Abstract
Project decision-making process plays an important role in ensuring successful project management and subsequent successful implementation. In a multi-project environment, decisions must be reliable, relevant, and effective in advancing the organisational goals.
This paper uses the Emirates Airline & Group, which has interests in the aviation, travel, and tourism sectors, to show how decision-making is of great importance in guiding the organisation to a successful implementation of projects that may be specific or cutting across different areas of its business.
The use of different decision-making tools such as Project Management Information Systems (PMIS), Expert Systems (ES), and Decision Support Systems (DSS) has helped the airline in its decision-making processes and consequently its success in the airline industry. As the paper reveals, through the adoption of suitable assessment criteria, the organisation has been able to ensure that its decision-making processes are relevant and reflect the best practices in the industry.
Introduction
In the current globalisation era, the business environment has become highly competitive and complex based on the evident rising demands for managers to make decisions faster and accurately to allocate scarce resources efficiently in projects that their organisations spearhead (Kahura, 2013). In the implementation of different projects, organisations are driven by the desire to gain a competitive advantage in the industry where they operate. Therefore, it is imperative for such projects to be successful in advancing the interests of the organisation in the market.
However, without planning, the simultaneous implementation of different projects in an organisation may face challenges in terms of resource allocation, planning, prioritisation, and monitoring. Project Management Information System (PMIS) is an important tool that provides managers with decision-making support in the planning, implementation, and control of projects (Caniels & Bakens, 2012). Through PMIS, organisations are able to seek and acquire the right information to inform the decision-making process in project implementation.
Currently, managers recognise the vital role that information plays in successful project implementation. The importance of information is further emphasised by the fact that organisations may implement different projects at the same time and hence require better planning and careful allocation of resources for the success of the projects (Caniels & Bakens, 2012). Such projects may have varying complexities and challenges such as resource allocation conflicts, project scope, and throughput times. The use of unreliable information in a multi-project environment may lead to resource misappropriation, which leads to the derailment of some or all projects, which may give spill-over effects that result in poor quality services and in some instances jeopardising the future of the organisation (Project Management Institute, 2013).
Further, in a multi-project environment, managers may be overwhelmed by the amount of information that is available for the decision-making process. Often, they may fail in identifying the relevant information as well as inaccurate information. Another problem arises due to the need for project managers to share information and/or involve other project managers in decision-making, which may lead to conflicts that may derail the success of an organisation (Raymond & Bergeron, 2008). Because of the evident interdependence and interactions between projects, failure of one project may have enormous effects on others (Hooley, Saunders, Piercy, & Nicoulaud, 2007). Project Management Information System (PMIS) helps an organisation to avoid such mistakes. It leads to better and timelier decision-making and consequently, more success in projects. In this paper, the decision-making process in project management and the use of PMIS and other decision-making tools for the Emirates Airline Group will be discussed.
Review of Project Decision-Making at Emirates Airline & Group
The Emirates Airline & Group manages the Emirates Airline, which is the national carrier of the United Arab Emirates (UAE) and the largest airline in the Middle East. It includes Dnata, which is the largest air travel service provider in the Middle East. The Emirates Airline & Group, which was formed in 1985 with its main offices in Garhoud, Dubai, is the fastest growing intercontinental airline in the world. At its inception, the Emirates Airline only had two leased aeroplanes. However, 28 years down the line, the company’s fleet currently stands at over 170 aeroplanes flying to over 100 destinations across the world.
Further, the company has been profitable for the last 26 successive years, thus making it one of the most successful airline companies in the world (The Emirates Group, 2013). Its success comes at a time when the aviation industry is experiencing a difficult time where traditionally profitable airlines are recording losses year after year (The Emirates Group, 2013). For instance, in 2010, Europe’s Air France-KLM, which is the largest airline in the world, reported losses that exceeded $2.6 billion.
The trend of loss-making for the Air France-KLM has continued ever since, despite different cost-cutting measures that it has undertaken. Other airlines across the world are either experiencing stagnated revenues and growth or losses. However, Emirates Airline is an exception with continued success. It recorded a $ 900 million profit in 2013/14, a 42.5% rise as compared to the 2012/13 financial year. In 2013, the company broke records by ordering 200 new aircraft whose delivery from 2013 to 2016 will increase the company’s fleet to over 350 aircraft, thus making it one of the largest airline companies in the globe in terms of the fleet (The Emirates Group, 2013).
The success of Emirates Airline Group owes much to its leadership and consequently its decision-making processes that have ensured that the organisation makes well-informed decisions that have put it in the path to its current achievement story (The Emirates Group, 2013). The group is managed by a senior management team that is highly experienced, talented, and with proven records of accomplishment in different areas of expertise. The team is the top decision-making organ. It guides the organisation in the prioritisation of projects, resources, and strategies to retain global competitiveness in its core areas of business (The Emirates Group, 2013). The top management team comprises eight members, including the Sheikh Ahmed (Chairman and Chief Executive Emirates Airline and Group), Tim Clark (President Emirates Airline), Gary Chapman (President Group Services & Dnata, Emirates Group).
The chairperson and chief administrator, Sheikh Ahmed, has been in the corporation since its inception in 1985. He has been at the front in steering the group to its current position as a force to reckon in the Aviation, Travel, and Tourism industries in the Middle East and across the world (The Emirates Group, 2013). He has been instrumental in major milestones and projects that have been undertaken by the group over the years. Consequently, a lot of success can be attributed to his dedication, focus, and desire for success (The Emirates Group, 2013).
In addition to the successful story of Emirates Airline & Group, Sheikh Ahmed has been instrumental in the impressive economic development of the organisation through successful expansion of the aviation sector as well as the formulation of economic, investment, and fiscal policies and strategies that have put the group in its current position of enormous success (The Emirates Group, 2013). His competence is further confirmed by the fact that he serves as a board member in 24 other organisations in the UAE and other countries across the world (The Emirates Group, 2013).
Tim Clark, who is the President Emirates Group, has been in the company since 1985. He has served under his current position since 2003 (The Emirates Group, 2013). Initially, he worked as the head of the airline planning, where he was influential in the establishment of route networks for the company. He has enormous experience after having previously worked with Bahrain’s Gulf Air, where he established a reputation as a highly talented route planner (The Emirates Group, 2013).
Before joining Gulf Air, he worked for the defunct British Caledonian Airways (The Emirates Group, 2013). Further, he has worked as a managing director for the Sri Lankan Airline. Currently, he is also a fellow at the Royal Aeronautical Society (The Emirates Group, 2013). Such enormous experience and an economics degree from the London University have allowed Tim Clark to use statistics on demographics and passenger traffic to identify profitable routes for the Emirates Airline with exceptional success (The Emirates Group, 2013). Consequently, he brings enormous skills and experience to the Emirates Airline & Group. Besides, he has been involved in the success of the group.
President Group Services & Dnata is responsible for business finance, HR, legal, and IT functions (The Emirates Group, 2013). He is a qualified accountant who brings outstanding experience and expertise to the company’s finance, IT, HR, legal, and risk management areas, which are critical for the success of the organisation (The Emirates Group, 2013). He also serves as a chair and a member of the board of directors for six other successful companies in the UAE and the Middle East (The Emirates Group, 2013).
Abdul-Aziz Al Ali, the Executive Vice President of Human Resources, Emirates Group, joined the company in 1986. He has been instrumental in transforming the human resource from a small number of workers to the currently strong 62,000 membership of diverse workers who have been drawn from across the world (The Emirates Group, 2013). He rose through the ranks of the organisation after starting as a management trainee to his current position where he is central in the development of recruitment and training strategies for the group in its quest to have a pool of highly talented, qualified, and satisfying force (The Emirates Group, 2013).
From the above discussion, the decision-making process for the Emirates Airline & Group is not a one man’s affair. It requires the input of the senior management team that brings with it crucial experience and expertise in each decision that is adopted by the organisation. The decision-making tools that inform decisions at Emirates Airline & Group are also varied to ensure that each area that is pertinent to decision-making and implementation of such decisions is ideal for all projects that the organisation undertakes. Through a multifaceted decision-making process that utilises different decision-making tools, it has been possible for an organisation to adopt well-calculated strategies that have propelled it to its current position (The Emirates Group, 2013). The first tool and technique utilised at the Emirates Airline and Group is the expert judgment.
According to Project Management Institute (2013), expert judgment is a project management decision-making tool that involves the reliance on an individual or a group of individuals with specialised skills, training, or experience in a given area. At Emirates Airline & Group, the senior management team is made up of members who are experts in different areas of functionality of the organisation. Through their experience and expertise in their respective areas, members provide expert opinion and judgment relating to crucial decisions that are important to the success of the organisation’s projects. Further, the organisation uses external consultants occasionally to help inform decision-making when the need arises.
The organisation also uses the balanced scorecard model to inform important decisions that relate to project management. Balanced scorecard model, as developed by Kaplan and Norton, is an important tool for monitoring, measuring, and guiding performance in an organisation (Hooley et al., 2007). Unlike traditional measures of organisational performance that focused solely on financial performance, the model allows managers to understand how their organisations are performing in their industry (Mullins, Walker, & Boyd, 2009). The scope of the model includes performance measurements in four areas, including financial performance, satisfaction (customer/Stakeholder), efficiency (internal business process), and knowledge and innovation (organisational capacity) (Holden, 2005). The key areas of application of the balanced scorecard are also of great importance to Emirates Airline & Group and hence the application and use of this decision-making tool to inform decisions at the organisation.
The organisation utilises the project management information system (PMIS) decision-making tool to guide the process of choice building for projects. The use of PMIS is a globe-wide practice for successful organisations and settings in multi-project environments. It helps project managers to make the best out of the available decision-making information (Caniels & Bakens, 2012). At Emirates Airline & Group, the use of PMIS is of great importance, owing to the diversity of the business interests that the group focuses on. PMIS has become a comprehensive system in its application in decision-making. It is widely used in support of the entire project lifecycle in terms of planning, organising, control, reporting, monitoring, and evaluating the project success (Raymond & Bergeron, 2008).
By being able to identify the right information in terms of accuracy, relevance, and reliability, PMIS helps organisations to have a competitive advantage in a highly competitive global market arena (Project Management Institute, 2013). The organisation also uses the Decision Support System (DSS), which is a software-based platform that helps manage and guide information to the relevant persons to help in the decision-making process (Project Management Institute, 2013). The senior management team at Emirates Airline & Group understands the complexity of the aviation industry. Hence, its use of decision-making tools has consistently put it in the path of growth and profitability.
Emirates Airline & Group has well-established policies and procedures that guide the decision-making process. The policies relate to the core areas of project management that include project identification, scope, time management, cost management, quality management, human resource, communications, risk, and stakeholder management (The Emirates Group, 2013). In each of the key areas of a project, there exists a clear policy on separation of powers and roles. It ensures that responsible people are actively engaged in their respective areas of responsibility (The Emirates Group, 2013). Such an approach ensures that there is the participation of more people in terms of coming up with ideas and consequently well-thought-out decisions that can be implemented in the organisation with a higher probability of success (Kahura, 2013).
Reliance on decision-making tools is of great importance since it ensures relevant and accurate information for decision-making processes, which effectively minimise the implementation of wrong decisions that may jeopardise otherwise well-intended projects (Raymond & Bergeron, 2008). However, it is worth noting that for projects that may have far-reaching repercussions on the organisation, direct involvement of the senior management is a requirement at the Emirates Airline & Group (The Emirates Group, 2013). Such well-established policies and procedures on decision-making ensure that the organisation is able to minimise risks whilst to reduce the costs of projects and to maximise project effectiveness and success of the organisation’s strategic goals.
Assessment of Project Decision-Making at Emirates Airline & Group
In a world where organisations are adopting new strategies to gain a competitive advantage over their competitors, it is important for them to ensure that their project decision-making processes are relevant to the competitive environment where the organisations operate (Mullins et al., 2009). Without a good criterion for assessment, organisations are likely to use outdated decision-making processes and tools that are likely to be jeopardising their capacity to compete fairly with other organisations in their respective sectors of business (Holden, 2005). It is important for an organisation to identify industry trends and use them effectively to gain a competitive edge over others. As such, the organisation must continually evaluate their project decision-making through benchmarking to help identify and adopt the industry’s best practices (Hooley et al., 2007).
The use of benchmarking and best practices involves comparing an organisation’s business practices and performance measures to the industry’s finest rehearsals from other companies and using such information to improve in areas where there is a lag (Hooley et al., 2007). While companies such as Emirates Airlines & Group have internal measures of ensuring internal performance excellence, benchmarking and best practices allow an organisation to use external performance data and information to improve its perception of excellence (Project Management Institute, 2013).
Consequently, using this assessment method of performance, an organisation is able to make timely decisions to help in its efforts of gaining a competitive advantage (Holden, 2005). There are three areas of performance that the method of benchmarking and best practices assessment measures. They include quality, time, and cost (Raymond & Bergeron, 2008). At Emirates Airline & Group, the measures of benchmarking and best practices are applied in four key areas that include internal processes, competitiveness, the functionality of different processes, and comparison with organisations in an unrelated industry.
Firstly, in the internal processes, Emirates Airline & Group strives to ensure that it provides excellent services in terms of quality and efficiency. Further, while quality and efficiency may mean increased costs in many organisations, at Emirates, the organisation strives to ensure that its processes are cost-effective. For instance, the organisation has a well-established human resource department, which ensures that training programmes of employees are relevant to the prevailing industry trends (The Emirates Group, 2013). Such efforts ensure that the staff members are able to offer high-quality services that align or are above those that are offered by other world’s leading airlines. The training ensures no delays due to customer dissatisfaction or process failure that leads to more customers being served or more processes being completed. Therefore, training saves the company costs and hence better revenues.
In terms of competitiveness, the company uses benchmarking and best practices to ensure that it maintains a competitive advantage over other airlines. In the sector, competitiveness may relate to the reliability of the airline, quality of services that are offered to customers, cost-cutting measures that are applied to reduce overheads from the maintenance of the fleet, licences, fuel, and other areas that the airline spends its revenues.
At Emirates, the organisation compares its competition practices with other airlines to ensure that it not only adheres to the best practices in the industry but also that such practices are within the legal frameworks of the industry (Caniels & Bakens, 2012). For instance, while the organisation offers cheaper airline tickets for popular international destinations, this case does not mean that it compromises on the quality of its services. Consequently, the organisation is able to attract and maintain a high number of customers. Another area of competitiveness is evident through its use of high-capacity aeroplanes in its fleet as a way of ensuring that it increases its capacity whilst reducing the number of aeroplanes that land and/or take off in crowded airports such as Heathrow Airport where the costs of landing and taking off are prohibitive (Emirates Group, 2014).
The use of project tools such as the PMIS and Decision Support Systems are also important processes through which Emirates Airline ensures that its decision-making processes are effective and relevant in advancing the organisation’s strategic goals. Upon using Project Management Information System (PMIS), the organisation is able to ensure that it has the relevant information to guide decision-making in each step of a project implementation process (Emirates Group, 2014).
The organisation’s comprehensive Project Management Information System gives it a competitive advantage over others in different areas. Firstly, due to the effectiveness of the PMIS, the organisation is able to have high-quality information output that allows the making of timely, effective, and relevant decisions that help it achieve the goals of its projects whilst maximising its overall quality, timeliness, and cost-effectiveness of processes and services (Raymond & Bergeron, 2008). Secondly, the use of an effective PMIS system at Emirates Airline leads to a positive impact on project managers. For instance, it leads to high levels of motivation and sound decision-making and thus, better project management and superior results (Caniels & Bakens, 2012).
The use of Decision Support System (DSS) complements Project Management Information System by ensuring that information is arranged in a manner that is easily accessible to decision-makers during the decision-making process (Caniels & Bakens, 2012). At Emirates Airline & Group, the use of DSS ensures that all information relating to other projects is pooled together for easy access. The system ensures that project managers have access to financial information, resources, and asset information.
Suggestions for Improvement
The global business environment is changing fast, with new competition situations arising and changing the rivalry environment. Therefore, it is important for organisations to avoid staying in the comfort zones by relying on the same processes of doing business over time. Organisations must be ready to revisit their business strategies and revise or adopt new ones that are relevant to the prevailing market conditions (Holden, 2005). For instance, in the airline industry, new aircraft that are more fuel-efficient, faster and with low maintenance costs are being developed. It is important for airline companies to adopt such aeroplanes to reduce costs that are incurred in fuel and maintenance as a way of increasing revenues.
Despite the enormous success of the Emirates Airline & Group in its various businesses, there is room for improvement to ensure that the organisation remains on its path to becoming the world’s largest airline. Firstly, it is important to note that the organisation’s top leadership rarely changes. This observation may be a problem, despite the group’s current success under the present leadership. Such a decision may help the organisation attract new ideas from new talents that enter the senior management team.
Secondly, while the company has been voted the best airline in the world, there is increased competition from other players from the Middle East such as the Etihad and Qatar Airways that are also among the best in the world. They pose a greater challenge to the success of the Emirates Airline & Group than any other airline in the world. For instance, the Emirates Airline & Group follows Qatar and Etihad’s in-flight catering services in all classes. Therefore, the airline may need to improve its catering and in-flight customer services, among other areas, to ensure that it maintains its competitive advantage over its closest competitors who are keen on exploiting its weaknesses.
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