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Performance Variability and Project Dynamics

Author

Listed:
  • Bernardo A. Huberman

    (HP Labs)

  • Dennis M. Wilkinson

    (HP Labs
    Stanford University Physics Department)

Abstract

We present a dynamical model of complex cooperative projects such as large engineering design or software development efforts, comprised of concurrent and interrelated tasks. The model contains a stochastic component to account for temporal fluctuations both in task performance and in the interactions between related tasks. We show that as the system size increases, so does the average completion time. Also, for fixed system size, the dynamics of individual project realizations can exhibit large deviations from the average when fluctuations increase past a threshold, causing long delays in completion times. These effects are in agreement with empirical observation. We also show that the negative effects of both large groups and long delays caused by fluctuations may be mitigated by arranging projects in a hierarchical or modular structure. Our model is applicable to any arrangement of interdependent tasks, providing an analytical prediction for the average completion time as well as a numerical threshold for the fluctuation strength beyond which long delays are likely. In conjunction with previous modeling techniques, it thus provides managers with a predictive tool to be used in the design of a project's architecture.

Suggested Citation

  • Bernardo A. Huberman & Dennis M. Wilkinson, 2005. "Performance Variability and Project Dynamics," Computational and Mathematical Organization Theory, Springer, vol. 11(4), pages 307-332, December.
    • Handle: RePEc:spr:comaot:v:11:y:2005:i:4:d:10.1007_s10588-005-5587-5
    DOI: 10.1007/s10588-005-5587-5
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    References listed on IDEAS

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    1. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
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    7. Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
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    Cited by:

    1. Jürgen Mihm & Christoph H. Loch & Dennis Wilkinson & Bernardo A. Huberman, 2010. "Hierarchical Structure and Search in Complex Organizations," Management Science, INFORMS, vol. 56(5), pages 831-848, May.
    2. Christopher M. Schlick & Soenke Duckwitz & Sebastian Schneider, 2013. "Project dynamics and emergent complexity," Computational and Mathematical Organization Theory, Springer, vol. 19(4), pages 480-515, December.
    3. Bernardo A. Huberman & Dennis M. Wilkinson, 2010. "Fluctuating Efforts and Interdependencies in Collaborative Work," Group Decision and Negotiation, Springer, vol. 19(2), pages 169-191, March.

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