On productivity in project organizations

Purpose – The purpose of this paper is to look at the underlying unit cost considerations in project conduct at the firm level and an established business unit concept is extended to multi‐project organizations. The approach and background are described along with apparent implications. Design/methodology/approach – The methodology developed by Gold is extended to cover multi‐project organizations. The adaptation of the productivity network is demonstrated using a hypothetical case. Findings – The focus of the paper is on demonstrating an approach. Generally, productivity in an organization is found not to be dictated by a single input, but by the multiplicative outcome of each together. In particular, the number of projects handled each year appears to be of strategic importance in productivity. Research limitations/implications – The paper is conceptual, so applicability depends upon the nature of the particular organization to which it is applied. Implications, of course, will depend upon the degree to which actual data match the model. Practical implications – The approach permits managers to get a handle on productivity in their organizations. It is particularly attractive insofar as it largely depends upon available accounting information for input. This paper seeks to fuel greater interest and debate by practitioners and project management academics about the topic. Originality/value – Although the paper is conceptual, the authors believe that it may among the first to quantitatively treat productivity in multi‐project organizations. The approach can be used to understand the productivity as well as some elements of effectiveness of multi‐project organizations.