Discuss how the business environment and types of projects may influence the balance

of priorities represented by the iron triangle

The iron triangle (also called the project management triangle) is a concept based on the
triple constraints of project management and an important theory in the field. These
constraints are limitations placed upon a project within which the project manager and team
must operate. There can be various constraints on a project, but there are three essential
constraints that operate on most projects. These constraints are scope, time, and cost.

Let’s examine each constraint and learn how to drive successful projects with a commanding
understanding of the iron triangle. Project managers must balance how they adjust constraints
to achieve the desired outcome of the project, keeping in mind that too much adjustment can
impact the other two project constraints.

Cost

Cost is the financial constraint of the iron triangle, also referred to as the budget. Project costs
can include a variety of elements, including resources – both materials and people – as well
as any external costs that influence a project. In some cases, costs are fixed and cannot flex;
in others, costs are variable and can be adjusted to meet needs.

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For example, if a piece of the project requires using contract workers and the work takes
longer than anticipated, the cost may increase. A client will almost never have an unlimited
budget (though at first they may say they do), which makes this constraint fairly fixed.

To harness project costs, project managers must establish a budget and a baseline upfront,
using a combination of items:

 Historic data from similar projects to provide a comparison

 Establishing resources costs at a unit level, to help predict any changes
 The lowest and highest ranges anticipated
 Vendor bid averages, if applicable

Scope

In the project triangle, scope comprises the tasks necessary to achieve the project’s goals.
Controlling project scope is especially critical, as adjustments to scope almost guarantee an
impact to cost and time.

For example, if the original request requires 10 hours of work but a stakeholder requests
another addition that represents another 10 hours, it’s likely that end project costs and time
will increase. Often, it is this balance of stakeholder requests that is critical to manage,
particularly if stakeholders come and go into the project. Keep in mind, the amount of time
each task will take is critical to managing project scope.

Time

The time constraint of the iron triangle represents the project’s scheduled completion.
Managing time is closely related to managing tasks, as the overall timeline is broken down by
individual tasks and their anticipated timing. To manage time, project managers should
identify tasks that must be done in sequential order and which are interdependent.
Time management, according to A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) – Seventh Edition, includes:

 Planning the schedule

 Identifying and defining all activities that must occur throughout the project
 Establishing the correct sequence

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  Estimating all the resources required; if resources are too scarce or otherwise
occupied, the timeline can be affected
 Estimating the length of time required for each activity
 Tracking how closely the project is following the initial plan throughout the work

Sometimes, the timeline on a project is concrete, adhering to a specific milestone or data. In

other projects, the timeline can be more flexible. But just as budgets are seldom unlimited,
clients seldom accept any delivery time.

Limitations

From the previous sections, it is apparent that the theory behind the iron triangle is useful for
project managers when planning and controlling projects and to maintain a balance between
the three key constraints of project management. However, the triangle has some flaws
regarding how it measures success, relationships between constraints, and the emphasis on
cost.

Not a lone indicator of project success

The project management literature tends to measure the success of a project based on the
three elements which create the corners of the iron triangle. However, the achievement of
these traditional objectives does not necessarily mean that a project is perceived to be
successful as this is only one aspect of success and must balance with other factors. The iron
triangle takes limited account (depending on the definition of the project scope) of whether
the main project deliverable fulfilled the final purpose for which it was intended and whether
the objectives of the stakeholders were attained

Problematic constraint relationship

Another problem with the iron triangle model is regarding the relationships of the constraints.
There seems to be a problematic relationship between the cost and time constraints when the
model is scrutinized. The cost constraint refers to different types of expenditures, such as
people costs, as explained in previous sections. If we take the people costs as an example, it is
arrived at by multiplying a cost by duration or time. This means that the cost factor
essentially contains time and this can be seen as a problem. Consequently, time can be seen

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as part of the cost constraint rather than a separate constraint. That leaves us with a model
containing only two factors instead of three.

Too much emphasis on cost

There exists another flaw of the iron triangle regarding the emphasis it puts on cost. Despite
the fact that there is a strong relationship between cost and efficiency, there is no guarantee
that extra expenditure will grant better results. For example, if the project team is
incompetent, allocating them extra budget won't necessarily give better results. Also, if the
project manager is incompetent and can barely handle managing a staff of five people, then
increasing the number of employees will not be beneficial.

Related concepts

This section depicts that the iron triangle might sometimes lack the breadth and depth needed
in the complex project landscape. As a result, other more complex versions have been created
with added constraints to improve on the triple constraints of the iron triangle.

Evaluate the relevance merits of a range of different models of project excellence and
project success and explain how these relate to an organization’s strategy.

Organizational excellence is defined as the ongoing efforts to establish an internal framework

of standards and processes intended to engage and motivate employees to deliver products
and services that fulfill customer requirements within business expectations. It is the
achievement by an organization of consistent superior performance—for example, outputs
that exceed meeting objectives, needs, or expectations.

Organizational excellence is desired by every business, but many business leaders are never
able to determine how it is achieved. It has often been said that 'change is a constant in
businesses', but it is particularly relevant today from a marketing point-of-view with the
growth in digital transformation projects.

There is no single shortcut to organizational excellence; you need to take a multi-channel

approach to improving and optimizing business performance. The 10 Levers of Optimal
Business Performance are:

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1. Strategic Direction

Building an effective organization begins with understanding your company’s purpose. Once
that occurs you can more clearly defining your long-term goals. Next, objectives can be
defined that help you move toward achieving your goals. These objectives can then be
assigned to people within the organization so that a named person or team of people owns the
completion of each one. This accountability is important for ensuring that your business
strategy is put into practice.

2. Applied Metrics

Information is key to the success of any modern organization. Define metrics that you can use
to track the effectiveness of all elements of your company and find ways to monitor them.
For example, you could ask your marketing department to track their monthly website visitor
growth in Google Analytics so you can see how well their campaigns are working to bring
traffic to your site. Similarly, your sales team could track leads and sales in their customer
relationship management (CRM) software. Most importantly, you can track the progress in
the objectives described in “Strategic Direction” above. Note that it is important to focus your
metrics evenly on sales / operations and people / culture, in order to have a balanced
approach to performance management.

3. Strategic Communications

Once you have defined your strategic direction, and determined how you will measure
progress, you need to ensure that there are channels for communicating key messages
throughout your organization. Consider your strategy for communicating your values and
expectations to people working at every level. What is the best channel of
communication? Email? Meetings and training sessions? Or distributing information
through the company intranet? You might need to use a combination of these methods to
reach everyone.

Whatever communication channels you choose to use, remember that communication should
always be a two-way street. Give your employees a chance to give feedback on company
policies and share their ideas for improvement. In fact, fostering grass roots communications

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is crucial. Effective grassroots communications allow problems to be solved efficiently at the
lowest possible level, rather than having them escalate up the layers of management.

4. Strategic Hiring

Effective hiring practices reduce staff turnover, reduce recruitment costs, and improve
efficiency. To ensure you hire the right candidates, take the time to identify the ideal
characteristics you are looking for in new hires. These characteristics will depend on your
company culture and the skills that you need in your organization. For example, if you are in
need of IT skills across your organization, you need to make this a priority in your hiring
practices. However, while skills are important, cultural fit is essential. A candidate that is not
a good cultural or philosophical fit in your organization will ultimately not be satisfied and
will either leave or potentially be disruptive.

5. Purposeful Culture

Every company should have a well-established mission, which should be reflected in the
organizational culture. For example, if your mission is to deliver the best customer service in
your industry, all of your people should keep this mission front of mind as they go about their
daily work. The leaders in your organization can set an example by using your organization’s
cultural values to guide their actions. You should also regularly assess every member of your
team to ensure they are living up to the organizational values you have defined.

6. Relational Trust

Trust is vital for organizational excellence. Work on establishing trust between all members
of your organization, from entry-level workers to senior managers. Encourage your people to
speak openly about their concerns so they can be addressed proactively. Nothing breads trust
better than good communication followed by prompt and thoughtful action.

7. Colleague Empowerment

Empower your employees to take action without asking their supervisors for help or
guidance. To support this proactive behavior, make sure all of your people have the tools they
need to solve problems, such as access to customer records or the ability to use small
amounts of company funds without asking for permission. Also, make sure your policies

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favor empowerment. By actively encouraging employees to play a role in the decisions that
impact their work, you can give them confidence and show them they are valued members of
your organization. This results in them taking ownership of their actions, and gives them the
pride that comes with knowing you are making an important contribution to the mission of
the organization.

8. Work Environment Optimization

Is your office a place where employees feel comfortable and motivated to do their best work?
An unpleasant office environment can sap the motivation of your people, leading to low
morale and high staff turnover. Ensure your office has adequate lighting, comfortable office
furniture, good ergonomics, places for your people to hang out on their breaks without
disturbing their co-workers, and keep the office clean to help your people feel valued. But,
also be aware of the social environmental factors. Make sure your people are recognized for
their contributions, make sure they are treated like colleagues rather than subordinates, and
make certain they have the resources to do their jobs effectively. In other words, create a
social environment in which they want to do their best work every day.

9. Employee Development

Professionally, provide opportunities for your people to continually pursue excellence in the
work they do. But, also provide opportunities for them to pursue personal
development. Helping them develop better financial management, parenting, and community
services skills are all good examples. Giving your people opportunities to develop new
professional and personal skills can improve retention and productivity, helping you maintain
a more highly skilled and dedicated workforce.

10. Colleague Wellbeing

Healthy employees, especially those with good overall wellbeing, are more likely to perform
well at work. And of course, when the people of an organization perform well collectively,
high organizational performance is the outcome. An employee wellbeing initiative is also an
important part of a well-developed corporate social responsibility program, which is essential
for any organization that cares about its people and its reputation in the community. But a
wellbeing initiative is not just yesterday’s wellness program. Instead, it will address the

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physical, social, community, career, and financial needs of your people. An appropriate
benefits package, total compensation program, and wellness initiatives are all part of the
equation. Inducements, effective communications, and policies will all be used to support
ongoing action.

Evaluate the communication and leadership issues faced by a project manager when
selecting and leading an international project team.

Leading a project is never easy, but international projects pose a different challenge. Here are
the 4 most common challenges project managers of international projects face and tips on
how to avoid them.

Language barriers

The first challenge you’ll face when managing an international project is the language barrier.
While English is a Lingua Franca, i.e. used in many countries as an official language and in a
business context, not everybody is proficient enough to discuss complex issues. In some
cases project managers have to coordinate project teams that speak different languages.

The challenge is to find a common language between the teams. Having translators on stand-
by is of course the first thing that comes to mind. In many cases, bi-lingual team members or
team members who are proficient in several languages will take up the job. Another tip is to
put everything in writing. Send around an agenda before every meeting and after meetings
and phone conversations, send meeting minutes and notes to all participants. Most people
find it easier to understand something if they have it in writing. You can also create your own
“dictionary” with the most common phrases and words used in meetings or telephone
conferences. The goal is to make sure that everyone on the team receives and understands all
project information.

Communication

To be proficient in a language does not automatically mean that the communication in that
language is effective. There is more to effective communication, such as non-verbal cues and
cultural differences. There are cultures and countries which are more direct in their
communication and which do not use euphemisms. While in other cultures such a direct
approach would be considered rude. Germans for example usually give direct feedback
without sugarcoating, while in the US it common to give criticism more indirectly. Neither

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way is better or more effective than the other, they’re just different approaches. When
managing international project teams, you must be aware of these differences and
communicate accordingly.

Cultural Dimensions

Cultural differences do not just include different eating habits or different ways of doing
things. Cultural differences also affect how teams work together. Based on his comprehensive
research, psychologist Geert Hofstede developed the six dimensions of national culture which
differentiate countries from one another. One of these dimensions is the preference for
individualism versus collectivism which helps you understand how collaboration between
international teams and individuals work, and also what your role as project manager is.

Time Zones

This is an often overlooked aspect of international projects. Often project teams are dispersed
around the globe. Which means that they aren’t just in different countries, they’re often in
different time zones too. This requires another level of planning and coordination. Even when
the time difference is just an hour, it can cause confusion. The best way to accommodate
everyone is to rotate meeting times regularly, so everyone can attend them at a convenient
time. Time zones also affect deadlines and availability of team members. Understand that
while it is a convenient time for you, it is still night for another team member. So you can’t
expect a call-back or reply to your query immediately. They will get back to you when it’s
their “business hours”. The right tools can help you circumvent the pitfalls of managing
projects across time zones. Instead of having to adapt your project plan to different time
zones, get a project management software that automatically converts project deadlines
according to the time zone settings of the user’s devices.

Write an informal report to your senior management, demonstrating how project

leadership can improve performance and bring benefits in the purchasing department

Project leadership is the art and science of steering a team towards the successful delivery of
a project. It ensures that together, the team accomplishes more than they could as individuals
because project leadership brings together people to achieve a common goal.

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PMI defines project leadership as the knowledge, skills, and behaviors needed to guide,
motivate, and direct a team, to help an organization achieve its business goals.

Here is an overview of qualities and skills that are essential for project management and
increase performance:

 Planning: Precise, detailed planning and keeping even the minutest detail in mind is the
first step of getting the project in motion. Having a calm, collected and logical mindset
is also among the most essential skills required for project management.
 Decision-making: Undertaking a project involves a lot of decision making. A manager
has to understand how each stage will affect the overall project. They also work to
ensure maximum productivity in limited sources.
 Procurement and delegation: A project manager has to recognise the core strengths of
each team member. Work should be delegated based on individual strength and areas of
conflict have to be dealt with accordingly.
 Communication- Interpersonal skills are a major part of the business. This means every
project manager has to be a persuasive and impactful speaker. Communication is
considered as one of the most essential project management skills, as managers will deal
with people of different levels across the spectrum.
 Having a vision- To fulfil company objectives, a manager should be able to imagine the
bigger picture and carefully assign resources and workforce according to company
goals. To be far-sighted is a valuable trait that counts among top project management
skills. This visionary attitude helps in the successful completion of the most challenging
tasks.

For any project manager, procurement management is vital to meeting your project goals on
time. It requires the ability to negotiate contracts effectively and to understand a range of
products and services, not to mention supply chain logistics.

Well-executed procurement management provides several project benefits. When carefully

planned and executed, procurement management can help increase certainty and quality,
control costs, and reduce project risks overall.

 Increased certainty and quality: By meticulously planning and negotiating detailed

contracts, project managers can greatly increase certainty around the quality of

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 procured products or services. This increased certainty will help increase stakeholder
confidence in the timing and quality of products and services the project aims to
deliver.
 Cost control: Companies are rarely unconcerned about budget overruns. Carefully
negotiated procurement pricing is a vital factor in controlling project costs. Being able
to solidify procurement-related costs helps to ensure projects can deliver within budget.
 Reduced risk: Increased clarity about vendors, contract terms, and product and service
quality reduces potential procurement risks and, as a result, project risks overall. A
thoroughly developed and executed procurement management process can keep your
project deliverables on track.

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