Impact pathways: managing relational risk in project operations

Abstract

PurposeThe purpose of this paper is to assess how we implement new ways of managing relational risk at the operational level of outsourced projects and to provide guidance to project management (PM) policy makers and practitioners seeking to ensure project operations consistently deliver project relational risk management (PRRM) strategies.Design/methodology/approachThrough exploratory study data were obtained from a panel of six experts in PM and from a pilot survey of PM practitioners. The data reveal future directions and vectors for scholarship and research activity in terms of the impact of PRMM-related mechanisms and deliverables on project success and the implementation process to enhance PRRM as a key PM capability.FindingsDeliverables for PRRM need to part of a multidimensional framework that includes mechanisms besides the contract. Such a framework enables the codification of PM knowledge so that PRRM contributes to project success. With knowledge codified, PRRM strategies can be consistently delivered at the operational level. The framework is novel in that it integrates hereto disparate elements that are encompassed under the broad umbrella of relational governance mechanisms.Practical implicationsPM policy makers and practitioners recognise the importance of effective relationships to deliver projects successfully, yet they lack practical solutions to address the negative effects of dysfunctional relationships. The authors provide a list of PM deliverables for effective PRRM, including deliverables besides those related to the contract, which can be used in practice to bring the gap between PRRM strategy development and implementation. This will enable client organisations that outsource their projects to an external contractor to enhance their PRRM capability and increase the likelihood of project success.Originality/valueThe authors provide insights into how PRRM is practised at the project operations’ level where PM is outsourced. These insights lead to three pathways of impactful Operations Management (OM)/PM scholarship and research, namely, the following: 1) How PM deliverables act as a key success factor for effective PRRM? 2) How the duality of roles carried out by PM actors influences PRMM practices? 3) How companies innovate to enhance their PRMM capability? These pathways will enable PM research and scholarship to address disconnects between PRMM strategy and operations and hence go beyond answering “what” PRMM is to encompass “how” it is implemented.