Project controlling process development in industrial business

Abstract

The evolving landscape of project management in industrial business has faced significant transformation driven by the complexity of global production operations and project delivery. In response, there is a need for a renewal in project management and controlling practices. Project controlling process plays a pivotal role in the overall project management providing key activities, including roles and responsibilities, project estimation activities, risk and opportunity assessments and project reporting practices.

The objective of this research was to establish a project controlling process for industrial business case company, by defining roles and responsibilities of the key stakeholders in the project controlling process. Furthermore, creating a process description defining the main activities for project controlling linked to the project delivery phases and reporting cycles.

The research results imply a shift in the respective responsibility of project manager in the case company’s project controlling process. Based on the research results, the allocation of project controlling tasks for project manager do not match the desired state in the case company. Research suggests that the responsibility of project financial control of individual projects will be transferred more to a project manager and the project finance function will support project organization in project portfolio management and in high-risk projects.

The findings of this research emphasize the need for well-defined roles, responsibilities and ownership in project controlling, all within a well-defined process management framework. The developed process description includes essential activities required throughout the lifecycle of a delivery project, ensuring efficient project controlling, estimation, risk and opportunity assessment and management reporting. Moreover, the results recommend for a cultural shift within the case company toward mentality of a proactive estimation instead of reactive. On a broader sense, implications emphasize the necessity for effective stakeholder management across various cross-functional business processes. These findings extend beyond the case company, particularly in industries where project operations are in the core of the business.