Organizational Performance: A Literature Review

Traditional PM systems which exclusively pursue the success criteria of cost, time, quality and meeting technical requirements have become considered ineffective (Bourne et al.,

2000; Walton and Dawson, 2001). A common approach is to focus on multiple stakeholders' expectations (Bryde, 2003b; Maylor, 2001; Tukel and Rom, 2001). This has led to a new set of difficulties in developing models for measuring performance because stakeholders' needs are often difficult to manage and measure (Boehm and Ross, 1989;

Maylor, 2001) and there is sometimes resistance to going beyond the traditional criteria due to commercial pressures (Chan et al., 2003). These difficulties have resulted in limited literature on more holistic performance assessment frameworks

Similarly PM is found to be an effective tool for achieving the strategic objectives of organizations (Kerzner, 2003), managing organizational change (Bryde,

2003b; Maylor, 2001) and systematic planning, execution and control of activities in a systematic manner (Meredith and Mantel, 2003). The literature indicates that a two-way linkage exists between PM and TQM (Broetzmann et al., 1995; Choi and Eboch, 1998).

PM is recognized as an effective methodology for implementing TQM practices in organizations. Similarly, TQM plays a role in providing an environment which facilitates organizations to make use of PM (Bryde, 1997, 2003a, 2003b).

These findings provide a basis for measuring PM practices using known TQM models.

There is a degree of consensus amongst a group of researchers that the EFQM model, based on the TQM philosophy, is an effective performance assessment model (Neely et al.,

2007; Sandbrook, 2001). Therefore, we argue that the EFQM model can usefully applied to the assessment of PM performance by adapting it to the PM environment. Westerveld's

(2003) Project Excellence Model, for example, is an adaptation of the EFQM model

Previous case studies of the experiences of organizations (McDowall, 1995; Stokes, 1995) suggest three broad, sequential, stages: (1) the PM strategy, including pertinent concepts, is sold;

(2) an organization-wide PM system, with centralized control, is set up; and

(3) an organization-wide PM system, with devolved control, is established

4. PM Partnerships and Resources:

The concept of stakeholder involvement in projects incorporates stakeholders both internal and external to the organization, and in the latter case the stakeholders are often managed through partnerships. Van den Honert (1991) identifies early partnerships between contractor and supplier organizations as a project critical success factor; the role of partnering, or “win-win” PM, is highlighted in the successful delivery of large-scale construction projects (Milosevic, 1990 and Moore et al.1992); and the effectiveness of partnering is central to current thinking on project procurement/life cycle management strategy in the construction industry

(Latham, 1994; Egan, 1998). The importance of such partnerships informs the