Strategic Management of Complex Projects

Abstract

Globally, there has been an increase in government expenditure on complex projects. Australia is no exception, as the government engages in several initiatives to provide adequate infrastructure to meet the demand of the growing population. However, recent evidence suggests a high failure rate of complex projects. Less than a quarter of complex projects achieve the scope, quality, budget, and timeline requirements. The interdependency and complexity of such projects make them prone to unforeseen risks and challenges, contributing to cost overruns, substandard quality outcomes, delays, and even failure.

The use of traditional Project Management approaches has contributed to high failure rates because such approaches are unable to manage interdependencies, a dynamic risk environment, and the complex and evolving stakeholder requirements. Thus, the current research investigates the role of strategic management in enhancing the success rates of complex projects. The research utilizes a qualitative research approach, combining the survey responses of 23 professionals with case studies from three of the most renowned complex projects, including the Burj Khalifa, Crossrail UK, and the Panama Canal Expansion Projects.

The objectives of the research are to investigate the impacts of strategic management in the planning and execution of complex projects, the role of strategic management in risk management, and the impact of strategic management in decision-making in such projects. The findings suggest that strategic management can enhance the success rates of complex projects by ensuring proactive risk management, improving decision-making frameworks, enhancing team collaboration and communication, and enhancing stakeholder engagement. Leadership, objective clarity, and aspects such as management and communication play a critical role in the success of such projects. The current study provides a benchmark for policymakers and project managers to enhance the success rates of complex projects.