Title: Flexibility challenges in the project-based industry: towards a 'balloon organisation'

Authors: Maqsood Sandhu, Petri Helo

Addresses: University of Vaasa, P.O. Box 700, FIN-65101 Vaasa, Finland. ' University of Vaasa, P.O. Box 700, FIN-65101 Vaasa, Finland

Abstract: Project-based organisations are often faced with the challenge of having many projects at certain times and very few at other times. In terms of resource management, flexibility is a key issue. The requirement for flexibility can be compared to a balloon – that is, an organisation needs to be able to expand and contract according to the types and sizes of its projects at any given time. A review of flexibility and project management literature was undertaken and a case study was developed to describe the managerial aspects of resource management in project business. This paper discusses the concept of |balloon organisations| in project management and explores how firms can incorporate operational flexibility into project management. The paper suggests applying flexibility measures and real option type of valuation for required flexibility.

Keywords: balloon organisations; flexibility; multiproject management; option theory; resource dependency; project-based organisations; resource management; project management.

DOI: 10.1504/IJSOM.2008.017429

International Journal of Services and Operations Management, 2008 Vol.4 No.4, pp.441 - 459

Published online: 07 Mar 2008 *

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