Strategic Management for Improved Organizational Effectiveness


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Strategic Management for Improved Organizational Effectiveness

  1. 1. Slide 1 Slide 2 HUMAN RESOURCE DEVELOPMENT AND THE Topics MANAGEMENT OF CHANGE 1. Conclusion “Strategic Management for Improved 2. The Structure Follows Strategy Thesis Organizational Effectiveness” 3. Overview of the Planning and Development Process by: 4. Vertical Organization Structure vs Matrix Organization Azad N. Hosein Structure Managing Dir o ect r Mic o r sear h Int nat nal c er io 5. Project Management Organization Pr ec ManagementCo oj t nsulant t s 6. Improving Economic Performance in Developmental and Operations Activities 2 1 This slide presentation is derived from a entitled: “Strategic Planning for Project Management” which was presented at the: “Conference on Governance in the Contemporary Caribbean” hosted by the Sir Arthur Lewis Institute for Social and Economic Studies” at UWI, St. Augustine in April 2001. A modified form of this slide package was subsequently presented to the cabinet in several of the Caribbean Governments, including the Government of Trinidad and Tobago. The Prime Minister of Trinidad and Tobago, Mr. Patrick Manning, in reviewing the presentation said that: “Your lecture was timely and critical to the success of government’s project planning activities. This session added great value to our training workshop. Further feedback from those who participated attests not only Slide 3 to the excellence of the session content and delivery, but also its immediate practical usefulness”. In this presentation at the CARICAD Conference on Conclusion Human Resource Development and Managing Change, we are emphasising on those aspects of the paper which focus on: “Weaknesses in the organizational structure “Strategic Management for Organizational and institutional capacity Effectiveness”. inhibit strategy implementation resulting in In that context, we address the relationship between Strategy and Organization Structure and identify the constraints to economic development” critical differences between the organization structure for development activities as for Operational Activities. In particular we present a model for the Project 3 Management Organization in a Caribbean Government.
  2. 2. Slide 4 Slide 5 The Structure Follows Strategy Thesis Major Types of Organization Structures • The practice of consciously matching organization design and structure to the particular needs of a strategy is a fairly recent • Functional Organizational Structure management development. • Georgraphic Organization Structure • A landmark study by Alfred Chandler found that:- “changes in an organization’s strategy bring about new • Decentralized Line-of-Business Type of Organizational administrative problems which, in turn, require a new or refashioned structure for the new strategy to be successfully Structure implemented” • Strategic Business Unit Type of Organization Structure Attempting to carry out a new strategy with an old organizational structure is usually unwise. • Matrix Organization Structure 4 4 Although the stress here is on matching structure to A functional Organization structure tends to be strategy, structure can and does influence, the choice effective in single-business firms where key activities of strategy. revolve around well-defined skills and areas of specialization (Microsearch International) A good strategy must be doable. When an organization’s present structure is so far out of line A Geographic Organization is well suited for firms with the requirements of a particular strategy that the pursuing different strategies in different geographic organization would have to be turned upside down to markets (Nestle’ operations in Trinidad and Jamaica). implement it, the strategy may not be doable and should not be given further consideration. Decentralized Business Units are suited to diversified firms. The basis organizational blocks are In such cases, structure shapes the choice of strategy. its business units. Each business unit is operated as a The point here, however, is that once a strategy is stand-alone profit center (Ish Galbaransingh) chosen, structure must be modified to fit the strategy, if an approximate fit does not already exist. Strategic Business Units structures are a means for managing broad diversification and enforcing strategic Any influences of structures on strategy should come coordination across related businesses (Ansa McAl) before the point of strategy selection rather than after it. Matrix Organization Structures, although complex to manage and sometimes unwieldly, allow a firm to be A study of 70 large corporations revealed that organized in two different strategy-supportive ways at structure tends to the follow growth strategy of the firm the same time. It has a structure with two or more – but often not until inefficiency and internal operating channels of command, two lines of budget authority, problems provoke a structural adjustment. The and two sources of performance and reward. experiences of these firms followed a consistent (Managing within and across ministries in a sequential pattern: new strategy creation, emergence Government) of new administrative problems, decline in profitability and performance, a shift to a more appropriate organizational structure, and recovery to more profitable levels and improved strategy execution.
  3. 3. Slide 6 Slide 7 Major Phases in the Strategic Planning and Analytical Tools which Contribute to Performance Development Process in the Planning of Programmes and Projects A systematic progression through the phases of: • Analytical tools in Integrated Planning and • Strategic Planning Development of Programmes/Projects: • Programme Planning ! Hierarchy Charts • Project Planning ! Matrix Organization Structure • Procurement ! Log Frame Planning System • Project Development & Implementation • Project Monitoring & Evaluation ! Work Breakdown Structure • Project Closeout ! Project Outlining • Operations Management ! Project Tracking 5 6 An understanding of the phases in the Planning and (a) Hierarchy Chart – A tool used for depicting a Development Process as well as the interrelationships Programme as a set of Logically related and interfaces among these phases is critical to the projects. development of a model for improving this process. (b) Matrix Organization Structure – An organization This process is more of an iterative nature than a Structure whereby a person may report strictly top-down sequence. to two or more persons (vertically and laterally). The sequence, however, clearly shows a movement from Strategic Planning to Programme Planning, (c) Log Frame Plan – A ( four by four matrix) tool used Project Planning and then Implementation and for depicting the four Logical levels Operations. of a Project (Goal, Purpose, Outputs and Activities), along the four rows of the matrix, and It is important, at this juncture, to emphasize that the then defining the performance parameters at implementation of a project generates deliverables each Level (Objectively Verifiable Indicators and (e.g. the construction of a health centre) which at that Means of Verification) and the associated point will have generated little economic benefits Assumptions, in the four columns. (substantially limited to benefits derived during construction). (d) Work Breakdown Structure – A tool for decomposing a Project into a set of logically However, it is the efficient operation of the project related activities and tasks. deliverables (the health Centre) in providing quality and efficient health services, which generates (e) Project Outlining – A method in writing Project economic benefits. This implies that the design of an Schedules, whereby different levels of the Work operating plan, for the use of project deliverables, Breakdown Structure are depicted using different must be included as an essential component of every indentation levels of the activity Task Names. project. (f) Project Tracking – A graphical method for e.g. The Eric Williams Medical Sciences Complex – presenting the actual project implementation Mount Hope, Trinidad. schedule against the Baseline Implementation The Gov’t of Trinidad & Tobago built the Mount Hope Schedule on the same Gantt chart. Medical Complex, about twenty years ago, but no operating plan was ever developed and implemented. In that context, the project to date has been a failure in that it has never been able to provide economic benefits consistent with its development costs. It is not too late, however to salvage some economic benefits by implementing a well designed operating plan.
  4. 4. Slide 8 Slide 9 Example of a Hierarchy Chart - Rice Development Programme in Guyana Matrix Format of the Logical Framework Objectively RICE DEVELOPMENT Means of PROGRAMME OBJECTIVES Verifiable ASSUMPTIONS Verification Indicators Marketing Goal Evaluation Evaluation Goal Land Rice Institutional Assumptions Indicators Methods Assumptions Cultivation Harvesting and Availability Husbandry Systems Distribution Purpose Outcome Monitoring Purpose Land Rice Access & Procuring Weed Reaping Marketing Farmers Assumptions Indicators Methods Assumptions Seeds Control Tenure Management Output Terms of Output Output Irrigation Planting Pest Drying and Packaging Institutional Assumptions Reference Verification Assumptions Systems Control Milling Systems Water Welfare Activity Activity Activity Activity Grading & Fertilization Control Storage Distribution Harrowing Systems 7 Assumptions Budgets Verification Assumptions 10 This Hierarchy Chart depicts the Programme Plan for a Rice Development Programme in Note how the Log Frame provides the facility for Guyana, and demonstrates the mechanism for defining the Evaluation parameters, Monitoring satisfying the Necessary and Sufficient Parameters and "Terms of Reference".Note also how for Programme Performance. the Assumptions Analysis influences the Risk Analysis and Contingency Planning. The Programme Goal is to increase the quality and extent of sustainable income among The Log Frame also provides a tool for quantifying a Guyana’s 22,000 rice farmers. The programme is preliminary budget for the project by assigning initial decomposed, at the first level, into its major budgets to each of the major activities (which logical components, and then each component is themselves are related to defined further decomposed into projects, including outputs/deliverables) and then adding the Project the Irrigation Systems Project. Overheads based on pre-defined budgeting standards. Note how: (a) Different outline colors are used to denote sector There is a logical hierarchy of Means – Ends responsibility (public, private or CSO ) for the Relationship between the various project elements. development and implementation of the individual i.e. Progress at each level is a pre-condition for projects. moving to the higher level. Establishing clearly the means and ends, hepls to design a sound and logical (b) Different background colors are used to designate project. the schedule phases for implementation of the individual projects (first year, second year, third i.e. year). IF INPUTS are provided THEN ACTIVITIES can take place (c) A responsibility matrix can be superimposed on the IF ACTIVITIES are successfully completed THEN Hierarchy Chart. i..e. the designation of Planned OUTPUTS should result responsibility at the programme level, at the group IF Outputs are used as intended THEN project level and at the individual project level. the PURPOSE (i.e. immediate (d) You may also use this chart as a tool in estimating objective (effect) should be realised the preliminary programme budget and in IF the PURPOSE is achieved THEN spreading the budget across the subordinate it should contribute to the realization of the projects. development objective (impact) i.e. the GOAL
  5. 5. Slide 10 Slide 11 Example of the Objectives Column of the Log Frame Example of a Work Breakdown Structure Chart - Irrigation Project - Rice Irrigation Project GOAL: Rice Increase extent and quality of sustainable income among rice farmers. Irrigation Project PURPOSE: Increase irrigated acreage suitable for rice production OUTPUTS: Start-up Irrigation Sluice Operating 1. Installed Irrigation Canals Reservoirs Personnel Activities Canals Gates Plan 2. Installed Sluice Gates 3. Installed Reservoirs and Pumps Purchase Develop 4. Recruited and Trained Personnel Design Plan Dig Recruit Sluice Flood Mgt 5. Developed Operating Plan Plan Canals Reservoirs Personnel Gates Plan ACTIVITIES: Install Install Develop 1. Conduct Start-up Activities Procure Dig Train Sluice Water Maint. 2. Construct Irrigation Canals Funding Canals Personnel Gates Pumps Plan 3. Procure and install Sluice Gates 4. Construct Reservoirs and Install Pumps Install Water Install Install Flood Establish Develop Procure 5. Recruit and train operating and maintenance personnel Pumps & Power Control Maintenance Personnel Contractors 6. Develop Operating Plan 11 Generators Supply System Facility Plan 12 It is important to note the difference between the In the WBS Chart, we show the activities identified in Project Purpose and the Project Goal. the Log Frame Plan in the boxes across the top row of the chart. We then decompose these activities into While the Purpose seeks to increase the irrigated subordinate tasks and sub-tasks. acreage suitable for rice production, the successful completion of this project, by itself, does not provide a There is an intimate relationship between the Work basis for achieving the Project Goal. The Project Goal Breakdown Structure Chart and the Outline Structure is achieved when a set of complementary projects, as of the Project Plan. In fact, Microsearch Project depicted in the Hierarchy Chart, are implemented and automatically assigns a WBS Code to each activity integrated. based on the outline structure. This WBS code reflects the relative level of decomposition of activities in the Note also that Outputs are described, in the past WBS Chart. tense, as a completed deliverable, while Activities begin with verbs signifying some action which must be The lowest level activity identified in a WBS Chart undertaken to develop the deliverables. The detailed must itself be a summary activity.One should not planning of a project starts with the identification and attempt to write a project schedule (Gantt Chart) until planning of the project deliverables. you have developed a proper Work Breakdown Structure Chart. The activities identified in the Log Frame are related to the Outputs, and initial budget estimates for the The WBS Chart could also be used as a planning tool implementation of the activities are shown under the to: OVI Column. assign the major responsibility for each level of activity These activities are then shown across the top row of assign budgets for each level of activity the boxes in the Work Breakdown Structure Chart. indicate approx. duration and schedule for This method provides a seamless progression from implementation the Hierarchy Chart through the project plan. One should note the relationship between the top row of boxes in the WBS Chart and the Project Outputs We will now decompose the activities, shown in the defined in the Log Frame. Log frame, into tasks and subtasks in the Work Breakdown Structure Chart. We will now use the WBS Chart to write the Outline Structure of the Project Plan, using Microsoft Project 2000.
  6. 6. Slide 12 Slide 13 Example of a Gantt Chart Example of a Tracking Gantt Chart September 2001 October 2001 N '02 Mar 31, '02Apr 28, '02May 26, '0 Jun 23, '02Jul 21, '02 A ID Task Name Duratio 29 1 4 7 10 13 16 19 22 25 28 1 4 7 10 13 16 19 22 25 28 31 ID Task Name Duration Cost 22 2 13 24 5 16 27 7 18 29 10 21 1 12 4 Lease Office 2w 100% 1 RICE IRRIGATION PROJECT: 100 128,0 5 Plan Office Improveme 4d 100% 2 Start: 0d 0 3/27 6 Purchase Materials 1w 0% 3 CONDUCT START-UP ACT 55 d 500 4 Develop Irrigation Plan 5d 50 7 Prepare Office Space 8.33 0% 5 Procure Funding 30 0 8 Prepare Computer Roo 8d 0% 6 Award Contracts 20 0 9 COMPUTER MOVE PHAS 4.5 0% 7 Start-up Activities Complet 0d 0 6/11 10 Down Load Computer 1d 0% 8 DEVELOP IRRIGATION CA 28 d 74,00 11 Pack Computer 1d 0% 9 Conduct Survey 5d 1,00 12 Move Computer 0.5 0% 10 Dig Irrigation Canals 20 50,00 13 Install Computer 1d 0% 11 Procure and Install Water 15 8,00 0% 14 Test Computer 2d 12 Procure and Install Gener 15 15,00 15 OFFICE MOVE PHASE: 8.33 0% 13 Irrigation Canals Complete 0d 0 7/19 16 Pack Office 2d 0% 14 INSTALL SLUICE GATES: 45 d 31,00 17 Move Office 1d 0% 15 Purchase Sluice Gates 30 20,00 18 Unpack Office 3d 0% 16 Install Sluice Gates 10 6,00 19 NON-ESSENTIALS MOVE 3d 0% 17 Install Power Supply 5d 5,00 18 Sluice Gates Installed 0d 0 8/ 20 Pack Non-Essentials 1d 0% 19 INSTALL RESERVOIRS: 34 d 22,50 21 Move Non-Esentials 1d 0% 20 Dig Resevoirs 20 15,00 22 Unpack Non-Essentials 1d 0% 13 14 21 Install Water Pumps 5d 5,00 23 Office Move Completed 0d 10/16 Note the relationship between the Hierarchical The Tracking Gantt shows the actual implementation structure of activities in the Work Breakdown Structure dates and costs for the implemented activities Chart and the Outline Structure (level of Indentation of (whether partially or fully implemented) against the activities) in the Gantt Chart. A Gantt Chart depicts a associated baseline schedule and budget. It is Project Schedule which comprises a set of linked important to note that the Tracking Gantt and activities along one or more activity paths, shown on a associated Tables provide information on Earned time scale. Value Analysis including: Note the use of Milestones (activities with zero (a) Percent Completed (at the activity, summary durations) to indicate when deliverables are activity or project level) completed. This provides a link back to the Outputs (b) Forecasted Project Completion Date section of the Log Frame Plan. (c) Budgeted Cost of Work Scheduled (d) Budgeted Cost of Work Completed (Earned Value) All activities in the Project Schedule should have (e) Actual Costs of Work Scheduled predecessor and successor activities (except the (f) Actual Cost of Work Completed Starting Milestone and the Ending Milestone). If (g) Forecasted Cost at Project Completion activity links are missing, the project schedule may give you misleading information on schedule and This information provides a basis for monitoring the budget. It may also give misleading information on the project performance including calculation of the value critical path. of work completed by the contractor. During implementation, activity slippages may not be We assume, of course, that after the award of a reflected in slippages of successor activities, if the contract to a contractor or consultant, that he will be successor links are missing. required to prepare a detailed workplan, in which project schedule and budgets are reconciled with the Activity bars shown in red are Critical Activities, which terms of the contract, before commencing work on the have no slack. implementation of the project. This work plan should Activity bars shown in blue are non-critical activities be appended to the Contract, and be used as a basis which have slack. for monitoring the performance of the contractor and Link Lines show the links between (among) Activities. for approving payments, using Earned Value Analysis. Project Schedules may also be shown in Network Diagrams and Calendar Views. Activity information, resulting from Critical Path Analysis, are calculated by Microsoft Project and presented in the Schedule Table.
  7. 7. Slide 14 Slide 15 The Unity of Command Principle Application of the Matrix Organization Structure to Managing Programmes in a Government • The Unity of Command Principle states that “no employee shall report to more than one supervisor” PROGRAMME Ministry 1 Ministry 2 Ministry 3 ADMINISTRATOR • Adherence to this design principle assures unbroken lines of PROGRAMME 1 Project 1.1 Project 1.2 Project 1.3. authority and a pyramidal shape to organization charts. PROGRAMME 2 Project 2.1 Project 2.2 Project 2.3 • It limits the ability of a manager to manage across organizational boundaries PROGRAMME 3 Project 3.1 Project 3.2 Project 3.3 • It is well suited to the operating environment PROGRAMME 4 Project 4.1 Project 4.2 Project 4.3 16 15 We must differentiate between the nature and extent We have a situation here where the projects in several of operating activities as compared with development programmes are spread across Ministries based on activities in any environment. their core strengths and functions. Operating activities are recurrent, with a narrow You then have several projects (shown in a column) , scope, well defined reporting structure and subject to under a particular Ministry, each of which is managed improvement in performance as a result of a learning by a project manager, who reports to (say) the curve. They are more consistent with the Theory X Permanent Secretary. mode of employment. However, the projects along a row are logically related Development Activities are unique, requiring more and are part of the same programme. creativity, innovation and self-discipline and much wider in scope. Because of the non-recurrent nature of In order for the Programme Manager to exert some activities, it requires greater planning, effort and focus. influence and control over the development of the They are more consistent with the Theory Y mode of projects under the programme, the associated project employment. managers must also report to the programme manager. A failure to recognize the differences in the nature of Development Activities as compared with Operating This implies that a project manager will report to both Activities could result in responsibility and the Permanent Secretary and the Programme organizational conflicts. Development personnel Manager. should either have no or very minimal operating responsibilities. This is called a Matrix Organization Structure and is an important organization tool in facilitating the In many organizations a failure to recognize and cater integration of projects across organizational for these differences in the nature and extent of job boundaries. responsibilities could impact negatively on the performance in development programmes and It conflicts with the Unity Command Principle projects. It is also necessary to develop different remuneration structures for development personnel, in order to attract the right calibre of persons to plan and manage large development programmes.
  8. 8. Slide 16 Slide 17 The Matrix Organization Structure Job Description of the Programme Administrator - an internal project management consultant • An organization design mechanism within which an employee may report to more than one supervisors. In every major development environment, there is a need for a Project Management Specialist, who will provide: • It is well suited to the development organization as contrasted with the Unity of Command Principle which is suited to the • technical support to Programme and Project personnel, in adopting and using modern project management methods and Operating Organization. software • It is a strategic organizational tool in integrating projects across • Reinforce the use of uniform project management standards, organizational boundaries. procedures and controls • Give independent opinions on the performance of programmes • Matrix Organization structures are widely used in the private and projects in the development of monitoring and evaluation sector. reports. 17 19 In the example on use of the Matrix Organization The Public Sector works within the context of strict Structure, we identified a position, in the Ministerial Boundaries and programmes are normally top left-hand box, entitled the Programme planned and developed entirely within a Ministry. Administrator. It will be difficult to implement a Matrix Organization The Project Management Administrator is the major Structure within a Government unless these rigid Government representative in a public barriers are relaxed to allow for the deployment of sector-wide Project Management Integrating logically-related projects across Ministries, based on Framework. the core strengths of ministries. He/she has a major responsibility for: The current Process used in the private sector, whereby logically-related projects are allocated to - monitoring and Integrating all programmes across a departments, based on core strengths, facilitate the Government in seeking to achieve national adoption and use of the Matrix Organization Structure. development objectives. - Provides management and technical support to Unless and until, the Matrix Organization Structure is programme/project personnel in the planning, adopted and used in the public sector, for managing budgeting, development and implementation of programmes, it will be difficult to spread projects projects. across ministries in improving the performance in - Monitors, evaluates and reports on Programme implementation, and difficult to integrate projects in Execution performance seeking to meet the defined programme goal. - Audits programme/project development to ensure compliance with defined policies, procedures, This represents one of the fundamental differences standards and controls. between the development of programmes in the - Prepares performance reports for submission to private sector as compared with the public sector and senior Government Personnel, Funding Agencies (maybe) one of the fundamentals reasons for the and other major stakeholders. differences in performance. - Collaborates with other Programme Administrators in the Management of a Government-wide Project Management Data Base. - Provides technical support to the Director of Planning and the Director of Projects. - He she must also be a Specialist in the use of Project Planning Software.
  9. 9. Slide 18 Slide 19 Conflict between the Assignment of Development High Turnover of Development Personnel Responsibilities and Operating Responsibilities Major conflict between the use of key resources in meeting Inability to attract, keep and motivate persons with development responsibilities as compared to operational professional training in strategic planning and project responsibilities. In such cases the operational responsibilities management. Even when such persons are recruited, the takes precedence. decision-making structure in the public service often frustrates them. This results in insufficient attention being given to the proper formulation and analysis of projects and in the development of While salaries and career path in the public sector are not realistic project plans, resulting in major weaknesses in as attractive as in the private sector, a major source of managing implementation. frustration lies in the over-centralization of decision- making in the public sector, which inhibits creativity, It is one of the major problems in Government Ministries. initiative and innovation. 21 22 In many organizations, particularly in the private In many Governments, the remuneration scales are sector, persons responsible for development somewhat lower than in the private sector, and the programmes also have substantial operating career path is somewhat slower. In particular, the responsibilities. decision-making structure in the public sector is longer, more centralized and with less room for There is a fundamental difference between the nature exercising initiative and innovation. and extent of development responsibilities and those in Operating responsibilities. In particular, the extent of authority given to ministers of Government, who may make arbitrary decisions, While it is not unreasonable for a project manager or despite or in site of the professional advice given by programme manager to have a limited extent of technocrats (when such advice is sought) sometimes operating responsibilities, these should be the leads to frustration and a lack of self actualization on exception and not the rule. the part of the professional employees. In many such situations the operating responsibilities This results in a constant migration of the best are given priority over the development responsibilities professionals from the public sector to the private ( since the manager may always be operating in a fire- sector. fighting mode whereby his focus is on managing day to day problems) resulting in relatively low allocation In that context, the public sector has long served as a of effort to the development responsibilities and, by training ground for persons who ultimately move to the extension, poor project planning. private sector. This continuous brain drain coupled with the difficulty in attracting, keeping and motivating We have examined the Unity of Command Principle qualified persons in the public sector is a major and the Matrix Organization Structure and pointed out constraint to economic performance in development that the Unity of Command Principle is more suited to programmes. the operating Organization. We also recommended that development personnel should work within a In some countries, the Governments are reluctant to Matrix Organization Structure. We further pointed out train their public sector personnel in project the conflict between these two organization structures. management, since it accelerates the migration of the best employees to other countries. A In that context, the resolution of this organizational remuneration/career path structure should be conflict, within the context of a well-defined project developed for development personnel which is closer management organization is critical to good to that in the private sector, as the basis for achieving performance in development programmes. a continuous level of economic improvement in development programmes.
  10. 10. Slide 20 Slide 21 Limited Collaboration with the Private Sector Limited Effort in Developing Operating Plans and Civil Society Organizations Failure to develop operating plans to ensure that programme deliverables are operated efficiently, in a No formal framework for effectively collaborating with the manner consistent with economic objectives. private sector and civil society organizations in seeking to achieve common national development goals, particular in This is one of the fundamental reasons why the social development and social mitigation programmes as well deliverables from major programmes do not generate the as in community development programmes. economic values envisioned. (e.g. Mt. Hope Medical Complex). This is based on the general recognition that the private sector or social sector may more efficiently develop and It is also a major reason why the economic use of manage some types of national or community-based programme deliverables may dissipate within a relatively short period. projects, than the public sector. 23 24 Of all the weaknesses identified in this report, this one The three main sectors of the economy, which is the most common and perhaps the most contribute to national development are the public compelling. Strategic Planners and Programme sector, private sector and Civil Society Organizations. Managers must recognize that programmes, when implemented, generate deliverables. These might take Each of these sectors have core capacities and the form of a finished hospital, trained personnel, an competencies which complement each other. implemented system or the development of some Goverments have recognized that in many human and institutional capacity. social development programmes, there are some types of projects which are more efficiently developed While some limited economic benefits may be derived and implemented by the private sector or the social during implementation, it is in the effective and sector. efficient use of the programme deliverables, over some reasonable economic life, that the major In particular, the Civil Society Organizations (including economic benefits are derived. the churches) have access to community-based capacity (foot soldiers) which no Government can In fact the feasibility analysis was based on some easily replicate. The effective and efficient harnessing quantification of the present value of the economic of this capacity (through the development and benefits that are likely to be derived over some future operation of Social Action Units) in the implementation period, after programme implementation. of activities at the community, family or individual levels can be the most critical key success factor in This can only be achieved if a properly operating plan, generating performance in these programmes. for efficient operation of the programme deliverables, are included in the programme plan, at the level of These include Programmes such as: each of the subordinate projects. - Poverty Reduction Programme - HIV/AIDS Intervention Programme If this is not done (as in the case of the Eric Williams - Disaster Management Programme Medical Sciences Complex in Trinidad) the potential - Violence Reduction Programme value of the programme deliverables may dissipate - Social Safety net for economically marginalized quite quickly, in a manner inconsistent with the persons. assumptions used establishing the economic There is no formal framework for collaboration among Feasibility of the Programme. Unfortunately, in many these three sector in the planning, management and programmes, there is no attempt to develop operating operation of major national development programmes. plans for programme deliverables.
  11. 11. Slide 22 (Recommendations) Slide 23 Develop Organization Structures and Policies for Develop a Project Management Organization Managing Development Personnel Develop a cross-sectoral Project Managing Organization which will provide for: Establish human resource management systems for - the establishment of in-ministry project implementation units Development Personnel which are somewhat different from - the establishment of in-ministry programme coordination units with those for Operations Personnel. cross-ministry responsibilities - the establishment of the position of Director of Planning in the – Use “Matrix Organization Structure” in preference to the Ministry of Planning “Unity of Command Principle” - the establishment of the position of the Director of Projects in the – Establish different performance management and reward Ministry of Finance systems - the establishment of the Inter-Ministerial Secretariat in the Office of the Prime Minister – Establish decision-making structures for development - the establishment of the position of Programme Administrator in the activities which are different from those for operations. Inter-Ministerial Secretariat – Establish a performance management system and - the establishment of a cross-sectoral Monitoring Facility 26 incentives for good performance 28 Managing projects across a government requires the This recommendation is the most difficult to design of a Project Management Organization which implement. It will require a change in the way provides for the development of programmes and development personnel are recruited, hired, managed projects within a ministry, across several ministries and promoted.. It may even require that development and across the three major sectors in the economy. personnel are initially hired on three-year contracts (in order to pay salaries different from those in the civil It must provide the flexibility to provide for service scales) with renewal of contract, on good decentralized planning and development of individual performance, and the ultimate granting of tenure (in a projects, centralized planning of cross-ministry manner similar to that used at UWI). programmes, and centralized monitoring of cross- sectoral programmes. It will also require a change in organizational structure, organization culture and work ethic to ensure that the This is not easy to accomplish, because of the way right cadre of people are mobilized and used in ministries operate, and the extent to which decisions improving project management performance in the are driven by subjective factors including political public sector. expediency. In addition, the Project Management Organization The adoption and use of the Matrix Organization must provide for the implementation, use and Structure will facilitate vertical and horizontal reporting monitoring of uniform project management policies, relationships to facilitate integration of procedures, standards and controls across all programmes/projects across organizational ministries in a Government. boundaries. To accomplish this we recommend: It is inconceivable that programme managers with The establishment of an Inter-Ministerial Secretariat salaries of (say) US$1,500 per month could be (IMS) in the Office of the Prime managing consultants earning fees of US$15,000 per Minister to facilitate direct ministerial intervention in month. Not only does this create the opportunity for the planning and management of conflicts, since the consultants are unlikely to show major programmes. much respect for these programme managers, but it The establishment of the position of Programme also creates opportunities for conspiracies between Administrator, an internal project the programme manager and the management consultant, with the IMS. consultants/contractors, to augment the take home The establishment of the positions of Director of pay of the programme managers. We recommend the Planning and Director of Projects. use of a performance incentive system. The establishment of Programme Implementation Units with cross-ministerial responsibility.
  12. 12. Slide 24 Slide 25 Establish the position of Programme Administrator within the Inter-Ministerial Secretariat Establish a Technical Support Services Facility Establish the position of Programme Administrator with major Establish an institutional mechanism for the provision responsibility for: of technical support services to programme/project personnel - Acting as the counterpart to the consultants in implementing all across all ministries in the public sector. the components of the proposed Project Management Institutional Framework. This includes technical support in programme planning, project - Developing, communicating, implementing and enforcing planning, project monitoring and use of the Project common standards and procedures across all ministries in the government Management Information System, including Microsoft Project. - Providing professional and technical support to all project personnel across the Government, in improving standards in project management. 29 30 A job description of the Programme Administrator is Many programme managers and project managers shown in slide 44. are qualified in diverse fields and have gained valuable experienced in their current working Finding the right person to fill this position, however, environment. will be somewhat difficult. In many cases, however, they have received little formal training in project management. He she should have a business degree (preferably a graduate degree) in Management with some A fundamental strategy in improving the quality of specialization in Strategic Planning and Project effort and productivity of these persons is to establish Management. a central Technical Support Services Facility through which these persons will receive technical support in He/she should also have a good computer the use of project management methods and background, with the ability to work at a macro software, programme planning, project planning, planning level (using modeling and decision-support project feasibility analysis, project monitoring and in software) as well as at the detailed micro-level in the use of Microsoft Project 2000. using project management software, office productivity software and operating systems software. This facility may be created within the Ministry of Planning or the Ministry of Finance. Alternatively, this He/she should have substantial experience working in facility may be created within the proposed Inter- both the public and private sector and be able to Ministerial Secretariat. communicate effectively at the ministerial level as well as at the technical or operational levels. This proper use of the facility could significantly reinforce the adoption and use of uniform project This person should have good communication skills, management policies, procedures, standards and dispute resolution skills, delegation skills and be able controls as well as improve the performance of project to work well at an individual level or as part of larger management personnel across a Government. teams. A Government can realize an immediate improvement in performance in planning and development, by If such is person is not readily available on the open establishing a centralized Technical Support Services market, a Government should consider hiring a Facility, to provide support to programme/project consultant to fill this position for a limited time (say personnel and in enforcing uniform standards in the one year) while an understudy is trained by the formulation, analysis, planning, budgeting and consultant to fill the position. preparation of project proposals and subsequently in the management, monitoring and evaluation of programme/projects.
  13. 13. Slide 26 Slide 27 Government-wide Project Management Policies, Procedures, Standards & Controls Establish a Cross-Sectoral Monitoring Project Management Policies, Procedures, Standards and Controls and Evaluation Facility Government-wide IT/ Data Communications Platform Establish a cross-sectoral Monitoring and Evaluation Government-wide Project Management Information System Facility to coordinate, integrate, monitor and report on logically-related projects and programmes across the Programme Administrator public, private and social sectors with a view to improving economic performance in national development Project Monitoring & Evaluation Facility programmes. Project Project Project (this is based on the fundamental premise that in national Execution Execution Execution development programmes, some projects are more Unit 1 Unit 2 Unit 3 efficiently planned and implemented by the private or social sectors). 31 32 As discussed in a previous slide, this cross-sectoral This chart describes our conceptual Project Monitoring and Evaluation Facility will extend the Management framework. reach of its organizational influence across three We have project implementation units established in sectors, with the clear objective of integrating and various ministries, with a centralized Project monitoring logically related projects across these Monitoring Facility in the Ministry of Finance and a sectors, in a manner consistent with the achievement centralized Programme Evaluation Facility in the of defined national goals. Ministry of Planning, all under the control of a Government-wide Programme Administrator. This A good example of this type of cross sectoral position may be established as the head of an Inter- programme is Disaster Management, in which Ministerial Secretariat. Government will provide policy and strategic direction as well as major communication and infrastructure This Project Management Organization will use a mitigation services particularly in disaster warning and Government-wide Project Management Information disaster recovery. System using a closed Data Communications Platform, within the context of Government-wide The private sector must play a critical role in disaster uniform Project Management policies, procedures, management in terms of construction standards and standards and controls. quality, and in disaster mitigation in terms of community-based facilities. This organization structure can be used effectively, with minor variations, in both a public sector and a The social sector (CSO’s) however, have a critical role private sector environment. to play in disaster response, since they are positioned to respond at the community, family, or individual It must be understood that none of the Monitoring levels immediately after a disaster. The role and Facility, Evaluation Facility or the Programme capacity of these Civil Society Organizations should Administrator Function could be practically employed be harnessed as an integral part of the design, without the data communications platform, project development, implementation and operation of a management information system and the use of a Disaster Management Programme. uniform Standards and Procedures Manual. It is not inconceivable that this cross-sectoral Monitoring and Evaluation Facility could be efficiently established as a private company (with shareholding by representatives of the three major sectors and by project management consultants), with its revenues based on some percentage (say 4%) of the budgets for the programmes which it provides professional services.
  14. 14. Slide 28 Slide 29 Project Manpower Development Management Data Communications Time for Action Information Platform System Change Standards and Management Procedures System Manual Project Quality Management Project Management Institutional Management System Framework Organization It a t ’s ough r oad t t avel o r Programme Project Financial buta good day t st t o ar Evaluation Management System System Project Procurement Executive Monitoring Management & Interface Access System Control System System 33 Thank You 35 This chart identifies all the major components of a proposed Project Management Institutional We have made a bold attempt to present a diagnostic Framework with the goal of improving the economic analysis of the Planning and Development processes, performance of development programmes. systems and performance in Caribbean Governments, as presented in the Situation Analysis section of this As discussed under Hierarchy Charts, we must make package. a judgment as to whether each of the defined components is necessary for achievement of In that context, we have presented a comprehensive programme goal, and whether the components, taken set of recommendations for improving the together, are sufficient for achievement of programme performance in development programmes. goal. These recommendations are put within the context of Note the inclusion of a “Change Management a model on an Integrated Project Management Component” and a “Quality Management Institutional Framework. Component”. While some aspects of this model have been Also note that we have separated Project Monitoring successfully implemented in several public and private and Programme Evaluation since they should be sector organizations, the full model is yet to be housed under different ministerial functions. properly tested through implementation in any Caribbean Government. The Project Management Information System will include, the project management data base, the We have proposed that on-going research should be Financial Management Interface System and the conducted on: Project Planning Software Tool. - The Development of a Standards and Procedures Manual for use in Caribbean This chart summarizes our recommendations for - Governments development of an Integrated Project Management - The development of a software-based Monitoring Institutional Framework. and Evaluation System - suitable for use across the public, private and social sectors. - The design of a Project Management Organization Structure suitable for - adoption and use, centrally within the Ministries of Planning and Finance, and - decentrally across all the line Ministries in the Government