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

2. Project Management Interest Group Meeting Leadership on Project Management Leadership on Project Management Government Response Government Response –Qualification Framework –Programmes and Projects –Tenders Background to the experience input Background to the experience input Some Practical Considerations Some Practical Considerations –Seven Phases of a Project –PMBOK & Project Cycle Management unpacked Institutional challenges Institutional challenges We are not Alone We are not Alone Conclusion Conclusion OUTLINE OF PRESENTATION

3. Project Management Interest Group Meeting The Government and Old Mutual Business School aim to provide foundational project management training to 100 employees within local government, in support of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and particularly the Joint Initiative on Priority Skills Acquisition (JIPSA) [Deputy President – 1 June 2006] The Government and Old Mutual Business School aim to provide foundational project management training to 100 employees within local government, in support of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and particularly the Joint Initiative on Priority Skills Acquisition (JIPSA) [Deputy President – 1 June 2006] 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 that have much to offer to our effective functioning. (Geraldine Fraser-Moleketi – November 2003) 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 that have much to offer to our effective functioning. (Geraldine Fraser-Moleketi – November 2003) Project Management has become a core skill in the make-up of all public sector managers and professionals (Geraldine Fraser-Moleketi – November 2003) Project Management has become a core skill in the make-up of all public sector managers and professionals (Geraldine Fraser-Moleketi – November 2003) Ministerial Statements / 2006 Budget Vote Statements by (amongst others): Ministerial Statements / 2006 Budget Vote Statements by (amongst others): –Minister T Manuel: Budget speech 2006 –Minister of Housing, L Sisulu –Minister of Provincial and Local Government, FS Mufumadi –Minister for Agriculture and Land Affairs, T Didiza Gauteng Expanded Public Works Framework, introduced a new service delivery model for EPWP projects in the form of Project Management Resource Groups (PMRG) [MEC Ignatius Jacobs] Gauteng Expanded Public Works Framework, introduced a new service delivery model for EPWP projects in the form of Project Management Resource Groups (PMRG) [MEC Ignatius Jacobs] –Similar Statements by numerous Provincial MECs LEADERSHIP ON PROJECT MANAGEMENT

4. Project Management Interest Group Meeting Qualifications, Accreditation and Unit Standards Qualifications, Accreditation and Unit Standards –SAQA – Gazetted Generic Project Management qualification requirements (& others) Gazetted –Accreditation –Approved Courses Courses –Unit Standard Compliant Service Providers – Registered / Approved by SETA Necessary Process Necessary Process –Has become a long & bureaucratic GOVERNMENT RESPONSE – Formal Training

5. Project Management Interest Group Meeting GOVERNMENT RESPONSE - Selected Tenders

6. Project Management Interest Group Meeting Infrastructure Delivery Improvement Programme (IDIP) [Mentioned by State President in May 2006 – in response to questions] Infrastructure Delivery Improvement Programme (IDIP) [Mentioned by State President in May 2006 – in response to questions] Municipal Infrastructure Grant (MIG) & Project Consolidate Municipal Infrastructure Grant (MIG) & Project Consolidate –Established Programme Management Units (PMUs) –Some direct transfer of funds to Municipalities Other departmental initiatives – E.g. Housing, Public Works Programmes Other departmental initiatives – E.g. Housing, Public Works Programmes National Treasury National Treasury –Conditional Grants, infrastructure grants Development Bank of Southern Africa (DBSA) - Initiative called Siyenza Manje Development Bank of Southern Africa (DBSA) - Initiative called Siyenza Manje Provincial programmes and projects Provincial programmes and projects GOVERNMENT RESPONSE – Programmes / Projects

7. Project Management Interest Group Meeting Tendered & worked on numerous public service projects Tendered & worked on numerous public service projects Involved with the Donor Community Involved with the Donor Community –Project Appraisals –Project Management –Evaluations Wits P&DM – Accredited Project Management Course Wits P&DM – Accredited Project Management Course As a public servant As a public servant BACKGROUND TO THE EXPERIENCE

8. Project Management Interest Group Meeting 1. Wild enthusiasm 2. Disillusionment 3. Confusion 4. Panic 5. Search for the guilty 6. Punishment of the innocent 7. Promotion of non-participants THE 7 PHASES OF A PROJECT

9. Project Management Interest Group Meeting Wits P&DM – Certified Project Management Course Wits P&DM – Certified Project Management Course –+ 40 students each in Johannesburg and Nelspruit; Mix of Public sector, Private Sector and NGOs; Across hierarchy (including a secretary once) –Some independents – Consultants / unemployed ; Average 10 - 15% looking for certificate - for promotion / leave organisation Core PM Cadre being created (with other institutions & initiatives Core PM Cadre being created (with other institutions & initiatives –Management skills constraints, especially financial & economic management SOME PRACTICAL EXPERIENCES – Wits

10. Project Management Interest Group Meeting PMBOK PMBOK 5 basic process groups : 5 basic process groups : –Initiating, –Planning, –Executing, –Controlling and Monitoring, –Closing. 9 knowledge areas 9 knowledge areas –Project Integration Management. –Project Scope Management, –Project Time Management, –Project Cost Management, –Project Quality Management, –Project Human Resource Management, –Project Communications Management, –Project Risk Management, and –Project Procurement Management Project Cycle Management Project Cycle Management –Programming –Identification –Formulation –Financing –Implementation –Evaluation PMBOK & Project Cycle Management There is a move to Results / Outcomes Based Processes & Evaluation

11. Project Management Interest Group Meeting Initiating / Programming & identification Initiating / Programming & identification –Direction not always clear Resource driven - Availability of funds Resource driven - Availability of funds Political imperatives Political imperatives –Evaluation then difficult SOME PRACTICAL EXPERIENCES

12. Project Management Interest Group Meeting Planning / Formulation Planning / Formulation –Ability to scope project What makes a good terms of reference What makes a good terms of reference Unrealistic / optimistic time frames Unrealistic / optimistic time frames Lack of clarity on processes and deliverables Lack of clarity on processes and deliverables –What is work breakdown Use of consultants / professionals Use of consultants / professionals –Tender / Procurement processes underestimated Agreement on evaluation criteria / process / contracting Agreement on evaluation criteria / process / contracting –Buy in of all stakeholders SOME PRACTICAL EXPERIENCES

13. Project Management Interest Group Meeting Executing / Implementation Executing / Implementation –Add-on to existing mandate of Project Manager –Is the project manager a project manager? –Management by Committee –Hierarchy vs Project management team Reverse decisions / availability Reverse decisions / availability Communication through hierarchy Communication through hierarchy Delayed / Insufficient feedback to project team & consultants Delayed / Insufficient feedback to project team & consultants –Lack of administrative support –Poor risk management –Scope creep SOME PRACTICAL EXPERIENCES

14. Project Management Interest Group Meeting Controlling and Monitoring / Evaluation Controlling and Monitoring / Evaluation –Budget over-run –Who has the final say? –Administration of the department vs project management agreements Lack of clear evaluation criteria and mechanisms Lack of clear evaluation criteria and mechanisms SOME PRACTICAL EXPERIENCES

15. Project Management Interest Group Meeting Skills transfer / capacity building requirements Skills transfer / capacity building requirements Conflicts of interest Conflicts of interest Budget games Budget games Record keeping / knowledge management Record keeping / knowledge management Reporting & auditing Reporting & auditing Stability in organisation Stability in organisation –Executing Authority or Accounting Officer Hollywood syndrome Hollywood syndrome –Lack of timeous decision making INSTITUTIONAL CHALLENGES

16. Project Management Interest Group Meeting 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 WE ARE NOT ALONE (1)

17. Project Management Interest Group Meeting Not Flavour of the Month Issue Not Flavour of the Month Issue –Absolute commitment – even if no consensus on tools to be used PMBOK, Prince2, PCM PMBOK, Prince2, PCM MS Office vs Open Source tools etc MS Office vs Open Source tools etc Delivery is taking place Delivery is taking place –Pockets of excellence –Despite institutional difficulties Need for a directed government approach Need for a directed government approach –No Need to re-invent wheel CONCLUSION

18. Project Management Interest Group Meeting Q & A