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The Impact of Project Management Methodologies on Project Success

A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain

 

FEATURED PAPER

By Hazem Hasan Abdulla

and

Prof Mukhtar Al-Hashimi

Kingdom of Bahrain

 



ABSTRACT

This study assessed the impact of Project Management Methodologies (PMMs) on project success in the oil and gas industry in the Kingdom of Bahrain. It also explored the different project methodologies used along with their strengths and weaknesses. Pragmatism paradigm, using mixed research methods, was adopted to achieve the objectives of this research. A total of 95 survey responses were received and 17 interviews were conducted.

This study revealed that comprehensive and applied PMMs have significant impact on project success whereas supplemented PMMs have insignificant relationship with project success. The analysis showed that one-unit change in the application of relevant PMM elements throughout the project life cycle has 32.3% impact on project success whereas one-unit change in the application of comprehensive PMM elements has 27% impact on project success.

Projects in the oil and gas industry are more about safety than speed and hence, the use of comprehensive methodologies and applying the relevant methodology elements are important for oil and gas projects. Furthermore, the companies in the oil and gas industry in Bahrain have to pay more attention to their project management methodologies and get it evolved and improved over time to achieve higher project success rates.

Keywords: Project success, Project management methodologies, oil and gas, Kingdom of Bahrain.

1.0 Introduction

Organizations convert the arising business and technological opportunities into projects in order to grow and achieve their strategic goals. Project success is the ultimate objective of all organizations and stakeholders and hence, achieving project success is an obsession of every organization. Despite the research in this field and the increased knowledge associated with project success and failure, projects continue to fail in satisfying the needs of different stakeholders (Cooke-Davies, 2002; Joslin and Muller, 2015). The Standish Group (2010) conducted a study that revealed only 32% of the investigated projects were successful against 44% challenged and 24% failed.

PMI (2017) defines project management as “the applications of the relevant knowledge, tools, skills and techniques to project activities to meet the project objectives”, and adhering to Project Management Methodologies (PMMs) reduces the risk, cuts the costs and improves the success rates (PMI, 2010). That’s why different PMMs have been employed by different organizations in order to increase the efficiency and effectiveness of their projects. However, Wells (2012) conducted a study that revealed 47.9% of project managers do not get what they expect from applying project methodologies. On the contrary, Joslin and Muller (2015) showed that PMMs contribute 22.3% to project success which supports Berssaneti and Carvalho (2015) in that adopting well established methodologies improve project performance.

Furthermore, cost overruns and schedule delays are the common themes in the oil and gas projects which impact the project’s efficiency (Halari, 2010). Since proper project management contributes to the success of projects, this study will explore the project management methodologies in the major oil and gas companies in Bahrain. The oil and gas industry in the Kingdom of Bahrain was selected for this study as it is the most vital sector in Bahrain. Currently, and as a result of the sharp drop in the oil and gas prices locally and internationally, there is a greater need to achieve project success by timely completion of activities, adhering to approved budgets, delivering the agreed specifications and satisfying the different stakeholders.

The aim of this cross-sectional study is to assess the impact of PMMs on project success in the oil and gas industry in Bahrain and to explore the different methodologies including their weaknesses and strength points. Consequently, the following research questions were developed:

  1. What is the impact of PMMs on project success in the oil and gas industry in Bahrain?
  2. What are the different PMMs used in the oil and gas industry in Bahrain?
  3. What are the strengths and weaknesses of each methodology?

As there is a little literature about project success in the oil and gas industry, this study will contribute to the literature of project success and project management practices in the oil and gas industry in general and particularly in Bahrain. Furthermore, it will provide more insights to practitioners by exploring the PMMs that are used in the oil and gas industry in Bahrain. It will also improve the understanding of the impact of PMMs on project success. Additionally, it will provide insights to decision makers, project managers and other project stakeholders into which methodology is more effective for achieving project success.

More…

To read entire paper, click here

 

How to cite this paper: Hasan, H. and Al-Hashimi, M. (2019). The Impact of Project Management Methodologies on Project Success: A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain; PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Hasan-AlHashimi-impact-of-project-management-methodologies-on-project-success.pdf

 



About the Authors


Hazem Hasan Abdulla

Corresponding Author
Kingdom of Bahrain

 

 

 

Hazem Abdulla is a PMP® certified senior project engineer at the Bahrain Petroleum Company with 14 years’ experience in the oil and gas context. He is currently doing his Doctoral degree in Business Administration, with concentration in project management within the oil and gas industry, at Teesside University, UK. Hazem holds MSc in Engineering Management from The George Washington University and BSc in Mechanical Engineering from the University of Bahrain. He can be contacted at [email protected]; [email protected]

 


Professor Mukhtar Al-Hashimi

Kingdom of Bahrain

 

 

 

 

Prof. Mukhtar Al-Hashimi is a Bahraini national, who has four degrees: undergraduate, two master’s degrees and a PhD from the well-reputed University of Utah and Indiana State University, USA. During the last 25 years, he has served as an academic, advisor, director and executive member for a number of government and non-government organizations. He is currently working as an academic professor at Ahlia University, Bahrain. Professor Al-Hashmi’s experiences are rich and a blend of academic, managerial and administrative activities at both government and private organizations. He gained much recognition for the development of a comprehensive medical information system “Al-Care System”.