WHEN RISK MANAGEMENT IS NOT ENOUGH: PROJECT MANAGERS' EXPERIENCES WHEN CONFRONTED WITH THE UNEXPECTED

Some organizations try to manage complexity by transferring it into defined, controllable structures and processes, aiming at delivering outcomes in a predictable and reliable manner. Others trust a high degree of freedom at the shop-floor and team level allowing for quicker decisions and self-determined choice to successfully respond to unexpected events. This paper explores the questions "What are organizational conditions and what course of actions allow project managers to handle unexpected turbulences satisfactory?" Empirical findings on both organizational cultures and structures, and a set of typical routines for managing unanticipated situations using eight case vignettes are presented. Results show that successful project-oriented organizations tend to relax structures and empower teams when confronted with sudden events in the detection phase. Once the decision on actions needed to address the turbulence is made, smart organizations swiftly rebound to formalized hierarchies and clear communication structures in the recovery phase, allowing for quick and coordinated action. Thus, combining centralization with decentralization along the timeline of resilient action is one of the cornerstones to smart project organizing.