Using the Stacey Matrix for Project Management

Choosing the right project management method

In order to successfully implement a project, it is necessary to decide on the right implementation method from the outset. Many different factors, such as the type, size and complexity of the project, must be taken into account when making the selection. The so-called Stacey matrix is a valuable approach that takes these factors into account and positively influences the ideal project start and thus the implementation. It was named after the British management professor Ralph Douglas Stacey, who developed the matrix. This matrix reliably helps to visualize the complexity of a project and provides information on the complexity of the activities involved as well as an insight into project-specific risks and uncertainties. At the same time, a decision-making basis is created for the selection of the most suitable project methodology – i.e. the choice between classic, hybrid or agile.

The original form of the Stacey matrix, which is based on the original development scheme by British professor Ralph Douglas Stacey, refers to the agreement between the stakeholders involved in a project and the certainty of decisions:

•  Agreement among stakeholders
  This dimension reflects the agreement of the stakeholders in the decision-making process. In the simplest case, there is full agreement, whereas in the most complex case there is no agreement among the stakeholders.
•  Security
  This dimension describes the certainty with which project-specific decisions are made. In the best case, there is a high degree of certainty in the decision-making process in the project, whereas in the worst case there are significant uncertainties.

Nowadays, the modified, modernized version of the Stacey matrix is primarily used in project management. Two new dimensions are defined: the how (finding the right solution approach) and the what (defining the requirements):

•  Requirements
  This dimension replaces the “compliance” dimension from the original and deals with the ability to solve problems. It is about defining all the necessary requirements or tasks.
• Solution approach
  This dimension replaces the topic “Security” from the original. The aim here is to find out whether the solution approach chosen to achieve the project objective is known or unknown.

The updated dimensions result in four subcategories, which are briefly presented below. In addition, some tips are formulated on how best to handle the various sub-dimensions.

Classification of the complexity levels of a project

For each of the four areas of the Stacey matrix, there are different strategies that are most effective for the implementation of a particular project. Project managers can use the Stacey matrix to better understand the requirements and objectives of a project and select the right strategy on this basis. In addition, the risks of the project can be better assessed and communication within the project can be better managed. However, the first step is to describe the various project stages in the project management portfolio more precisely:

1. SIMPLE PROJECT STAGE
   Simple projects, in which familiar technologies are used and which are based on clear requirements, have few surprises in store. Approaches such as “best practices” can be easily applied to such projects. In such projects, the activities to be carried out are clearly defined and the results are also clearly defined. Since such a project follows a clear structure. Projects in this category usually rely on traditional project management methods such as the waterfall or V-model.
2. PROJECT LEVEL COMPLICATED
   Complicated projects are no longer considered simple, but are predictable. Such projects are further subdivided into socially/politically complicated and technically complicated. In the case of socially/politically complicated projects, the stakeholders cannot agree on an end result. If it is technically complicated, there is agreement on the end result, but not on the path to the goal. There are many unanswered questions that can be clarified through analysis, negotiations and expert consultations. Agile project methods such as Kanban or Lean are used.
3. COMPLEX PROJECT STAGE
   Complex projects are characterized by a large number of risks. In such projects, neither the requirements nor the technologies and methods used are known in detail. In order to successfully implement such projects, a high level of transparency, constant innovation, a creative approach, short iterations and constant checkpoints that influence the further implementation process are essential. Scrum is used as a project management method for complex projects.
4. CHAOTIC PROJECT STAGE
   Chaotic projects are particularly challenging, as neither clear requirements nor the technologies and methods to be used are available. Agile project management methods should be used to successfully implement such projects. Precise work is also essential, especially as the risk of failure is particularly high. In many cases, a preliminary definition of the requirement is necessary to create clarity. Frequently used project management methods are Design Thinking, Kanban or Scrum.

In order to be able to assess the degree of complexity of projects in practice, it is not just a matter of precise positioning. Instead, the aim should be to develop a feeling for whether the tasks are complex and which parameters – primarily the clarity of the requirements or the manageability of the method and technology – are responsible for the complexity of the implementation of a project. To achieve this, it is necessary to include the views of all stakeholders involved and to discuss the results together.

The right project classification ensures project success

The correct project classification based on the above criteria is the most important basis for choosing the right project management method and thus being able to successfully implement a project. For example, complex tasks can quickly lead to inappropriate processing if the associated challenges are underestimated, resulting in a chaotic situation. Management concepts that are too agile also lead to a lack of efficiency in projects that are considered complicated. Even the use of desired planning parameters in the project does not lead to progress.

The example of projects classified as complex shows that changes in the course of the project are an integral part of everyday project work. Such changes should therefore be firmly integrated into the methodology. Short iterations, together with the courage to break new ground, guarantee a fast learning curve. Mistakes made during project processing can be identified early on. Necessary adjustments can be implemented promptly. At the same time, it should be borne in mind that overly detailed planning and the use of a classic management method in complex tasks can lead to a false sense of security.

Advantages and disadvantages of the Stacey matrix in project management

The Stacey matrix has various advantages and disadvantages that project teams should consider when using it. It should be noted that the Stacey matrix should never be used as the sole means of deciding on the right project management method, but it can provide a good overview.

Advantages of using the Stacey matrix

• Support in identifying the right project management method
• Due to its broad interpretation, the Stacey matrix can be used in many industries
• The Stacey matrix provides a good overview of the complexity of projects

Disadvantages of using the Stacey matrix

• The project environment is not sufficiently taken into account
• The complexity of a project is not always the decisive selection criterion
• The matrix does not define clear fields

Overall, it can be said that the Stacey matrix is used in project management to evaluate the complexity and uncertainties of a project. It offers clear orientation in the selection of suitable project management methods and can serve as a navigation aid in everyday life. However, it should not be used as the sole criterion for the selected method.

Step-by-step implementation of the Stacey matrix in project portfolio management

A pragmatic use of the Stacey matrix in project portfolio management has proven to be very beneficial in practice. In order to be able to act effectively, a step-by-step approach should be chosen for use in everyday project work. The aim of using the Stacey matrix is to create more transparency and a common basis for discussion. The aim is to optimize the exchange of experience and to critically question established thought patterns, perspectives and procedures. In this way, potential challenges, existing risks and project dependencies are identified more quickly, enabling targeted control measures to be taken and necessary changes to be integrated at an early stage.

This step-by-step approach enables the development of a common picture of both the current and future challenges of the project portfolio. It creates the basis for good and effective management. The following five steps must be taken in sequence to ensure effective project management:

1. Bring the relevant participants together
   The first step is to invite the key people or parties. These usually include the representatives of the Project Management Officer (PMO). In addition to the formal criteria of the inventory, they also want to advance the content of the discussion. The aim is to raise awareness of risks and challenges in the project portfolio. The resulting picture forms the basis for monitoring and managing all current and future activities.
2. Proper preparation of all participants
   The person responsible for project implementation should ensure that everyone involved in the project is aware of the objectives and understands the choice of methodological approach. All participants should not only recognize the result, but also the process of implementation as real added value. They should fully support this implementation process. At the same time, the position criteria should be discussed.
3. Classification of the project based on the complexity levels
   The positioning of a company’s projects can vary greatly depending on the context and objectives. If discussions on the classification of a project are at a standstill due to one-sided thinking or too much routine, classification using the Stacey matrix can revive this discussion. At the same time, the result of this phase can strengthen the project structure.
4. Deriving the necessary consequences
   By positioning the individual activities on the Stacey matrix, an overall picture has been created on the basis of which the project portfolio can be evaluated. This applies to risk provisioning, the right choice of project management method and the selection of project team members based on their personal qualifications, strengths and personality traits. Measures must be fixed with a specific deadline and responsibilities clearly assigned.
5. Repetition of the outlined procedure
   The above procedure should be repeated at sensible intervals. This could be done, for example, as part of the project management boards that take place. This is also a useful platform for communicating experiences and lessons learned from both successes and failures. It is also advisable to vary the chosen methodology in order to test different estimation and evaluation techniques.

Nevertheless, the assessment using the Stacey matrix is not just about exact positioning. It is about developing a feeling for the degree of complexity of a project and the parameters that characterize it in terms of requirements and the manageability of the technology. In order to determine the degree of complexity of a project, the opinions of all relevant stakeholders must be included in the decision.