24 July 2009

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Insights from Inside Project Management Journal^®
Project Management Value in the Public Sector

Government and other public organizations are expected to deliver quality services and benefits on time and for reasonable cost, without taking unacceptable risks or violating the public trust. The discipline and practice of project management may be the best way to help such organizations accomplish these goals.

With the increased scrutiny of organizational governance in recent decades, public- as well as private-sector organizations are under pressure to demonstrate accountability to stakeholders while delivering effective results. One critical component in achieving both objectives is the use of projects and programs. Stakeholders, however, demand evidence of the value of project management, and advocates are actively seeking such evidence to justify an investment in these practices.

An article, in the March 2009 issue of the Project Management Journal^®, entitled “Government and Governance: The Value of Project Management in the Public Sector,” by Lynn H. Crawford, of Bond University, Sydney, Australia, and Jane Helm, of Human Systems Asia Pacific Pty Ltd, Sydney, Australia, examines project management in four Australian public-sector organizations and describes the value they realized, helping them meet the demands of public-sector governance.

The organizations included:

• A social housing agency;
• A state-based human services organization;
• A division of a large state-based department;
• A large government organization responsible for major infrastructure projects.

Project Management Value in Public-Sector Governance

The authors analyzed data from 39 interviews conducted at the four organizations. Then, using six themes drawn from a review of previous literature on value, they organized their findings to show the kinds of value experienced by pubic-sector organizations that use project management. Their findings are summarized below:

1. Accountability and transparency.
1. Strong awareness of need for accountability and reporting mechanisms;
2. More transparent reporting regime than in prior times;
3. Ability to identify problems as they develop;
4. Processes and documentation to support required audits and reviews;
5. Senior management support and use of project management methods, giving momentum to organization-wide adoption and raising program visibility.
2. Control and compliance.
1. Performance monitoring methods that include time, cost, delivery of services and value, client and user satisfaction;
2. Commitment to achieving targets, delivering value;
3. Measurement of Key Performance Indicators against original budget, timeframe and client satisfaction survey;
4. Greater control of projects and management of risks.
3. Risk management.
1. Better reporting and transparency, to reassure stakeholders on time/cost issues and prevent risks of negative media coverage, political embarrassment.
4. Consistency in delivery.
1. Quality processes, enhancing consistent, predictable, delivery;
2. Increased emphasis on customer service, on-time, on-budget delivery, energy efficiency.
5. Ensuring value for money.
1. Strong awareness of responsible use of public funds;
2. Management of expectations and delivery of public value and benefit, not just reduction of costs.
6. Stakeholder engagement.
1. Commitment to the wider community and the public interest, focused through projects.

Conclusions

The authors assert that the results of the study illustrate how project management supports public-sector governance. They see projects as a responsive, flexible framework for public organizations to manage uncertainty while continuing to exercise control, manage risk, demonstrate accountability and deliver public benefits.

For more on the value of project management in public-sector organizations, see the full article in the Project Management Journal.

PMI’s Project Management Journal is a peer-reviewed journal “dedicated to advancing the understanding of project, program, and portfolio management through empirical investigation and theoretical research.”

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