processes.

A further factor for success is the OC. According to OCAI online,36 the employees are not aware of their workplace culture. Nevertheless, by knowing the typology of the four cultures, the companies can derive significant benefits and possibilities. For example, a more precise corporate strategy can be developed for a better orientation of the employees and the project implementation and the company can change their culture type which performs the most successful in combination with PMM levels. …

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