Public-Sector Project Management E-Book

David Wirick

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 437

Veröffentlichungsjahr: 2011

Beschreibung

YOUR GUIDE TO PROJECT MANAGEMENT SUCCESS IN THE PUBLIC SECTOR There may be no simple formula for success in public-sector projects, but Public-Sector Project Management delivers the next best thing: a complete set of skill-building strategies that puts success well within your reach. Building on industry standards and best practices as well as almost thirty years of public-sector experience, this definitive sourcebook clearly explains how to manage projects in the public sector and navigate their many challenges. Here is where you'll find all the tools to accomplish your goals for any public-sector project, whether you are overseeing military and security operations, the construction of public infrastructure, improving agency processes, deploying new systems or public programs, or any other public initiative. The book describes both the obstacles and basic processes of public-sector project management and examines the differences between public-sector and private-sector projects, including the management of the wide array of public-sector stakeholders. Public-Sector Project Management is your comprehensive professional template for making a positive contribution to your agency or organization. Inside, you'll find: * Expert guidance consistent with project management best practices * In-depth coverage of public-sector constraints, including purchasing systems, legal mandates, political and media oversight, and complex rules and processes * Specific strategies to enhance the management capability of public-sector managers and private-sector project managers working under government contracts * Emphasis on the role of planning in managing customer, manager, and project team expectations, and coping with the overlapping systems of constraints that impede public-sector projects * Techniques for managing contractors and vendors * Tools for managing the complexity inherent in most public-sector projects * Insightful case studies of notable and historic public-sector projects; chapter-ending discussion questions and exercises; numerous tables and figures; and key terms in the glossary

Leseprobe

Table of Contents

Cover

Title page

Copyright page

Dedication

Preface

OBJECTIVES

OUTLINE OF THE BOOK

Chapter 1 The Challenges of Public-Sector Project Management and the Coming Storm

THE DISTINGUISHING CHARACTERISTICS OF THE PUBLIC SECTOR

THE CHALLENGES OF PUBLIC-SECTOR PROJECT MANAGEMENT

THE COMING STORM

NEW TOOLS FOR PUBLIC-SECTOR MANAGERS IN THE NEW ECONOMY

Chapter 2 The Foundations of Public-Sector Project Management

THE PROBLEM WITH PROJECTS

WHY DO PUBLIC-SECTOR PROJECTS FAIL?

THE GOOD NEWS ABOUT PROJECTS AND PROJECT MANAGEMENT STANDARDS

THE VALUE OF PROJECT MANAGEMENT TO A PUBLIC-SECTOR ORGANIZATION

THE DOWNSIDE OF PROJECT MANAGEMENT

THE CRITICAL SUCCESS FACTORS FOR PUBLIC-SECTOR PROJECTS

PROJECT MANAGEMENT MATURITY MODELS IN THE PUBLIC SECTOR

SCALING PROJECT MANAGEMENT METHODS

THE USE OF SOFTWARE FOR PROJECT MANAGEMENT

Chapter 3 The Framework for Managing Public-Sector Projects

THE PROJECT MANAGEMENT FRAMEWORK FOR PUBLIC PROJECTS

GROUPING PROJECTS FOR BETTER MANAGEMENT

BREAKING PROJECTS INTO COMPONENTS

PROJECT PROCESS GROUPS

PROJECT MANAGEMENT KNOWLEDGE AREAS

THE TRIPLE-CONSTRAINT MODEL

PROJECT PROCESSES

APPLYING PROJECT FUNCTIONS AND PROCESSES FOR PUBLIC-SECTOR PROJECTS

THE NECESSARY SKILLS FOR PUBLIC-SECTOR PROJECT MANAGERS

Chapter 4 Project Integration

PUBLIC-SECTOR PROJECT INTEGRATION: WRESTLING WITH THE OCTOPUS

OVERVIEW OF THE NECESSARY FUNCTIONS FOR PUBLIC-SECTOR PROJECT INTEGRATION

BEST PRACTICES FOR PUBLIC-SECTOR PROJECT INTEGRATION

Chapter 5 Managing Project Scope

PROJECT SCOPE MANAGEMENT

THE CHALLENGES OF SCOPE MANAGEMENT FOR PUBLIC-SECTOR PROJECTS

THE TWO ROLES OF PROJECT SCOPE

THE REQUIRED FUNCTIONS FOR PUBLIC-SECTOR PROJECT SCOPE MANAGEMENT

BEST PRACTICES FOR MANAGING PUBLIC-SECTOR PROJECT SCOPE

Chapter 6 Managing Project Time

THE CHALLENGES OF PROJECT TIME MANAGEMENT IN THE PUBLIC SECTOR

THE REQUIRED FUNCTIONS FOR PUBLIC-SECTOR PROJECT TIME MANAGEMENT

BEST PRACTICES IN PUBLIC-SECTOR PROJECT TIME MANAGEMENT

Chapter 7 Managing Project Cost

THE CHALLENGES OF PUBLIC-SECTOR COST MANAGEMENT

PROJECT SELECTION AND PRIORITIZATION

REQUIRED FUNCTIONS FOR MANAGING PUBLIC-SECTOR PROJECT COSTS

EARNED-VALUE MANAGEMENT OF PUBLIC-SECTOR PROJECTS

BEST PRACTICES IN PUBLIC-SECTOR PROJECT COST MANAGEMENT

Chapter 8 Managing Project Quality

THE BASICS OF PROJECT QUALITY MANAGEMENT

THE CHALLENGES OF PUBLIC-SECTOR PROJECT QUALITY MANAGEMENT

THE FUNCTIONS REQUIRED FOR PUBLIC-SECTOR PROJECT QUALITY MANAGEMENT

LEAN GOVERNMENT AS A TOOL FOR QUALITY IMPROVEMENT

MANAGING PROJECT REQUIREMENTS

BEST PRACTICES IN THE MANAGEMENT OF QUALITY IN PUBLIC-SECTOR PROJECTS

Chapter 9 Managing Project Human Resources

THE CHALLENGES OF HUMAN RESOURCE MANAGEMENT IN PUBLIC-SECTOR PROJECTS

THE REQUIRED FUNCTIONS FOR PUBLIC-SECTOR HUMAN RESOURCE PROJECT MANAGEMENT

STRATEGIES FOR MANAGING HUMAN RESOURCES IN PUBLIC-SECTOR PROJECTS

PUBLIC-SECTOR LEADERSHIP

BEST PRACTICES FOR HUMAN RESOURCE MANAGEMENT IN PUBLIC-SECTOR PROJECTS

Chapter 10 Managing Project Communications

THE CHALLENGES OF PROJECT COMMUNICATIONS IN PUBLIC-SECTOR PROJECTS

THE FUNCTIONS REQUIRED FOR PUBLIC-SECTOR PROJECT COMMUNICATIONS MANAGEMENT

BEST PRACTICES IN PUBLIC-SECTOR PROJECT COMMUNICATIONS MANAGEMENT

Chapter 11 Managing Project Risk

THE CHALLENGES OF MANAGING RISKS IN PUBLIC-SECTOR PROJECTS

THE REQUIRED FUNCTIONS FOR PUBLIC-SECTOR PROJECT RISK MANAGEMENT

BEST PRACTICES FOR PUBLIC-SECTOR PROJECT RISK MANAGEMENT

Chapter 12 Managing Project Procurement and Vendors

THE NECESSARY FUNCTIONS OF PUBLIC-SECTOR PROJECT PROCUREMENT MANAGEMENT

THE NEW DEMANDS ON MANAGERS AND NEW TOOLS FOR MANAGERS

THE DIFFERENCES AMONG ACTIVITIES, OUTPUTS, AND OUTCOMES

THE CHALLENGES OF OUTCOME MANAGEMENT FOR CONTRACTORS AND VENDORS

PERFORMANCE MANAGEMENT

MANAGING THE CULTURAL CHANGES NECESSARY FOR SUCCESSFULLY MANAGING VENDORS

THE LEGAL FRAMEWORK FOR OUTSOURCING PROJECT PRODUCTS AND SERVICES TO VENDORS

MANAGING CHANGES AND EXPECTATIONS IN THE VENDOR RELATIONSHIP

BEST PRACTICES FOR PUBLIC-SECTOR PROJECT PROCUREMENT MANAGEMENT

Chapter 13 Managing Complexity and Chaos in Public-Sector Projects

THE ROLE OF COMPLEXITY AND CHAOS IN PUBLIC-SECTOR PROJECTS

MODERN INSIGHTS INTO CHAOS, COMPLEXITY, AND TURBULENCE

THE CHALLENGES OF CHAOS AND COMPLEXITY FOR PROJECTS AND THE RECOGNITION OF THE LIMITS OF CERTAINTY

FACTORS CREATING COMPLEXITY IN THE PROJECT ENVIRONMENT

THREE SUPPLEMENTARY METHODS FOR MANAGING CHAOS AND COMPLEXITY IN PROJECTS

CONCLUDING COMMENTS ON CHAOS AND COMPLEXITY IN PROJECTS

Glossary

Index

This book is printed on acid-free paper.

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Published simultaneously in Canada

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Project Management Institute (www.pmi.org) is the leading advocate for the project management profession globally. Founded in 1969, PMI has more than 500,000 members and credential holders in 174 countries. PMI’s Project Management Professional (PMP) credential is globally recognized as the gold standard credential in project management

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Library of Congress Cataloging-in-Publication Data:

Wirick, David W.

Public-sector project management : meeting the challenges and achieving results / David W. Wirick.

p. cm.

Includes index.

ISBN 978-0-470-48731-0 (cloth)

ISBN 978-1-118-27676-1 (ePDF)

ISBN 978-1-118-27636-5 (epub)

ISBN 978-1-118-27670-9 (mobi)

1. Project management. 2. Public administration. 3. Economic development projects. I. Title.

HD69.P75.W57 2009

352.3 065–dc22

2009018575

This book is dedicated to Ellen and Katherine, two people who make a difference in the world, and to those who serve the public interest. There is no higher calling.

Preface

What do the Great Pyramid of Giza and the Marshall Plan have in common? Both are examples of public-sector projects that had—as do many public-sector projects—an impact on their societies. The Great Pyramid of Giza took 20 years to complete, involved up to 200,000 salaried workers, was constructed to an accuracy of .05 percent, and for 3,800 years was the tallest man-made structure in the world. The Marshall Plan was created in 1947 to rebuild Western Europe after World War II. In its four years of operation, it distributed $13 billion in economic and technical assistance. By the time the Plan was terminated, the economies of every participating nation, except Germany, had grown to prewar levels.

Not every public project impacts society in the same way that these two projects did. But every public project has the capability to improve the lives of citizens or the effectiveness and efficiency of government. Those who manage public-sector projects participate in a proud tradition of projects that created results for society.

Managing projects is always a challenge, especially when those projects involve multiple stakeholders, new or unproven technology, shifting or unclear project requirements, and constrained resources. Those project challenges multiply in the public sector, which depends on successful projects to make the changes necessary to cope with a fast-changing world.

Compounding the challenges of public-sector projects is the shortage of good project managers in the public sector. As the public sector is increasingly challenged to do more with less, it will need the talents of thousands of solid project managers, something public-sector organizations are just now coming to grips with. At the national, regional, state, and local levels, governments are seeking ways to increase the number of project managers at their disposal and build the skills of those they have, so they can manage the complex projects on the public agenda. Other governments are outsourcing the management of projects to private-sector project managers, who will need a deep understanding of public-sector processes and constraints.

That new economy that we hear so much about is the driving force behind the need for better project management. Government across the world is, in fact, facing a perfect storm of increasing demands for services with a decreasing ability to raise revenues. Today’s public-sector managers will be required to compete in world markets that will demand much of them and provide them with fewer resources than they need. They will be forced to make their way in an economic environment that is much tougher than that of just a few years ago. The next chapter examines the ways private-sector organizations have tried to respond to this new and challenging environment in an attempt to gather clues as to how public-sector organizations can also thrive.

Project management is one of the best tools for those who work in government or with government and public-sector projects. Although project management is not a magic bullet for success, I would not want to attempt to survive in the new economy or try to deliver results in the public sector without that bullet in my gun. Solid project management skills will not guarantee that public-sector managers will accomplish great and wonderful things, but having those skills will increase the probability that they will.

OBJECTIVES

This book has been designed to address the particular and daunting challenges of managing public-sector projects and increasing project management skills in the public sector. It introduces project management methods and tools that have proven useful in both public-sector and private-sector organizations and identifies both the difficulties of public-sector projects and best practices for dealing with them.

Ultimately, this book is designed to enable public-sector project managers to guide the crucial dialogues necessary for successful projects. It is also intended to help them organize and inspire public organizations to take the actions necessary to create project deliverables that meet organizational needs. It provides those project managers with the hard and soft skills necessary for success in the public sector.

This book follows and attempts to be compliant with the project management methods established by the Project Management Institute (PMI®), the world’s largest and most respected association of project managers. It attempts to avoid conflicts with both A Guide to the Project Management Body of Knowledge (PMBOK®Guide—Fourth Edition) and the Government Extension to the PMBOK®Guide Third Edition, which is also a PMI publication.

This book is for public-sector project managers who want to optimize project outcomes and make a positive contribution to their agencies and organizations. It is for those who have worried about meeting a deadline for a project or getting the support of their stakeholders. It is for those who have wondered about whether they knew what was being requested of them by their managers or stakeholders. It is for those who did not get the results they wanted or who are concerned about new demands and challenges in a high-speed and very demanding environment.

This book is also for those private-sector project managers who are performing projects under contract with the public sector or whose projects interface with public-sector processes or programs. As those private-sector project managers attempt to achieve project results, they may become frustrated with the size of the community of project stakeholders that needs to be satisfied and with public organizations that seem to value rigorous attention to the many constraints that affect public-sector projects over the attainment of business objectives. As will be discussed later, that focus on constraints over results is simply the result of the inherent structure of public-sector programs, which find their roots in statutes, rules, and processes. That focus may also be the result of the fact that penalties for nonconformance outweigh the benefits of attaining results in most public-sector organizations.

No matter what the cause, public-sector projects must be managed differently than most private-sector projects and are subject to additional challenges. The good news, however, is that most public-sector employees are competent and want to achieve outcomes that benefit their organizations and the public. With an understanding of public processes and constraints, private-sector and public-sector project managers can optimize the outcomes of their government projects.

The skills that are embedded in modern project management are survival skills for the future that can be applied in virtually any endeavor. If those skills can be mastered, success will be more likely. In addition, project management skills can be taken from government into the private sector. In fact, one of the principles governing this book is that public projects are tough, and that, if you can manage them, you can manage any projects.

The objectives of this book are to:

Increase the capability of public-sector managers and private-sector project managers working under government contracts to successfully manage projectsCreate recognition of the importance of good project management in the public sectorImprove the work products created by public-sector project managers and increase stakeholder satisfactionProvide public-sector project management guidance that is consistent with project management best practices, many of which are articulated in the PMBOK®Guide—Fourth EditionEmphasize the role of planning in order to manage customer, manager, and project team expectationsLink participants to the traditions of public service and public-sector projects that have had an impact on our world

In order to make participants aware of the long and illustrious history of public-sector project management, a case study of a public-sector project is presented in each chapter. In addition to discussion questions and exercises for each chapter, key public-sector project management terms are included in the glossary.

OUTLINE OF THE BOOK

This preface introduces the book and its goals. Chapter 1 explores the challenges of public-sector project management and the relevance of project management for public-sector managers. It examines the differences between the public sector and the private sector as those differences apply to projects and looks at the looming tsunami about to impact government and how private-sector organizations have coped with the changes that have affected them. It also explores the challenges of project management in the public sector.

Chapter 2 lays the foundations for a study of project management in the public sector. It introduces some of the critical definitions of project management and critical success factors for public-sector projects. It also explores project management maturity models and how they can be adapted to the public sector. Last, it discusses how scalable models of project management can be adapted for a variety of public-sector project types. Chapter 2 begins to explain the need to address public-sector projects as broad communities of stakeholders that require as much management as the details of the project.

Chapter 3 identifies a framework for public-sector project management and details the specific processes, Process Groups, and Knowledge Areas necessary for effective public-sector project management. It identifies the necessary functions for public-sector project management and discusses how public-sector project managers can select the right project management processes for their projects based on the risks of their projects.

The next nine chapters examine the nine project management Knowledge Areas with a focus on identifying the challenges embedded in those knowledge areas for public-sector project management. Chapter 4 begins an examination of those project management knowledge areas with a look at project integration. It examines the functions necessary for integrating the various aspects of the project and creating the project plan. It also examines the management and monitoring of project work in public-sector projects. And it focuses some attention on the initiation of the project, including the creation of the project charter, the principle document necessary for good public-sector project initiation.

Chapter 5 addresses the critical importance of managing project scope and the necessary processes for it in public-sector projects, including the development of the work breakdown structure (WBS). It highlights the WBS as the centerpiece of project planning and the definition of the project’s scope. It also addresses the challenges of managing project scope in the public sector.

Chapter 6 describes methods for creating and managing the project schedule. It focuses attention on the creation of the project network diagram and the identification of the critical path. It describes and applies methods for project duration compression and the special challenges of managing the schedule for public-sector projects, in which elements of the project that take considerable amounts of time may be outside the control of the project team.

Chapter 7 describes the role of project cost management, a function that is too often overlooked in public-sector projects. It examines the techniques for estimating and managing the resources and costs of the project and identifies the challenges of public-sector project cost management. It identifies methods for project selection and prioritization and builds a model for prioritizing public-sector projects. It also describes and applies earned-value management as a tool for integrating schedule, cost, and performance data.

Identifying and managing project quality in public-sector projects is the focus of Chapter 8. It examines methods and tools for identifying and managing quality criteria for public-sector projects. It introduces the requirements cycle and the attributes of good requirements as it explores meeting customer requirements as a definition of project quality for public-sector projects. It also describes the importance of compliance with applicable rules and laws as an indicator of public-sector project success.

Chapter 9 is devoted to a discussion of managing project human resources. It examines ways to build and nurture a project team within the constraints of the public sector. It also examines methods for managing public-sector project teams and methods for effectively managing project conflict. Last, it looks at the leadership role of the project manager as he or she attempts to inspire the project team.

Chapter 10 examines the critical role of project communications, arguably the most important role of the project manager. It identifies strategies to determine the communications needs of stakeholders and builds a plan to satisfy those needs. Last, it addresses the emerging need for project managers and other agency managers to adopt strategies to prevent the loss of organizational knowledge as the baby boom generation leaves the workplace and as workforces are downsized.

Chapter 11 addresses the management of project risks. It examines the unique risks of public-sector projects and the tools for project risk management in those projects. It shows how to build a risk register for a public project that contains identified risks, the results of risk analysis, risk-response plans, secondary risks, risk owners, residual risks, and risk triggers. It also looks at the management of the project constraints that affect public-sector projects and identifies a new tool, the constraint management plan, which can be useful for public-sector projects.

Chapter 12 discusses public-sector project procurement and vendor management. It begins with an examination of the project procurement management techniques, which are becoming more critical as public-sector organizations increase their utilization of outsourcing as a means of reducing costs. It examines the specific procurement constraints imposed on public-sector projects. Last, it identifies best practices for managing outcomes and vendors, including the creation of good service-level agreements and statements of work for vendors.

Chapter 13 introduces the role of complexity and chaos in public-sector projects, which tend to be more complex than many of their private-sector counterparts. It identifies and applies a special set of supplementary tools for the management of chaos and complexity in projects. Although good project planning is intended to reduce the complexity of the project environment, in many public-sector projects, outside factors introduce high levels of complexity. This chapter describes and applies three tools for managing those influences.

Embedded in this book is my deeply held appreciation for the work of public-sector employees, who strive in the face of nearly overwhelming constraints to do their best and to serve the public. We have come through a painful period during which public servants were labeled as a problem to be solved rather than as an asset to be fostered. In truth, we have always depended on the efforts of public servants to create and maintain an orderly and just society. As we charge into this new millennium and this new economy, we will need them more than ever before.

The Great Pyramid of Giza

Although a lot of public-sector projects create dramatic results, not every public project creates one of the Seven Wonders of the Ancient World. One that did was the Great Pyramid of Giza.

When the Egyptian pharaoh Khufu decided to create a burial tomb for himself and his close family, he went big. The Great Pyramid we see today is only a small part of the entire structure, which included two temples, three smaller pyramids for Khufu’s wives, a raised causeway, and a set of small tombs for nobles. When it was finished, the Great Pyramid became the tallest structure in the world and held that title for nearly 4,000 years until the construction of the Eiffel Tower. What we see today is smaller than the original because the casing stones have fallen off and been moved away from the site. It was composed of 2,500,000 limestone blocks, each weighing between two and 70 tons.

The project team consisted of between 100,000 and 200,000 men, who had to be housed, fed, clothed, paid, coordinated, and managed. Given the length of the project and the hazards of construction, some of those workers had to be buried, and a cemetery for workers has been found. The chief architect (and probably project manager) was Khufu’s vizier, Hemon. There is no record of his earning his PMP. Debate continues as to the construction techniques applied, though they were probably innovative and comparable to the use of new technology today. The project was completed in 20 years, a short time given the size of the Great Pyramid and the daunting tasks that had to be performed.

In addition to the sheer size of the project, it was built to exacting quality standards. Some estimates conclude that construction accuracy was within .05 percent of the plan, which is astounding given the size of the endeavor and the crude tools available. It was also aligned to the four points of the compass, a feat that was regarded as being beyond the capability of the technology available at the time.

Functional requirements were also demanding. The project had to meet the needs of a demanding pharaoh and his family as they made their transition into the afterlife, which required a complex set of internal chambers and passages, including ventilation shafts that maintain the interior temperature of the Pyramid at 68 degrees Fahrenheit. Not only did the structure have to be secure, but it had to be secure forever so that the bodies of the pharaoh and his family would never be disturbed. Unfortunately, the project did not adequately assess the ingenuity of thieves, who simply dug around sealed entrances and quickly disturbed the burial chambers.

With an ambitious design, innovative construction techniques, a dedication to meeting demanding quality standards, and the careful coordination of a gigantic project team, the project manager for this public project was able to create a marvel of engineering that has endured for centuries.

Chapter 1

The Challenges of Public-Sector Project Management and the Coming Storm

THE DISTINGUISHING CHARACTERISTICS OF THE PUBLIC SECTOR

Before embarking on a study of public-sector project management, including its unique characteristics, we should first identify how the public sector differs from the private sector. More differences exist between private-sector organizations and public-sector organizations than just their approach to earning and distributing revenue.

Of course, there are differences among public-sector agencies as well. Some public-sector organizations can be defined as public enterprises that are charged with the provision of services on a self-supporting basis. These include municipal utilities that provide water, wastewater, sewer, and other services. Other public-sector organizations can arguably be described as only quasi-public. Examples of these organizations are state-supported universities, which receive an increasingly lower percentage of their operating funds from the states they are in.

Some public-sector organizations provide direct services to the public, although those services are increasingly being outsourced as well. A good example is the provision of mental health services by state institutions. Until the 1970s, state institutions were one of the primary modes of service provision to people with mental illnesses or mental retardation. Since then, those institutions have largely been closed, and service provision has moved to private hospitals.

Other public-sector agencies set standards for the industries or perform economic regulation. Public service commissions at the federal and state levels set rates for gas, electricity, and telecommunications providers. In the past decade, some of those services have been deregulated, and market mechanisms are allowed to set rates. Nonetheless, public service commissions still retain general oversight of the quality of services and the maintenance of effective markets.

Some public-sector organizations are also responsible for ensuring that other agencies comply with the myriad of laws, rules, and process requirements that have been levied on public-sector agencies. Those organizations exercise formal and informal supervision of other agencies and may set requirements for agency operations. Budget agencies not only prepare the budget for the jurisdiction (e.g., the city, the state, the nation) but also are responsible for ensuring that the agencies comply with budget requirements and conform to appropriated limits. These agencies create or enforce many of the constraints that impact public-sector projects.

Despite this array of types of public-sector organizations, they have some shared characteristics, particularly with regard to the management of their projects. Descriptions of those shared characteristics follow.

The Public-Service Purpose

Although they sometimes provide services to distinct populations (like issuing hunting and fishing licenses), all public-sector organizations operate to serve the larger public. That service to the public complicates the management of public agencies and public-sector projects, because it makes identifying objectives much more complex. Not only do a variety of opinions attend the best way to serve that public, but the public itself is difficult to define. For example, what is the goal of a public-sector program designed to revitalize neighborhoods? And who is the public to be served by that program? Is the goal of the program to encourage new investment and development in the neighborhood, which might draw new residents to the neighborhood and consequently drive out current low-income residents? Or is the goal to make housing affordable to current residents? The answers to those tough questions are not without controversy and can substantially impact the direction of the program and the projects within it.

In general, public-sector agencies lack the simple measures of performance, like return on investment (ROI), that private-sector organizations enjoy. Although simple project outcomes, like on-budget performance and timeliness, can be measured, larger outcomes, like the impact on public welfare, are more difficult to measure.

Overlapping Oversight Mechanisms

Public agencies are constrained by overlapping oversight structures. A public agency may operate under (1) the oversight of an elected executive (e.g., a governor or the President), (2) oversight agencies like the Government Accountability Office (GAO) or an office of the budget at the state level, (3) legislative bodies and their own oversight agencies (e.g., a legislative budget office), and (4) elected oversight officials, such as state auditors and treasurers. The constraints of these overlapping oversight agencies are embedded in statutes, rules, executive orders, and required processes. This overlapping oversight represents, at the operational level, the system of checks and balances that limits the power of government agencies to operate outside the bounds of public authorization.

As a result of this overlapping oversight, public-sector projects may be required to dedicate substantial resources to ensuring that constraints are not violated and that oversight agencies are placated. These constraints are, in fact, designed to limit agency discretion and operations so that public-sector employees remain accountable. In addition, the penalties on public-sector agencies for violating these constraints are so severe that public-sector agencies may be very risk averse, even to the extent of choosing compliance over the attainment of business objectives. These overlapping oversight mechanisms also increase the number of project stakeholders with an interest in a project.

For reference throughout this book, it may be useful to identify the hierarchy of official and formal constraints that impact public-sector projects. They are as described in hierarchical order in Table 1.1.

Table 1.1 Official Constraints of Public-Sector Projects

In national governments, the executive is typically called the president; in states, it is called the governor, and in cities, the mayor. In city governments, the legislative body is usually called the city council. For other levels of government, other terms may be applied. For example, in U.S. county governments, the executive and legislative functions are both performed by the county commission made up of elected commissioners.

A Short Planning Horizon

Private-sector organizations like to presume that they operate at higher speed than public-sector agencies. Sometimes they do, but there is one area in which the public sector is required to move more quickly. Public-sector agencies have a shorter planning horizon than private-sector organizations because of electoral cycles. Although some public-sector agencies are not subject to election cycles (e.g., publicly supported universities and other board-governed agencies), those that are subject to them are required to articulate an agenda, create plans for implementation of that agenda, and create outcomes in four years, with a four-year grace period if the administration is reelected.

Private-sector, for-profit organizations can establish substantially longer time horizons for product planning and other strategic movements. Public-sector organizations cannot count on the commitment to strategic goals beyond the term of current political officeholders and their appointees.

A Contentious Environment

Every project is subject to conflict and differences of opinion, and private-sector projects may not be supported by all of the organization’s stakeholders. But public-sector organizations are subjected to an organized political opposition. That opposition, usually embedded in the opposition party, may be on the alert for opportunities for criticism of the current administration. In addition, the media, though not explicitly attempting to find fault with the current administration, finds “good copy” in the failures of public-sector projects. Unfortunately, failed projects make better stories than successful projects. Both of these factors in combination cause public-sector project managers to feel that they operate in a hostile environment and that they need to avoid visible failure at all costs.

Overlapping Service Delivery Mechanisms

It is rare that any public-sector agency has a monopoly on providing a public service or attaining a public goal. In the United States, for example, services provided to those with mental illnesses may be funded by federal programs and grants, managed by state agencies, and provided by private providers, the state agencies themselves, and county governments. Similarly, education at any level is subject to a variety of funding mechanisms at various levels of government and is provided to the public by an equally extensive array of organizations.

As a result, public-sector agencies have to coordinate their projects with other agencies and consider the impact of their projects on that array of programs and providers. These overlapping service delivery mechanisms also increase the number of stakeholders involved in a project.

Some observers might argue that another difference between public-sector and private-sector projects is that public-sector employees are not adequately motivated. That is not the case. First, though it is true that public-sector employees may not be motivated by short-term financial rewards such as bonuses, they are motivated by the same drives for professionalism and career growth that inspire private-sector employees. Second, they have learned that their motivation for performance must be tempered with an understanding of the constraints under which they work. Blind ambition or revolutionaries cannot be accommodated in public-sector agencies, and public-sector employees have learned that accomplishing objectives requires sharing responsibility and working within existing systems or shaping those systems incrementally.

Third, because of the long-term nature of most public-sector employment and the group cohesion that characterizes many public-sector agencies, public-sector employees have strong group norms and are motivated by a desire to support their colleagues. Although military operations are perhaps an extreme example of public-sector projects, the behavior of soldiers in combat has been shown to be motivated by allegiance to their comrades in small units. Public-sector project managers may want to keep in mind that, in many cases, the allegiance to the small group exceeds the allegiance to the larger agency or organization.

Last, public-sector employees are also motivated by a concern for the public interest. Operationalizing that concern requires complex behaviors given the challenges inherent in identifying the public interest and the actions that must be taken to serve that interest. Inspiring project team members based on their public-interest motivation is, of course, more challenging than awarding them bonuses, which is probably also impossible in public-sector agencies. It is a factor, however, that astute project managers can apply to induce team performance.

THE CHALLENGES OF PUBLIC-SECTOR PROJECT MANAGEMENT

Private-sector project managers like to assume that their work is more demanding than projects in the public sector. They assume that their projects are more complex, subject to tougher management oversight, and mandated to move at faster speeds. Although private-sector projects can be tough, in many cases, it is easier to accomplish results in the private sector than in the public sector.

Public-sector projects can be more difficult than many private-sector projects because they:

Operate in an environment of often-conflicting goals and outcomesInvolve many layers of stakeholders with varied interestsMust placate political interests and operate under media scrutinyAre allowed little tolerance for failureOperate in organizations that often have a difficult time identifying outcome measures and missionsAre required to be performed under constraints imposed by administrative rules and often-cumbersome policies and processes that can delay projects and consume project resourcesRequire the cooperation and performance of agencies outside of the project team for purchasing, hiring, and other functionsMust make do with existing staff resources more often than private-sector projects because of civil-service protections and hiring systemsAre performed in organizations that may not be comfortable or used to directed action and project successAre performed in an environment that may include political adversaries

If these challenges were not tough enough, because of their ability to push the burden of paying for projects to future generations, public-sector projects have a reach deep into the future.1 That introduces the challenges of serving the needs of stakeholders who are not yet “at the table” and whose interests might be difficult to identify. Some also cite the relative lack of project management maturity in public organizations as a challenge of public-sector projects.

In addition to these complications, public projects are often more complex than those in the private sector. For some projects, the outcome can be defined at the beginning of the project. Construction projects are one example. For other projects, the desired outcome can only be defined as the project progresses. Examples of those are organizational change projects and complex information technology projects. Although the first type of project can be difficult and require detailed planning and implementation, the second type, those whose outcomes are determined over the course of the project, are regarded as more challenging. They require more interaction with stakeholders and more openness to factors outside of the control of the project team.

Because of the multiple stakeholders involved in public-sector projects, the types of projects the public sector engages in, and the difficulty of identifying measurable outcomes in the public sector, more public-sector projects are likely to be of the latter variety and more difficult. Project complexity and tools for managing complexity and chaos will be discussed later in this book.

As a result of the distinguishing characteristics of public-sector organizations, public-sector projects require the management, not only of the project team, but of an entire community. Little is accomplished in the public sector by lone individuals or even by teams working in isolation. Instead, public-sector projects engage broad groups of stakeholders who not only have a stake in the project but also have a voice and an opportunity to influence outcomes. In public-sector projects, even though the project manager may be ultimately accountable, governance of the project and credit for successes must be shared.

The good news for public-sector project managers is that the community of stakeholders, which may seem to be a burden, can also be an opportunity and a source of resources and support. Many of those stakeholders stand ready to provide help to the project manager as he or she attempts to navigate the constraints affecting the project. Others can be enlisted to support the project, and their authority can make the difference between project success and failure.

THE COMING STORM

In addition to the existing challenges of public-sector projects listed previously, some factors will place soon more stress on public-sector organizations and demand even more emphasis on solid project management. Some of the emerging challenges for public-sector organizations will include:

Modest or stagnant economic growthGlobalization and the loss of the industrial revenue base and, increasingly, the service-sector revenue baseA decline in real wages and pressures for tax reformPrivate-sector practices that pass the corporate safety net back to individuals, who may then look to government for such essential security mechanisms as health coverageDifficulty in passing on the need for government revenue to taxpayers and a general loss of confidence in governmentStructural limitations on revenue generation, such as Proposition 13 and property tax indexingThe redirection of scarce public revenues to homeland security and defense without the imposition of war taxesThe erosion of public-sector income as entitlement programs drain revenues in response to an aging populationAn age imbalance, with fewer workers in the workforce to support an expanding number of retirees and childrenLonger life expectancy, which further burdens entitlement and health programsIncreasing costs of health care well beyond the level of inflationLong-delayed investments in our national infrastructure, including roads, bridges, and water systems

In combination, these factors constitute a looming storm that will require us to question our assumptions about government operations and services. Doing far more with much less will require new thinking about how government performs its work. It will require more innovation than the development of new services. It will take radical rethinking of what government does and how it goes about getting it done. It will take recognition that the temporary budget reductions required in these tough financial times for government are, in fact, permanent.

Private-sector organizations have already experienced similar stressors, in response to economic concerns and a chaotic environment. Those private-sector organizations are focused on the demands of the competitive market, which requires lean, fast-moving structures and cost reductions. Free flows of capital and the demands for measurable financial performance in the short term, consumer choices, universally available electronic communications, and worldwide labor and capital markets have changed the economic climate for companies. As a result, most private-sector organizations are adopting a short-term planning horizon, embracing the need to shift asset risk to others, and recognizing the need to maintain lean organizational infrastructures.

As private-sector organizations move toward these highly competitive models of operations, they are moving away from traditional operating models. That movement is reflected in the end of the lifetime employment guarantee, reduced employee benefits, and the use of temporary staff and vendors instead of long-term employees. Similarly, highly competitive private-sector organizations are attempting to reduce their reliance on careful processes and procedures. Instead, they are pushing responsibility for decision making to staff at the interface between the organization and the customer.

Newspapers are full of evidence of private-sector organizational transitions. Some of that evidence in the media includes:

The movement of manufacturing to Central America, Asia, and now Eastern EuropeAnnounced layoffs in all industriesThe creation of two-tiered employment strategies (maintenance of pay and benefits for existing employees but lower pay and benefits for new ones)The shifting of health-care costs to employeesOutsourcing administrative functions like IT, accounting, and human resources

These changes have created a set of new organizational strategies, which include:

OutsourcingCost cutting and downsizingThe creation of organizations that operate with minimal fixed assets and shifting partnerships with others to exploit network models of organizationThe end of the lifetime employment social contractThe termination of company-provided benefits and shifting risk back to individualsThe greater use of temporary and part-time employees

In short, life in the private sector has become less collaborative and more competitive and less controlled and more chaotic. Ask almost any worker in a modern U.S. private-sector organization, and they can tell the same story in vivid detail.

As noted, many of the same pressures that have driven private-sector organizations to adopt the listed strategies will soon impact government and the public sector. Agencies will need to compete for ever-decreasing amounts of revenue, governments will try to create lean government as a means of competing with other jurisdictions for jobs, and demands on government will increase as the social safety net erodes. In short, public-sector organizations will need to adopt some of the same strategies that private-sector organizations have already made as those public-sector organizations face increasing resource constraints and new demands for services. Those changes will be difficult for the public sector.

For decades, public-sector organizations have emphasized organizational models that value stable processes and an aversion to risk. In addition, public-sector compensation systems have valued longevity, and retirement systems have provided great benefits in the future in return for less compensation in the short run. As a result, public-sector organizations have not been structured to be flexible and innovative, two requirements of organizations in the new economy. Whether government agencies want to make the transitions demanded by the coming economic storm, environmental conditions are certain to push them there.

NEW TOOLS FOR PUBLIC-SECTOR MANAGERS IN THE NEW ECONOMY

As public-sector agencies make the necessary transitions to cope with the demands of the new economy and the impact of the factors described earlier, public-sector managers at all levels of government will face an array of daunting challenges. Some of those are:

Motivating employees who are coping with increasing demands but less pay and securityDealing with a multigenerational workplace (According to some observers, there is a wider age range among employees in the workplace now than at any time in history.)Managing for short-term results with limited resourcesManaging employees who are not in the same geographic locationManaging vendors who may be performing critical organizational functionsBuilding organizational loyalty without the trade-off of a guarantee of long-term employmentManaging in an environment of constant changeCoping with the unique constraints of public-sector organizations, which include political systems, organizational stovepipes, and limited technologyCoping with the loss of organizational knowledge as the baby boom generation retires

Public-sector managers will require new tools and strategies for operating in this challenging new environment. So what tools can public managers apply? One of the best adaptive tools for organizations and individuals is project management, which is the focus of this book and which is ideal for organizations attempting to create change and optimize the use of scarce resources. In order to make their projects successful, public-sector project managers will need a combination of humility and patience coupled with dogged persistence and creativity. Management tools and skills for making public-sector managers successful will be discussed later in the book.

DISCUSSION QUESTIONS

1. What are the implications of the changes in the workplace? Is the workplace more stressful? Are resources less available? Are you being asked to do more with less? Is it harder to separate work and home? When will things change?

2. How can you build a sustainable work life—one that you can sustain for the long term?

3. What management tools do you think will be effective in the public sector in the future?

EXERCISE

1. Identify a public-sector organization. Identify the pressures (e.g., financial, competitive, technological, workforce) that it might be facing. Create a list. For the pressures on that list, create a second column identifying strategies (projects) for coping with those challenges.

Project Apollo

Some projects discover midway through that they have ambitious and nearly unachievable goals. Some projects start out that way. Some historians today regard Project Apollo and the moon landing as the greatest feat in human history. Project Apollo was second only to the construction of the Panama Canal as the largest, nonmilitary technological project ever performed by the United States.

Amid concern that a “missile gap” had been opened by the Soviet Union over the United States, the United States was particularly concerned when the Soviets put a man in space. On May 25, 1961, President John F. Kennedy responded by declaring that “… this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the Moon and returning him safely to the Earth.” That goal was particularly bold in that, at the time of Kennedy’s speech, the United States had put only one person into space (for less than 16 minutes) and none into orbit around the earth.

Project Apollo, as the project to put a man on the moon was known, was greeted by some as impossible. The head of Kennedy’s space flight advisory committee believed that launch-vehicle technology was poorly developed and that putting a man in space was a high-risk endeavor with little chance of success. Ultimately, Project Apollo required 400,000 project team members, and a partnership between the government, universities, and private companies. Kennedy also publicly asked the Soviets to work with the United States in developing space technology, which asserted the United States was at least equal to the Soviet Union in space technology.