What major project leaders need to be equipped with for success in the fourth industrial revolution.
Here’s the question: Are major project leaders and professionals equipped to support major project delivery in the fourth industrial revolution (4IR)? Well, that depends on a few different factors.
Delivering major programmes in the fourth industrial revolution (4IR) requires leaders capable of operating in an environment that exploits collaboration, agile design, system thinking, lean construction, and 4IR digital tools such as Building Information Management and more broadly, digital twin.
The first industrial revolution introduced mechanization at the end of the 18th century; the second industrial revolution introduced mass production and the assembly line in the 19th century; and the third industrial revolution introduced computers and established the automation of processes in the 20th century. We’ve now entered the 4IR which will further introduce cyber-physical systems, internet of things, and cloud networks.
When exploring this topic as part of my MSc in Major Programme Management for Saïd Business School, I wanted to discover the answers to three key questions:
- Do the project leaders have the competencies required to deliver the programmes and, more specifically, major programmes for their clients?
- How are these competencies distributed throughout the company by segmenting geographical locations, markets and sectors?
- Does age, experience and seniority of an individual affect their level of competency or is it irrelevant?
Whitmore et al (2019) argues that major programmes in the built environment are trying to address 21st century challenges using instruments, capabilities and processes developed over a hundred years ago. Delivering major programmes in the 4IR requires leaders capable of operating in an environment that exploits collaboration, agile design, system thinking, lean constructions, and 4IR digital tools such as Building Information Management (BIM) and cloud-based digital twins. Furthermore, major programme leaders need to be authentic leaders (Lloyd-Walker, Walker, 2011) who embrace innovation and collaboration. Major programmes in the 4IR are too complex to be tackled using command and control structure; moreover, the management styles that allowed Baby Boomers to be effective project leaders are no longer effective management styles for Gen X and Gen Y (Lloyd-Walker, Walker, 2011).
Ackoff (Ackoff, 1974) argues that project management codification approaches, where projects are viewed as machines, are no longer a fair representation of major programmes. In the 4IR, major programmes are considered complex systems; in order to deal with major programmes as complex systems delivered by an industry on the verge of being sucked into the digital vortex (Bradley et al, 2015), major programme leaders must “Think big, start small, learn fast,” (Whitmore et al, 2019). In order to do this, these leaders must possess five key competencies in the following areas:
- collaboration
- system thinking
- digital tools architecture
- lean construction
- agile and hybrid models
So, does the supply chain have human talent with the capabilities required to deliver programmes and major programmes in the 4IR?
The Digital Vortex and Its Disruption to Major Programmes
It can come to no surprise that society is in the middle of a digital vortex—the next five years will bring an unprecedented level of digital disruption to technology products and services. The vortex effect will pull most industries (including the engineering and construction industry) into its center.
Since major programmes are temporary organizations typically set up to leverage the supply chain, in order to succeed in 4IR, companies must hire individuals with the appropriate competencies. By assessing the capabilities of major professional service firms that have made it their priority to support clients, including major programme organizations using 4IR technologies and methodologies, we can better understand what is needed to succeed ourselves.
Determining the key leadership traits required in the 4IR requires an understanding of which traits were required in the past, since some of these traits are still prevalent in the industry. Gaddis (Gaddis, 1959) states that the right person for the project management role is a technologist with general management skills and an interest in teaching and training. The project manager is responsible for cost, on-time delivery, and quality (the iron triangle); they are good at keeping things moving, dealing with perfectionists, planning internal sales, and communication. As a practitioner in the industry, I find this to still be the predominant expectation of a project manager.
A more modern description of the successful project manager focuses on managerial intellectual and emotional competencies, such as critical thinking (IQ), motivation, and conscientiousness (EQ). (Muller, Turner 2009)
Major programmes are complex systems, so it’s necessary to apply system thinking in order to successfully lead their execution. Senge et al (2015) states that effective system leadership requires the ability to see the larger picture, reflect, and shift from reactive problem-solving to co-creating the future. However, system leadership is not enough; major programme management also requires an understanding of the theories of system thinking.
The other three streams of major programme management cover purely hard-skill competencies, specifically those requiring a practical and theoretical understanding of their applicability to major programmes.
The importance of the five competencies in the delivery of major programmes in the 4IR presented by Whitmore et al (2019) is a relatively new concept, given that the concept of a 4IR was only coined in 2016 by Klaus Schwab (Wikipedia, 2021). Each of these competencies has been recognized as effective in the area of major programme management.
What’s Next For Leadership in The 4IR
The 4IR is a new concept, so the five competencies that a project manager needs to succeed in the 4IR are also relatively new and untested. No study has yet been undergone to assess whether all five competencies are required and to what degree.
From the literature review, we know that these competencies are important for major programme management, and past studies have assessed the value that each individual competency brings to the successful delivery of programmes and major programmes.
Despite the limitations and lack of this type of research, I believe it is a worthwhile effort. If we consider that the first industrial revolution lasted between sixty and eighty years, the second industrial revolution lasted approximately 40 years, and the third industrial revolution has been going on for the last 60 years, the 4IR is still in its embryonic stage—in this sense, any research will help define future of our industry.
Do you believe 4IR needs to be approached differently by major programme leaders? Out of the five suggested competencies, where do you think our efforts need to be most heavily focused? Join the conversation.