Project management is always a complex and challenging task requiring effort and multiple interrelated activities. This indicates that the effective operation of any company directly depends on the competent management process and the methodology used. Therefore, this research aims to study the internal features of project management in Telstra company and compare them with alternative approaches in management to improve the quality of task performance. To accomplish this, the company evaluated the tools used by the firm and suggested the possibility of improving them or introducing other possible approaches to project activities.
Telstra is a full-service telecommunications and information technology company that competes in all sectors of the telecommunications market in Australia. It delivers end-to-end solutions globally, including managed network services, global connectivity, cloud and voice solutions, colocation, conferencing, and satellite solutions. Due to this number of tasks, the company is engaged in many projects, but not all are successful. Therefore, a qualitative analysis of the tools used by the company was carried out, and the alternative of using a more flexible approach was proposed. Moreover, as a consequence of the work performed, it can be concluded that it is necessary to continue to use system approaches as the most appropriate strategy for the telecommunication company.
Introduction
Each company has its development strategy and the goals it generates, which are formed into individual projects. It is crucial to understand how they differ from the organization’s daily activities and must be adapted to the specific conditions and environment. First of all, this refers to the fact that each project has its own unique goal and time constraints to achieve it. Secondly, the project tends to end having reached a predetermined goal, and everyday actions have infinite character, and their purpose is to maintain the ordinary course of business.
There are many uses for project management tools, and this report aims to analyze their use at Telstra. Moreover, the purpose of the assignment is primarily to evaluate the existing management approach in order to propose alternatives that could lead to better performance. For this purpose, the report will mainly use a systematic approach, possibly using another chosen according to the context. Project management is a whole science that has overgrown the body of knowledge, rules, and standards. However, it is essential to understand that any company should implement several approaches to effective project management to fulfill them qualitatively. Therefore, it is necessary to conduct a critical analysis of Telstra’s techniques to consider possible alternatives. For this purpose, the management of resources, time, price, and volumes will be carried out to comprehensively assess the management process and realize all the pros and risks of the applied tools.
Background and Environment
Currently, telecommunications is actively developing, with a high interest in these services on the part of the population, which predetermines the formation of a significant number of players in the market, both large and small in size, which expand the sphere of telecommunications services on a qualitative and quantitative level. In telecommunications services, the infrastructure, without which no project can be implemented, is of the most significant importance, so telecommunications companies’ creation, operation, and modernization are essential components. However, the creation and improvement of infrastructure is a complex task in project management, as it includes many factors that complicate effective decision-making. Among such factors are the following: high market dynamics, scalability, and flexibility of the designed system, limited resources, large volume of statistical information characterizing expectations among customers, etc.
Despite the relevance of strategic and operational management of projects in telecommunications-related to the creation and improvement of infrastructure, there are currently difficulties with applying tools for the operational and strategic direction of such tasks. Existing projects are implemented mainly due to the experience of managers who have previously participated in similar projects (Cooper and Sommer, 2018, p. 19). In this regard, it seems appropriate to review the current approaches and tools of telecommunication projects to improve them and increase the efficiency of service quality.
Scope Management Actual Approach
The company uses a non-traditional approach to project management. Agile is very different from more traditional project management methods in that it is not used for pre-planning a project. Agile methodologies do not take a linear approach to plan but instead use iterations and break the project into sprints. Detailed planning is done only for the closest sprint, and the following sprints are subject to change. Sprints typically last two to four weeks, and each sprint must result in a specific outcome (Auth, JokischPavel and Dürk, 2019, p. 29). The project can be done using various Agile tools, and it can be used to work on any complex task. Still, it is best applied to projects focused on developing a specific product rather than delivering a service.
Agile methodologies were created for software development projects but can be used in many other industries. It demonstrates the best results when project-related constraints are not completely clear, and stakeholders are willing and able to work with flexible scope, schedules, and estimates. The tools allow for much faster product development and meet the client’s needs (Figure 1). It also provides a quicker response to changes and unexpected problems, resulting in less rework and a higher quality final product.
Moreover, the customer is constantly updated on the progress of the work, which leads to higher levels of engagement and satisfaction and the formation of long and strong relationships. While Agile methodologies have many benefits, they are not suitable for every project. To understand what constitutes an Agile approach to project management, one needs to know when it should not be used. It can be challenging for managers and clients to approve and maintain projects for which precise schedules and estimates are not in place and the exact scope is not defined. Executing Agile projects also often takes more time and effort, as many methodologies require daily meetings and constant interaction with the client.
Scope Management Alternative Approach
As an alternative approach, we can offer the application of a kanban methodology, which has no complex rules or restrictions. That is why it is used in many different areas, including telecommunications. A kanban system is built so that the team concentrates on one particular task even though there can be several of them (Al-Alawi and Al-Bassam, 2019, p. 284). At the same time, the manager can change the priority of work without affecting the work process. Once one task is completed, the team proceeds to the next. Kanban methodology allows one to track the work process, optimize its duration, and predict the time it will take to complete future tasks. Multitasking reduces the quality of work and slows down progress.
The more unresolved tasks hang up, the more often one has to switch between them. The kanban method and its tools minimize stagnation because it helps quickly identify weaknesses. It allows one to reduce the time spend on the task and improve the quality of the result. One of the main advantages of process management using the kanban method is that it is easier to identify problems and eliminate them when all team members have access to the assigned tasks and progress results.
Therefore, it is best to have no more than ten people in one team, ideally five. If a job requires too many people, one should divide them into small groups and create a separate kanban system for each. The main difficulty is to explain to people at all levels the value of Kanban practices: visualization and limiting unfinished work (Al-Alawi and Al-Bassam, 2019, p. 284). That is because people do not see the amount of intellectual labor; it is difficult for them to understand the strain they are under.
Time Management Approach
Time management is defined as the amount of time spent on a project and the amount of progress achieved. This is one of the most critical aspects of project management and one that most project managers care about. If even one task stalls the processor goes beyond the deadline, it will ripple through the course of the entire project. Therefore, the company needs a way to monitor the project schedule to make sure tasks are completed in the correct order and deadlines are met. Project management in a company is based on a structured approach using a Gantt chart. It allows to plan missions in the proper order and identify any dependencies that team should be aware of.
Moreover, using a Gantt chart increases project reliability because it clearly illustrates the domino effect when even one task fails. Gantt charts are great for showing the amount of time a particular project (and related tasks) will take, but the information in the chart is lacking when it comes to allocating all the resources involved (Chawla et al., 2018, p. 159). This means that diagrams can be a very deceptive way to manage resources. It is essential to understand that the primary purpose of the Gantt chart is to show only time, but not necessarily other vital data, such as project scope and total cost, which is a disadvantage for telecommunication applications (Figure 2). For example, tasks represented by shorter bars on a Gantt chart take less time, but at the same time, they may require more resources in terms of additional team members, necessary equipment, or budget (Haeruddin et al., 2020, p. 78). Therefore, while this tool is helpful for planning, it is not beneficial in tracking resources.
Time Management Alternative Approach
Throughout the history of human civilization, many complex and, at first glance, impossible projects have been implemented that required the collective work of thousands of people of different professions. Time management always implies the implementation of complicated project management systems and the usage of various tools for increasing of efficiency. Not all companies implement projects of enormous scale, but many professions imply work with project management in one way or another (Piras et al., 2021, p. 138). The main thing for the telecom is the activity to achieve the goals and objectives of the project, which are implemented within a specific budget and time.
Since all projects have their own nuances and may differ from each other in size, budget, and time for implementation, management tools and methods will also be different. It should be said that to date, there is no such system or tool for project management which would suit every manager or team member (Li and Wang, 2019, p. 74). However, there is an idea of the most effective methods and tools that can be used as an alternative. These include the Eisenhower Matrix, as it is a workflow management method that gives one a visual representation of how tasks are performed.
It is designed to simplify life and give a high degree of clarity as to how the team is working at all times. This method can also be used in more complex processes where additional columns are needed to cover areas such as references and customer feedback (De Rezende and Blackwell, 2018, p. 36). It allows one to see very quickly if any difficulties appear in the process. At the same time, its main limitation is that the tool is ineffective in long-term planning, which is especially important in the field of communication.
Cost Management Approach
The high percentage of service penetration and competition lead to a slowdown and even a negative trend in revenue growth. At Telstra, this manifests itself in a drop in revenues from telephony. In such a situation, the search for internal reserves to increase efficiency is vital for the company. The optimization approach improves processes and schemes of work with suppliers, refuses to incur unnecessary costs, and reduces personnel. It is also possible to use new tools to work with products and prices. The company uses Big Data tools for these purposes. First, they are applied to the subscriber base: predictive models are used to offer products based on the subscriber’s past behavior. This saves money on advertising, contact centers, and promotions.
Big data tools allow for reasonably high-quality forecasting and cost optimization through a detailed examination of problems in processes. With project costs, everything is more complicated: projects bring a negative financial effect at the initial stage, and the timing and results of assignments are challenging to predict. Therefore, projects that are associated with the generation of income and paid back in a reasonable time and capital projects are implemented in the first place. Relatively low quality leads to the fact that when approving the budget, it is possible to increase the limit of projects for which they are willing to potentially open financing during the year by 10-15% of the expected (Buganová and Šimíčková, 2019, p. 989cha. However, this approach works for a set of small projects, regardless of their structure.
Cost Alternative Management Approach
The successful functioning of telecommunication companies and their achievement of strategic advantages in market conditions largely depend on their innovative activity, novelty, and commercial success. It actualizes the analysis of the investment project in the aspect of the possible realization of creative ideas, which is defined by several factors, including the elements generated by formal institutes in which organizations function. The main factor that determines investment decisions is the risks that accompany the activities of a telecommunications company.
Leaving aside commercial risks, the following two conditions that determine the attractiveness of investment in telecommunications innovations can be singled out: national specificity and government regulation. National specificity risk is determined by factors affecting the entire economy, such as inflation rates and currency risks, and general political stability. Therefore, an alternative approach to managing the price of a project can be instituted to reduce the risk arising from the actions of governments. Political and economic decision-makers often have diverse capabilities in the telecommunications industry, but these capabilities encourage redistribution activities rather than wealth production. Adopting an institutional approach can avoid these problems, and projects can be better implemented.
For this purpose, it is also possible to implement CVP-analysis – an analysis of the results of the enterprise based on the correlation of production, profit, and costs, which allows for determining the relationship between costs and revenues at different volumes of production. It is beneficial because it will enable to competently assess the company’s capabilities and calculate the break-even points. The application of CVP analysis in enterprises has several limitations: all costs can be considered either fixed or variable. It also assumes that the unit price is constant and production volume is the only factor affecting changes in costs and revenues, which does not allow for achieving all the evaluation objectives.
Quality Management Actual Approach
Quality management is no longer a purely technical discipline and a specialized work area. It encompasses all areas of management, and the final (quality of goods, services, and processes) depends to a large extent on how these or those areas of work are organized. Telstra’s approach to quality management is centered around advocating the development of genuine customer orientation, teamwork, and cooperation between divisions (Chawla et al., 2018, p. 159). It also includes trust in standards and measurement, a system of rewards and recognition of good performance, and a long-term commitment to a proactive quality improvement process.
The company’s management needs reliable information about various aspects of the business to support decision-making. The quality of control, the ability to plan effectively, and survival in a fiercely competitive environment depend on it. At the same time, visibility of forms of presenting information, speed of obtaining new types of reports, and the ability to analyze current and historical data are critically important. Information infrastructure audit serves to assess the state of the company’s information infrastructure and develop methods to achieve compliance of this state with business needs (Armenia, S. et al., 2019, p. 2664). This tool provides insight into the correspondence of its condition and development to the business’s specific individual tasks and goals as a whole.
The main drawback of the existing standards is an incomplete description of the audit of individual elements of the information infrastructure. These gaps are filled by equipment manufacturers, consulting companies, and system integrators. The audit is also necessary for conflict between the customer and the contractor to implement the application system because it helps identify the source of problems. This reduces the risk of issues in the implementation of infrastructure and stimulates bringing the equipment in a condition in which the specified requirements will be satisfied.
Quality Management Alternative Approach
Project quality management uses a vast arsenal of methods and tools. For effective activity, it is essential not to be limited solely to classical instruments but also to actively resort to modern and innovative ones. Despite this, telecommunication projects are almost always based on a structured approach to solving project quality improvement problems. It involves conducting a thorough analysis of project problems, identifying potential causes, and making possible solutions, and is therefore essential (Vares, 2020). An alternative approach can rely on specific data rather than on the opinions of project participants, which will eliminate the possibility of subjectivity and allow project team members to focus on the main problems without being distracted by secondary issues.
The advantages of using this approach are that it is structured and straightforward. This approach helps develop relationships in the project team and allows its members to learn more about each other and the organization. Its application is the only possible option in this case, but the approach assumes many alternative tools. Therefore, the main effect of the quality improvement plan method is always to simplify project processes while improving quality (Silvius and Schipper, 2020, p. 8). A Pareto diagram can be a qualitative alternative tool. It is a bar graph of several columns showing the frequency of causes of problems.
Its main advantage is that the cumulative frequency curve shows the relative severity of problems and identifies where there is room for improvement. This is especially true in an industry that continually needs to improve its services and attributes. A properly constructed Pareto histogram identifies 20% of the most frequent quality defects, and it can remove 80% of the quality problems (Chawla et al., 2018, p. 159). However, it is also important to note the possible disadvantages of the diagram, which can be defined as a consequence of the advantages. Due to the prioritization of essential points, less significant problems of communication or ineffectiveness of Internet services, which also impact the project, are lost (Svejvig. 2021). Moreover, the Pareto curve is only valid for determining or identifying the root causes of a problem, but its application will not comprehensively solve the difficulties.
Findings and Recommendations
The relevance of the chosen topic is obvious; at present, the telecommunications company is experiencing a new stage of development. Federal telecom operators are enlarging their business by mergers and acquisitions of regional and local providers, creating partnership programs and co-branding services, combining brands, and developing new products not previously presented in the telecom market. In conditions of companies’ limited resources and daily growing competition, it is necessary to keep up to date to introduce modern standards, such as project management. In the domestic telecommunications sphere, little is known about project management.
This may be since project management in telecommunications companies began to be implemented quite recently. As part of this research, an analysis of project management in the company Telstra was conducted, and a comparative analysis of project management features with alternative methods. As a result, the study’s goal was achieved – alternative measures to improve project management in a telecommunications company were developed. The scientific novelty of the work lies in the fact that the expanded set of steps to improve project management will help identify risk areas of telecommunications companies, effectively use the resources of the enterprise, and optimize project management to achieve leadership positions in the telecommunications market. Considering the theoretical and practical aspects of the studied area, it is possible to come to several conclusions.
The company applies rather qualitative approaches to project management. Still, in the conditions of tough competition and constant complications of society’s needs, it is recommended to use more flexible management methodologies. For this purpose, it is also essential to include the project office in the company’s organizational structure as a priority structural subdivision. Both approaches are equally effective, but it is crucial to combine their capabilities to achieve the best results.
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