Measuring project management performance is complex and requires tools to capture the dynamic nature of the processes involved. Since the conception of system dynamics in the 1950s, the method has been used to solve complex projects. Project management possesses dynamic characteristics that involve planning, human resources, implementation, and control elements; thereby, using system dynamics to measure project management performance is a realistic approach. A research study was conducted using system dynamics to develop project management performance measures to capture the complexity of the process in local government agencies. The research approach considers measuring project engineering management performance as a holistic system influenced by leadership involvement, project management processes, and project engineering manager’s ability. The Zachman architectural framework was used to develop the project-management performance system’s ontology as the system dynamics model’s foundation. A case study was conducted for three cities with local government agencies to better understand the model components and factors that influence performance. Leadership involvement, project management processes, and project manager abilities were identified as critical factors that influence the project management performance level. To validate the results of the case study, the project management performance was further studied for the City of El Paso in terms of capability, capacity, and maturity level. The research study concluded that system dynamics is a feasible method and effective tool to measure management performance for engineering projects at local government agencies.
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