5.2 Model 2: Successful project organization of the B2B E-marketplace introduction project
5.2.2 Impact of project management on the project success
As already demonstrated by the empirical study of Lechler (1997) and various studies in the project management literature, the author assumes a strong positive correlation between the project management of the B2B E-marketplace project and the project success. The arguments can be structured into four aspects:
(I) In projects with top management support and commitment the pressure for on time and within budget project termination is much higher.
(2) Based on a detailed project plan with continuous controlling, time and cost constraints are better under control.
(3) A solid communication strategy simplifies the achievement of the defined targets.
(4) The project team's competence has a major influence on how well the new E-tool is utilized.
Ad1: With the appropriate top management support it is easier to terminate the project on time and with the given budget.
"We must find the radicals, the true revolutionaries, and support them" (Louis V. Gerstner, Jr.
Chairman and CEO, ffiM).16 Change moves faster, and so do the reactions to change, but E- commerce protestors create bad news almost as quickly. Thus leadership for change is necessary for a successful and fast implementation of E-commerce. Kanter (2001, p. 256) defines ten classic reasons, why people resist change, which also apply to the resistance of the E-commerce environment:
"(1) Loss of face. People have fear that dignity will be undermined; they are embarrassed since change feels like exposure for past mistakes.
(2) Loss of control. People are angry since power is shifting.
(3) Excess uncertainty. People are feeling uninformed about where the change will lead and what is coming next.
(4) Surprise. People react automatically defensive, since they had no advance warning and no chance to get ready.
(5) The "different" effect. People are rejecting changes because it does not fit to existing mental models, seems strange and unfamiliar, and challenges usually unquestioned habits and routines.
(6) "Can I do it?" People have concerns about future competence, they worry about whether they will still be successful after the change.
(7) Ripple effects. People are annoyed at disruptions to other activities and interference with the accomplishment of unrelated tasks.
(8) More work. People have resistance to additional things to do, new things to learn and no time to do it all.
(9) Past resentments. People remember past hostilities or problems that were never resolved.
(10) Real threats. People are angry that the change will inflict real pain and create clear losers."
With resistance to change even under benign circumstances, leaders must be even more skillful at handling the human side of change, when the environment is turbulent and the
16 Citation in Kanter (2001, p. 255).
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impact of change revolutionary. The pace and complexity in the New Economy is much more demanding. Along with Lee and Clark (1997) the author assumes that the successful deployment of electronic purchasing solutions requires an appropriate management of barriers. Most risks, uncertainties and barriers stem from social and economic factors rather than IT-related obstacles (Davenport & Stoddard 1994, Stoddard & Jarvenpaa 1995). Only with an adequate support by top-management the E-procurement project team is able to handle all kinds of resistance and convince the people to strive for the predefined time and cost plan (Lee & Clark 1997).
Ad2: A detailed project plan and controlling process enables a project termination within given time and cost constraints.
Top management support is one lever for a successful project, but well organized teamwork is another component. 17 Hogl and Gemtinden (2000) underline the importance of a structured project plan with clearly defined work packages. The project team has to differentiate between tasks, which are to solve in a collaborative joint effort and tasks which are to be accomplished individually. Therefore "team coordination is the essence of teamwork"
(Brannick et al. 1995). Another determinate for a successful teamwork is the balance of the different work packages (Hogl & Gemtinden 2000). The contribution to the project content has to be balanced between the different team members. Referring to the individual capabilities of the team members, the work packages should be defined. Only a balanced and healthy relationship between the different team players supports a solid project solution. With an appropriate and detailed project plan and monitoring process these diverse restrictions on the teamwork can be properly managed. As a starting point clear team rules (Pinto et al. 1993) should be established, which clarify workload, time engagement, priority setting and workload sharing (Hogl & Gemtinden 2000). Similar to Kern and Knauth (2000, p. 107), who have proved the impact of a steering tool on the intensity of delays it can be argued, that a realistic project plan and steering process support the project success. 18
17 For further details on the impact of top-management support on the project success refer to Lechler ( 1997. p.
95).
18 For further details on research concerning project steering tools and project success please refer to Lechler (1997, p. 105).
Ad3: A structured project information and communication plan supports the achievement of objectives.
Besides team spirit, social support and workload sharing, Campion et al. (1993, pp. 829) defines communication and cooperation as a major component of successful team interaction.
An honest communication strategy gives the team the feeling to be up-to-date. Detailed information upfront supports the team motivation. A uniform communication strategy within the project team enables the team members to build group cohesion. They are experts and have more information about this topic than anybody else in the firm. They are part of the decision team, which is responsible for major changes within the firm. In his study in the automotive industry Clark (1989, p. 1256) proved a positive impact of strong communication and clear project information on the project objective fulfillment. Based on regular information exchange between the team members complications and potential conflicts can be discussed at an early point of time to prevent potential project delays. Concerning the analysis of the impact of project information and communication on the project success extensive literature reviews do exist (Gerstenfeld 1969, Utterback et al. 1976, Clark 1989, Keplinger 1991, Lechler 1997). With a regular communication plan, e.g. "Jour fix" once a week, the team members have the opportunity to discuss any problem or question. On the other hand strategic changes or novelties can be directly communicated. With a tight communication plan for the team but also for the employees outside the project team the risk of conflicts can be minimized. Conflicts arise due to different recognition of project goals (Hog! 1998, p. 47, Levine & Moreland 1990, p. 605.). Besides conflict resolution skills and social skills, the team members need to have excellent communication skills to cope with conflicts and to minimize their occurrence (Stevens & Campion 1994). To have a structured way of information, an information and communication plan may be helpful for clarifying the project objectives.
Ad4: The project team's competence has a major impact on the B2B E-marketplace acceptance.
Besides an accurate project termination the project acceptance is key to the project success.
Therefore, the competences in the team play a major role to create the appropriate conditions, which lead to a satisfying B2B E-fnarketplace acceptance. In a first step the project team must
94 5 Theoretical framework and hypolheses of lhe study
be able to improve the current processes (Lientz & Rea 2001, p. 125). As long as the new processes have been optimized (e.g. EDI transactions have been replaced, the coordination of the purchase transaction is simplified or the physical product or service transfer has been simplified) the resistance is at minimum level. The next determinate of the acceptance is the work environment in the procurement organization (Carsten 2000, p. 51). The acceptance is positively impacted by less redundant work process, less routine tasks and more transparency.
The third effect on the acceptance of B2B E-marketplace projects is determined by the supplier's attitude. If the procurement personnel expect reluctance from the supplier side to use the new procurement environment, they have a highly negative attitude (Neef 2001, p.
166). But if the supplier has already experience with these new E-procurement solutions or is even willing to invest in these solutions the acceptance of B2B E-marketplaces is positively impacted. To avoid or minimize negative influences and developments of these three areas of impact the project team's competence is fundamentally. The process improvements must be clarified upfront. The impact on the work environment has to be detailed before prejudices occur. The supplier's competences have to be proved early enough to take any initiative.
Finally, a smooth and detailed hand-over is required to enable an ongoing implementation of the project.
All in all, a properly managed project has a positive impact on the project success defined by efficiency, effectiveness and B2B E-marketplace acceptance.
Proposition 6: The better the project is managed, the higher is the project success.