PMIG 12 April 2012

1. PMIG 12 April 2012 Project Management capacity building in support of enhanced Public Service delivery Presented by: L Neethling PALAMA

2. Presentation Outline Introduction Importance of Project Management to government Infra-structure plans for the country 2012 Projects and collaboration of key government departments Effective and Efficient Project Management on government projects Case studies on project failure Analysis of project failure Capacity building and Project Management PALAMA’s project Management courses 10. Closing

3. Introduction EFFECTIVE PROJECT MANAGEMENT + COLLABORATION OF KEY GOVERNMENT DEPARTMENTS + EFFECTIVE MONITORING AND EVALUATION = ENHANCED SERVICE DELIVERY

4. Importance of Project Management to Government • Project Management has become a core skill in the make-up of all public sector managers and professionals. • Recognition to this important competence has been given in the competency profile that has been adopted for all members of the SMS in the public service, and are also taking due cognisance of it in the extension of the competency profile to middle and emerging managers. • Project Management is essential in developing the economic environment of the country.

5. Importance of Project Management to Government (cont) • SoNA of 2003: The President remarked on the need for the Public Service to develop capacity for programme and project management and actually elevate the importance of this skill by appointing dedicated project managers in some instances. • SoNA of 2012: The President announced that projects focusing on health and basic education infrastructure, information and communication technologies and regional integration, have been chosen for government's infrastructure development drive. • Transnet's Market Demand Strategy, which entails an investment over the next seven years of R300 billion in capital projects. The strategy will not only create more jobs, but will also position South Africa as a regional transhipment hub for sub-Saharan Africa and deliver on the New Partnership for Africa's development's (Nepad) regional integration agenda. A total of R200 billion is allocated to rail projects and the majority of the balance to projects in the ports. Among the list of planned projects is the expansion of the Iron Ore Export Channel from 60 million tons a year to 82 million tons a year”.

6. Infra-structure plans for the country 2012

7. Infrastructure plans for the country (cont) Mpumalanga/Northern Cape: Building new universities in Mpumalanga and the Northern Cape. A total of R300 million has been allocated for the preparatory work. North West: Expansion of the roll-out of water, roads, rail and electricity infrastructure in the North West. Ten priority roads will be upgraded. Limpopo/Mpumalanga: The development and integration of rail, road and water infrastructure centred around two main areas in Limpopo: the Waterberg in the western part of the province and Steelpoort in the east. These efforts are intended to unlock the enormous mineral belt of coal, platinum, palladium, chrome and other minerals, to facilitate increased mining and stepped-up beneficiation of minerals. There will expansion of rail transport in Mpumalanga, connecting coalfields to power stations. This will enable a shift from road to rail in the transportation of coal. The eastern parts of the North West will also benefit from the greater focus on infrastructure connected to mining and mineral beneficiation.

8. Infrastructure plans for the country (Cont) Western Cape/Northern Cape: Expansion of the iron-ore rail line between Sishen in the Northern Cape and Saldanha Bay in the Western Cape, which will create jobs in both provinces. The iron-ore capacity on the transport side will increase capacity to 100 million tons a year, which will allow for the expansion of iron-ore mining over the next decade to feed the developing world's growing investment in infrastructure and industrial activities. Eastern Cape: Development of a major new south-eastern node that will improve the industrial and agricultural development and export capacity of the Eastern Cape region, and expand the province's economic and logistics linkages with the Northern Cape and KwaZulu-Natal.

9. Projects and collaboration of key government departments Example: Municipal Infrastructure Grant Department of Sport and Recreation SA Provincial departments Department of Housing MIG Department of Corporate Governance Department of Transport Municipalities National Treasury Department of Public Works Department of Water Affairs and Forestry

10. Effective and Efficient Project Management on government projects • “Major challenges facing government today is the delivery of all construction and maintenance projects on time, within budget and in accordance with the desired scope” – (Paper by Department of Quantity surveying and Construction Management, University of the Free State). • The most critical challenges facing government’s infrastructure service delivery programme are: • Infrastructure backlog constrains economic growth • Under expenditure on infrastructure budgets • Poor application of project management. • Poor time management.

11. Case studies on failed projects

12. Analysis of project failure • Poor project cost management: Contractors fail to apply effective project cost management from the outset. • Poor project time management: Poor planning, a lack of a consistently updated project plan and the failure to apply critical path analysis techniques, invariably affect the other project management knowledge areas. • Poor project quality management: Too often, contractors take on too much work, become over extended and become constrained due to a lack of resources resulting in poor project quality management. • Poor project scope management: Poor scope direction given by the client which resulted in poor scope development by the consultant and ultimately in project failure.

13. Analysis of project failure (cont) It is evident from the failures of the case study projects that project time management was not a key priority for the contractors concerned. Contractors generally ignore the legal requirement to employ project managers’ who are registered with the South African Council for Project and Construction Management, which leads to in experienced or poorly capacitated project managers leading government projects. Poor project quality management: The Public Service and the citizens deserve to get value for money and each project which fails as a result of poor workmanship and materials represents fruitless expenditure and ultimately unnecessary costs to the tax payer. No robust monitoring and evaluation system.

14. Capacity building and Project Management It is crucial for government to take a strategic view on quality management and minimum standards based on a “zero tolerance policy”. This can only be achieved through the collective effort of all role players, programme managers, project managers, professional consultants, contractors and suppliers. “Project failures caused by poor project scope management can be attributed firstly to poor scope definition by government and secondly to the poor translation of the scope into design and documentation by the project management team” – (Paper by Department of Quantity surveying and Construction Management, University of the Free State). Capacity building in Project Management is essential to ensure effective, efficient, and timely implementation and management of all project activities at the national, provincial and local government level. This includes: Capacity building(PALAMA) and general project support.

15. Developing public servants who serve and deliver Skills, knowledge and competence Ability Commitment, culture and ethos Will PERFORMANCE Space A supportive institutional environment I want to! I can! • Organisational culture and ethos define the ways things are done: • norms to support delivery • supportive leadership • value driven delivery • Building knowledge and skills through: • skills development • training • networks • research • sharing knowledge • education I am allowed! Formal and informal authority, structures, regulations enable or limit participation and engagement to move beyond policy to practice.

16. PALAMA Project Management courses Basic Project Management in the PS Advanced Project Management in the PS Training alone will not result in the optimum benefit gained for the public sector from the approach of project management. We need to also take into consideration the procedures and systems, the structuring of government, as well as the entire service delivery field to make sure that project management mechanisms that we introduce will be feasible and appropriate for the highly complex and qualitatively different contexts than those in which the private sector is operating in.

17. Closing • INPUT BY THE HONOURABLE GERALDINE FRASER-MOLEKETI AT THE OCCASION OF THE IQPC CONFERENCE ON PROJECT MANAGEMENT IN THE PUBLIC SECTOR, Sandton, Johannesburg, 26 November 2003 • “We need to ensure that project management becomes integrated in our overall government and public service approach. It must become part of the organisational culture”. • “The potential for entrenching project management deeper into the public sector is great. The potential for it to result in greater effectiveness, better service delivery for the people of this country and the rest of the continent is not in dispute. The challenge for us it to move from having that insight, to actually realising the full potential” • As public sector employees we need to move from a situation where they realise the relevance and the potential, to one where we firmly institutionalise a project management across the South African public sector.

18. Thank You For more information on our training and services: To speak to a consultant : Tel 012 441 6777 Written Correspondence: Fax 012 441 6054 To request a quotation: contactcentre@palama.gov.za Or visit our web site: www.palama.gov.za L Neethling Director: HRM&OD 012 441 6204 Leonore.neethling@palama.gov.za