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Encouraging Help Across Projects

Author

Listed:
  • Pascale Crama

    (Lee Kong Chian School of Business, Singapore Management University, Singapore 178899)

  • Fabian J. Sting

    (Faculty of Management, Economics and Social Sciences, University of Cologne, D-50923 Cologne, Germany; Rotterdam School of Management, Erasmus University, 3062 PA Rotterdam, Netherlands)

  • Yaozhong Wu

    (National University of Singapore Business School, Singapore 119245)

Abstract

Companies struggle with timely project execution despite employing sophisticated management methods. Although help across projects is critical for time performance, it has not been explicitly incorporated into project management (PM) systems. We model a PM system, based on an innovative real-life practice, that both incorporates and shapes project managers’ helping behavior. A help process is at the core of this system, in which project managers may ask for and provide help while top management facilitates such exchanges. We find that companies should take a nuanced approach when designing help exchange and time-based incentives in tandem. A company that faces high project rewards after delays and highly effective help can benefit from inducing help because doing so enables the pursuit of projects it might abandon if delayed or even at the outset. The formal help process delivers value by creating and exploiting interdependencies between projects. These interdependencies allow project prioritization by inducing different effort levels in otherwise identical projects. A help process also allows the company to “tune” the timing of efforts by front-loading or back-loading project work. The benefits of a help system accrue through cost efficiencies, increased probability of success under help, and intertemporal incentive effects that encourage early efforts. However, because the help process creates the opportunity for free riding, a help system is not always recommended and a no-help system may perform better, especially when there are low project rewards after delay and low opportunity costs for project work.

Suggested Citation

  • Pascale Crama & Fabian J. Sting & Yaozhong Wu, 2019. "Encouraging Help Across Projects," Management Science, INFORMS, vol. 65(3), pages 1408-1429, March.
    • Handle: RePEc:inm:ormnsc:v:65:y:2019:i:3:p:1408-1429
    DOI: 10.1287/mnsc.2017.2988
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    References listed on IDEAS

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    7. Dahai Li & Huan Wang & Yang Li, 2023. "Incentive Mechanisms for Thermal Power Generation Enterprises with Conflicting Tasks: Electricity Production versus Carbon Emission Reduction," Sustainability, MDPI, vol. 15(13), pages 1-22, July.

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