International Journal of Management amp;amp; Information Systems - Third Fourth 2014 Volume 18, Number 4 The History Of Project Management Tom...

International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

The History Of Project Management

Tom Seymour , Minot State University, USA

Sara Hussein, Minot State University, USA

ABSTRACT

Long before there was an institute for project management, or updated knowledge books and

guides on how to manage projects, or even before the existence of Gantt charts, history offers

several examples of colossal projects successfully completed. The Pyramids of Giza, Great Wall

of China, and Coliseum are all good examples of such projects. Project Management, at its core,

is co ncerned with creating an environment where people can work together to achieve a mutual

objective, in order to deliver successful projects on time and on budget. Throughout the history of

humanity, humans have been working on improving and refining the pr actices of project

management. The goal of this paper is to present the evolution of project management since

ancient times until present times and its outlook in the future by outlining major events and

developments throughout history.

Keywords : Histor y Project Management; Project Management; History

INTRODUCTION

roject management has been practiced for as long as humanity inhabited earth. There are many

examples in history of challenging projects that were successfully completed, despite all the

complexities and uncertainties that could’ve rendered the project a failure. Many of these projects

necessitated an enormous workforce, large scope, many years of work, advanced planning and precise execution.

Regrettably, despite all of these monumenta l achievements, very little documentation of their methods and

techniques exists. It’s not until the 1950s that organizations have started to apply systematic tools and techniques to

complex projects. The U.S. Navy greatly contributed to the formulation and documentation of principles of modern

project management methodologies and techniques. There were also other noteworthy projects, such as the

Manhattan project, that significantly contributed to advancement of standard practices in modern project

mana gement. During the 1960s ambitious projects such as landing a man in the moon further helped in the

formation and utilization of tools to manage large scope projects. In the 1970s technological advancement made the

creation of project management software possible, via software companies such as Oracle. In the 1980s PCs became

affordable, subsequently smaller companies started to use computers for project management. In the 1990s notable

project management tools such as PRINCE2 and CCPM commenced. In th e third millennium, academia started

offering degrees for project management. Moreover, project management theories, tools, and techniques are now

mainstream in many organizations and industries. It’s not clear exactly what the future holds for project

management, but with challenges such as globalization, diminishing resources, and increasing population there is no

more fitting vehicle for managing such issues than project management .

PROJECT MANAGEMENT IN ANCIENT HISTORY

If we agree with the definitio n offered by Project Management Institute that a project is “a temporary group

activity designed to produce a unique product, service or result” and that project management is the “application of

knowledge, skills, tools and techniques to project activitie s to meet the project requirements” (Project Management

Institue, 2013) , then humans have started working on projects since ancient history. Throughout history, ingenious

architects and engineers have delivered impressive proj ects such as the great Pyramid of Giza, The Great Wall of

China, the Coliseum, the hanging gardens of Babylon and the Stonehenge to name a few. Those architects and

engineers were serving their primary roles of engineers and architects as well as project managers. In order for these

projects to succeed, these engineers turned into project managers, had to carefully think about all the processes of

the project starting with the initiation and planning phases to execution and monitoring all the way to closi ng of the

P International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

project. For each of these projects, someone had to manage the hundreds to thousands of workers for many years,

ensure there was enough supply to sustain the project, make sure the project is on track, and of course, the end result

had to fulfil l expectations of the commander.

Mark Kazak -Holland argues in his book The History of Project Management that Project Management is

not a 20th century discipline, but contrary to popular belief, history is filled with many projects that had project

sponso rship, project management team, practiced project processes and intuitive understanding of the Nine

Knowledge Areas of the PMBok®. The author argues that without a good understanding of all of these principles,

such projects would’ve never succeeded. The book also refutes four misperceptions about historical projects:

Historical projects had unlimited budgets without an economic return; Historical projects had a predominant slave

workforce; Historical projects had unlimited timelines; and Historical proje cts had used concepts not associated with

modern project (Kozak -Holland, 2011) . Reading the book one will understand that current project management is

the result of a natural evolution and has been practiced throughout the hi story of humanity. Incrementally, with the

completion of each successful significant project knowledge, skills, tools and techniques advanced paving the way

for the next historic project.

Despite all of the great historical projects achieved throughout h istory, the documentation and historical

records of earlier projects is scarce. This can be attributed to a combination of factors. First, educated upper society

was more interested in the final result of the project rather than the methodology of creati on. It also did not help that

the execution of such projects was generally the responsibility of craftsmen who were not necessarily educated or

interested in making their methods known to others. To the contrary, in many of these projects, the execution details

were kept a secret among a certain tribe or family who were specialized in craftsmanship and transmitted from one

generation to another (PM Karma, 2008) . In his book A History of Ancient Project: From Mesopotamia to th e

Roman Empire, Y. C. Chiu offers a reasonable rationalization for the lack of documentation. The author asserts that

professions such as architecture, medicine, economics, mathematics, and theoretical science are all better

documented than project manage ment “because the term project is not prevalent in ancient texts, the field of project

has been more elusive than these other professions (Chiu Y. C., 2011) ”.

MODERN PROJECT MANAG EMENT: WHEN DID IT A CTUALLY START?

There see ms to be no agreement on when exactly modern project management actually started. Different

authors have offered different opinions as to how and when modern project management started. This paper, will

iterate the different opinions offered on the start of modern project management.

In his book, An introduction to the History of Project Management: From the Earliest Times to A.D.1900 ,

Y. C. Chiu, proclaims that both Henri Foyal and Henry Gantt are the forefathers of Project Management (Chiu Y. ,

2010) . While some may disagree with this statement, many will agree that both Fayol and Gantt have made

significant contributions to the management field. Henri Fayol (1841 -1925) was a French engineer in an iron and

steel company. The company was the largest in France, and was crucial in the rearmament of the French army

during the decade right before World War I. Fayol successfully lead the company for many years, during which he

became increasingly interested in the problems of m anagement (Witzel, 2003) . Through observation, Fayol

identified five functions of management, which he believed are universal. Fayol believed that every manager

performed these functions, within varying degrees, on their dai ly work. Fayol’s five functions of management are:

planning, organizing, commanding, coordinating and controlling. Fayol also formulated 14 principles which give

guidance to managers on how to execute those five managerial functions effectively. Fayol’s work was criticized by

many due to their belief that the theory does not convey the true managerial complexities faced by managers in their

daily work. Nevertheless, Fayol’s work made significant contributions to management. The paper Fayol stands the

test of time , for example, “argues that Fayol’s elements of management are not refuted but are rather reinforced by

more recent findings. The paper concludes that Fayol’s work stands the test of time (Fells, 2000) ”. Despite the

shortcomings, the five functions still give a structured overview of tasks that are important to management, and

provide an initial overview of the main functions managers experience on daily basis.

The second forefather of modern project management, acc ording to Y. C. Chiu, is Henry Gantt. Henry

Gantt (1861 - 1919) was an American engineer and later on a management consultant. He is best known for International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

developing the Gantt chart. Gantt charts are significant in the history of modern project management, bec ause they

recognize the benefits of breaking large projects into smaller manageable tasks. They also account for the fact that

some tasks may depend on each other. Gantt charts are still in use today and are considered a vital tool in a project

manager’s toolkit. Although the charts bear Gantt’s name, it’s arguable that Gantt charts were actually developed

much earlier by a Polish economist named Karol Adamieckic. In 1986 Karol Adamieckic invented what was then a

novel method to visualize interdependent processes. He called it the Harmonogram. Unfortunately for Adamieckic,

he only published his articles in Polish and Russian and, hence, his invention was not widely recognized or adopted

in the west (Marsh, 1975) . In the we st, Henry Gantt designed his charts around 1910 – 1015, and the charts were

later used in large projects in World War I and the construction of Hoover Dam, which contributed to their adoption

and wide use. Consequently, the charts became associated with h is name.

According to Snyder and Kline (1987), modern project management era only started in 1958 with the

development of CPM/PERT (Y. H. KWAK, 2003) . CPM/PERT have rightfully been given importance in the

advancement, and a rguably the start of modern project management. Although somewhat overlapping, CPM/PERT

have been developed along two parallel lines in two very different fields: the navy and the chemical industry. In

1958, the U.S. navy led the Polaris project, the fir st submarine -launched ballistic missiles (SLBM) carrying nuclear

warheads. Through the Polaris project, the U.S. navy is credited for developing one of today’s most widely used

technique is Program Evaluation Review Technique (PERT). Due to the high comp lexity and uncertainty associated

with the scheduling of the project, PERT was well -suited to visualize the different scheduling scenarios of the

project. The Critical Path Method (CPM) was invented almost simultaneously with PERT. The creation came as a

result of E.I du Pont de Nemours Company, undertaking a major construction project. The project involved the

building of a major chemical plant. The CPM came as a result of the company needing to accurately estimate the

cost and time of the project. Or iginally, the method they developed was referred to as Project Planning and

Scheduling (PPS), but later the technique was developed into the now infamous CPM method.

THE FOUR PERIODS OF MODERN PROJECT MANAG EMENT

In an effort to better capture the history of modern project management, in 2003 Kwak identified four

periods in the history of modern project: prior to 1958, 1958 – 1979, 1980 – 1994, and 1995 to present (Y. H.

KWAK, 2003) . Kwak asserts that the origins of modern proj ect management started between 1900s and 1950s.

During that period project management transformed from a Craft system to Human Relations Administration. At

that time, better transportation and telecommunication systems allowed for higher mobility and spe edy

communication. Gantt charts were also developed and in use at that time. It was also during that time that the

concept of job specification, which is specifying knowledge, skills, and abilities needed to successfully perform a

job. Important project s from that period are Hoover Dam, Interstate Highway and Manhattan project. Gantt Charts

were first used in Hoover Dam and then in the Interstate Highway projects. The Manhattan project on the other

hand, was particularly important because many still co nsider it the beginning of modern project management. The

Manhattan Project “exhibited the principles of organization, planning, and direction that influenced the development

of standard practices for managing projects.” (Shenha r A., 2007) .

In the second period as defined Kwak , there was significant technology advancement. The main theme in

the second identified period, between 1958 and 1979, is the application of Management Science. During that period,

significant technol ogical advancements took place. One such advancement was the introduction of the first plain -

paper copier by Xerox. It was also during that time that core project management tools such as PERT and CPM

commenced. Another important development during that time was also mandating the use of Work Breakdown

Structure (WBS) approach for any future projects bearing the size and scope of Polaris. On the professional side,

the institutionalization process of project management began with the creation of the worl d’s first project

management association, now known as the International Project Management Association (IPMA). Since its

development in 1965 IPMA has grown substantially and is now prime international promoter of project management

in Europe, Asia, and A rab countries . Four years later, the Project Management Institute (PMI), which is primarily

based in the U.S.A, was founded. PMI is widely known as the publisher of The Project Management Body of

Knowledge (PMBOK). The book is a compilation of processes and knowledge areas generally accepted as best

practice within the project management discipline (ITRM Guideline CPM 110 -01, 2006) .

International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

Furthermore, the period was rich with important computer technology developments. In the 1 970s,

computers progressed from mainframe to mini -computers which made computers more affordable. The

affordability of the mini -computers subsequently facilitated the emergence of several project management software

companies and tools (Azzopardi, 2014) . Polaris and Apollo are considered significant projects from that period. As

mentioned earlier, it was during the Polaris project that the navy developed PERT, a core project management tool

even today. Apollo was NASA’s firs t formal system of project management in response to the need for standards in

managing the complex, expensive and ambitious plan to land a man on the moon. Referring to the project

management as a critical component of Project Apollo's success in Novembe r 1968, Science magazine, the

publication of the American Association for the Advancement of Science, observed “in terms of numbers of dollars

or of men, NASA has not been our largest national undertaking, but in terms of complexity, rate of growth, and

technological sophistication it has been unique. . . . It may turn out that [the space program's] most valuable spin -off

of all will be human rather than technological: better knowledge of how to plan, coordinate, and monitor the

multitudinous and varied act ivities of the organizations required to accomplish great social undertakings” (Wolfe,

1968) .

In the third era, 1980 to 1994, multitasking Personal Computers (PC) made an impact on many aspects of

work and business includin g project management. The efficiency of PCs allowed for developing software capable

of handling and organizing complex data required to manage projects. In the 1980s project management programs

were mostly based on the Projects Resource Organization Mana gement Planning Technique II (PROMPT II) model

of project management, which was later refined into the PRojects In Controlled Environments (PRINCE) model

(Bizness Académie, 2012) . Another significant development during that ti me was the Theory of Constraints (TOC),

which is a management philosophy introduced by Eliyahu M. Goldratt in his well -known Novel "The Goal". The

philosophy is aimed at helping organizations continually achieve their goals using the premise that the rate of goal

achievement by a goal -oriented system is limited by at least one constraint (Cox & Goldratt, 1986) . In 1986,

Scrum, an agile software development model encouraging software development by multiple small teams was

developed. Scrum’s approach is a flexible, holistic product development stra tegy where a development team works

as a unit to reach a common goal "as opposed to a "traditional, sequential approach" (Nonaka, 1986) . In 1987,

PMBOK® was published by PMI, the book was mostly based on a white paper called p ublished in 1983 called the

"Ethics, Standards, and Accreditation Committee Final Report”. The guide was an attempt to document and

standardize accepted project management and practices. The PMBOK® guide has become the global standard for

the industry. In 1994 the Standish Group published the CHAOS report, which is a collection of information on real

project failures in Information Technology (IT). The objective of the group is making the industry more successful

by profiling projects and environments a gainst the collected cases and delivers advices based on collective wisdom.

Kwak presents three projects from the third era that illustrated the application of high technology and the

project management tools and practices of the time. The featured proj ects are The English -France Channel project

(1989 -1991), Space Shuttle Challenger project (1983 -1986), and The XV Calgary Olympic Winter Games (1988).

“The English -France Channel project was an international project that involved two government agencies ( British

and French government), several financial institutions, engineering construction companies, and other various

organizations between the two countries. The project goal, cost, schedule, and other factors needed to be adjusted to

conduct the project. The language, use of standard metrics, and other communication differences needed to be

coordinated”. The disaster of the Space Shuttle Challenger focused the attention of the project management

community to risk management, group dynamics, and quality m anagement. Finally, The Calgary Winter Olympic

game in 1988 was an example of successful event management (Y. H. KWAK, 2003) .

The fourth and final era Kwak presents is 1995 to present (in this instance the present refers to 2003, which

is when the book was written). In this era technology continues to be a driving force for change, and greatly impacts

what project managers do. In 1996 PRINCE was upgraded to PRINCE2, and soon after in 1997 an alternative

method called the C ritical Chain Project Management (CCPM) was introduced. CCPM is a method of planning and

managing projects developed by Eliyahu M. Goldratt. It is derived from TOC, and unlike CPM and PERT the

method mainly emphasized resources required to complete the p roject rather than the specific tasks (Goldratt, 1997) .

In 1998 both The American National Standards Institute (ANSI) and Institute of Electrical and Electronics

Engineers (IEEE) recognized PMBOK® as a standard. In 2001 The A gile Manifesto was written. The Agile International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

Manifesto is founded upon a set of core values that are aimed at enabling software developing teams to perform well

as a team.

PROJECT MANAGEMENT P OST THE FOURTH PERIO DS

The field of project management continues to evolve. With ongoing standardization of processes,

refinement of concepts, and development of software and applications, project management is becoming more of a

science than art. A significant advancement to the field is the development of the Total Co st Management (TCM)

method. TCM as defined by the AACE International (formerly Association for the Advancement of Cost

Engineering) is a “systematic approach to managing cost throughout the life cycle of any enterprise, program,

facility, project, product or service”. In the scope of a project, TCM is a set of practices and processes an

organization applies to govern the cost in the life cycle of a project. The TCM approach is based on the Plan Do

Check Access (PDMA). The PDMA model uses an iterative a pproach to arriving at clearly defined repeatable

processes. In its third edition of the PMBok®, PMI adopted the PDMA method in 1996 right after AACE’s

publication of the concept (Hollman, 2006) .

In 2008 a fourth edition of the PMBok® was published. Within the same year Software as a Service (SaaS)

became ubiquitous. The idea behind SaaS is that organizations can have access to a software for a fee, usually pay

per use or monthly fee that end up being less than the licensin g fees, without worrying about the hassle of

installation, maintenance or hardware requirements. The software is hosted remotely and delivery is made possible

through the cloud. Cloud providers are responsible for handling the infrastructure that support s the software

(Armando Fox, 2014) . Subsequently, SaaS became synonymous with Storage as a Service. Storage as a Service is a

similar model to Software as a Service, where large businesses can rent storage space from their in frastructure to

others. The space is often used for backup, and it offers a good option for small to mid -sized companies that may

lack resources such as personnel, hardware and physical space for a reliable backup service. This business model is

touted a s the future of application usage. Presently, XaaS refers to any type of service offered through the cloud,

where X refers to the service being offered (Rouse 2010) .

According to the Global Accreditation Center for P roject Management education programs, in 2009 “U.S.

News and World Report had ranked project management as the third most valued skill by employers, behind only

leadership/negotiation skills and business analysis” (Project Managm ent Institute, 2013) . The demand is increasing

for project management as a core competency in various fields such as Information Technology, engineering,

business, health care, education, construction and manufacturing. Academe responded by offering se veral programs

and degrees in project management designed to prepare prospective project managers with the knowledge and tools

that can allow them to succeed in all phases of project management. In the same year, PRINCE2 was refreshed.

The major changes to PRINCE2 are the two guides for PRINCE2, which are role specific. The first guide is

Managing Successful Projects with PRINCE2 , which is a guide intended for people managing projects on daily

basis. The second guide is called Directing Successful Proje cts with PRINCE2 , which is a guide designed for

directors or sponsors of projects (Office of Goverment Commerce, 2009) .

Communications technology is now ubiquitous and affordable, which is makes it increasingly easier to

work from home or other places. The phenomenon of the virtual worker has become mainstream, and chances are

it’s not going anywhere soon. According to U.S. news, in 2010, 3.4 million people, equivalent to 9.4% of U.S.

workers, worked from home at least one da y a week, compared with 9.2 million people, or 7% of U.S. workers in

1997 (Shah, 2013) . In some instances, it is a necessity to accommodate for employees to work virtually, while for

others it’s a welcomed convenience, becaus e it creates a win -win situation for the business as well as the employee.

On the other hand, as more businesses adopt a more collaborative virtual workspace, challenges in aspects such as

leadership, trust, control, and communication are amplified, with communication being the top challenge (Osman,

2011) .

THE FUTURE OF PROJEC T MANAGEMENT

As there was no consensus on the beginnings of project management, there also is no consensus on the

future of project management. Depend ing on the article or source you read, there are conflicting predictions when it International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

comes to the future of project management as a profession. Some researchers argue that future project management

positions will be a thing of the past and there will no longe r be a specific project manager role in organizations. The

job of a project manager will disintegrate and become a work skill that is part of many required job responsibilities

(Stanleigh, 2010) . On the other hand, others have a rgued that project management has become professionalized, and

requires special type of skill set for effective project management. The industry has recognized the need for these

unique skills and as a result, now requires specialized training and credent ials such as the Project Management

Professional (PMP) certification (Nelson, 2012) . A report published by the Project Management Talent Gap Report

provides a much glossier picture for the outlook of project managers. The asse ssment in the report is that “between

2010 and 2020, 15.7 million new project management roles will be created globally across seven project -intensive

industries”. Consequently, there will be a high global demand for project managers, which makes the proj ect

management profession very desirable (Project Management Institute, 2013) .

As the dynamics and environment of organizations evolve, the challenges of future project managers will

follow suit. With large complex projects , it’s becoming a necessity for the project manager to coordinate multi -

disciplinary knowledge, and to effectively accomplish the undertaking, project managers will have to adapt to new

technologies and learn which specialized intricate tools will work bes t for each project. Another challenge for

project managers will be cutting through the ceaseless sea of information by filtering abundant data and capturing

the right information. The challenge for future project managers will be understanding the big pi cture and

effectively communicating with others. Having to work across -networks, with people in different countries, and

people who come from different cultures will only compound the complexity of effective communication for future

project managers.

Project managers will also have to acclimate to the changing demographics of the workforce, such as the

retirement of baby boomers, immigration flow change, and the number of young professionals entering the

workforce. The retirement of baby boomers, will make it harder for employers to find talent for vacant positions,

which will give talented employees more bargaining power. Finally, project managers will also have to adapt to

shifting organizational structure. Globalization, limited resources, stakehol ders, competition, economics and many

other factors are contributing to the transformation of organizations and business environment (Construction

Industry Institue, 2014) . The one certain thing in the future is that in order to succeed, project managers of the

twenty -first century have to be adaptable to constant change, uncertainty and disruptions.

CONCLUSION

Understanding the past, gives us a chance to better understand the future. Studying the history of project

manag ement, one will understand that project management has evolved throughout history. Its continuous

evolvement facilitated the advancement of project management, and hence paved the way for the next big project.

In spite of the numerous substantial project s in history, there is little documentation of the methodologies or

techniques before the 1950s. Advancements in science and technology expedited the progression of project

management as a profession. It is now widely accepted that a project manager req uires a special set of skills. As

organizations evolve, so will the challenges facing future project managers. However, while the future may require

future project managers to adapt by learning new specialized skills, the fundamental elements that make a project

manager a great one will not change; leadership, pragmatism, decisiveness, communication and foresight to name a

few.

AUTHORS’ INFORMATION

Dr. Tom Seymour earned his PhD degree at Colorado State University, his Masters of Arts degree at the Uni versity

of North Dakota, and his Bachelor of Science degree at Mayville State University. He has given over 150

Computer/E -Commerce presentations in 41 states and 10 foreign countries. Tom teaches technology classes in the

classroom and via the Internet. D r. Seymour has won the following awards: Distinguished Alumni Award - Mayville

State University (2009), Legislative Award - Information Technology Council of ND (2008), Peer Reviewer Award

- Higher Learning Commission (2007), a Legislative Award - NDAEYC - Children’s Champion Award (2005) and

Distinguished Professor Award - Minot Chamber of Commerce (1989) -The IACIS Ben Bauman Award of

Excellence (2011). E -mail: [email protected] (Corresponding author) International Journal of Management & Information Systems – Third Fourth 201 4 Volume 18, Number 4

Sara Hussein is a graduate student obtainin g her Master’s Degree in Information Systems at Minot State University

in Minot, North Dakota. She was born in Los Angeles California, but was raised in Africa, until she was 15 then

moved to Canada. Sara went to High School in Ontario, Canada and earned her Bachelor’s Degree from University

of Western Ontario in Computer Science. She plans to become a Project Manager and lives in Niagara Falls, NY.

E-Mail: [email protected]

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