I NTEGRATING M ANAGEMENT S YSTEMS : A
C OMPREHENSIVE A PPROACH FOR A MALGAMATING THE
E NVIRONMENTAL & P ROJECT M ANAGEMENT S YSTEMS
J ACOB H. D ORNBOS
K AREN L. W ALSHE
D EGREE OF M ASTER T HESIS (1 YR ),
S TOCKHOLM , S WEDEN 2013
- ii -
A BSTRACT
Current business thinking dictates the need to move away from segregated management systems and towards a more assimilative style of management. The concept of an integrated management system is gaining substantial popularity and is being applied extensively across industries. This thesis investigates an under-examined subsection of the integrated management system: The intersection of the organization’s environmental management system and its project management system. Industry standards, professional organizations’ documentation and academic literature are analysed and recommendations are aimed at the integration of these areas. Concurrently several case studies of industry leaders are carried out in order to evaluate this area of integration in business practices.
This assessment is focused on a systems level and is structured around the Plan-Do-Check-Act cycle, alongside the common components of management systems. Under this framework we attempt to gather the best practices for integrating environmental management with project management in order to achieve optimum efficiency and goal achievement for both systems.
- iii -
- iv -
A CKNOWLEDGEMENTS
We thank the people at Atlas Copco and AbbVie for allowing us to interview and analyse their organisations. Additional thanks go to our supervisor Rolland Langhè for a wonderful year at KTH.
l
- Jacob H. Dornbos & Karen L. Walshe
- v -
- vi -
T ABLE OF C ONTENTS
PART I
1. INTRODUCTION 1
1.1 S ITUATION G LOBALLY 2
1.2 T ARGET G ROUP & A DVANTAGES 3
1.3 E XPAND P RESENT K NOWLEDGE 3
2. GOALS & SCOPE 3
2.1 G OALS & E XPECTED R ESULTS 3
2.2 S COPE 4
2.3 S COPE E XCLUSIONS , C ONSTRAINTS & A SSUMPTIONS 6
3. METHODOLOGY 6
3.1 R ESEARCH Q UESTION 6
3.2 T YPE OF S TUDY : I NDUCTIVE 7
3.3 M ENTAL M ODEL 7
3.4 S TUDY T ECHNIQUE : H YBRID C ASE S TUDY /I NTERVIEW 7
3.5 K EY TOOLS TO BE USED 8
PART II
4. MANAGEMENT SYSTEM 9
4.1 I NTEGRATED M ANAGEMENT P ERSPECTIVE 9
4.2 T HE EMS PERSPECTIVE 10
4.2.1 ISO 14000:2004 10
4.2.2 T HE E UROPEAN E CO -‐M ANAGEMENT AND A UDIT S CHEME 13
4.3 T HE PMS PERSPECTIVE 14
4.3.1 PMBOK
®-‐ 5
THE DITION 15
4.3.2 ISO 21500:2012 & ISO 10006:2003 15
4.3.3 O THER T RADITIONAL A PPROACHES 16
4.4 R EFLECTION 17
5. LITERATURE STUDY 17
5.1 I NTRODUCTION 17
5.2 L EADING A UTHORS 18
5.3 L EADING P UBLICATIONS 18
6. CASE STUDIES 22
6.1 A BB V IE 22
6.2 A TLAS C OPCO 25
6.3 R EFLECTION 27
- vii -
PART III
7. ANALYSIS & EVALUATION 28
7.1 Q UALITATIVE E VALUATION 28
7.2 PDCA F RAMEWORK 30
8. DEDUCTIONS & CONCLUSIONS 39
8.1 R ECOMMENDATIONS 39
9. FUTURE RESEARCH 40
10. REFERENCES 41
11. APPENDIX 44
A PPENDIX A: PMI 42 P ROJECT M ANAGEMENT P ROCESSES 44 A PPENDIX B: P5 F ULL A PPROACH TO S USTAINABILITY 45
A PPENDIX C: F ULL F RAMEWORK O VERVIEW 46
- viii -
T ABLE OF F IGURES
F IGURE 1: I NTERNAL AND E XTERNAL STAKEHOLDER PRESSURES TO ACT RESPONSIBLY ... 2
F IGURE 2: T HESIS PROJECT METHODOLOGY OVERVIEW ... 8
F IGURE 3: MANAGEMENT SYSTEMS FRAMEWORK BASED ON BSI & ISO STANDARDS ... 10
F IGURE 4: T HE EMAS FRAMEWORK AS AN EXTENSION OF THE ISO14001 EMS ... 13
F IGURE 5: F RAMEWORK FOR THE PMI PMBOK
®PROJECT MANAGEMENT SYSTEM ... 14
F IGURE 6: T RIPLE B OTTOM L INE V ENN D IAGRAM ... 19
F IGURE 7: PR I SM M ETHODOLOGY ... 21
F IGURE 8: I MMATURE & M ATURE M ANAGEMENT S YSTEMS ... 30
T ABLE OF T ABLES T ABLE 1: T EMPLATE TO BE FILLED IN ONCE COMPANIES ARE CONFIRMED ... 6
T ABLE 2: O VERVIEW OF THE ISO14000 SERIES STANDARDS STUDIED IN THIS THESIS PROJECT ... 11
T ABLE 3: C OMPONENTS OF THE ISO 14001 FRAMEWORK FOR AN EMS ... 11
T ABLE 4: T HE ICB
®PROCESS STEPS FOR ENVIRONMENTAL CONSIDERATION IN PROJECTS ... 17
T ABLE 5: I NTEGRATING SUSTAINABILITY PRINCIPLES WITH PROJECT MANAGEMENT ... 19
T ABLE 6: E XCERPT FROM GPM
®5P™ APPROACH TO SUSTAINABLE INTEGRATION ... 20
- ix -
D ESCRIPTION OF T ERMS
For the purpose of this report the following terms, definition and abbreviations apply. Where applicable they have been kept consistent with ISO descriptions.
British Standards Institute
A national standards body based in the UK
NOTE 1 abbr. BSI
Environment
Surroundings in which an organisation operates, including air, water, land, natural resources, flora, fauna, humans, and their interaction
NOTE 1 Adapted from ISO 14001:2004, 3.5
Environmental Impact
Elements of an organisation's activities or products or services that can interact with the environment to cause adverse or beneficial change to the environment
NOTE 1 Adapted from ISO 14001:2004, 3.6 & 3.7
Environmental Management System
Part of an organisation's management system used to develop and implement its environmental policy and manage its environmental impact
NOTE 1 Adapted from ISO 14001:2004, 3.8 NOTE 2 abbr. EMS
Green
Being “green” is a universal cultural term interchangeable with the term “environmentally friendly”. It is used to describe anyone or anything supporting, advocating, or in activism in mitigating the impact of human industrial development and the damage of previous degradation of the environment
NOTE 1 Adapted from urbandictionary.com, fifth entry for “green”
Greenwashing
A term describing a misleading or deceptive practice of putting an angle on activities to make them appear environmentally beneficial when they are not and are instead motivated by the potential to increase profit
NOTE 1 Derived from Maltzman & Shirley
Green Project Management
Is an emerging style of project management that aims to incorporate environmental thinking across the project management lifecycle
International Organisation for Standardisation A global leader in developing standards
NOTE 1 abbr. ISO
Life Cycle Assessment
An assessment of the environmental impact a product will have throughout its entire duration; from
raw materials to disposal
- x -
Management System
A set of interrelated elements used to establish policy and objectives and to achieve those objectives. Includes organisational structure, planning, activities, responsibilities, practices, procedures, processes and resources
NOTE 1 Adapted from ISO 14001:2004, 3.8
Procedure
Specified way to carry out an activity or a process, documented or not
NOTE 1 Adapted from ISO 9000:2005, 3.4.5
Process
Set of interrelated or interacting activities that transforms inputs into outputs
NOTE 1 Adapted from ISO 9000:2005, 3.4.1
Project
A unique set of processes consisting of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective accomplished through processes
NOTE 1 Adapted from ISO21500:2012 3.2
Project Management
The application of methods, tools, techniques and competencies to a project
NOTE 1 Adapted from ISO21500:2012 3.3
Project Management Institute
Global Leader in project management, not-for-profit professional membership association
NOTE 1 abbr. PMI
Project Management System
The framework an organisation uses to control projects, individually or as part of programmes. The PMS includes the methodology for execution of projects as well as procedures for their selection, monitoring and interaction with the rest of the business operations
NOTE 1 abbr. PMS
Social Responsibility
The responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that contributes to sustainable
developments, including health and the welfare of society
NOTE 1 Adapted from ISO 26000:2010
Sustainability
The balance between economic growth and social wellbeing; often expressed through the triple bottom line (people, planet and profit)
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
NOTE 1 ISO 26000:2010 2.1.23
- 1 -
P ART I
Comprise the thesis project’s context and process of development details
1. I NTRODUCTION
Maximising efficiency within organisational operations through integrating management systems is an active research area and a task many organisations are continuously striving to improve upon (Chartered Quality Institute CQI). Management systems should support the strategy of an organisation and their processes aligned such that they drive organisational goals (BSI PAS 99). The interfaces between the different management systems are losing their sharp boundaries and an integrated approach to management has come to be seen as best practice.
Environmental management is becoming an imperative aspect of an organisations overall business activities (LaBrosse 2010). No longer are companies only responsible for their immediate processes, they are being held accountable to take the whole supply chain under consideration (Esty & Winston 2006).
This is the “cradle to grave” approach, considering both contractors/suppliers as well as product end users: to buy, be and sell green (as stated by Maltzman & Shirley 2012).
Environmental strategy is becoming increasing prevalent for sustainable business continuity and the majority of organisations, have or are building, a formal or informal environmental management system (EMS) (Hortensius 2013). Several international standards for an EMS are available and discussed in detail in Section 4.
Project management is a methodology used across almost all industries for achieving unique goals or endeavours, yet is complementary to “business as usual”
operations (PMI PMBOK
®). Companies have
come to tailor the available project management methodologies to fit their organisational needs and to form their own project management system (PMS). As of 2012 an international standard for the project management methodology has been developed by ISO. However as of yet, there exists no international standard for a project management system. This is postulated to be due to the fact that the nature of project management needs to involve tailoring to the organisation in question. However, individual organisations do have a project management system once they start to apply a standardized approach to projects. The common concept of a project management office (PMO) often exists to standardise the PMS (PMI PMBOK
®Guide) as well as to handle cross project issues.
Currently it is the case that the EMS sits very much separately to an organisation’s PMS with corporate social responsibility efforts isolated from operations. (Porter & Kramer, 2006). This is reminiscent of how quality work used to be 50 years ago until it was recognised, during the quality revolution, that quality only comes to its maximum efficiency and effectiveness when it’s integrated and inbuilt across the organisations entire operation. Thus total quality management (TQM) was born (Kanji 1995). We propose the same for environmental sustainability work: which is that it needs to be further integrated with daily project methodology and inbuilt in processes across the organisation.
We propose that this is best achieved by
integrating the environmental management
system with the project management system
- 2 -
such that they are linked in the formal framework of the organisation for the most effective interface between the two working areas. To paraphrase the title of a 2012 PMI conference: “Sustainability and Project Management: The Future is Now.” The trend for going green is here to stay.
1.1 Situation Globally
Environmental risks are tangible, consistently increasing and widespread across all business areas. By environmental risk, we refer to both threats and opportunities, and in this paper will use the terms stated by Esty & Winston (Green to Gold, 2006) that business’ must act to both:
• Manage the downside: Those threats and costs from regulatory control, competitor advancement, resource use and eco- efficiency in value chain etc.
• Build the upside: Intangible value through corporate reputation and customer loyalty.
Capitalise on revenues from the green market space and promote innovation and eco-design.
In terms of stakeholders, the eye of the public now demands corporate responsibility, regulators demand adherence to ever growing legislation, and green smart competitors are getting ahead of the pack with proactive rather than reactive eco-policies (LaBrosse 2010). Organisations have slowly moved from primarily managing the downsides of their environmental impact to now understanding the opportunities that exist through proactively managing the upsides also. The drivers and pressure for change comes from all sides of the organisation and this paper will not argue the justification behind the attempt to control the organisations environmental impact. We make the assumption that today’s business leaders understand the importance of sustainability and even if they don’t feel compelled to act of their own accord, that the pressure of stakeholders who do, is enough to move any business to action. Figure 1 shows a sample environmental stakeholder map of which the modern business has to contend with regarding how green their organisation is.
Figure 1: Internal and External stakeholder pressures to act responsibly (adapted from Esty & Winston)
- 3 -
Green Project Management (GPM) is a relatively new term coined by Maltzman and Shirley in their 2010 book by the same name.
It was the first of its kind to link green initiatives to project management for projects that cross the so-called “rainbow of green”
spectrum (Maltzman & Shirley 2010) and it is a concept that is gaining momentum. That is to say that all projects, from those that are outwardly green with a environmental product such as installing a wind farm to those that are not in any way connected to a green initiative, can still adopt and execute a green project management approach in the project methodology (Maltzman & Shirley 2010).
A global certification possibility exists from the NGO accreditation body GPM Global who are partnered with the International Society of Sustainability Professionals.
Established in 2009, they developed a methodology entitled: PRojects integrating Sustainable Methods (PRiSM™), which incorporates process based project activities with the ISO 14000:2004 series on sustainability amongst other ISO standards.
The PRiSM project methodology uses a so- called P5™ approach to view and evaluate the project: People-Planet-Profit-Process-Product (further discussed in Section 5).
1.2 Target Group & Advantages The intended audience for this thesis is professionals for whom the knowledge created in this report can be used and applied in business.
This is a subject that is widely applicable and nearly all organisations need to consider environmental ramifications on one level or another. The target group is as such any organisation looking to improve in terms of business continuity, risk management, environmental strategy, management systems efficiency or corporate responsibility.
The possible advantages include:
• Increase exposure to upside opportunities- cut costs, enhance value
• Mitigate or eliminate downside threats-stay ahead of regulations & competitors
• Environmental stewardship - advantageous public relations, loyalty, brand image
• Increased efficiency of management systems and operations
• Long term planning in business continuity and risk management
1.3 Expand Present Knowledge This thesis can expand present knowledge by addressing the under-examined interface between Environmental Management and Project Management at a systems level. The thesis will bring to light the best practices from a number of leading sources in one place to provide an applicable framework for integrating these two systems effectively.
(See Expected Results, Section 2.1)
2. G OALS & S COPE
2.1 Goals & Expected Results The goals of this degree project are twofold:
Primary Goal
Analyse present knowledge with regards to the compatibility of integrating the Environmental Management System advocated by the ISO 14000:2004 series with the Project Management System represented by the PMI in PMBOK
®Guide.
Secondary Goal
Develop a framework to aid in achieving the
primary goal’s topic of integration by
identifying and amalgamating theoretical and
professional practices for consolidation and
unification of the management systems in
question.
- 4 -
Expected Results
We expect to produce a model of how the EMS and PMS can be integrated from both perspectives. That is to say, what should be included in the EMS to enable further integration with projects and also what should be included in the PMS to further incorporate the EMS. This model or framework is expected to be restricted to the level of the management system rather than in depth at processes and procedure detail level.
2.2 Scope Business Case
An organisation’s operations typically consist of several systems overlapping to different degrees of integration. The ideal organisation has tailored their separate systems to work together in an aligned framework in order to achieve the greatest efficiency and productivity to fulfil superordinate company goals and strategy. Integrated Management Systems is currently an active research area with many components and advocates of different methodologies.
We propose to study the integration of two specific management systems that have not been at the focus of integration until the 21st century. The Environmental Management System (EMS) and the Project Management System (PMS) are two systems that are most often executed in partial or total isolation of each other. Due to pressures from government, stakeholders, shareholders and the public, the majority of organisations have now become obliged to take corporate social responsibility to further heights. This includes efforts to manage environmental sustainability, and the practice of
“Greenwashing” is being exposed and is no longer acceptable (Maltzman & Shirley).
Up until recently it appears that the EMS, while positive in its efforts has been driven separately to the PMS. An analogy can be drawn with the way quality was handled in the past, as a separate side of the business.
With the concepts of total quality management alongside the pioneering work of Shewhart, Deming and Toyota quality has evolved to its current successful status as inbuilt within all levels and operations of the business (Kanji 1995). In recent years the case for the same approach for environmental strategy has been highlighted and development is being made to drive sustainability practices through the ground processes of an organisation and now through its projects.
Corporate Social Responsibility (CSR) is a collective term for an organisations attitude and actions contributing to sustainable development. The core subjects that CSR focus on are identified by ISO 26000:2010 (Guidance on Social Responsibility) as;
Human Rights, Labour Practices, The Environment, Fair Operating Practices, Consumer Issues and Community Involvement and Development. As such an organisations Environmental Management System is one aspect of its CSR role. ISO 26000:2010 provides some reasoning and guidance for the integration of these CSR core subjects across the organisations operations.
Integration of social responsibility is considered the most important behaviour to be addressed and should not be substituted with philanthropy (ISO26000: 2010).
“Because social responsibility concerns the
potential and actual impacts of an
organisation’s decisions and activities, the
on-going, regular daily activities of the
organisation constitute the most important
behaviour to be addressed. Social
responsibility should be an integral part of
- 5 -
core organizational strategy with assigned responsibilities and accountability at all appropriate levels of the organisation. It should be reflected in decision making and considered in implementing activities.”
- ISO 26000:2010, 3.3.4 Integrating Social Responsibility.
As such, our thesis project’s business case lies both in the aspects of integrated management systems as well as the realm of heightened focus on corporate social responsibility.
Scope Description
In this research paper we intend to investigate both the theoretical and practical attempts developed in line with integration of the EMS with the PMS. We will survey the current academic and professional theoretical situation and perform in depth case studies on several organisations practical efforts at integration. Through comparison of literature and real life examples we intend to evaluate the best practices for integration that are business applicable. We take the perspective of the overall management systems and focus on the areas that lend themselves to integration of EMS and the PMS to the greatest possible efficiency and performance.
Scope Deliverables
(i) Analysis of leading project management methodologies for the components of management systems integration and environmental references. To include:
• The PMI Project Management Body of Knowledge (PMBOK
®5
thEdition)
• The IPMA Competence Baseline
• The APM Body of Knowledge.
(ii) Analysis of leading international standards for management systems integration, environmental management and project management. To include:
• BS PAS 99:2012 Integrated Management Systems
• ISO 14000:2004 series on Environmental Management
• ISO 21500:2012 series on Project Management
• ISO 9000:2008 series on Quality Management
• EMAS III:2009 Eco-Management Auditing Scheme
(iii) Analysis of the fields of Sustainability in Business and Green Project Management (GPM). To include:
• GPM Global: PRojects integrating Sustainable Methods (PRiSM)
• Leading authors and researchers in the field of GPM
• ISO 26000: 2010 Guidance on Social Responsibility
(iv) Analysis of current organisational practices in the field on integration of the EMS and PMS. This is to be conducted through data collection by way of interviews at the organisations chosen as well as study of any literature or documentation that they may provide on their project methodology. (See Table 1) (v) Evaluation of theoretical knowledge and
data gathered from activities (i)-(iv). The evaluation of the analysis undertaken will pertain to best practices, methods and tools for integrating the EMS and PMS.
(vi) Qualitative modelling of resulting best practices under the management system framework.
(vii) Deductions and conclusions based on
the evaluation are to be presented.
- 6 -
Case Companies AbbVie Atlas Copco
Size
21 000 Employees 39 800 Employees Sector
Biopharmaceutical Industrial Manufacturing Location
Cork Ireland Nacka Sweden
Market
170 Countries 170 Countries
Persons
Interviewed Michael Touhy
Mark Phelan
Anna Haesert Anna Sjören Hanna Lindh
Table 1: Overview of the organisations that will be visited
2.3 Scope Exclusions,
Constraints & Assumptions Scope Exclusions
The study focuses of the methods and tools for integration of the EMS and PMS in particular and as such may exclude tools used within general systems integration. Neither does the study attempt any detailed description of particular processes, regulations or laws, which while relevant, are not the focus of this investigation.
Scope Constraints
This MSc Thesis project is constrained to the requirements as stipulated by KTH Royal Institute of Technology for a Masters Thesis of 15hp to be completed within the suggested time frame of 10 weeks. Reference will be made to further areas of research possible outside the scope possibilities of this project.
Scope Assumptions
This study does not argue the case for environmental management by organisations and includes no reference to the validity of opposition to climate change. This project
assumes the organisation’s understanding of the importance and benefits awarded by a mature and proactive environmental management programme.
3. M ETHODOLOGY
3.1 Research Question
What is the optimal framework for integrating the Environmental Management System with the Project Management System?
Using a qualitative approach this project aims
to improve the process of systems integration
in order to aid organisations efforts
specifically in the areas of environmental
management and project management. The
validity of the present level of knowledge is
not under analysis in this report. That is to
say, we are not challenging conventional
wisdom or methodology, but aim to add to
and expand upon it.
- 7 -
3.2 Type of Study: Inductive
The research question is intending to explore a new angle of research on a current area of business interest. Hence the overall approach to this project will be that of an inductive study. This will entail developing structured recommendations for the integration of the EMS and the PMS. As an inductive study we do not enter this thesis with any hypothesis. It is by way of data gathering and analysis that we will come forward to a hypothesis. That is to say that the data gathered provides a premise to which a conclusion is induced that is probabilistic.
The strength of the induced hypothesis (higher likelihood of truth) is dependent on extent of the data collected. In this sense the limitations to this study are (i) the amount of data gathering possible in the time allowed as well as (ii) the availability of data ascertaining to the specifics of the research question. The later is partially overcome by use of both primary and secondary data collection sources.
3.3 Mental Model
The methodology of this study will be two- part, and as such we will have a two stage mental model in our investigation. See Figure 2 for a graphical overview.
(i) Data Collection I - Secondary Sources: A systems approach is taken for investigation of the theoretical knowledge available. The systems approach is appropriate due to the objective reality nature of management systems procedures and requirements. The subjective recommendations of researchers and business professionals in peer-reviewed articles are considered objective reality for the purpose of this investigation. No perspective from a hypothesis is held during the data collection phase from
literature. The resulting data will lead to the formation of a hypothesis in the data analysis phase of the project.
(ii) Data Collection II - Primary Sources:
Empirical data gathering is conducted though a participative observational standpoint. This is appropriate for the interview style of knowledge gathering that we will conduct at the case companies.
Reality in this case will be a manifestation of human subjectivity on the objective reality. As interviewers we participate in the knowledge gathering and are as such embedded in the object.
(iii) Data Analysis: This is the interpretative stage of the project and as such is hermeneutical in nature. As an inductive study, it is at this point that the hypothesis is developed. In this case the best practices for integration of the EMS and the PMS are induced from a foundation in the literature and methods of execution utilised by companies. At participant observant mental model is also adopted during this phase of the study.
3.4 Study Technique: Hybrid Case Study/Interview
Case Study
We will analyse two organisations and
investigate their methods for integration. We
selected a case study technique so that we
may obtain an in-depth visual of how theories
are executed in practice. We intend to achieve
this through several interviews and document
analysis in each organisation. The level and
methods for integration of the EMS and PMS
are likely to depend on the industry area and
size of the organisation. We have thus chosen
to deal with organisations that both have a
manufacturing component to their operations
- 8 -
yet with different specialisations in the market. This is to have a broaden knowledge base for analysis. Subsequently the organisations chosen are all are considered as large on the scale of number of employees.
This is due to the assumption that larger organisations are more likely to have had the need for formal standardised management systems.
Comparative Analysis
We will be comparing the different companies effectiveness with regards to integration. We decided to assess more than one company to increase our understanding and aid our goal to create an applicable structure for EMS and PMS integration.
3.5 Key tools to be used:
• Literature: Academic & Professional
• International Standards
• Case Study
• Interviews
• Qualitative evaluation Additional Notes
Alternative research methods could have been adopted given a greater scope. This could have involved conducting questionnaires and surveys to reach a larger number of organisations. Also varied industries could have been analysed. A quantitative analyse based on financial ramifications of different practices could also have been investigated.
Figure 2: Thesis project methodology overview
- 9 -
P ART II
This section comprises the research from the observation stage in the project methodology, encompassing both the primary and secondary data collection.
4. M ANAGEMENT S YSTEM
A management system is defined by ISO as describing the set of procedures an organisation follows in order to meet its objectives. When an organisation systemises their approach to how things are done in an area they have created a management system for that area (ISO.org). Examples include quality, health and safety, risk and environmental management systems.
ISO management systems are created to be compatible and so follow the same structure and contain many of the same elements and terms in order to make integration more efficient and less time-consuming in an organisation (ISO.org). Many other management systems exist in organisations that are self-created and maintained or derived from standards. ISO standards are in focus in this investigation as they are globally accredited systems that more and more organisations are choosing to abide by and seek certification to. While management systems can rest on a spectrum of complexity, most can be said to adhere in a simplified way to the iterative approach of the Shewhart- Deming Plan-Do-Check-Act (PDCA) cycle.
All ISO management systems are based on this cycle.
4.1 Integrated Management Perspective
The British Standards Institute (BSI) developed the first global standard for the integration of management systems in 2006.
Integration of management systems enables organisations to have one framework for common management system elements
(BSPAS99). PAS 99:2012 Integrated Management Systems is the current version as of spring 2013 and is the only one of its kind.
The framework for a management system contains certain common components. Each of these components is a point of interaction between management systems. Quality management presented as a system in ISO 9000 series is an example of how the common components of a management system are targeted in order to integrate quality into the roots of the organization.
Figure 3 shows graphically the common components of a management system. This figure is an amalgamation of the BS PAS 99:2012 components with various ISO standards components to form a common structure. These six categories of Policy, Planning, Implementation and Operation, Performance Assessment, Improvement and finally Management Review are agents for change in the organization and aid to underpin the workplace culture. Each common component has associated sub-components.
Standardization of these elements across
functions and operations are the key to
efficiency and strategy effectiveness. The
structure as laid out in Figure 3 will form the
basis for our evaluation (Section 7). This
management system framework may of
course differ within individual organizations,
however, we validate our adherence to it by
the widespread acceptance of ISO
management standards as recognized best
practice, outweighing any limited research we
could achieve independently as a scope
limited research investigation.
- 10 -
Figure 3: The management systems framework based on a collaboration of BSI & ISO standards
4.2 The EMS perspective The Framework
The environmental management system (EMS) is a structured framework for managing an organisation's environmental impact. Environmental impact can be expressed as any part of the business operations that cause adverse or beneficial impact to the environment. This covers everything from the obvious categories of energy use, waste, raw materials and resources in production to the more obscure topics in total life cycle assessment of products such as supplier and contractor environmental ethics or product-end user considerations. The majority of organisations implementing an EMS follow the structure as laid out in national or international standards.
The first standardised EMS was developed by the British Standards Institute (BSI) as BS 7750 (1994) and formed the foundation for
the two leading standards today. They are the ISO 14000:2004 series and the EU Eco- Management and Audit Scheme 2009 (EMAS), of which the later is built upon the ISO 14001 series. Each will be discussed in turn and references made to their implicit or explicit connections drawn to a PMS.
4.2.1 ISO 14000:2004
This series consists of a set of standards to
cover all identified aspects of the EMS. As of
2009 there are over 233,000 companies
worldwide with ISO 14001 certification alone
(ISO Survey). A summary of the prominent
standards from the series relevant to this
thesis is shown in Table 2. And is a subset of
the numerous standards that exist in the
series. ISO groups the standards under the
PDCA headings where the core standard ISO
14001:2004 is part of the “Plan” stage in the
cycle.
- 11 -
Table 2: Overview of the ISO14000 series standards studied in this thesis project.
The ISO 14001:2004 EMS framework consists of five core components plus a further continual improvement requirement.
The extended management system framework with sub-requirements is tabulated in Table 3.
The management system is very similarly categorised to the BSI components of a
management system discussed in section 4.1.
These management level components along with any associated requirements are at the centre for integration efforts with another management system and form the basis for our analysis.
ISO 14001:2004 Framework for an Environmental Management System
Component Sub Requirements Component Sub Requirements General
Requirements
4.1
Checking
Monitoring and measurement
4.5.1 Environmental
Policy
4.2 Evaluation of
Compliance 4.5.2
Planning
Environmental Aspects
4.3.1 Nonconformity,
corrective action and preventive action
4.5.3
Legal and other requirements
4.3.2 Control of
records
4.5.4 Objectives, targets
and program(s)
4.3.3 Internal Audit 4.5.5
Implementation and Operation
Resources, roles, responsibilities and authority
4.4.1 Management Review
4.6
Competence, training and awareness
4.4.2
Continual Improvement Communication 4.4.3
Documentation 4.4.4 Control of
Documents
4.4.5 Operations Control 4.4.6 Emergency
preparedness and response
4.4.7
Table 3: Components of the ISO 14001 framework for an Environmental Management System
Standard Title PDCA
ISO 14001:2004 (Core Standard) Environmental management systems-
Requirements with guidance for use Plan
ISO 14004:2004 (Core Standard) Environmental management systems- General
guidelines on principles, systems and support techniques Plan ISO 14040:2006 Environmental management-Life Cycle Assessment-Principles
and framework Do
ISO 14031:1999 Environmental management-Environmental performance
evaluation-guidelines Check
ISO 14063:2006 Environmental management-Environmental communication-
guidelines Act
- 12 -
The EMS framework specified by ISO does make reference to integration into the rest of the organisations operations. However, this is never explicitly related to the project management system but can be interpreted as inclusive to that. The following integration points are included as noteworthy from the series:
Core Standards ISO 14001, ISO 14004
• The EMS shall establish, implement and maintain a procedure for internal communication among the various levels and functions of the organisation. (ISO 14001, 4.4.3) The PMS could be considered here to be a function. From this perspective the Setting of Objectives and Targets sub- requirement includes also the PMS when advocating that environmental objectives be integrated into the overall management objectives (ISO 14004, 4.3.3.1). An explicit reference is made that by integrating the EMS objectives; value can be added to the other management systems.
• Under Operational Control reference is made to controlling operations by identifying those associated with EMS aspects and controlling them through implementing procedures and requirements for operation and their associated suppliers and contractors. (ISO 14001, 4.4.6)
• The Roles and Responsibilities requirement recommends that environmental roles and responsibilities should not be limited to the environmental management but also cover areas such as operational management or staff functions. (ISO14001, A.4.1)
• Repeated referral is given to the environmental impact of the organisation's
“activities, products and services” when referencing the planning components sub requirement of identifying environmental aspects (ISO14004,4.3.1.3). The definitions of these terms can by extension be
interpreted as implicitly including project activities as laid out in the PMS framework.
The same situation applies to legal and other requirements (ISO14004,4.3.2) where the applications of the sub-requirements are directed towards the “activities, products and services” of the organisation.
• The Implementation and Operation component also makes explicit reference to integration of management systems, stating that the EMS “can be designed or revised so that it is effectively aligned and integrate with existing management system processes” (ISO14004, 4.4). Furthermore a list of EMS elements for potential integration is listed, and while project management is not referenced, some common elements of the PMS are. This includes communication, resource allocation, accountability structures and documentation.
• PMS project terms are directly referred to in an example activity. Project Plan Milestones are specified as an indicator while reviews of the Project Plan are mentioned as a point for monitoring and measurement. (ISO 14004, A.2) Projects are mentioned only one other time in the requirement for a Programme(s) for achieving objectives and targets. Here it is stipulated that such a programme should address actions necessary for achieving environmental objectives and targets where.
“These actions may deal with individual processes, projects, products, services, sites or facilities.” (ISO 14004, 4.3.3.2).
ISO 14040: Life Cycle Assessment
ISO 14040:2006 describes an environmental management technique called Life Cycle Assessment (LCA) and its intended application is for products (ISO 14040 intro).
In 14040’s appendix a list of further
applications is provided and the application to
projects is embedded in the final suggestion
- 13 -
(ISO 14004, A.1.1 (f)). It could be argued that the ISO EMS contains a ready-made template for a tool aiding the integrating the EMS across the PMS lifecycle. The four main phases in the LCA are as follows:
I. The goal and scope definition of the LCA II. Life cycle inventory analysis (LCI) phase III. Life cycle impact assessment (LCIA) phase IV. Life cycle interpretation phase
The LCA tool is described in detail with further supporting standards in the ISO 14000 series and will not be described for the purposes of the project as they explicitly state the application itself of the LCA is outside the scope of the standard. We are placing weight here on the fact that ISO have made the connection explicit, albeit obscure, to projects. LCA is an analytical tool that can be used to assess both the projects process as well as the product of the project. Typically, it would be carried out complementary to the normal work of the project, potentially carried out as a project in itself. (Maltzman&Shirley) Other ISO 14000 standards
The other standards give comprehensive advice on performance indicators for monitoring compliance and adherence to the EMS. Many of these indicators could be transferable to become project environmental performance indicators. It is as the discretion of the companies EMS to decide which are the most appropriate for their operations and as such their descriptions lie outside the focus of this study. However, the communication and application of performance indicators is of interest as a general component of the management system. (ISO 14031)
4.2.2 The European Eco-Management and Audit Scheme 2009 (EMAS III)
Developed by the European commission with the ISO 14001 standard as an integral foundation, EMAS accreditation is a non-
compulsory EU initiative operative since 1995 but developed to its current form, EMAS III, since 2009 (EU-EMAS III). As of mid-2012, there were 8174 sites and 4581 organisations certified by EMAS (EU-EMAS III). The scheme is global and open to states other that EU members as of 2010.
The framework of the EMAS EMS is also based on the PDCA cycle and has three core elements of: Performance, Credibility and Transparency. These core elements are embedded in the framework. Further components, in addition to the ISO 14001 EMS are summarised in Figure 4.
EMAS III Regulation was found to contain no explicit references to integration with any other management systems or to projects. In summary, standardised EMSs that currently exist do not actively point the way to integration with PMS. However, they lend themselves to integration through their framework and the principles they advocate.
Figure 4: The EMAS framework as an extension of the
ISO14001 EMS (EU-EMAS presentation 2012)
- 14 -
4.3 The PMS perspective
The project management discipline has been evolving steadily from its classical waterfall style origins in the construction industry to include now a variety of tailored styles to suit diverse industry needs. The primary adaptation has been AGILE project management for the software development industry and since then a multitude of hybrid styles. Examples include Extreme and Lean Project Management. As the classical approach is still the most common and the cornerstone of project management, we restrict our discussion to a project management system primarily described by the Project Management Institution (PMI).
Reference is also made to the new ISO 21500:2012 standard on project management, the IPMA Competency Baseline-ICB, and the APM Body of Knowledge.
The PMI is the leading provider of a global framework for traditional project management. Their principle publication: A Guide to the Project Management Body of Knowledge (PMBOK
®Guide) is now in its
5
thedition and is the most recognised standard for project management worldwide. Its principles form the basis of many organisation's PMS and the PMBOK
®Guide is recognised by the American National Standards Institute (ANSI).
While the framework does not explicitly advise on how the PMS should integrate with other management systems, the PMBOK
®framework itself does lend to a flexible interpretation and can be tailored for integration. Here we analyse the points of integration explicitly mentioned in the different project management frameworks to the Environmental Management System.
*To be clear, a project management methodology can be considered a project management system if the same methodology is standardised across an organisations operations. Through standardising the procedures and process it becomes a system that requires management to align them with the organisations overall system. (Supported by ISO 10006:2003 5.2.6)
Figure 5: Framework for the PMI PMBOK
®project management system
- 15 -
4.3.1 PMBOK
®- 5
thEdition
The framework for project management is laid out in PMBOK
®as lifecycle stages each interacting with ten so-called knowledge areas or areas of operation. Within each knowledge area there are a number of processes, which cover the different lifecycle stages. The interactions between these processes are linked through a system of inputs and outputs for each process. The framework is visualised in its basic characteristics in Figure 5. While very different from the standard management system framework discussed in Section 4.1 there are some comparatives. The process groups are similar to the PDCA cycle in effect. Especially if repeated through various projects while improvements to the method are continuously made through lessons learned activities etc. Also many of the processes contained within the knowledge area do tie into the standard components of a management system. This includes, communication, documentation, performance indicators etc. A full list of processes is included in Appendix A.
The introductory section to the PMI’s PMBOK
®, advocates the alignment of project goals to organisational strategy, stating,
“Organizational strategy should provide guidance and direction to project management”. They suggest that it is the project manager’s responsibility to document and identify any misalignment or conflict of the project goals with the established organisational strategy (PMBOK
®5
thed.
1.5.2.3). Additionally, the project manager should be aware of the link between the project and any organisational policies and procedures (PMBOK
®5
thed. 1.5.2.2). Thus from the outset, the entire framework is founded upon connecting to the higher strategic mind-set of the organisation, of
which the environmental agenda is a high priority for the majority in todays arena.
Organisational Process Assets (OPA) is a PMBOK
®term used to describe the processes, procedures and corporate knowledge base of an organisation (PMBOK
®5
thed. 2.1.4). OPA are utilised as an input into the majority of the lifecycle processes.
Though not specifically stated, there is a tentative link here to the EMS in that the OPA includes company standards and policies, of which any environmental policy would be included. This is however only explicitly connected to the initiating and planning stages of the lifecycle. (PMBOK
®5
thed. 2.1.4.1) Enterprise Environmental Factors (EEF) is a second broad group of inputs to many of the lifecycle planning processes, which are described as those factors not under the control of the project team (PMBOK
®5
thed.
2.1.5). The inclusion of government and industry standards, marketplace conditions and political climate are of note here, all of which can be said to pertain to the Environmental management System.
This is the extent of any reference to a connection to an EMS from the project management perspective in PMBOK.
4.3.2 ISO 21500:2012 & ISO 10006:2003
ISO has published the first global standard for
project management entitled ISO 21500:2012
Guidance on Project Management. Partially
due to ISO’s collaboration with ANSI, it
bares a remarkable similarity to the PMBOK
®framework and upholds much of the same
terminology. Moreover, it includes the same 5
process groups and the same knowledge areas
(called subject areas by ISO) as PMBOK
®5
thedition. The primary difference is that ISO
presents 39 processes as a rearranged version
- 16 -
of the PMBOK
®42 processes (Labriet 2013).
The fact that this global standard creates a framework for the project management system based on the classical waterfall approach gives further weight to our restriction on this study’s scope; the traditional project management style. It does not offer anything of further value towards integration efforts.
ISO 10006:2003 is a standard specifically targeting quality management in projects.
Here components of the PMS that correspond to the general management system components are brought to light. Attention is drawn to the need to have processes in place for the continual improvement of the PMS through audits and self-assessment alongside management reviews (ISO 10006, 5.3.2).
Quality in resource planning highlights the need to take into account the constraint of impact of the project on the environment and the documentation of this. (ISO 10006, 6.1.2) Another quality aspect relating to the project and the EMS is the need for inclusion of a description of the organisational interfaces the project will connect with in the project management plan. (ISO 10006, 7.2.2)
4.3.3 Other Traditional Approaches
The International Project Management Association (IPMA), provides an accreditation known as the IPMA Competence Baseline (ICB
®). As opposed to the PMI system, a lot more focus is placed upon the proficiencies of the project manager.
Connections are then made to the ethics and responsibility of the role by way of a list of competencies under the three categories of technical, behavioural and contextual (ICB
®).
Environmental management is directly advocated within “Contextual Competences”, specifically the element is included of “3.09 Health, Security, Safety & Environment”.
Most importantly they advocate specifically
that, “[Environmental] factors need to be taken into account in all the project phases, in the use of the product and in its decommissioning and disposal” (ICB
®3.09).
For this they suggest a sequence of possible process steps (Table 4) that appear to be based on the Shewhart-Deming PDCA cycle.
Furthermore ICB
®promotes the creation of an Environmental Impact Plan but does not elaborate on its components.
The ICB
®references the environment impacts and issues of the project as something the project manager should have an awareness of (2.08 Results Orientation). The ICB
®also connects to the environmental perspective when it comes to efficiency (ICB
®2.09), ethics (ICB
®2.15), legal (ICB
®3.11), procurement (ICB
®1.14), risk and opportunity (ICB
®1.04) quality (ICB
®1.05).
The UK Association for Project Management (APM) also follows this accreditation system.
The APM Body of Knowledge follows a broadly similar framework to PMBOK
®. It consists of seven sections (lifecycle phases), each of which contains several processes.
Unlike PMBOK
®it does in fact contain some explicit references to environmental impact:
• Lists the environment as a constraint to the project (APM BOK 1.1)
• Environmental considerations are a part of the project’s contextual analysis using the PESTLE thinking tool. (APM BOK 1.4)
• Health, safety and environmental
management make up a full process in the
strategy planning section. “…To minimise
environmental impact both during the
project and during the operation of its
deliverables.” (APM BOK 2.7) Legislation
and regulatory control are addressed here.
- 17 -
ICB
®3.09 Health, Security, Safety and Environment (HSSE) Process Steps 1 Identify applicable laws and regulations.
2 Identify HSSE risks, requirements and existing responsibilities.
3 Evaluate the actual situation.
4 Develop plans and processes for HSSE protection.
5 Monitor and control the effectiveness of the plans.
6 Report issues and risks.
7 Document lessons learned: apply to future projects, phases or elsewhere in the organization.
Table 4: The ICB
®process steps for environmental consideration in projects
4.4 Reflection
In reflection it is apparent that on the surface the common EM and PM systems have very few connections to one another. For being the most widely used methodology, PMBOK
®bares the least interaction with the environmental aspects of the project with very little contextual setting embedded in the project processes. Few cross-references are made and undeveloped suggestions are seemingly the extent of the interaction of these two areas of business. However, reading between the objectives of these systems it becomes clear that they have a number of similar components. Both are essentially working towards company strategy, meaning, they have the opportunity to further integration and enhance cooperation to operate at heightened efficiency.
5. L ITERATURE S TUDY
5.1 Introduction
In the field of project management there is a lack of consistency and continuity when it comes to management and sustainability.
Prior research indicates that the level of integration of the EMS is not as advanced as other systems of management with the PMS.
There is little discussion about the interactions of ISO 14001 and PMBOK
®. A 2009 article, “Green Project Management
Using ISO 14000 and the Project Management Body of Knowledge”, addresses possible points of convergence betwixt the two. However, there is little depth to the article with the overarching point being that the processes and activities within each knowledge area support ISO 14001 integration (Schmidt, 2009).
Current trends are closely related to green supply chain management and sustainability as there have been several new EU directives coupled with the recent introduction of the Dodd–Frank Wall Street Reform and Consumer Protection Act *. Additionally, the focus is often industry specific or pertaining to a certain aspect within suitability/projects.
For example, organisations are integrating environmental indicators that can be used as key performance indicators (KPIs). This means that there is considerable diversity in organisational approaches to sustainability reporting and decision making that impact sustainability (Adams, Frost, 2008). Overall there has been a relatively small amount of researched performed with regards to a
framework for sustainability, necessary for s “benchmarking performance against
sustainability principles”
(Talbot, Venkataraman, 2011)
*The Dodd–Frank Act took effect January 1 2013 and includes clause 1502 that states that the U.S. Securities and Exchange Commission will closely monitor the supply chain of listed companies to address the use of “conflict minerals”. This is expected to impact hundreds of thousands of companies globally. (SEC)
