Monday

Understanding the Iron Triangle and Projects

The concept of the iron triangle as a framework for managing projects has long past its use-by date, almost everyone, including PMI, recognize the challenges faced by every project manage are multi-faceted, and multi-dimensional – three elements are not enough. But dig back into the original concepts behind the triangle, and you do uncover a useful framework for defining a project, and separating project management from general management.

The Iron Triangle

The origin of the project management triangle is accredited to Dr. Martin Barnes. In 1969[1], he developed the triangle as part of his course ‘Time and Money in Contract Control’ and labelled three tensions that needed to be balanced against each other in a project: time, cost, and output (the correct scope at the correct quality). The invention of the iron triangle is discussed in more depth in The Origins of Modern Project Management.

The concept of the triangle was widely accepted, and over the years different versions emerged:

  • The time and cost components remained unchanged, but the ‘output’ became variously scope or quality and then to scope being one of the three components and quality in the middle of the triangle (or visa versa). These changes are semantic:
    • you have not delivered scope unless the scope complies with all contractual obligations including quality requirements
    • achieving quality required delivering 100% of what is required by the client.

  • The shift from tensions to constraints changes the concept completely. A constraint is something that cannot be changed, or requires permission to change. Tensions vary based on external influences, the three tensions can work together or against each other.  
     
  • The introduction of iron!  It seems likely, the iron triangle, based on the concept of the iron cage from Max Weber’s 1905 book The Protestant Ethic and the Spirit of Capitalism’s English translation (1930). The iron cage traps individuals in systems based purely on goal efficiency, rational calculation, and control[2].

So, while the concept of the iron triangle and/or triple constraint has been consigned to history, the original concept of the triangle, as a balance between the three elements that are always present in a project still has value.

Defining a project

Understanding precisely what work is a project, and what is operational (or some other forms of working) is becoming increasingly important as various methodologies such as Lean and Agile span between the operations and project domains. 

Some of the parameters used to define or categorize projects include:

There are many other ways to categorize projects, some of which are discussed in the papers at: https://mosaicprojects.com.au/PMKI-ORG-035.php#Class. But these classifications do not really provide a concise definition of a project. And, while there are many different definitions, we consider the best definition of a project to be: 

Project:  A temporary organization established to accomplish an objective, under the leadership of a person (or people) nominated to fulfil the role of project manager[3].

The two key elements being:

  1. The project is temporary, the project delivery team or organization closes and its people reallocated, or terminated, when the objective is achieved, and

  2. The project is established to accomplish an objective for a client which may be internal or external to the delivery organization.

The concept of a project being temporary is straightforward (even though it is often ignored). Departments that are set up and funded to maintain and enhance plant, equipment and/or software systems on an ongoing basis are not projects, and neither is most of their work. We discussed this several years back in De-Projectizing IT Maintenance, and the concept seems to be becoming mainstream with the concept of ‘flow’ being introduced to Disciplined Agile.

The value of the project management triangle is identifying the three mandatory elements needed to describe the client’s objective. There are usually a number of additional elements but if any these three are not present, the work is not a project:

  1. The expected outcome is understood. The project is commissioned to deliver a change to the status quo. This may be something new, altered, and/or removed; and the outcome may be tangible, intangible or a combination.  The outcome does not need to be precisely defined to start a project, and may evolve as the project progresses, but the key element is there is an understood objective the project is working to achieve.  
      
  2. There is an anticipated completion time. This may be fixed by a contract completion date, or a softer target with some flexibility.  However, if there are no limitations on when the work is expected to finish (or it is assumed to be ongoing), you are on a journey, not working on a project. 
     
  3. There is an anticipated budget to accomplish the work. Again, the budget may be fixed by a contract, or a softer target with some flexibility.  The budget is the client view of the amount they expect to pay to receive the objective. The actual cost of accomplishing the work may be higher or lower and who benefits or pays depends on the contractual arrangements. 

Conclusion

Understanding the difference between project work and non-project work is important.  Project overheads are useful when managing the challenges of delivering a project, including dealing with scope creep, cost overruns, schedule slippage, and change in general. The mission of the project team is to deliver the agreed objective as efficiently as possible.

The objective of an operational department is to maintain and enhance the organizational assets under its control. This typically needs different approaches and focuses on a wider range of outcomes.  Many techniques are common to both operational and project work, including various agile methodologies and lean, and many management traits such as agility are desirable across the spectrum.  The difference is understanding the overarching management objectives, and tailoring processes to suite.  

For more on project definition and classification see:
https://mosaicprojects.com.au/PMKI-ORG-035.php#Overview


[1] We published and widely circulated this claim after a meeting with Dr. Barns in 2005 at his home in Cambridge. So far no one has suggested an alternative origin.  

[2] For more on the work of Max Weber, see The Origins of Modern Management: https://mosaicprojects.com.au/PDF_Papers/P050_Origins_of_Modern_Management.pdf

[3] The basis of this definition is described in Project Fact or fiction: https://mosaicprojects.com.au/PDF_Papers/P007_Project_Fact.pdf 

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