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![Page 1: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/1.jpg)
What’s Different
Project Management
in the Public Sector
John Alley, Director PMO, McMaster PSPMF - Sept 2008
![Page 2: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/2.jpg)
Key Learning Points
• key differences for project management in the public sector
• how Project Managers can deal with those differences and succeed on public sector projects
• how a PMO can foster success given these differences
![Page 3: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/3.jpg)
What is the Public Sector?
Public Sector Private Sector
An organization funded (mostly) by the public to provide service for the public.
Gover
nmen
ts (F
eder
al,
Provin
cial, M
unici
pal)
Higher
Edu
catio
n
Health
Car
e
Profit
Seekin
g
Utilitie
s
Charit
ies
Crown
Corpo
ratio
ns
![Page 4: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/4.jpg)
“a degree of unlikeness” Concise Oxford Dictionary, 1990
• difference in kind
• difference in degree
Differences
![Page 5: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/5.jpg)
Differences are important
• differences lead to different actions
• what about PM maturity?
• differences run deeper
![Page 6: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/6.jpg)
What’s Different for Public Sector Projects
Resourcing
![Page 7: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/7.jpg)
What’s Different?
• sources of project financing
Public Sector
Private SectorTaxes, Grants
Earned Revenue,
Capital Markets
![Page 8: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/8.jpg)
More on FinancingPrivate Sector • profit seeking• grow or die• uses capital market• define a hurdle rate• find funds for any
project that benefits the bottom line
Public Sector• provide services the
market can’t• resist growth• rarely use capital
market• what’s a hurdle rate?• select the ‘best’
projects that fit the available funds
![Page 9: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/9.jpg)
What’s Different – Constraints
• resources– fixed pot for all projects– every project will have limited funds
• time– legislated deadlines– political deadlines
• scope– usually starts at the minimum
![Page 10: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/10.jpg)
What’s Different – Constraints
• many projects are triple constrained
• contingency• risks• quality of estimates
![Page 11: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/11.jpg)
Resources – Thrive as a PM
• address the triple constraint:– seek a charter that identifies which one can be
adjusted– focus on risk analysis– make your estimates realistic
• understand the priority of your project among others and the strategic alignment
• know the business benefits and find ways to deliver benefits in stages
![Page 12: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/12.jpg)
Resources – PMO Adds Value
• resist “On time, on scope, on budget”
• adopt a charter format that identifies the priorities among time, scope and resources
• pooled contingencies, risk analysis and stretch objectives
![Page 13: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/13.jpg)
What’s Different for Public Sector Projects
Estimating
![Page 14: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/14.jpg)
What’s Different?
• Size
• Scope of activity (for a given size)
Public Sector
Private Sector
Large Small
Public Sector
Private Sector
Complex Simple
![Page 15: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/15.jpg)
What’s Different - Complexity
City of Hamilton• police• fire• bylaw enforcement• parks• recreation services• garbage collection• sewer services• roads• planning services• … and more
McMaster• 25,000 student school• 3400 bed residence• 18 food outlets• athletic club• parking service• bookstore• library• computer labs• health clinic• print shop • and more ….
![Page 16: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/16.jpg)
What’s Different – Estimating
• many factors lead to low estimates– cost constraint– inexperienced
estimators– resource expertise– business complexity
Estimator
ExperienceResource
Expertise
Achievable
PredictableScope
Clarity
Speed of
Delivery
Cost
Constraints
Estimate
![Page 17: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/17.jpg)
Estimating – Thrive as a PM
• use parametric tools
• get an independent assessment
• build on your history
• allow for costs of change management
![Page 18: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/18.jpg)
Estimating – PMO Adds Value
• post-project reviews better estimates
• build standard estimates for key components– internal approvals– acquisitions– security testing
• build in gates as opportunities for re-estimating
![Page 19: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/19.jpg)
What’s Different for Public Sector Projects
Acquisitions
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What’s Different - Acquisitions
Bellamy Inquiry
MFP Leasing
Toronto Tax System
![Page 21: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/21.jpg)
What’s Different – Acquisitions
• purchasing policy
– open and accountable process– accessible to all vendors– issues of interprovincial trade– clear and open selection– get the best value for public funds
![Page 22: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/22.jpg)
What’s Different – Acquisitions
• limited exceptions for sole source– defined criteria– get the best value
• approvals are based on $ limits– defines accountability– limits risk
• the process takes time
![Page 23: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/23.jpg)
Acquisitions – Thrive as a PM• know the rules - the $ limits and the
process for each
• allow sufficient time/cost/effort to follow the process
• maintain meticulous records
• the process protects the PM
![Page 24: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/24.jpg)
Acquisitions – PMO Adds Value
PMO can build in compliance
– build the process into templates
– define standard time/cost/resources for each variation
– provide training on the process for PMs
![Page 25: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/25.jpg)
What’s Different for Public Sector Projects
GovernanceStrategic alignment
Stakeholders
Decision-making
Project Selection
![Page 26: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/26.jpg)
What’s Different for Public Sector Projects
GovernanceStrategic alignment
Stakeholders
Decision-making
Project Selection
![Page 27: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/27.jpg)
What’s Different – Strategic Alignment
Strategy
Strategic
Programs
Projects
Top-Down Bubble Up
Private Sector
Public Sector
![Page 28: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/28.jpg)
Strategic alignment – Thrive as a PM
• Emphasize alignment in business case, charter and communications
• Understand competing priorities – slower pace for lower priorities
• break projects into smaller components – fit in as resources permit
– allow for benefits even if terminated early
![Page 29: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/29.jpg)
Strategic alignment – PMO Adds Value
• promote strategic alignment of projects
• document and communicate priorities
• promote smaller projects
![Page 30: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/30.jpg)
What’s Different for Public Sector Projects
GovernanceStrategic alignment
Stakeholders
Decision-making
Project Selection
![Page 31: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/31.jpg)
What’s Different - Stakeholders
Private Sector Public Sector
Internal Stakeholders
Owners / Shareholders The public Elected Officials as individuals
Board of Directors Board of Directors / Cabinet / Council / Board of Governors / Senate
Finance Committee Finance Committee
Sponsor SponsorTeam members Team members
Management Management
Employees Employees
Internal customers Internal customers
Internal Audit Internal Audit
![Page 32: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/32.jpg)
What’s Different - Stakeholders
Private Sector Public SectorExternal Stakeholders
Customers CustomersExternal Team Members External Team Members
Labour Unions Labour Unions
Suppliers Suppliers
Consultants Consultants
Consumer Groups Consumer Groups
Special Interest Groups Special Interest GroupsTaxpayers Taxpayers
Government Government – other levels/ branches
Financial institutions Financial institutions
Stock analyst/Bond rating service Bond rating service
![Page 33: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/33.jpg)
Stakeholders – Thrive as a PM• Understand the importance of
– taxpayers– other branches and levels of government – special interest groups
• Communication plan to address stakeholders
![Page 34: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/34.jpg)
Stakeholders – PMO Adds Value
• stakeholder analysis templates
• communication plan templates
• peer reviews / steering committee review
![Page 35: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/35.jpg)
What’s Different for Public Sector Projects
GovernanceStrategic alignment
Stakeholders
Decision-making
Project Selection
![Page 36: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/36.jpg)
What’s Different – Decision Making
ManagementEdict
ConsensusPrivate Sector
Public Sector
![Page 37: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/37.jpg)
Decision-making – Thrive as a PM
• define who makes decisions and how
• make decision points visible
• apply facilitation techniques / creative problem-solving
![Page 38: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/38.jpg)
Decision-making – PMO Adds Value
• develop standards for decision-making
• develop standard oversight structures– Project Selection Board– Steering Committees
• train your sponsors and managers
![Page 39: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/39.jpg)
What’s Different for Public Sector Projects
GovernanceStrategic alignment
Stakeholders
Decision-making
Project Selection
![Page 40: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/40.jpg)
What’s Different – Project Selection
QuantitativeCriteria
Qualitative CriteriaPrivate Sector
Public Sector
![Page 41: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/41.jpg)
What’s Different – Project Selection
• the public sector provides services the market can’t– fire-fighting– roads– courts
• but what about private garbage collection, the 407, private prisons?
• what is the ROI on these services?
![Page 42: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/42.jpg)
What’s Different – Project Selection
• quantitative vs qualitative criteria
• how do we compare services?– eg: fire fighting vs seniors’ recreation
• how do we balance service improvements, cost savings and legislated requirements?
• how do we align with strategy?
![Page 43: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/43.jpg)
What’s Different – Project Selection
• How do we weigh the importance of each criterion?
Strategy
Cost
Savings
Cost
Avoidance
And
many
more …
Security
Service
Capability
Selection
![Page 44: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/44.jpg)
Project selection – Thrive as a PM
• much of this is beyond the scope of a Project Manager
• define metrics that align with selection critieria
• ensure outcomes / benefits are clearly defined
![Page 45: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/45.jpg)
Project Selection – PMO Adds Value
25% strategic fit
25% business case / service improvement
25% capacity, security, adherence to standards, project risk
25% corporate risk reduction
20% strategic fit
20% business case
20% value to external clients
20% sponsor commitment
20% project risk
facilitate consensus on a selection model
2 examples:
![Page 46: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/46.jpg)
Project Selection – PMO Adds Value
• standard project proposal format– strategic fit built in– accountability built in
• standard valuation for– customer service improvement– cost reduction / avoidance– qualitative benefits
![Page 47: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/47.jpg)
What’s Different for Projects?• Resources (Financing) – the triple constraint• Acquisition – policies / time• Estimating – second opinions• Governance
– Strategic alignment – metrics – Stakeholders – templates – Decision-making – define who and how– Project selection – define criteria / qualitative
![Page 48: What’s Different Project Management in the Public Sector John Alley, Director PMO, McMaster PSPMF - Sept 2008.](https://reader036.fdocuments.in/reader036/viewer/2022081518/551b3df6550346ae7a8b4899/html5/thumbnails/48.jpg)
Key Learning Points
• key differences for project management in the public sector
• how Project Managers can deal with those differences and succeed on public sector projects
• how a PMO can foster success given these differences