Project Management Maturity Modeling

#### **Chapter 2**

## A Conceptual Project Management Maturity Model for the South African Power Sector

*Natisha Gareeb and Pantaleo Mutajwaa Daniel Rwelamila*

#### **Abstract**

The study proposes a conceptual model for measuring project management maturity (PMM) in the SA's power sector. While generic models are available this paper aims to bridge the gap and develop one for the power sector. The research question this paper is trying to answer is: "*What are the parameters that make up the conceptual model for PMM in the SA power sector?*" The study is based on a literature review. The authors reviewed the relevant journals to search for key parameters for measuring PMM. The study proposes a conceptual model for measuring PMM in the SA's power sector. The focus of this paper was limited to the peer reviewed articles and journals.

**Keywords:** project management, organisational project maturity, projects management maturity, power sector, organisational competencies

#### **1. Introduction**

History indicates that modern project management (PM) developed in the Second World War and have developed in some engineering industries. Later year's PM has been adapted in research and development and pharmaceutical industries. Cooke-Davies and Arzymanow [1] found that "industries of origin" have developed more advanced in PM than disciplines that have started later. Knowledge and processes are important contributors to PM capability but are not the only important elements to assess an organisations project management maturity (PMM) [2]. A total approach of what organisational PMM needs to be applied in organisations. Research conducted by Skulmoski [3] affirm there is a lack of research on the competencies most important for certain types of projects. Cooke-Davies and Arzymanow [1] study confirms that the maturity of PM across different industries indicates that a single model cannot be applied in all cases. Jugdev and Thomas [4] states that maturity models are not difficult to imitate and do not lead to sustained competitive advantage; however, they do lead to temporary competitive advantage for some firms and competitive parity for most. Jugdev and Thomas [4] also comment that most maturity models are not firm specific and can be duplicated. Competitors can replicate maturity models because they lack some of the durability characteristics. Killen and Hunt [5] suggest that project and portfolio capabilities must be tailored to the environment and implemented and adjusted over time and that best practice studies indicate correlations between practices and outcomes.

One way the effectiveness of the PM capability in the power sector can be assessed is through the PMM models. This paper presents the key factors that contribute to PMM in the SA power sector. While generic models are available, this paper aims to bridge this gap that exists in literature and develop a conceptual model for the SA's power sector.

The following is a summary of gaps that exist on PMM in current literature review:


*A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*

Considering the following gaps that exist in PMMM it is therefore relevant to form a conceptual model for SA's power sector. Therefore, the purpose of this study is to perform an extensive literature review to determine the key parameters that contribute to PMM in the SA power sector. The research objectives include the following:


This paper is divided into five sections. Section one provided the gaps that exist on PMM in current literature and section two provides the literature review. The research methodology is provided in section three. The analysis and discussion are provided in section four and the conclusion is provided in section five.

#### **2. Literature review: parameters that affect PMM**

To understand the concept of project maturity further, several definitions of the concept will be investigated as followers:


Gareeb and Rwelamila [18] paper reveals that most of the models assess PM capability against bodies of knowledge and indicates that there was no model that could be used for the SA power sector. A total approach of what organisational PM maturity will be applied in this research.

Improving the maturity of an organisation was found to be extremely correlated with project success [19]. Earlier research focuses narrowly on the definition of project success as project cost, time, and quality but current literature has adapted this definition to include other factors. There is limited research on the strength of the relationship between the critical factors and success criteria, and even less

analysis of the causal effect between these factors and the performance of projects [20]. Han et al. [21] address the distinction between success factors and success criteria and state the following: "*Success factors are factors that influence, constitute as well as determine the success of a project.*" Earlier authors suggest that the success factors (critical success factors/project success factors) are defined as those few key factors necessary to reach goals [22]. Whereas success criteria are more related to the perceived performance based on the formal iron triangle such as time, cost, quality. Although the success criteria are difficult to define because many authors add other dimensions to the success criteria which include customer satisfaction as a success dimension or other dimensions. Two important aspects of project success are related to the technical side of the project and the second aspect relates to the "soft skill "henceforth referred to as social-cultural skills. Crawford and Pollack [23] comment that defining the technical and the social-cultural factors is not always clear. The social-cultural issues have been identified as the key success factors in PM and can have a high impact on the project [24]. Azim et al. [25] focus on the cause(s) of complexity in projects which lists three factors and includes process, product, and people. The author's results indicate the underline importance of "people" not only as factor attributing to project complexity, but also as a key element to project success, thus also highlighting the benefits of social-cultural skills in effective PM. Mishra et al. [26] confirm that despite large work in this area no definite set of factors have been agreed upon that may be due to the organisational or cultural differences through-out the world. Ofori [27] state that generally, critical success factors are a set of project variables or factors that strongly correlate to project success, and whose maximisation or minimisation, depending on whether they are favourable or unfavourable, will lead to project success. Ofori [27] reveals that there is no consensus on what social-cultural factors contribute to project success and indicate that organisational and social-cultural aspects do influence project success because in different project environments different factors are more critical.

The need for developing a conceptual model for the PMMM can have the following benefits:


*A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*


#### **2.1 Technical parameter required for success**

The most traditional way to establish project success is measured by the technically which include time, cost, and quality [34]. Portny [35] define a project has been successful when it has produced the desired results within the established timeframe with the allotted resources and state that the following three factors are essential to create the greatest chances for successfully completing a project: a clear and specific agreed-upon statement of the desired outcomes, comprehensive lists of all people who are interested in (needed to support, and/or effected by your project) and a complete and detailed listing of all required project work. Browne and O'Donnabhain [36] identifies key issues and concepts relevant to client-project manager relationship using customer service, service quality and customer satisfaction. Hartman and Skulmoski [37] suggest that there are parallels between business and PM research and topics such as leadership, communication, teamwork, success and examining risks alignment. Although the focus of this section is to find technical factors affecting PM the social-cultural factors based on different studies are ranked high. Studies by Nguyen et al. [38] depict the ranking of twenty success factors and the critical success factors indicate that competent project manager, adequate funding throughout the project, multidisciplinary/competent project team commitment to the project, and the availability of resources are ranked extremely high. Again, the social-cultural aspects of the projects are also indicated in the study reveals that commitment to the project, top management support and continuous involvement of stakeholder do rank high as well. Research conducted by Yong and Mustaffa [39] indicates that two of the four factors identify category namely, effective allocation of manpower; urgency in meeting project deadline are of higher importance. The research indicates that financial problem such as delayed payments and financial difficulties are seen to be a major factor that causes delay in the construction project. **Table 1** represents the summary of the literature review that identifies the technical factors required for project success. With a list of several factors of understanding PM standards, risk methodology,


#### **Table 1.**

*Summary of the technical parameter for project success.*

documentation control management, understanding how to take make changes in the schedule as well considering the impact of the changes, performance and quality management, contract, legal aspects, top management support and financial management are important for a project manager from a technical side.

#### **2.2 Social-cultural parameter required for success**

Social-cultural issues include factors such as benefits, stakeholders, value management, and communications [51]. Studies by Mishra et al. [26] indicate that proper communication has been found a critical success factor in the success of a team. Vance's [52] study consisting of 1800+ system integrators list in Control Engineering's Automation Integrator Guide were asked to share their top tips for ensuring success of an automation project. This study indicated as much as 80% of the project's problems were due to lack of proper communication between the client and the integrator. Mishra et al. [26] study indicates that clearly goals and objectives were the number one ranking in their empirical

#### *A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*

study on project performance. Ofori [27] study indicate experience and competence of project personnel as ranked number four in their top factors for critical success. Kadefors [53] highlights the importance of trust and project success. Karlsen et al. [54] argue that trust is being particularly important in both organisations and projects, since it is viewed as an essential for stable relationships, vital for the maintenance of cooperation, fundamental for any exchange and necessary for even the most routine of everyday interactions. Pinto and Slevin [55] study also indicate that understanding the mission and goals to measure the outcome as an important success factor. Hartman and Skulmoski [37] depict that multi PM must include inter-project communication, priority setting, planning that align projects with and support corporate strategy. Thus, ensuring outcomes to be understood by the project team members and the criteria for measurement.

**Table 2** represents the literature review that identifies the social-cultural factors related to project success. Within a list of several factors for project success are communication and understanding outcomes. Studies on project success identifies success factors, which include communication, clearly defined roles and responsibilities, project team competency and availability of resources, trust and understanding outcomes.

#### **2.3 Organisational competencies**

Zwikael [66] comments that different industries face different challenges while managing projects. The author refers to some examples like the software development organisations that must deal with high-technology uncertainty, while construction


#### **Table 2.**

*Summary of the social-cultural parameter for project success.*

organisations that are usually more troubled with engineering and financial problems. Crawford [8] indicate that the competence of project personnel is important as they are having major impact on project performances and ultimately also impact the business performance. De Oliveria et al. [67] indicates that agility and flexibility represent the way to achieve organisational performance and that maximum project performance is accomplished when efforts are tied together to improve leadership factors and organisational factors. An important organisational success measure is the respondents perceived rate of project success of their organisations compared with competitors organisations in the same sector of activity [68]. Gareis and Huemann [69] indicates that PM competencies must describe, assess, and further develop for the organisation, teams, and individuals in the organisation. Brush et al. [70] describe the resource pyramid of value creation and indicate that firms can have a unique advantage when assets become valuable, rare, inimitable, and non-substitutable. Hartman and Skulmoski [14] state that elements that affect maturity will include technical, business, and social issues.

#### *2.3.1 Strategic organisational PM*

Albu and Panzar [49] state that maturity alignment is a concept referring to the extent to which the organisational components (strategy, structure, systems, processes, etc.) reflect similar or close maturity levels, acting in synergy towards the achievement of organisational objectives. Christenson and Walker [71] study concludes that project vision is a critical project success factor. The more immediate contribution remains demonstrating a protocol for getting project teams to focus on the project vision and the likely impact upon that for PM success. Fitsilis et al. [72] suggests that programmes and projects are recognised as one of the most important means of achieving organisations strategic plans. To become durably successful, an organisation should realise its maturity alignment [73]. PMM level cannot be attained or sustained if a certain level of organisational maturity is not reached [74]. Cooke-Davies et al. [75] argue that strategic drivers influence the nature of value expected from PM, and a PM system should be adapted to the specific strategic positioning of each organisation to deliver maximum value. Studies by Andersen et al. [76] found support for the proposition that there is a relationship between project perspectives applied in PM and formal organisational rationality. **Table 3** summaries the Strategic organisational factors.


#### **Table 3.**

*Summary of strategic organisational PM.*

*A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*

#### *2.3.2 Organisational culture*

Cooke-Davies and Arzymanow [1] definition of organisational culture as: "*Refers to the underlying beliefs, values and principles that serve as a foundation for an organisations management practices and behaviour that both exemplify and reinforce those basic principles.*" Based on the literature review by Cooke-Davies and Arzymanow [1] two important factors on organisational culture is if the culture is unhelpful then it is important to change it and secondly, that irrespective of whether culture helps or hinders the effects of culture must be considered throughout the project. Cooke-Davies and Arzymanow [1] also suggest that the leadership style of a project manager needs to be adapted to the organisational culture and confirm through their literature review that there is a clear correlation between high trust and low cost, and between low trust and high cost. Thamhain [77] results shows that despite cultural differences among organisations a general agreement exists on the factors that drive team performance, one of the most striking finding is the large number of performance factors that is derived from the human side where organisational components that satisfy personal and professional needs seem to have a strong effect on cooperation, commitment, risk management, and ultimately drive overall team performance. Diallo and Thuillier [78] mentions that project success and success dimensions depend on project type and sector. Performance problems on technology-intensive projects involve largely management, behavioural and organisational issues, rather than technical complications [79, 80]. Dvir et al. [81] suggest that project success factors are not common for all projects; different types of projects are affected by different sets of success factors. Therefore, a project-specific approach is appropriate for following studies into the practice and theory of PM [82]. **Table 4** summaries the themes from literature for organisational culture.


#### **Table 4.**

*Summary of organisational culture.*


#### **Table 5.**

*PESTLE analysis based on South African macro environment.*

*A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*


#### **Table 6.**

*Summary of factors related to the power sector industry.*

#### **2.4 Country specific factors**

A PESTLE is a tool used for macro environmental scanning [86]. Environmental scanning can be defined as the study and interpretation of the political, economic, social, technological, legal, and environ-mental events and trends which influence a business, an industry or even the total market [86]. A PESTLE analysis was conducted by Gareeb and Rwelamila [18] on the SA's macro environment and the full analysis is present in Gareeb and Rwelamila [18]. **Table 5** summarizes the SA specific issues that should be considered when entering the SA environment which is an extraction from the PESTLE analysis. This analysis will be used in this paper to build the PMMM.

#### **2.5 Sector specific factors**

The sector specific by Gareeb and Rwelamila [18], include: high-risk environment, organisational safety culture, sustainability, environmental impact, compliance with SA's governing regulations and reliable technologies. **Table 6** summarizes the characteristics of the power sector from Gareeb and Rwelamila [18] been important consideration for the SA's power sector. This analysis will be used in this paper to build the PMMM.

#### **3. Research methodology**

This study is classified as a literature review [117]. The literature search in Gareeb and Rwelamila [18] categorised over a 19-year period and using 28 databases indicate that the current models are not completely suitable for SA's power sector (the models tend to be generalizable, and some models are developed for specific countries and areas that are not suitable to the SA environment).

This study proposes a conceptual model for measuring PMM in the SA's power sector. To achieve the goals of this paper a grounded approach was used to develop a conceptual model. First, past and current studies relating to PM success factors for PMM were studied to get a comprehensive understanding of the topic. The next steps included studies that entailed gaps that existed in current PMM literature so that this could be addressed in this study. The literature search continued until saturation of the data occurred. A literature review was used to find the key success factors for PMM as well as gaps that exist in current PMM literature. The data source was the analysis of books, published papers, conference papers, white papers, and specialized material from the relevant institutions.

Finally, the findings and analysis are provided together with the concluding remarks showing the contributions of this study in the PM field. The proposed model will be tested with the relevant case study organisations to determine the validity of the proposed conceptual model.

#### **4. The conceptual model for PMM in the SA power sector**

This paper presents a conceptual model for projects taking place in SA's power sector. Section two provided the gaps that existed in current literature on PMM. Organisations are complex environments. It is impossible for researchers to put forward a full detailed picture of these phenomena therefore, a way of representing a simplified version is through a model [118].

To understand the concept of a model, Team [119] defines "model" as: "*A model is a simplified representation of the world.*" KPMG [120] state that models have benefits such as: set process improvement objectives and priorities; improve processes and provide guidance; acts as a guide for improvement of organisational processes and define a starting point; enable the benefits of a community's prior experiences to be shared; create a common language and share a vision. A concept is a bundle of meanings or characteristics associated with certain events, objects, or conditions and used for representation, identification, communication, or understanding [121].

Lilien [122] lists the characteristics of conceptual model as:


This paper presents a conceptual model for projects taking place in SA's power sector.

Section two provided the gaps that existed in current literature on PMM. The proposed PMM model addresses the requirements and complexities identified within the PM environment in a more holistic way (represented in **Figure 1**) for the SA power sector.

**Figure 1** indicates the content that exists in literature and highlighted in red indicates what was lacking in current PMM. **Figure 1** presents the requirements of what the key factors for PMM in the SA Power

*A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*

#### **Figure 1.**

*Conceptual model for PMM for SA's power sector.*

Sector should entail. The concept PM maturity was discussed. Diallo and Thuillier [78] mentions that project success and success dimensions depend on project type and sector. Dvir et al. [81] suggests that project success factors are not common for all projects and different types of projects are affected by different sets of success factors. Therefore, a project specific approach is appropriate for following studies into the practice and theory of PM [82].

Studies reveal that project performance is linked to project maturity. Therefore, extensive literature review has been conducted on what constitutes project performance/project success. Empirical correlations of all the factors that affect project success were reviewed. Two important factors were identified that affect project success, namely the technical and the social-cultural factors. This study identifies the critical success factors for successful projects that have an impact on the project maturity

Not only does project performance has links to project maturity but the organisational play a part. There is extensive literature available on the concepts that exist between PM maturity and organisational maturity. Without some degree of organisational maturity, PM maturity would not last or continue.

Therefore, organisations need to have an alignment between the organisational and PM maturity. The project objectives need to be linked into the overall business objects and organisational strategy. This model from a broader perspective takes into account sector specific and country specific factors that have not been established yet.

The proposed PMM model addresses the requirements and complexities identified within the PM environment in a more holistic way (represented in **Figure 1**) for the SA power sector. **Figure 1** indicates the content that exists in literature and highlighted in red indicates what was lacking in current PMM. The framework takes into account what was lacking in current literature on PMM for the SA power sector. **Figure 1** presents the requirements of what the key factors for PMM in the SA power sector should entail.

The conceptual model introduces country specific factors for the SA's environment and sector specific factor for the power sector. If the country specific factors are relaxed and a PESTLE analysis is carried out in the country where projects is taking place, therefore this framework can be adapted to different countries. The success components address the requirements and complexities identified with PM in the more holistic way to the SA power sector.

The proposed conceptual model addresses issues encountered as followers:


#### **5. Conclusion**

The crucial factors that underpin the success of the projects are due to socialcultural factors [125]. This paper presents the key factors that contribute to PMM in the SA pwer sector. Section 4 presents the framework for developing a PMM model for the SA power sector. Diallo and Thuillier [78] mentions that project success and success dimensions depend on project type and sector. Dvir et al. [81] suggests that project success factors are not common for all projects and different types of projects are affected by different sets of success factors. Therefore, a project specific approach is appropriate for following studies into the practice and theory of PM [82]. Studies reveal that project performance is linked to project maturity. Therefore, extensive literature review has been conducted on what constitutes project performance/project success. Empirical correlations of all the factors that affect project success were reviewed. Two important factors were identified that effect project success, namely

#### *A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*

the technical and the social-cultural factors. This study identifies the critical success factors for successful projects that have an impact on the project maturity. Not only the project performance has links to project maturity but the organisational plays a role. There is extensive literature available on the concepts that exist between PMM and organisational maturity. Without some degree of organisational maturity, PMM would not last or continue. Therefore, organisations need to have an alignment between the organisational and PMM. The project objectives need to be linked into the overall business objects and organisational strategy. The contribution for this study provides the conceptual framework from a broader perspective for the SA power sector.

The following was achieved during the research and the following objectives met:


Research limitations—The focus of this paper was limited to the peer reviewed articles and journals on PMM.

Future research—The current research provides the conceptual model for the SA power sector. The next steps are to test the conceptual model with the relevant organisations.

#### **Acknowledgements**

The author would like to acknowledge that this paper is part of a doctoral thesis. The author of the thesis is Dr Natisha Gareeb (2018) and is entitled "An Appropriate Project Management Maturity Model for the Power Sector – the Case of South Africa", UNISA, South Africa, Pretoria. The authors would also like to thank our statistician, Juliana van Staden from the University of Witwatersrand.

#### **Disclosure statement**

No potential conflict of interest was reported by the authors.

*Project Management – New Trends and Applications*

#### **Author details**

Natisha Gareeb\* and Pantaleo Mutajwaa Daniel Rwelamila UNISA – University of South Africa, Carlswald, Gauteng, South Africa

\*Address all correspondence to: natisha.gareeb@gmail.com

© 2022 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

*A Conceptual Project Management Maturity Model for the South African Power Sector DOI: http://dx.doi.org/10.5772/intechopen.104384*

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### Section 3
