Forging New Project Value Chain—Paradigm Shift

Abstract

This paper discusses a major shift in systems thinking from the hard “systematic” to the soft “systemic” approach in project management. The systematic thinking treats project organizations as organic human activity systems capable of continual learning and attaching purpose and meaning to its activities. There is a need to deal with the ill‐structured human problems and to take a broader and strategic perspective of project management. A synthesis of a number of well known methodologies for strategic planning and managerial analysis is developed that leads to the proposal of a generic project value chain. The value chain is forged with the identification of seven ingredients as critical supportive factors for achieving excellence in project management. Special emphasis is given to the human side of project management such as leadership, management style, human‐resource management, culture, and shared value, in addition to the traditional emphasis on structure and systems.