While the focus of the project management literature has been on the management of single projects, the management of multiproject environments is largely neglected. In this research I am focusing on mutiproject environments which exist within a single firm (hereafter called Alpha). Through my investigation in this multiproject environment I explored root causes for project inefficiencies which rather than being possible to attribute to source within each single project boundary, are caused by the effects which I term them systemic effects. System effects are dynamics triggered by the complex linear , nonlinear and time delayed interaction of large number of factors. I develop a model which explains the dynamics through which the systemic effects deteriorate the performance of the projects in this organization. The model is useful in creating awareness among the managers about the lack of holistic approach in decision making and the effects of suboptimum decisions in this environment.