Importance of System Thinking and System Engineering in Project and Portfolio Management

Running head: PORTFOLIO MANAGEMENT
PORTFOLIO MANAGEMENT
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1PORTFOLIO MANAGEMENT
1. Introduction
The system thinking has certain significance in the project management. The system thinking
tools helps the project managers to make the right decisions regarding the decision making
process in the project management.
2. Course Learning Outcomes
2.1 LO1: Relevance of the system thinking in project and portfolio management
I. Summery
The significance of the system thinking has been developed during the studying
of the project management. It can be said there are certain challenges
associated with the system thinking.
II. Evidence
The significance of the system thinking has been discussed on the basis of the
case study regarding the deep water horizon oil spill. It has been found the
absence of the system thinking can be problematic for managing the project.
2.2 LO2: Identification of the different system thinking tools and their importance in the
project management.
I. Summery
Various system thinking tools can be used in process. The choice of the system
thinking tools are dependent on the requirements of the projects. Some of the
examples of the system thinking tools are casual loop diagrams, archetypes
techniques. The setting of the connection between the organization is achieved
by the effective loops. It reflects all the possible connections and the
relationship between the different entities present in the process.
II. Evidence
The system thinking tools were used during the investigation of the disaster in
Deep water horizon. According to the investigation report the British Petroleum
had good idea about the system thinking.
2.3 LO3: The significance and the importance of the system engineering in the project
management.
I. Summery
The objective of the importance of the system engineering in the project
management is evaluated on the basis of the Deep Water Horizon oil spill case.
The process management, the data which are being used get authenticated by
the SEABoK. Sometimes the data get authenticated from the BKCASE. With the
help of system thinking the taken data can be processed in a particular way to
delivers a good decision. The effective processing of the data enhances the
efficiency of the process. However, the data used in the system thinking is
needed to be managed properly. The methodology that can be used in this case
is the hybrid methodology. In this case the data collected can be both

2PORTFOLIO MANAGEMENT
qualitative and quantitative. The system thinking and the system engineering
can increase the efficiency of the project management.
II. Evidence
It has been seen that the Deep water horizon had the proper system thinking
plan. However, the plan was not evaluated properly. The improper
communication between the management and the employees is the main
reason for the disaster. The management was not aware about the fact in the
cement. This indicate sthe lack of proper communication in the organization.
2.4 LO4: Significance of the system engineering concepts and the methodologies for
managing the project and portfolio management.
I. Summery
The main importance of the project and the portfolio management is that the
process in the organization can be managed in a successful way. System thinking
is associated with the project and the portfolio management. Some of the
system thinking tools are 18 words, conceptual model, decision matrix and
functional modeling. System engineering is on of the important aspect of the
project management. System engineering ensures the fact that the data used in
the project is evaluated in the right manner so the that project can deliver the
right outcome. The discipline of the happening of the processes is maintained by
the system engineering, which includes the proper selection of the project
management plan. The processing of the data through the management of the
project ensures the better evaluation of the information. In this case, the use of
maintaining the electronic project management process can be taken.
II. Evidence
In the case of deep water horizon, the attributes of the project and portfolio
management were present along with the system thinking. However, the sytem
engineering was not implemented properly. This causes the lack of
communication between the engineers and the managers of the organization.
The management were unaware about the flaws n the system and the
engineers did not mention about the error, for this certain step was not taken.
2.5 LO5: Importance of system thinking and system engineering.
I. Summery
The system thinking and system engineering helps to provide the value driven
service by understanding the values of the stakeholders associated with the
business process. The system thinking process is an iterative part of the SE
process. The tools and techniques used in the project management ensures the
compilation of the life cycle of the project in an effective way. The readings give
a clear understanding of the system engineering , however, the system
engineering are used only to add the value driven services in the business
process. However, for the successful compilation of the project methodologies
are important.

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II. Evidence
In case of the deep water horizon oil spill case, there was the presence of the
system thinking in the system. However, the project management processes
were not followed in that case, properly which brought the miscommunication
in the system. This lack of communication and the management caused the
disaster.
2.6 LO6: Importance of the project and portfolio management.
I. Summery
The system thinking in the process ensures that the project will deliver the value
driven service. Apart from the main thing for managing the project is the
application of project management methodologies. The management
methodologies are responsible for delivering the right outcome that will meet
all the requirements of the clients. The selection of the proper project
management methodologies are important for the successful compilation of the
project. The selection is done on the basis of the requirements and type of the
project. In the decision making process the knowledge management The
knowledge management is an important thing, as it ensures the sharing of the
knowledge and the communication in the business process. This helps to
develop the effectiveness of the process. The main difference between the
project and the portfolio management is that the portfolio management
monitors and manages the various projects while the project management is
concerned about the processes in the project. The scope of the the portfolio
management is larger than the scope of the project management. Both the
project and the portfolio management allows the project managers to control ,
monitor and authorized the project scope .
II. Evidence
In case of deep water horizon the project scope was not indentified and there
was the miscommunication between the managers and the engineers. The
organization like BP has the various projects run under the organization
simultaneously. In that case the organization should impose the proper portfolio
management technique. However, the lack of communication indicates that
there was no proper portfolio and project management present in the
organization to control the operations of the organization.
LO7: Relevance of the system thinking, project and portfolio management and
the use of software tools.
I. Summery
The application of system thinking tools and the implementation of the software
are not enough for successful compilation of the project. Various project
management tools and techniques are essential for the better management of
the project. Different project management tools and the project planning has