Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets...

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Workshop on Project Workshop on Project Management Management Current Challenges for Current Challenges for Project Management in the Project Management in the Public Sector Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants CC 9 November 2006

Transcript of Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets...

Page 1: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Workshop on Project Workshop on Project ManagementManagement

Current Challenges for Project Current Challenges for Project Management in the Public Management in the Public

SectorSector

Jeets Hargovan Strategic Alternatives –

Management Consultants CC9 November 2006

Page 2: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

Leadership on Project ManagementLeadership on Project Management Government ResponseGovernment Response

– Qualification FrameworkQualification Framework– Programmes and ProjectsProgrammes and Projects– TendersTenders

Background to the experience inputBackground to the experience input Some Practical ConsiderationsSome Practical Considerations

– Seven Phases of a ProjectSeven Phases of a Project– PMBOK & Project Cycle Management unpackedPMBOK & Project Cycle Management unpacked

Institutional challengesInstitutional challenges We are not AloneWe are not Alone ConclusionConclusion

OUTLINE OF PRESENTATIONOUTLINE OF PRESENTATION

Page 3: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

The Government and Old Mutual Business School aim to provide foundational The Government and Old Mutual Business School aim to provide foundational project management training to 100 employees within local government, in project management training to 100 employees within local government, in support of the Accelerated and Shared Growth Initiative for South Africa support of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and particularly the Joint Initiative on Priority Skills Acquisition (AsgiSA) and particularly the Joint Initiative on Priority Skills Acquisition (JIPSA) [Deputy President – 1 June 2006](JIPSA) [Deputy President – 1 June 2006]

I would like to be so bold as to categorically state that project management is I would like to be so bold as to categorically state that project management is one of the approaches that we have extended the use to the public sector one of the approaches that we have extended the use to the public sector that have much to offer to our effective functioning. (Geraldine Fraser-that have much to offer to our effective functioning. (Geraldine Fraser-Moleketi – November 2003)Moleketi – November 2003)

Project Management has become a core skill in the make-up of all public Project Management has become a core skill in the make-up of all public sector managers and professionals (Geraldine Fraser-Moleketi – November sector managers and professionals (Geraldine Fraser-Moleketi – November 2003)2003)

Ministerial Statements / 2006 Budget Vote Statements by (amongst others):Ministerial Statements / 2006 Budget Vote Statements by (amongst others):– Minister T Manuel: Budget speech 2006Minister T Manuel: Budget speech 2006– Minister of Housing, L Sisulu Minister of Housing, L Sisulu – Minister of Provincial and Local Government, FS MufumadiMinister of Provincial and Local Government, FS Mufumadi– Minister for Agriculture and Land Affairs, T Didiza Minister for Agriculture and Land Affairs, T Didiza

Gauteng Expanded Public Works Framework, introduced a new service Gauteng Expanded Public Works Framework, introduced a new service delivery model for EPWP projects in the form of Project Management delivery model for EPWP projects in the form of Project Management Resource Groups (PMRG) [MEC Ignatius Jacobs]Resource Groups (PMRG) [MEC Ignatius Jacobs]

– Similar Statements by numerous Provincial MECsSimilar Statements by numerous Provincial MECs

LEADERSHIP ON PROJECT MANAGEMENTLEADERSHIP ON PROJECT MANAGEMENT

Page 4: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

Qualifications, Accreditation and Unit Qualifications, Accreditation and Unit StandardsStandards– SAQA – SAQA – Gazetted Gazetted Generic Project Generic Project

Management qualification requirements (& Management qualification requirements (& others)others)

– AccreditationAccreditation– Approved Approved CoursesCourses – Unit Standard Compliant Service Providers – Unit Standard Compliant Service Providers –

Registered / Approved by SETARegistered / Approved by SETA Necessary ProcessNecessary Process

– Has become a long & bureaucraticHas become a long & bureaucratic

GOVERNMENT RESPONSE – GOVERNMENT RESPONSE – Formal TrainingFormal Training

Page 5: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

GOVERNMENT RESPONSE - GOVERNMENT RESPONSE - Selected TendersSelected Tenders

Page 6: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

Infrastructure Delivery Improvement Infrastructure Delivery Improvement Programme (IDIP) Programme (IDIP) [Mentioned by State President in May 2006 – [Mentioned by State President in May 2006 – in response to questions]in response to questions]

Municipal Infrastructure Grant (MIG) & Project Municipal Infrastructure Grant (MIG) & Project ConsolidateConsolidate– Established Programme Management Units (PMUs)Established Programme Management Units (PMUs)– Some direct transfer of funds to MunicipalitiesSome direct transfer of funds to Municipalities

Other departmental initiatives – E.g. Housing, Other departmental initiatives – E.g. Housing, Public Works ProgrammesPublic Works Programmes

National Treasury National Treasury – Conditional Grants, infrastructure grantsConditional Grants, infrastructure grants

Development Bank of Southern Africa (DBSA) Development Bank of Southern Africa (DBSA) - Initiative called Siyenza Manje - Initiative called Siyenza Manje

Provincial programmes and projects Provincial programmes and projects

GOVERNMENT RESPONSE – GOVERNMENT RESPONSE – Programmes / ProjectsProgrammes / Projects

Page 7: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

Tendered & worked on numerous Tendered & worked on numerous public service projectspublic service projects

Involved with the Donor CommunityInvolved with the Donor Community– Project AppraisalsProject Appraisals– Project ManagementProject Management– EvaluationsEvaluations

Wits P&DM – ‘Accredited’ Project Wits P&DM – ‘Accredited’ Project Management CourseManagement Course

As a public servantAs a public servant

BACKGROUND TO THE EXPERIENCEBACKGROUND TO THE EXPERIENCE

Page 8: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

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1. Wild enthusiasm2. Disillusionment3. Confusion4. Panic5. Search for the guilty6. Punishment of the innocent7. Promotion of non-participants

THE 7 PHASES OF A PROJECT THE 7 PHASES OF A PROJECT

Page 9: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

Wits P&DM – Certified Project Wits P&DM – Certified Project Management CourseManagement Course– ++ 40 students each in Johannesburg and 40 students each in Johannesburg and

Nelspruit; Mix of Public sector, Private Nelspruit; Mix of Public sector, Private Sector and NGOs; Across hierarchy Sector and NGOs; Across hierarchy (including a secretary once)(including a secretary once)

– Some ‘independents’ – Consultants / Some ‘independents’ – Consultants / unemployed ; Average 10 - 15% looking for unemployed ; Average 10 - 15% looking for certificate - for promotion / leave certificate - for promotion / leave organisationorganisation

Core PM Cadre being created (with Core PM Cadre being created (with other institutions & initiativesother institutions & initiatives– Management skills constraints , especially Management skills constraints , especially

financial & economic management financial & economic management

SOME PRACTICAL EXPERIENCES – Wits SOME PRACTICAL EXPERIENCES – Wits

Page 10: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

PMBOKPMBOK 5 basic process groups :5 basic process groups :

– Initiating, Initiating, – Planning, Planning, – Executing, Executing, – Controlling and Monitoring, Controlling and Monitoring, – Closing. Closing.

9 knowledge areas9 knowledge areas– Project Integration Project Integration

Management. Management. – Project Scope Management, Project Scope Management, – Project Time Management, Project Time Management, – Project Cost Management, Project Cost Management, – Project Quality Management, Project Quality Management, – Project Human Resource Project Human Resource

Management, Management, – Project Communications Project Communications

Management, Management, – Project Risk Management, and Project Risk Management, and – Project Procurement Project Procurement

ManagementManagement

Project Cycle Project Cycle ManagementManagement– ProgrammingProgramming– IdentificationIdentification– FormulationFormulation– FinancingFinancing– ImplementationImplementation– Evaluation Evaluation

PMBOK & Project Cycle ManagementPMBOK & Project Cycle Management

There is a move to Results / Outcomes Based Processes & Evaluation There is a move to Results / Outcomes Based Processes & Evaluation

Page 11: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

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Initiating / Programming & Initiating / Programming & identificationidentification– Direction not always clearDirection not always clear

Resource driven - Availability of fundsResource driven - Availability of funds ‘‘Political’ imperativesPolitical’ imperatives

– Evaluation then difficultEvaluation then difficult

SOME PRACTICAL EXPERIENCESSOME PRACTICAL EXPERIENCES

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Planning / FormulationPlanning / Formulation– Ability to scope projectAbility to scope project

What makes a “good” terms of referenceWhat makes a “good” terms of reference Unrealistic / optimistic time framesUnrealistic / optimistic time frames Lack of clarity on processes and deliverables Lack of clarity on processes and deliverables

– What is ‘work breakdown’What is ‘work breakdown’ Use of consultants / professionalsUse of consultants / professionals

– Tender / Procurement processes Tender / Procurement processes underestimatedunderestimated

Agreement on evaluation criteria / process / Agreement on evaluation criteria / process / contractingcontracting

– Buy in of all stakeholdersBuy in of all stakeholders

SOME PRACTICAL EXPERIENCESSOME PRACTICAL EXPERIENCES

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Project Management Interest Project Management Interest Group MeetingGroup Meeting

Executing / ImplementationExecuting / Implementation– Add-on to existing mandate of Project Add-on to existing mandate of Project

ManagerManager– Is the project manager a project manager?Is the project manager a project manager?– Management by CommitteeManagement by Committee– Hierarchy vs Project management teamHierarchy vs Project management team

Reverse decisions / availabilityReverse decisions / availability Communication through hierarchyCommunication through hierarchy Delayed / Insufficient feedback to project team Delayed / Insufficient feedback to project team

& consultants& consultants– Lack of administrative supportLack of administrative support– Poor risk management Poor risk management – Scope creepScope creep

SOME PRACTICAL EXPERIENCESSOME PRACTICAL EXPERIENCES

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Controlling and Monitoring / Controlling and Monitoring / Evaluation Evaluation – Budget ‘over-run’ Budget ‘over-run’ – Who has the final say?Who has the final say?– Administration of the department vs Administration of the department vs

project management agreementsproject management agreements Lack of clear evaluation criteria Lack of clear evaluation criteria

and mechanismsand mechanisms

SOME PRACTICAL EXPERIENCESSOME PRACTICAL EXPERIENCES

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Project Management Interest Project Management Interest Group MeetingGroup Meeting

Skills transfer / capacity building Skills transfer / capacity building requirementsrequirements

Conflicts of interestConflicts of interest Budget gamesBudget games Record keeping / knowledge Record keeping / knowledge

management management Reporting & auditingReporting & auditing Stability in organisationStability in organisation

– Executing Authority or Accounting OfficerExecuting Authority or Accounting Officer ‘‘Hollywood syndrome’ Hollywood syndrome’

– Lack of timeous decision making Lack of timeous decision making

INSTITUTIONAL CHALLENGESINSTITUTIONAL CHALLENGES

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1. Lack of clear links between the project and the organisation's key strategic priorities, including agreed measures of success.

2. Lack of clear senior management and Ministerial ownership and leadership.

3. Lack of effective engagement with stakeholders. 4. Lack of skills and proven approach to project

management and risk management. 5. Too little attention to breaking development and

implementation into manageable steps. 6. Evaluation of proposals driven by initial price rather than

long-term value for money (especially securing delivery of business benefits).

7. Lack of understanding of, and contact with the supply industry at senior levels in the organisation.

8. Lack of effective project team integration between clients, the supplier team and the supply chain.

(1) UK – Office of Government Commerce - Common Causes of Project Failure(1) UK – Office of Government Commerce - Common Causes of Project Failure

WE ARE NOT ALONE WE ARE NOT ALONE (1)(1)

Page 17: Workshop on Project Management Current Challenges for Project Management in the Public Sector Jeets Hargovan Strategic Alternatives – Management Consultants.

Project Management Interest Project Management Interest Group MeetingGroup Meeting

Not Flavour of the Month IssueNot Flavour of the Month Issue– Absolute commitment – even if no Absolute commitment – even if no

consensus on tools to be usedconsensus on tools to be used PMBOK, Prince2, PCMPMBOK, Prince2, PCM MS Office vs Open Source tools etcMS Office vs Open Source tools etc

Delivery is taking placeDelivery is taking place– Pockets of excellencePockets of excellence– Despite institutional difficultiesDespite institutional difficulties

Need for a “directed” government Need for a “directed” government approachapproach– No Need to re-invent wheelNo Need to re-invent wheel

CONCLUSIONCONCLUSION

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Q & AQ & A