Building Project Capabilities: From Exploratory to Exploitative Learning

This paper presents a model of project capability-building consisting of two interacting levels of learning. First, it describes the bottom-up, ‘project-led’ phases of learning that occur when a firm moves into a new technology/market base: an exploratory ‘vanguard project’ phase; a ‘project-to-project’ phase to capture lessons learned; and a ‘project-to-organization’ phase when an organization increases its capabilities to deliver many projects. Second, it addresses the ‘business-led’ learning (within which the project-led learning is embedded) that occurs when ‘top-down’ strategic decisions are taken to create and exploit the company-wide resources and capabilities required to perform increasingly predictable and routine project activities.