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I
In
Masters in Development Studies
At
Faculty of Graduate Studies
University of Colombo
Sri Lanka
Factors hindering the Implementation of Development Projects in Sri
Lanka: Perceptions of Project Managers with Special Reference to
Managerial Responsibilities
By
Sivananthan Pathmanathan
II
Title:
Factors hindering the Implementation of Development Projects in Sri Lanka:
Perceptions of Project Managers with Special Reference to Managerial
Responsibilities
Name of the Course: Masters in Development Studies
Name of the Researcher: Sivananthan Pathmanathan
Registration Number: 2011/MDS/57
Date of Submission: 7th
of June, 2013
III
Dedicated to my Parents
Late Mr. Pathmanathan Sabapathy
and
Late Mrs. Manonmany Pathmanathan
IV
DECLARATION
This is to certify that this research study is done by me and the work reported herewith is my
own except references. Further, I declare that this research report of mine does not contain any
material or document of others that have been accepted for the award of any other degree or
diploma programme in any institutes, and, it is to the best of my knowledge and faith that the
report contains no material previously published or written by any other person, except where
due reference is made in the report.
Sivananthan Pathmanathan
Author
Date: 07.06.2013.
Endorsement of Supervisor
…………………………………
Mr. V. Sivagnanasothy
Chartered Accountant and Secretary to the Ministry of Traditional Industries and Small
Enterprise Development, Colombo.
Date: 07.06.2013.
V
ACKNOWLEDGEMENTS
It is the great pleasure to extend my sincere gratitude to all who tremendously supported to
enable me to complete this task of reporting the research study on the factors hindering the
Implementation of Development Projects in Sri Lanka. Also, it is my bounded duty to thank Mr.
V. Sivagnanasothy, Secretary to the Ministry of Traditional Industries and Small Enterprise
Development for his tireless help in a way of providing guidance and supervision to my research
in the field of project management.
My special thanks also goes to the project managers, project executives / implementing agencies
and respective donors for their valuable inputs in order to extract the in-depth facts associated
with the issues related to the implementation of development projects in the context of Sri
Lanka. The Department of Project Management and Monitoring and its staff are appreciated for
their support to access the secondary data, in respect of development projects.
I would also like to extend my heartfelt thanks to Dr. W. Wimalaratne and Mr. Sarath
Vidanagama, the Course Coordinators and faculty members of the Master of Development
Studies Programme in the Faculty of Graduate Studies, University of Colombo.
VI
ABSTRACT
Projects play an effective role in bringing the development in a country. Thus, development
projects get popularity not only in business organizations but also in public sector. However,
there are instances where projects have failed to deliver the expected outputs within the time and
cost due to numerous reasons. Time overrun and cost overrun are the key reasons for inefficiency
in the project implementation phase. Therefore, role of the managers and their responsibilities
are vital for the implementation success in project executions. In Sri Lanka, more than 50 percent
of development projects were rated as behind schedule projects due to not delivering their
outputs within the planned timeframe and allocated budget in 2010. Accordingly, this issue has
been studied by a data collection instrument of semi-structured face-to-face in-depth interviews
with fifteen project managers of nine behind scheduled development projects. In addition to that,
a case study analysis of two behind scheduled projects and timely completed projects were
analyzed with the help of a two-factor conceptual model under the qualitative research
methodology.
The data analysis reveals that projects meet their objectives even after the time delays and extra
cost overruns. However, the performance of the projects is adversely affected when there is time
and cost overruns. In fact, weak institutional arrangements and poor technical capacity of
agencies are few factors that adversely affected the performance of project implementation and
related with project system whereas lack of stakeholder coordination and communication, poor
contract selection and its management, weak mechanism for monitoring and supervision, and,
lack of interpersonal skills of managers are the factors related with managers for delays in
projects. However, poor quality of workforce, shortage of project materials, donor conditions are
also negatively attributed to delays in projects in a few occasions. There are seven critical
success factors and five failure factors were also determined in this research study. Accordingly,
the success factors are pre-planning and time management, efficient co-ordination and
communication, team work and its cohesion, manager‟s personal commitments, goal
identification and walk-on, power delegation, and, continuous interaction with the system. It is
found that project success heavily depends on the skills and capabilities of managers in their
roles and responsibilities. Therefore, competencies of project managers are the core areas to be
developed for the success of project implementation in development projects in the context of Sri
Lanka. Thus, project managers need to upgrade their skills and knowledge through professional
education and hands-on experiences for the betterment of both individuals and the nation as a
whole.
VII
TABLE OF CONTENTS
Chapter One: Introduction of the Research Study................................................................01
1.1.1. Background..........................................................................................................01
1.1.2. Statement of the Problem ....................................................................................01
1.2. Research Objectives ...........................................................................................02
1.2.1. General Research Objective ................................................................................02
1.2.2. Specific Research Objectives ..............................................................................02
1.4. Significance of the Research Study.....................................................................03
1.5. Research Methodology and Methods .................................................................03
1.6. Limitations, Assumption and Design Controls...................................................04
Chapter Two: Theoretical Background ............................................................................05
2.1. Introduction .........................................................................................................05
2.2. Definition of Key Terms......................................................................................05
2.3. Role of Project Managers ....................................................................................06
2.4. Theoretical Concepts of Project Management.....................................................08
2.4.1. Project Scope Management .................................................................................10
2.4.2. Project Time Management...................................................................................10
2.4.3. Project Cost Management....................................................................................11
2.4.4. Project Quality Management...............................................................................11
2.4.5. Human Resource Management............................................................................11
2.4.6. Communication Management..............................................................................12
2.4.7. Risk Management................................................................................................12
2.4.8. Procurement Management...................................................................................12
2.4.9. Integration Management......................................................................................13
2.5. Conclusion...........................................................................................................13
Chapter Three: Literature Reviews ..................................................................................14
3.1. Introduction .........................................................................................................14
3.2. Project Success and Failure Factors ....................................................................14
3.3. Development Projects..........................................................................................16
3.4. African Countries‟ Experiences...........................................................................16
3.5. Asian Countries‟ Experiences .............................................................................19
3.5.1. Sri Lankan Experiences.......................................................................................21
3.5.2. Managing Development Projects in the context of Sri Lanka.............................25
3.6. Conclusion...........................................................................................................26
VIII
Chapter Four: Research Design and Methodology..........................................................27
4.1. Introduction .........................................................................................................27
4.2. Population and sample.........................................................................................28
4.3. Organization of Data Analysis ............................................................................29
4.4. Data Collection and Instrumentation...................................................................30
4.5. Methods of Data Analysis ...................................................................................32
4.6. Conceptual Model for Data Analysis ..................................................................32
4.7. Conclusion...........................................................................................................34
Chapter Five: Data Analysis ..............................................................................................35
5.1. Introduction .........................................................................................................35
5.2. Presentation of Descriptive Characteristics.........................................................36
5.2.1. Case Study Analysis of Delayed Development Projects.....................................36
5.3. Finding of the Case Study Analysis ....................................................................51
5.3.1. Managerial Role and Responsibilities in Project Management...........................51
5.3.2. Management Skills and Capabilities in Project Management.............................53
5.3.3. Success and Failure Factors in Project Management ..........................................55
5.4. Analysis of In-depth Face to Face Interviews with Project Managers................56
5.4.1. Managerial Role and Responsibilities of Project Managers................................58
5.4.2. Management Skills and Capabilities of Project Managers..................................60
5.4.3. Success and Failure Factors of Project Managers ...............................................61
5.5. Summary of the Findings ....................................................................................62
5.6. Result of the Research Study...............................................................................63
Chapter Six: Conclusion.....................................................................................................64
6.1. Introduction .........................................................................................................64
6.2. Conclusions of the Research Study .....................................................................64
6.2.1. Management Related Factors .............................................................................65
6.2.2. Other Factors .......................................................................................................68
6.3. Future Research ...................................................................................................69
References ............................................................................................................................70
Appendices...........................................................................................................................74
IX
LIST OF TABLES
Table No. Title Page
Table 5.1 Sector – wise Summary of Case Study Analysis
for Project Success / Failure factors 50
Table 5.2 Success and Failure Factors in Project Management 55
Table 5.3 Demographic Characteristics of Interviewees 58
Table 5.4 Critical Success and Failure Factors of Project Managers 61
Table 5.5 Summary of the Findings 62
X
LIST OF FIGURES
Figure No. Title Page
Figure 2.1 Project Triple Constraints 08
Figure 2.2 Overview of Project Management Knowledge areas
and its Process 09
Figure 4.1 Data Collection Techniques 31
Figure 4.2 Data Coding System 32
Figure 4.3 Conceptual Model for Data Analysis 33
Figure 5.1 Data Analysis Processing 36
Figure 5.2 Frequency of Nine Core Concepts among Management
related Factors in the Findings 57
Figure 5.3 project Management Role and Responsibilities
and their weights 59
Figure 5.4 Management Skills and Capabilities and their Priorities 60
Figure 5.5 Critical Success and Failure Factors of Project Managers 61
XI
ACRONYMS AND ABBREVIATIONS
ADB - Asian Development Bank
BBC - British Broadcasting Corporation
CAPC - Cabinet Appointed Procurement Committee
CEB - Ceylon Electricity Board
COT - College of Technology
CPM - Critical Path Method
CSF - Critical Success Factor
DFABM - Department of Foreign Aid and Budget Monitoring
DLD - Department of Legal Draftsman
DMS - Department of Management Services
DPMM - Department of Project Managing and Monitoring
DTET - Department of Technical Education and Training
EIS - Electronic Information System
GA - Government Agent
GIZ - German Technical Corporation
HR - Human Resource
ICRC - International Council for Red Cross
ICTAD - Institute of Construction Training and Development
ICB - International Competitive Bidding
ICT - Information and Communication Technology
IDP - International Development Project
INDIS - Integrated National Development Information system
XII
IRDP - Integrated Rural Development Project
IT - Information Technology
JAICA - Japan International Cooperation Agency
JFPR - Japan Funds for Poverty Reduction
KKS - Kankesanthuri
KOICA - Korean International Cooperation Agency
KSA - Kingdom of Saudi Arabia
LFA - Log Frame Analysis
LKR - Lankan Rupees
MOFP - Ministry of Finance and Planning
MYASD - Ministry of Youth Affairs and Skills Development
NGOS - Non Government Organizations
NVQ - National Vocational Qualification
NVQF - National Vocational Qualification Framework
NWSDB - National Water Supply and Drainage Board
OCH - Outer Circular Highway
ODA - Official Departmental Assistance
PERT - Programme Evaluation and Review Technique
PMI - Project Management Institute
PIU - Project Implementing Unit
PMU - Project Monitoring Unit
PMBOK - Project Management Body of Knowledge
RDA - Road Development Authority
SLTES - Sri Lanka Technical Education Services
XIII
ST - Secretary to the Treasury
TC - Technical College
TEC - Total Estimated Cost
TVET - Technical and Vocational Education and Training
UAE - United African Emirates
UNIVOTEC - University of Vocational Technology
UNDP - United Nations Development Programme
UNICEF - United Nations International Children‟s Emergency Funds
USA - United States of America
VAT - Value Added Tax
WB - World Bank
WBS - Work Breakdown Structure
XIV
1
CHAPTER ONE
INTRODUCTION
1.1. Background
Projects are effective tools to achieve desired goals and objectives in an organization.
Accordingly, project management is identified as a prerequisite to plan, design, implement and
control the targets of a project. Despite this general identity of project management, many
projects had gone off the track and failed to meet their aims for numerous reasons. Project
failure means that the failure of a project to achieve its objectives scoped within the resources
allocated to deliver the outputs (services or products) with the quality standardized. Specially,
the status of time overrun and cost overrun of a project is commonly called project failures,
(NetoAlvarez, 2003). Thus, this study refers the project failures as implementing failures caused
by managerial factors in the sense of inefficiency in meeting objectives within time and cost.
A survey conducted by Standish Group (2002) reveals that the failure rate of Information
Technology (IT) related projects was 16% in U.S. causing US $ 145 billion losses to companies
in 2001. On the other hand, in Sri Lanka, only a handful number of development projects
(47.7%) met their objectives within the allocated budget and timeframe in 2010 and they were
rated as successful projects by the Department of Foreign Aid and Budget Monitoring, Sri Lanka
(DFABM, 2010). Many previous studies indirectly extracted the causes for project failures by
analyzing the success factors associated with project performance. Only a few of them have
focused on managerial skills and knowledge of project managers. Yet, there is only limited
number of qualitative studies in this field in Sri Lanka. Therefore, this study examines the
perceptions of project managers in their role of management in failed projects in order to identify
the insight of failures of implementation related to them. This study restricts its task to
development projects and managerial difficulties faced by project managers in Sri Lanka due to
time and cost constraints.
1.2. Statement of the Problem
Project failures occur in all three project phases namely planning and designing,
implementation and post-operational arrangements due to various reasons. However, in the
context of developing countries, particularly in Sri Lanka, more than 41 % of the projects (89
projects) are rated behind schedule out of 217 foreign funded development projects in 2009,
(DMPP, 2010). Further, in 2010, there were 300 development projects behind schedule due to
2
implementation issues and 71 projects out of 215 (over Rs. 50 Mn.) foreign funded projects were
also in the same status in that year as reported by Ministry of Finance and Planning. Moreover,
40% (291 out of 736 projects) of the development projects experienced time overrun in 2011 and
only 47.7% is the success rate of projects in Sri Lanka (DPMM, 2012). Therefore, the problem
focused in this study is “a significant number of development projects are not successful
(inefficient) in Sri Lanka”. In fact, this is obvious that most of the project failures are occurring
at the implementation stage of projects rather than project formulation or post implementation
stages. As project management is the core area in project implementation and managers‟
performance is the key factor for its success, this problem statement is converted into the
following research question in order to extract the in-depth reasons for project failures with
special references to the managerial responsibilities;
How do project managers distinguish and understand their role and responsibilities in
project implementation failures in Sri Lanka?
In order to address this research problem, the following three sub-questions are identified;
1. How do project managers understand failed projects?
2. What role and responsibilities do they see themselves as playing in the failure of a
project?
3. How do project managers view their capabilities and skills in managing critical issues?
1.3. Research Objectives
1.3.1. General Research Objective
To elucidate the managerial role and responsibilities for the success of development projects.
1.3.2. Specific Research Objectives
1. To identify the success and failure factors of development projects.
2. To explore the management skills required to improve management capabilities and skills for
successful project management.
3. To measure how managers‟ role and responsibilities affect the outputs of the development
projects.
4. To investigate the non-managerial factors for project failures.
3
1.4. Significance of the Research Study
As there are not many researches carried out on project failures in the context of Sri Lanka,
especially implementation failures due to managerial reasons, this study tries to fill this gap in
the literature. Most of the research reports on donor funded projects are mainly analyzing the
relevance, effectiveness and suitability of project outcomes in the context of Sri Lanka and
focusing the outcomes or impact of development projects, but not the efficiency of project
outputs. Thereby, this research is aiming to see the efficiency of development project in the same
context. The aim of this study is to examine the opinions of project managers on failure factors
associated with them and to analyze how managers feel and understand their role in failed
projects by their own experiences and situations. Constraints that arise from personal biases and
interests of managers are taken into consideration. According to Neuman (2006), in qualitative
research, the context is vital and it provides meanings in research question. Thus, it is also an
attempt to understand the failures or success as an event of human activities.
1.5. Research Methodology and Methods
This study is mainly based on the qualitative research methodology through focused group
interviews of project managers. Two delayed projects and one timely completed project were
selected for case study analysis as a supplementary of a complementary of a purposive sample of
15 project managers in different managerial levels to explore the management skills required for
successful project management with the tool of in-depth face to face interviews through semi-
structured questions. In short, the methodology is a qualitative approach based on the
epistemological stance of constructionism and the theoretical perspective of interpretivism where
factors for failure or success are constructed by the experience and interaction of project
managers in various sectors. The factors identified in the case study analysis will enable to
extract the facts for delays in projects in the prospect of managerial role and responsibilities.
Thus, the primary data have been captured via in-depth interviews with managerial people while
secondary data were collected from the documents of DPMM and respective project line
ministries and donor agencies.
A heterogeneous group of project managers were chosen from 30 delayed development projects
as a purposive sample in order to analyze the perception of managers for delays. The data were
coded under thematic or issues related subjects and then these subjective issues were interpreted
into an objective views for analyzing them for findings with the help of a two factor conceptual
model constructed in line with the theoretical concepts of project management knowledge areas.
4
1.6. Limitations, Assumptions and Design Controls
This study is conducted within a period of six months with the base of behind scheduled foreign
funded projects in Sri Lanka. It is the limitation of the study that the findings have been
generalized for development projects in developing countries from the data of narrow range of
sample. However, most of the development countries have the similar situations and conditions
like in Sri Lanka and in this basis, findings could be generalized. As one of the data sources is
focus group interviews, there may be individual biases of delayed project managers due to their
image of career. To overcome this issue, project manager of delayed project were chosen with
their previous experience in non-delayed projects. Finally, as this research follows an
interpretative approach, the findings depend on the way of interpretation of data by the
researcher.
The next chapter will provide the theoretical background and concepts for this research study
with definitions for a few numbers of key terms related to project management field.
5
CHAPTER TWO
THEORETICAL BACKGROUND
2.1. Introduction
This chapter provides a comprehensive theoretical background and definitions for main
terminologies to ease the burden of analyzing the data to find solutions for research problem and
introduces the project management concepts of PMBOK under specific topics. The theory is the
backbone or foundation to construct new ideas or concepts in a progress manner with the witness
of data analysis. Moreover, new findings could be formulated and rationalized in light with the
theatrical principles. Thereby, this chapter describes the theoretical concepts of nine management
knowledge areas in project management with the definition of key terms in order to understand
and apply that knowledge to validate and give meanings to research findings. To the deep
understanding of the theory, definition of the key terms is given below.
2.2. Definition of Key Terms
Although there are many definitions for Project from different schools of thought, project means
as a temporary measure for development needs by meeting specified objectives through certain
activities with the inputs from limited resources in terms of scope, time and cost. “A project is a
temporary endeavour undertaken to create a unique product, service or result” (PMBOX 2004).
The Project Management Institute (PMI) of United State of America (USA) stated that “Project
is a one-shot, time limited, goal oriented, major undertaking requiring commitment of varied
skills and resources, a combination of human and non-human resources pooled together in a
temporary organization to achieve a specific purpose ”(cited in Khanna, 2011). Therefore,
project is a tool to satisfy the needs and desires of people for their socio-economic development
in a country.
Project management is defined as “Project management is the process of achieving project
objectives through traditional organization structure and over the specialties of the individual
concerned. Project management is applicable for any unique, one-time or one-of-a-kind
understanding concerned with specific and objectives”, (Kerzner, 2004). Olsen defines that
“Project management is the application of a collection of tools and techniques to direct the use
of diverse resources towards the accomplishment of a unique, complex, one-time task, within
time, cost and quality constraints. Each task requires a mix of these tools and techniques
structured to fit the task environment and life cycle (from conception to completion) of the task”,
6
(cited in Khanna, 2011). Thus, project management is a process for managing resources towards
specific outputs to meet the prescribed objectives within the allocated time and budget by
applying tools and techniques.
Project Success is defined as “Successful projects are those that achieve their objective within
the specified time frame, at the specified cost and to the specified quality”, (Khannan, 2011, p.9).
Thus, a project called as a success that will meet its objectives within the allocated resources and
expected quality. The contrast of this, in general, called failed projects. However, projects which
are unable to deliver its deliverables within the allocated time and cost due to exceptional
reasons such as national disaster and unexpected changes in its scope beyond the control, is not
treated as failed projects.
2.3. Role of Project Managers
As long as project have a set of planned activities and process to meet desired goals and
objectives within limited resources, management take vital role in achieving that task within the
time and cost constraints. For that, managers are allocating required resources in an efficient and
effective manner. Indeed, project management is the driving force and managers become the key
personnel for better performance in a project. In fact, most of the occasions in developing
countries, project managers are not professionals or skilled people and perhaps they are civil
servant though there may be exceptions.
Diallo and Thuillier (2004) studied that a project has seven stakeholders in the case of
international development projects and they are coordinator (project managers), task manager
(project supervisor of the funding agency), national supervisor (representative of the recipient
country), project team (subordinate of project manager), steering committee (interface between
recipient country and donor agency), beneficiaries (project clients) and population (people of
the recipient country) excluding contractors, experts and consultants. Further, they point out that
the issues in project success are more political problems rather than technical or subject matters;
Project managers have to act as political players and play a role of mediation between local
political authorities (leaders and policy makers) and multilateral development agencies by
making decisions on project designing and appraisals while managing stability in the
implementation phase. Thus, the project management and the role of managers become more
important ingredients in the process of leading the projects on right track by managing complex
tasks in multifaceted situations.
7
As the traditional constraints (time, cost and quality) are top of the list of project success factors,
the project management and the perception of managers are playing a vital role in the evaluation
of project success, Diallo and Thuillier (2004). The relationship between the project manager and
task manger of donor agency is a significant factor in the sense of sharing powers and
preferences among them. Hence, the role of managers is very critical in managing the balance
between preference of donor agency and the needs of locals and the power of political authorities
which appoint project managers.
Jha and Iyer (2006) jointly identified the project manager‟s role as a coordinator in estimating,
identifying, organizing and assigning resources for project functions in building construction
projects in India. Moreover, they state that coordination is harmonizing and integrating the
project ingredients from different stakeholders in a specific industry while predicting and
minimizing problems in design and construct manpower, materials and equipment in a project.
Thus, coordination role lead the project harmony among key players in terms of saving time and
cost while gaining quality and reducing disputes among project stakeholders.
Ahsan and Gunawan (2010) emphasize that as many stakeholders (donor agencies, host country,
beneficiaries and multi contractors and project coordination units) are involving in the process of
project management, it is a complex task for project managers to control the schedules of time,
cost and performance within the scope of desired deliverables to meet the specific project goals
and objectives. Diallo and Thuillier (2005) identify that trust, communication and team
cohesion are some of the key success factors related to project management in development
projects. Therefore, the role of project managers is the most deciding factor for project success in
the context of third world countries.
Balassi and Tukel (1996) identify critical success factors of project performance and categorize
them under four areas, namely project, project managers and their team members,
organization and external environment. As factors related to project managers broken down
further as ability to delegate authority, ability to trade-off, ability to coordinate, perception of
project manager’s role and responsibilities, and, their competence and commitment, it is
rationale to consider these factors to be examined in this study. In literature, one would find
similar identities as factors for project success or failure in their studies.
8
2.4. Theoretical Concepts of Project Management
The PMBOK1
defined nine management knowledge areas for good practices in project
management field as the protocols for project managers which are categorized into three major
areas. These are namely core management areas, facilitating management areas and
integration management. The core areas contain the triple constraints of a project such as
scope, time and cost managements. These management concepts could be used as a theoretical
base for this study in determining the project managers‟ capabilities and knowledge to manage
their projects towards the success. The concepts of project management facilitating knowledge
areas are quality management, human resource management, communication management,
risk management, procurement management and integration management.
Triple Constraints of a Project
Khanna (2011) emphases that the triple constraints of a project namely scope, time and cost are
very crucial in project management in a way of balancing them without losing their degree in the
quality of a project because a change in one factor will affect at least one of other factors.
Therefore, these three factors are accounted as core areas in project management as mentioned in
figure 2.1.
Figure 2.1: Project Triple Constraints
(Source: Kahanna, 2011)
1
“An inclusive term that describes the sum of knowledge within the profession of project management as with
other professions such as law, medicine, and accounting, the body of knowledge rests with the practitioners and
academics who apply and advance it the PMBOK includes proven traditional practices which are widely applied as
well as innovative and advanced once which have seen more limited use” (PMBOK 2004).
9
The nine management knowledge areas have further expanded as several sub-managerial
activities as illustrated in figure 2.2. These expanded sub activities have definite inputs, tools
and techniques and outputs for achieving better results by the project managers in the process
of coordinating and managing them well.
(Source: PMBOK Guide, 2004)
PROJECT
MANAGEMENT
9. Project Integration
Management
1. Project Scope
Management
2. Project Time
Management
9.1 Develop Project
Charter
9.2 Develop Preliminary
Project Scope
Statement
9.3 Develop Project
Management Plan
9.4 Direct and Manage
Project Execution
9.5 Monitor and Control
Project Work
9.6 Integrated Change
Control
9.7 Close Project
1.1 Scope Planning
1.2 Scope Definition
1.3 Create WBS
1.4 Scope Verification
1.5 Scope Control
2.1 Activity Definition
2.2 Activity Sequence
2.3 Activity Resource
Estimating
2.4 Activity Duration
Estimating
2.5 Schedule Development
2.6 Schedule Control
3. Project Cost
Management
4. Project Quality
Management
5. Project Human
Resource
Management
3.1 Cost Estimating
3.2 Cost Budgeting
3.3 Cost Control
4.1 Quality Planning
4.2 Perform Quality
Assurance
4.3 Perform Quality
Control
5.1 Human Resource
Planning
5.2 Acquire Project Team
5.3 Develop Project Team
5.4 Manage Project Team
6. Project
Communications
Management
6.1 Communications
Planning
6.2 Information
Distribution
6.3 Performance Reporting
6.4 Manage Stakeholders
7. Project Risk
Management
7.1 Risk Management
Planning
7.2 Risk Identification
7.3 Qualitative Risk
Analysis
7.4 Quantitative Risk
Analysis
7.5 Risk Response
Planning
7.6 Risk Monitoring
and Control
8. Project
Procurement
Management
8.1 Plan Purchase and
Acquisitions
8.2 Plan Contracting
8.3 Request Seller Response
8.4 Select Sellers
8.5 Contract Administration
8.6 Contract Closure
Figure 2.2: Overview of Project Management Knowledge Areas and its Processes
10
2.4.1. Project Scope Management
The scope management is the process to define and control all the works and only the works
required to be completed to the project for its success. It consists of five sub management
activities namely scope planning, scope definition, create Work Breakdown Structure
(WBS), scope verification and scope control. In scope planning, develop a scope statement as a
basis for project decision whereas in scope definition, subdivide the major project deliverables
into smaller more manageable components. Organizing all the elements of these major project
deliverables as the glance of overall total project scope is called creating WBS. Scope
verification is the function of formulizing the acceptance of the project scope by the stakeholders
by review and confirms the work products in terms of its correctness in a satisfactory manner.
The scope control is influencing the factors which are causing for scope changes while determine
the actual changes benefited to the project scope and manages them when occurring.
2.4.2. Project Time Management
Project time management is the process to complete the project timely without time overrun and
it contains six project sub-processes such as activity definition, activity sequencing, activity
resources estimating, activity duration estimating and schedule development and its
control. Identifying specific activities that have to be performed for producing various project
deliverables is called activity definition whereas identify and document the project activities
correctly in sequence manner for having interactivity dependencies is named as activity
sequencing. Activity resource estimating is the process of identifying and estimating the
resources what needed in what quantity for each activity according to the activity sequence and
work period. Meanwhile, estimate the number of work period needed to complete each and every
individual activity is the process coming under the activity duration estimating. In schedule
development, project schedule will be created by analyzing activity sequences, durations and
resource requirements. Having control over the influencing factors that are caused to changes in
schedule while determining the actual changes benefited to the project and manage them when
needed is called schedule control.
11
2.4.3. Project Cost Management
Project cost management is the process to ensure that the project will be completed within the
approved budget without cost overrun and it consist three sub processes which are cost
estimating, cost budgeting and cost control. Estimate and develop the cost of resources that
are needed to complete the project activities is called cost estimating whereas allocate the overall
cost estimation for individual work of project activities in order to develop a cost baseline for
measuring project performances, is named as cost budgeting. In cost control, the factors which
create changes in cost baseline will be influenced while determining the actual changes benefited
to the project and managing them when occurring.
2.4.4. Project Quality Management
Quality management of a project is the process, in which, the needs of the project is satisfied and
it has three sub processes which are quality planning, perform quality assurance and perform
quality control. In the process of quality planning, quality standards which are relevant to the
project and satisfy them will be identified. Evaluate the project performance in regular basis and
ensure that the quality standards are satisfied by the project is called perform quality assurance
whereas perform quality control is identifying the ways to eliminate the unsatisfactory
performance to confirm that the specific project results are complying with relevant quality
standards determined.
2.4.5. Human Resource Management
Managing the people most effectively in HRM process and which has four sub processes such as
human resource planning, acquire project team, develop and manage project team. In
human resources planning, project role and responsibilities to the individual or group personnel
will be identified and documented for assigning them, in addition to plan their relationships.
Obtaining the human resources required and assigning them to work on the project is called
acquire project team whereas develop and manage the project team is the process of developing
the managerial ability (Leading, Communicating, Negotiating, problem solving and
influencing the organization) and technical skills of stakeholders to be act as an individual and
group to perform as a team to enhance project performance.
12
2.4.6. Communication Management
Communication of Information in terms of generation, collection, dissemination, storage and
disposition of appropriate data timely among the project stakeholders will be in this process. It
provides linkages among the people, ideas and information for leading the project towards the
success via four sub process that are communication planning, information distribution,
performance reporting and manage stakeholders. Determine the information what and when
needed and how it could be communicated among the project stakeholders is communication
planning while make available the timely information to the project stakeholders is information
distribution. In performance reporting, performance information will be collected and
disseminated among the project stakeholders and thereby stakeholder management is in the
process of managing stakeholders.
2.4.7. Risk Management
Risk management is the process of identifying, analyzing and responding to the project risks by
maximizing the benefits while minimizing the consequence of adverse impacts. It has six sub
processes which are risk management planning, risk identification: determine risks which are
likely affect the project and document its characteristics, qualitative risk analysis, quantitative
risk analysis: evaluate the risk and risk interaction to access the range of possible project
outcomes, risk response planning: define the steps to enhance the opportunities and respond to
the threats by the technique of avoidance, mitigation and acceptance and risk monitoring and
control: respond to the changes in risk over the course of the project.
2.4.8. Procurement Management
The process of acquire goods and services from outside the project performing organization is
called procurement management and it has six sub processes such as plan purchase and
acquisition: Determine what to purchase and when, plan contracting: Prepare the documents
required products and identifying potential source of supplies, request seller responses: Obtain
quotations, bids and offers or proposals as appropriate, select sellers: Choose the product sellers
among the suppliers., contract administration: Manage the relationship with various sellers,
and, contract closure: completion and settlement of contracts by product verification and
recording.
13
2.4.9. Integration Management
This is the overall process in project management in coordinating various elements of project
properly by trade-offs among completive objectives and options in order to meet the satisfaction
of project stakeholders in terms of their needs and aspirations in an integrated manner. There are
seven sub processes in this management which are develop project charter, develop
preliminary project scope statement, develop project management plan, direct and manage
project execution, monitor and control project work, integrated change control and close
project.
2.5. Conclusion
In conclusion, PMBOK has defined nine knowledge areas in the field of project management as
a protocol for managing projects in order to ease the burden of managers in their professions.
Scope, time and cost are the core management knowledge areas have been identified and the
proper management of these areas will bring the success along with quality in projects.
However, human resource, procurement, risk and communication management areas are also
facilitating to gain the management success in a way of integrating management. Therefore,
these nine management knowledge areas have been chosen as a theoretical framework to create a
conceptual model for analyzing the data in this study.
14
CHAPTER THREE
LITERATURE REVIEWS
3.1. Introduction
The concept of development becomes broader than the ideology formulated in early days and it
is emphasizing the dynamic changes in societies in a holistic way. Although different schools
have various definitions about development, it has transformed from the economic growth to
social improvements and human wellbeing with the participation of people. People‟s
involvement and their degree of influence in development initiatives are also a shift from the act
of consuming development outcomes to engaging in the process of producing those outputs
(Arnstein, 1969). Therefore, citizen‟s participation is the key instrument or an element in
development projects; people are well focused and their needs and expectations are given more
focus in an objective manner rather than their subjective role. Therefore, people are the heart of
the development and they are the owners of development projects rather than the project
proponents. This concept was firstly practiced in British Colonies in 1930s for combining local
resources in order to gain benefits at community level. Then it has widely spread in industrial
nations and developing countries by 1960s, MacIntyre, 2003. Therefore, development projects,
such as aiming to find out own solutions to overcome resource constraints with people‟s
participation became popular for sustainable development.
In sustainable development, people‟s involvement and their empowerment in taking the project
ownership is vital for lasting the development benefits to meet their goals. But, the level of
participation and the degree of their involvement is crucial and this is the determining factor of
sustainability. Thus, this chapter examines the development projects in its different dimensions
by reviewing the past literature of Africa and Asia countries, including Sri Lanka. The main
scope of this literature review is to identify project implementing issues in terms of the role and
responsibilities of project managers.
3.2. Project Success and Failures Factors
Before undertaking the review of project success factors, it is useful to define the project success
or failure in different point of views. In general, projects are treated as unsuccessful when they
failed to deliver the planned outputs and not meeting the expected objectives or goals. But,
specifically, projects are identifying failed when it exceeds its time of completion and this
15
situation is called time overrun. When projects draw more funds to complete the tasks is called
cost overrun, NetoAlvarez (2003). For an example, in case of a construction project the critical
success factor is time whereas in the case of a product development project the critical factor is
cost. But, today the situation is different and it is difficult to determine the project status whether
it has achieved the target or not due to the complexities associated with management. Belassi and
Tukel (1996) point out that even a delayed project meets its goal by incurring an extra-cost
which is recovered from project managers as a penalty for delays. Accordingly, the project is
successful from the organization‟s perspective. However, it will be a failure if managers do not
meet the time targets. On the other hand, a project could satisfy the customers by providing
outputs within the time and cost while not meeting the expectation of top-level management,
Balassi and Tukel (1996). This type of project is also a failure in the view of organization.
Diallo and Thuillier (2005) argue that management success does not mean project success
because the success directly depends on the act that who is doing the evaluation; whether it is the
project manager or the client. Therefore, defining the project failure is somewhat ambiguity and
it depends on the perception of person who is undertaking the assessment. However, many
studies identified the success factors in connection of the project performance. As project
performance is executed with the support of management, this study examines the factors related
to project management and managerial performance in the implementation stage of development
projects. Thus, this study determines the project success in terms of meeting the time and cost
targets. As such, project failures imply a situation where time and cost overruns.
Belassi and Tukel (1996) emphasize that combination of lack of top level management support
and inadequate competencies of project manager lead inefficiency in the performance of project
activities, in which, project failures often take place due to weak organizational
communication and lack of institutional coordination. This is visible in matrix organizations
rather than flat one. Project manager‟s competency is crucial for effective planning, scheduling
and controlling projects. Delays in critical activities may cause for time overrun and then cost
overrun. It is also vital to communicate those issues with primary stakeholders and to find
appropriate solutions. Thus, the role of project managers and their managerial capabilities and
skills are important to lead the personnel and resources towards the project goal.
16
3.3. Development Projects
Development projects are far different than the commercial or industrial projects. Although they
have some hard components such as construction and installation of sophisticated equipment like
industrial projects, Development projects are mostly related to providing services or facilities to
citizens in terms of social and human development without business focus. Most of the
development projects address the issues related to poverty alleviation, improvement of the living
standard and protecting human rights with the assistance of local and international donors.
However, the jeopardy is measuring the outcomes of those projects due to the intangible of
project/programme impacts associated with people and their betterment (Ahsan and Gunawan,
2010). Therefore, development projects are quite different than other projects and it is hard to
manage and evaluate their outcomes, especially in the context of developing countries where
there is lack of institutional arrangements and human resource capacity. Thus, this is difficult to
manage projects in public sectors incorporate with the existing Project Management Body of
Knowledge (PMBOK).
3.4. African Countries‟ Experiences
African continent consist of many developing and undeveloped countries and most of those
countries are needed external assistance to overcome their development challenges in the sectors
of health, education, transport, policy reforms, governance etc. Yet, many of them are under
poverty, unemployment, political instability and facing difficulties to find own solutions for their
economic growth and social development. Despite poverty and unemployment, social unrest and
health issues are more aggressive in those countries and they are struggling with those problems
for many decades. Malnutrition, maternal deaths and AIDS are major challenges among the
people and they become first in their list of priorities for development solutions rather than
housing, education and livelihoods issues in African countries. Nevertheless, governments,
social bodies and non-governmental organizations are continuously fighting against these
ruthless factors with the support of international assistance. Not surprisingly, many International
Development Projects (IDPs) and Programmes are taken place in those countries with the
integration of national policy framework of local governments. A part of that, the World Bank
(WB) assistances to the sub-Sahara Africa is an incredible contribution through IDPs for the
development of such region.
17
However, surprisingly more than half of the WB projects were failed in Africa until 2000 (see
Meltzer Commission, 2000). But the WB independent project evaluation report revealed that the
success rate of their projects is 61% in 2010 in Africa, (Chauvet et al., 2010). Considering these
statistics, at least 40% of the WB projects failed in Africa even though they were well designed
and coordinated by the Bank. Thus, project failures are common in everywhere due to several
reasons depends on the nature and context of the project and its locations. Kwak (2002)
emphases that the reasons for unsuccessful projects in African context are imperfect project
design, poor stakeholder management, delays between project identification and start-up, delays
during project implementation, cost overruns and co-ordination failure under two categories
such as managerial and organization problems.
Though IDPs funded by WB is different than the other local projects in African countries, WB‟s
projects are very specific in terms of rare complexity, high delicacy and large number of
heterogeneous stakeholders, divergent perspectives among the stakeholders, need for
compromise the politicians and unique cultural differences between the project designs and the
recipient countries and its beneficiaries (Honadle and Rosengard, 1983; Rondinelli, 1983; Gow
and Morss, 1988; Youker, 1999; Kwak, 2002; Crawford and Bryee, 2003; Diallo and Thuillier,
2004, 2005; Khang and More, 2008; Ika at al., 2010). So, the IDPs could have numerous
problems in its implementation stage rather than their design and planning phases in African
countries.
According to the WB projects, a project has to pass three stages namely preparation,
implementation and evaluation. As implementation phase is undertaken by the recipient country
and its national project coordinator defined as „project manager‟, the project implementation
responsibility falls under the national government and several elements are involved in the
success of project implementation. The Bank itself evaluates the projects in terms of relevance,
efficiency, effectiveness, impact and sustainability as a whole. Furthermore, Ika, Diallo and
Thuillier (2012) jointly argue that project success is evolving through its efficiency and
effectiveness and success is a matter of perception which has a set of doctrine or standards used
to be determine the success as Critical Success factors (CSFs). Hence, the CSFs become more
popular criteria to determine project success.
Although many CSFs are in the literature of project management, a significant number of CSFs
are common and widely used by the researchers, which are project mission, top-management
support, project schedule, client consultation and acceptance, personnel, technical tasks,
monitoring and feedback, communication and troubleshooting (Pinto and Slevin, 1998).
18
However, Diallo and Thuillier (2004) list out ten success criteria under three broader categories
such as project management success (objectivities, time and budget), project success or
impact (beneficiary satisfaction with project deliverables: goods and services), project profile2
for IDPs in the context of 26 African countries. Moreover, Khang and Moe (2008) added some
more factors in the above mentioned list in the context of Vietnam and Myanmar, which are
relevance of project needs, choice of the project implementing agency and an alignment
between the priorities and interests of key stakeholders.
Meanwhile, a study of Diallo and Thuiller (2005) point out that project success is very much
associated with the trust and communication between the project supervisor of WB and
national project coordinator (project manager) in African prospective whereas Ika (et al. 2010)
argue that project planning tools and techniques are not significantly affecting the project success
even though there is a potential correlation between the tools of monitoring and evaluation and
project profile. However, later in 2012, the same researchers jointly proved that project success
is heavily depends on five CSFs such as monitoring, coordination, design, training and
institutional environment along with success measures namely efficiency/time, efficiency/cost,
effectiveness/objectives, relevance/country, relevance/beneficiaries, impact, sustainability and
project success. Further, they stated that the design and monitoring have strong correlation and in
the top of the CSFs list while competency and communication ability in the role of project
managers determine the project success as coordination be a CSF. In contrast, the research study
of Khang and Moe in 2008 critique that most of the issues arising in the project implementation
phase and the effective consultation will lead the project success more than the competency of
project supervisors and managers. However, project managers should not started project with
“empty headed and empty handed” (Rondinelli, 1983, p.325). Therefore, the project success is a
matter of handling the CSFs in a positive way by an effective and efficient interaction with
project stakeholders. Thus, poor project design, imperfect plans, delays, cost overruns,
coordination failures, scope changes, weak institutional environment in developing
countries, especially in the case of post-disasters or conflicts should be focused and eliminated
for avoiding unsuccessful projects in the context of developing nations in Africa.
Conclusively project success or failure is mostly take place in its implementation stage and
largely depend on the factors associated with managerial activities. Thereby, the performance of
project managers is crucial for successful projects and it determine by
2
Project Profile means “conformity of the goods and services, national visibility of the project, project reputation
with international development agencies and probability of additional funding for the project” (Diallo and Thuiller,
2004).
19
3.5. Asian Countries‟ Experiences
In India, the construction industry is the major engine for the economic growth of the country
next to agriculture sector. The construction industry is alone contributed 6 to 9% to the country‟
national economy in terms of GDP while having the investment of US $ 50 billion in 2008,
(Doloi et al., 2012). In light of this view, it is rationale to analyze the construction related
development projects and it could be a good sample for other sectors in Indian context.
According to Iyer and Jha (2005), construction projects in India are severely affected by poor
performance across the country whereas a study conducted by Ahsn and Gnawan in 2010 reveal
that the average time overrun is the highest failure factor in India when compare to other
countries (China, Bangladesh and Thailand); it is recorded as 55%. The critical example in India
is the weak infrastructure projects for the last Commonwealth Games in 2010. In the view of the
Ministry of Statistics and Programme Implementation of India, there are 309 projects were
experienced cost overrun while 474 projects were delayed out of 952 projects being monitored
and the cost increase was US $ 8.4 billion due to 466 delayed projects, (www.mospi.nic.in). The
causes for those were listed as problems in land acquisition, improper planning and
budgeting, poor coordination and monitoring of the projects (Doloi et al., 2012). Not
surprisingly, the last factor (poor coordination and monitoring) is confined to project
management and within the control of project managers.
Perhaps, coordination is one of the seven processes of management and a critical factor in
evaluating project success. Coordination is harmonizing and integrating the project ingredients
from different stakeholders in a specific industry while predict and minimizing problems in
design and construct manpower and materials, including equipment for a project (Jha and Iyer,
2006). They identified six most important coordination activities such as preparing quality plan,
arranging remedial work methods, estimating optimum resource requirement, developing team
spirit and receiving constructive inputs, arranging required inputs and detailed method of
construction. Thus, coordination activities lead projects in terms of cost and time saving, quality
achievement and reduction of disputes among key players in a project.
In spite of these common identities in Indian context, Chan and Kumaraswamy (1997) found a
few different characteristics in their study in the context of Hong Kong, which are poor risk
management and supervision, unforeseen site conditions, slow decision making and work
variations. Whereas in Malaysia, material shortage is one of the key factors, that affect the
time delays in construction projects (Sambasiavn and Soon, 2007). In China, more than 50% of
20
construction projects were cost overrun due to lack of coordination (Wang, 2000). Therefore,
examine the success factors related with project management and the role and responsibilities of
managers is an unavoidable need for the improvement of literature.
Nevertheless, apart from the contexts of South and East Asian countries, delay of construction
projects in UAE is more than 50% due to delays in obtaining approvals for drawings, poor
pre-planning and slow decision making process while in the case of KSA, the causes for
delays in construction projects are delayed approvals, slow decision making of owners and
shortage of materials (Faridi and El-Sayegh, 2006). A similar study was conducted by Al-
Khalil and Al-Ghafly in 1999 and it reviews that the lack of agreement between project
stakeholders is the reason for project delays in KSA while the chronic nature of issues and
disparities of project stakeholders were identified as causes for the same in KSA by Al-
Kharashi and Skitmore (2009). In the view of Egypt, the project stakeholders do not have
common consent about the importance of factors related with delays. They blame each other
for delays and not ready to take the accountability of their responsibilities (El-Razek et al.,
2008). Hence, the middle-East countries experience has identified the similar factors and causes
for project delays in Indian prospect, too.
When specifically examine the causes associated with failure projects in the context of India, the
root cause is conflict among key role players in projects. This was identified by Iyer and Jha
(2005). They list out the attributes of failure factors are conflict among project participants,
ignorance and lack of knowledge, presence of poor project specifications and non-existence
of cooperation, unfriendly socio-economic and climatic condition, reluctance in timely
decision, aggressive competition at tender stage, short bid preparation time.
In conclusion, the significant evidence for the factors and causes related with construction
projects in the prospect of Indian conditions could be generalized to all most all other sector
projects related with project management. There are seven critical failure factors such as lack of
commitment, inefficient site management, poor site coordination, improper planning, lack of
clarity in project scope, lack of communication and substandard contract. In fact, these all seven
factors are related with project management and the role and responsibilities of project managers.
Significantly, poor coordination and monitoring, unforeseen site condition and poor risk
management, slow decision making and lack of agreements among stakeholders, poor labour
productivity and shortage of materials, reluctance for design changes and rework due to mistakes
are the most crucial factors for delays in projects in the context of Asian countries.
21
3.5.1. Sri Lankan Experiences
Although Sri Lanka does not have a long history in executing development projects, it is used for
that after the independence of the country in 1948 by stepping up in Galloya project initiated by
the first Premier of the country late Mr. D. S. Senenayake. However, the implementation of
“Mahawali” project created the path to Sri Lanka to vastly using development projects as a key
instrument for rapid development of the country in parallel to many other developing countries
in the South Asian region. With the recovery and rehabilitation programmes and projects to the
drastic damages caused by the Tsunami in 2004, Sri Lanka has had numerous numbers of such
development projects. Those have been executed by various donor agencies, including
international and local Non-governmental Organizations (NGOs). Despite these huge donor
contributions, significant numbers of government projects were also in track with the utilization
of domestic funds in Sri Lanka. This was the peak period of the development arena of the
country in the aspect of running many projects in parallel to other long-term development
progrmmes. Thus, the scope of these projects is meeting the betterment of people rather than
commonly aiming to achieve the economic growth in the country.
At present, many development projects are being implemented by the direct execution of the
government and donor agencies such as UNDP, GIZ, JAICA, KOICA, UNISECF, ICRC etc.,
after the end of civil war lasted for more than 30 years. This war has caused severe damages to
the country in both human capital and national resources. As the result of this, there is an
emerging need for rapid development and many such development projects are identified and
pipelined again after the Tsunami recovery period. Considering some of these projects is
worthwhile here to understand the value of development projects and their contribution to the
growth of a developing country like Sri Lanka.
Greater Colombo Urban Transport Development project and Vavuniya and Kilinochchi
Transmission line project are the two major development projects funded LKR 44 billion (33
billion Yen) by the Japanese government through JAICA. The target of the first project is to
construct 8.9 km length of road section of the Outer Circular Highway (OCH) from Kaduwela to
Kadawatha. The objective of this project is to ease the traffic congestion in the Colombo
metropolitan region while improving the access of southern expressway (Colombo -
Katunayake) and connect other national roads with Colombo city. The second project‟s aim is to
provide reliable, adequate and efficient electricity to the people in Northern Province and
reconstruct 132 KV power transmission network lines from Vavuniya to Kilinochchi with the
construction of a grid sub-station at Kilinochchi, (Media centre 24.03.2011). These two projects
22
are tremendously supporting to the improvement of economy and the well beings of the public. It
is also incorporated with the government policy that provision of infrastructure facilities to
exercise economic activities in the sphere of production for people‟s betterment.
Construction of 50,000 houses for war victims in North is one of the mega projects initiated by
the pledge of Indian government. The aim of this project is resettling the internally displaced
people in their own places. Apart from that, the development of the regional seaport of
Kankesenthurai (KKS) with the support of US $ 40 million grant of Indian government is
another mega project under its assistance for North and East. It will diffidently support the local
farmers in Jaffna to market their agro-products to other parts of the country by cargo-shipping to
Trincomalee, Hambantota, Galle and Colombo while importing fertilizer, cement and non-
cultivated food items such as dhal, potatoes, species, etc. in cheaper price rates from Indian
markets (Tuticorni and Chennai), (Media Centre 16.03.2011). In the meantime, this project will
also contribute to the regaining of the KKS cement factory in a way of providing transport
facilities to its production to other part of the country. Moreover, in the context of security of the
country, Navy can also use this port to carter their vessels which are operating in the Park Sea
near to this port as a base for Northern peninsula. Therefore, this is a multi-purposes project in
the aspect of economy, security and social development of the people in the North part of the
country.
By considering the government policy that provides infrastructure facilities for development,
transportation is given high priority not only in the improvements of road and highway networks
but also in the development of port and aviation. The aim of this policy is inviting foreign
investors by giving fast market access to their products in low transportation cost and cheaper
labour wages. In this circumstance, the emergence of a second international airport in
Hambantota district with the support of China (US $ 200 million loan and US $ 100 million aid)
will boost the railway network in south of the Island. This will surely contribute to the major
improvements in the transport network in order to enable the country to enjoy and engage in
international trades more than the present size of it. Further, the location of the second
international seaport of Sri Lanka at Mahampura in Hambantota district will synergies the
outcomes of these two projects. Yet, the Indian credit of US $ 70 Mn for upgrade the southern
railway lines will also reinforce the railway network in order to integrate the strength of
transportation of the country. However, all most all these project are suffering from various
issues ranging from project formulation to monitoring and evaluation. Hence, it is worthy to
consider a few of them in the prospective of Sri Lankan.
23
3.5.1.1. Project Formulation Issues
The ODA report (2009) emphasizes that the assistance of Japan met the targets by appropriate
operations in general but, the function of project formulation should be strengthened in addition
to expose to the design-build system.
Subsequently, the ODA Report (2009) revealed that two of the Japan Funds for Poverty
Reduction (JFPR) projects through ADB in Sri Lanka was advanced more than those in
Indonesia. Those were exhibiting high relevance and positive effectiveness and impact, though
there was a concern about the sustainability. However, the report point out that the local bodies
would have been taken leadership in the process of project formulation by the activity of
identifying needs which led the projects to delay, even there was an urgent rehabilitative support
required for fast actions. On the other hand, in the process of implementing projects, awareness
of projects did not correlate with the effectiveness of those projects and low self-containment of
projects is a key factor for that in non-project grant aids, (ODA, 2009). Thus, this indicates that
project formulation is also somewhat problematic in Sri Lanka, in addition to its implementation.
As project manager‟s skills and capabilities are highly related with the implementation part of a
project, the next topic will focusing the implementation issues in managing development
projects.
3.5.1.2. Project Implementation Issues
In general, post-evaluation of projects will show the success of the project implementation in
terms of delivering the outputs in order to meet the expected outcomes and goals. Accordingly, a
third party evaluation was undertaken (from June, 2008 to March, 2009) by the external advisory
committee on Official Department Assistance (ODA) for evaluates the Japan‟s assistance in
respond to Tsunami disaster projects. Such report revealed that the exact preparation of projects
in non-project grant aid is the design-build system and it is heavily depend on the selection of
contractors for construction. But, in Sri Lanka, the understanding of this design-build system by
the local contractors is very poor even though the assistance to Sri Lanka was evaluated as
manageable and implemented properly. However, when comparing with other recipient countries
such as Indonesia and Maldives, Sri Lankan project performance was relatively high quality and
effectiveness along with good degree of necessity and usefulness, (ODA, 2009). Hence, it shows
that performance of local contractors in development projects is not satisfactory and their
selection and managements are poor in Sri Lanka in a view of implementation issues.
24
However, either this ODA report or any other studies does not deeply examine the managerial
skills related with poor performance of contractors or their management. This is the grey area
had examined in this research study what factors influence the contract management in the
context of Sri Lanka. The next topic will address the coordination issues in managing
development projects.
3.5.1.3. Project Coordination Issues
The findings of the ODA report (2009) reflect the weakness of project management in the aspect
of project coordination. Some disaster rehabilitation projects in Sri Lanka are not properly
coordinated with other donor projects or rural infrastructure programme for poverty reduction.
As a result of this, they lost their success due to poor project coordination. Therefore, the
success of a project is vital and it is strongly depend on the coordination ability of managers.
Gunatilaka (1999) analyzed the project coordination in different angle in his studies. He pointed
out that the government is executing projects through their line ministries in Sri Lanka and the
project implementation capacity of the government sector has been weakened through the
fragmentation3
of the public institutional arrangements. Thus, this fragmentation causes for
lack of synergy within the projects which are covered large area and required number of
agencies for consultation and coordination.
In fact, the institutional arrangement of central and provincial governments is a constraint to
projects to obtain such consultation and coordination from different stakeholders when the ruling
political parties are different and having conflict political agendas in those places. This issue
has become worsen after the devolution of power since late 1980s, (Gunatilake, 1999).
Therefore, the project coordination can have complex issues in different paradigm. Poor
coordination, lack of technical capacity and weak institutional arrangements are a few areas
to be considered in managing development projects in the Sri Lankan context. Although poor
coordination has been identified in his studies as a cause for implementation failures, there is no
specific indication what management factors are caused for this poor coordination or where
managers lacking and what skills required for better coordination. Therefore, these areas had
studied in this research to fill the gap in the literature. In next topic, project monitoring and
evaluation will be reviewed.
3
“Fragmentation has occurred because of the proliferation of ministries, departments, public corporations and
statutory bodies”, (Gunatilake, 1999).
25
3.5.1.4. Project Monitoring and Evaluation Issues
In the Integrated Rural Development Projects (IRDPs) of Sri Lanka, the project outcomes have
given disappointments to the managers. The quality control was the serious constraint to the
success of that project due to lack of technical capacity to provide high level supervision for
monitoring. In contrast, the community projects funded by “Janasaviya” Trust Fund and
implemented by NGOs were successful by the systematic implementing procedures. These
projects were adopted by the appraisal and monitoring procedures by the engineers at various
stages of implementation, (Gunatilake, 1999). Hence, the quality of project outputs is vital and it
was lost in the first project without proper supervision and monitoring due to lack of manager‟s
technical capacity. Further, these two contradicted examples indicate that the implementation of
a project is heavily depending on the project manager‟s role in their responsibilities to lead the
project towards success. The manager‟s responsibility is to have a systematic mechanism to
monitor and evaluate the project in terms of scope, time, cost and quality. Thus, the next topic
will try to extract the role of project managers in their managerial responsibilities.
3.5.2 Managing Development Projects in the Context of Sri Lanka
In Sri Lanka, the institutional capacity and human resources capabilities of managing
development projects are not satisfactory. According to Koria (2009), inadequate field
capability, including weak planning and insufficient coordination of resources are major
reasons for unable to obtain the ownership and participation of locals in project implementation
in post-tsunami recovery programmes in Sri Lanka. Yet, he pointed out that most of the
organizations did not have the appropriate technical and managerial expertise and knowledge to
undertake the reconstruction projects due to not having inherent competence to manage extensive
portfolios of programmes and projects. Also, it is noticeable in his view that the organizations
were searching resources for projects while they run those projects and government also
struggled to provide full technical support and coordination to many development agencies of
post-tsunami programmes in Sri Lanka. Although, over 200 recovery projects were running with
the cost ranged from a few hundred thousand to 10 million rupees in different sectors such as
rebuilding of homes, hospitals, schools and water and sanitation, there was no well organized
programme or project office in Sri Lanka. However, most of the national organizations have their
own project staff for project implementations (Koria, 2009). Therefore, it is understood that the
institutional capacity and technical resources are not enough to cater the needs of project
management in the public sector of Sri Lanka.
26
Although there are not many researches in this field in Sri Lanka, the study of Koria (2009)
identifies several potential project management issues which are worthwhile to mention here to
understand the urgent needs of further studies. Koria (2009) identified that projects are handled
by line ministers instead of formally certified project managers or professionals and thereby, the
common project protocols or industry standards of project management and planning tools are
not applied; time is not considered as a cost and monitoring is not in systematic way to meet the
goals. The severe criticism on this field in Sri Lanka is about the management role. This is
unclear by overlapping the staff, responsibilities and tasks between the programme and
project management. Thus, this will create a vacuum in the programme management (Koria,
2009). Therefore, examine the role of project managers is useful to professionals, government
organizations and countries that are having the similar issues in this field. Consequently, the
focus of this study is to analyze the gap that how project managers‟ roles without deliberately
contribute to the failures in managing development projects and how their skills and capabilities
bring the success in projects.
3.6. Conclusion
In Sri Lankan context, there are many development projects behind scheduled due to issues in
their implementation phase. Local contractors‟ poor performance, lack of institutional capacity
and weak organizational communication and resources coordination, including poor planning
and quality controls are some of the key reasons for delays in those project executions.
Moreover, lack of human resource capabilities for managing development projects is also a
constraint in the country due to not having inherent competences. Specially, most of the
organizations do not have appropriate technical and managerial expertise and knowledge to
manage extensive portfolios of programmes or projects. The management role is not clear and it
is overlapping by staff, responsibilities and tasks. Further, many projects are handled by the line
ministries, instead of separate PMU or professionals in the field of project management. Thus,
the common project protocols or industrial standards and planning tools are not applied in
managing projects.
However, in Sri Lanka, there is less number of research studies in the field of project
management. On the other hand, none of them were not deeply analyzed the root cause of project
failures in respect of managerial skills and responsibilities in managing development project in
the context of Sri Lanka. The next chapter is structuring the research methodology and methods
what were used in the study. The key focus of this chapter is to rationalize the method and
methodology of analyzing data analyzing in order to find solutions for the research questions.
27
CHAPTER FOUR
RESEARCH DESIGN AND METHODOLOGY
4.1 Introduction
As per the research methodology chosen in chapter one, this research study was conducted in a
manner of qualitative research with case study analysis in addition to the focus group interviews.
However, data were analyzed with the help of a conceptual model described later in this chapter.
Crotty (1998) suggests that researchers pay attention to answer two questions in developing a
research study. One is what methodology and methods are going to be used and how it justifies
those selections of particular methodology and methods. To answer these two questions a
researcher should understand the epistemology4
and the theoretical perspective underpinning the
research, that is, the researcher has to explain how she/he see and understand the social reality.
Therefore, this research is based on the epistemological stance of constructionism and the
theoretical perspective of interpretivism. According to Crotty (1998), the view of
constructionism is all about the knowledge, that is, meaningful reality which was not discovered
or created by human. But, it is constructed by the interaction of human beings and their world in
a way of interpreting it and it is not waiting for someone to come up with. Constructionist‟s view
is there is no single reality in the world, but people construct their own reality by their own
experience and situation they face. Different people perceive different meanings to the same
object and situation (Crotty, 1998).
Therefore, this study has extracted the social reality for project implementing failures by the
interpretation of different project managers, executive agencies and donors through their own
experience and interactions with delayed projects. Hence, interpretive approach was used here to
construct the meaning of failure experiences and situations of project managers to make sense
the reasons for project implementing failures in managers‟ point of view. According to Neuman
(2006, p.89), interpretive approach sees that the “social life is based on socially constructed
meaning” and “it is intentionally created out of the purposeful action of interacting social
beings”. It claims the notion that “facts are fluid and embedded within a meaningful system; they
are not impartial, objective and neutral. Facts are contingent and content specific; they depend on
combinations of specific events with particular people in a social setting” (Neuman, 2006, p. 92).
Thus, in this study, the project implementing failures were explained as how it was perceived by
project managers who worked in the context of development projects in Sri Lanka. Accordingly,
4
Epistemology means the way of looking at the world through our knowledge and making sense of it, that is,
certain understanding about the reality that “how we know what we know” (Crotty, 1998).
28
the meaningful data comprised what project managers‟ views about their managerial experience
and attitudes about on delayed projects.
As this study based on the constructivist epistemology and theoretical perspective of interpretive
approach, people‟s knowledge, views, understandings, interpretations, experiences, and
interaction could be the meaningful properties of social reality. Which is the ontological position
of qualitative research (Mason, 2002); hence qualitative data will be useful to provide a rich
picture of the context. Therefore, in-depth face to face interviews with project managers,
executive agencies and donors have been conducted to generate the data to this study. For this
purpose, 30 delayed development projects have been chosen by the help of DPMM and then 15
project managers and respective project executive officers and donor coordinators have been
selected as a purposive sample. Because the purposive sample is a particular group that is
representing a specific population which has to be examined for gathering required data in a
qualitative study. To avoid the individual bias of project managers, the individuals who have
played managerial role in both delayed and non-delayed projects have been selected. It would
also help to confirm the failure factors by interviewing the same individuals for finding the
success factors. To confirm the managerial reasons related with role and responsibilities of
project managers, one success project and two failed projects have been examined as a case
study analysis, before the in-depth face to face interviews were carried out with selected project
managers.
4.2 Population and Sample
The sample provides the data to generate information in order to address the puzzle of research
question. There are two elements pointed in sampling namely data and data source by Mason
(2002). Those have useful and meaningful empirical contexts, illustrations or scenarios. The
ability of data source is generating meaningful data and ideas to develop empirical and
theoretically grounded arguments about the intellectual research puzzle. According to Neuman
(2006), the purposive sample is useful to identify types of case to do in-depth investigation and
gain deeper understandings of those types. As the research puzzle was to investigate the project
implementing failure factors associated with project managers, the sample has been identified in
a specific manner where the sample has represented a particular type that is delayed (time
overrun) project and its managers. Therefore, 30 delayed development projects and its project
managers, executive agencies and donors, were prepared as a population with the support of
DPMM. Then a mixed sample of project managers was identified in terms of small, medium and
29
large scale budgetary projects where managers engaged in both delayed and non-delayed
projects. The experienced project managers, especially the senior managers were included in the
sample to acquire their vast knowledge and experience.
Participants have been informed that the conversation will be recorded and then transcribed
before starting the interviews. For the confidentiality of information and the privacy of
participants, the data have been protected by keeping in a lockable cabin and password protected
computer in addition to assigning pseudonyms for them for de-identifying data in the research
analysis.
4.3 Organization of Data Analysis
To generalize the findings of descriptive characteristics, the sample was selected as a
heterogeneous group by having different kinds of project managers comprised in terms of
gender, age, experience and nature of their projects such as different sector, scale, size and
location. To avoid the personal bias of project managers and to extract the truthful facts, project
executive officers and respective donor coordinators were also included in the sample in an
appropriate way without affecting the importance of key informants. A structured set of
questions in Appendix 1 is used as a guide for the semi-structured face to face interviews. Thus,
the project managers, executive agency officers and donor coordinators of the following ongoing
behind scheduled, completed and halted projects were selected as the primary sources for data
feeding;
1. Smallholder Plantation Development Project – Infrastructure Development Sector.
2. Trincomalee Integrated Infrastructure Project – Power and Energy Sector.
3. Construction of Korean Sri Lanka Friendship Hospital, Godagama, Matara - Health and
Sanitation Sector.
4. Pro-poor Eastern-Infrastructure Development Project – Road and Highways Sector.
5. Establishment of Integrated waste Management System in Dompe Area – Environment
Sector.
6. Trincomalee Integrated Infrastructure Project Component 2 (Water Supply Network
Rehabilitation Project) – Water Supply and Drainage Sector.
7. Galle Port Development Project (Halted) – Port and Aviation Sector
8. Improvement of Rajagriya Junction and Kiribathgoda – Kadawatha Road (Completed) –
Road and Highways Sector.
9. Technical Education Development Project (Completed) – Education Sector.
30
4.4 Data Collection and Instrumentation
Miller and Glassner (1997) advises to choose qualitative interviews to understand and document
others understanding about social world. Because, it provides the means for exploring the point
of view of research subject by accessing the meanings and people attributes in their experience in
the social world. Punch (1998) also suggests that the interview is one of the main data collection
techniques in qualitative research for understanding others by accessing people‟s perception,
meanings and definitions of situation, and, construction of reality. So, in this study, the
subjective views of project managers‟ experiences have been formulated as an objective view of
the social reality for project delays; face-to-face semi-structured interviews with participants
have been conducted for data collection. Mason (2002) argues that the meaning and
understanding are created by the interaction of researcher and interviewees and construction of
knowledge is a co-production. Further, she emphasizes that semi-structured face-to-face
interviews are allowed the researcher to develop a thematic, topic-cantered or issues related
subjects. Therefore, the semi-structured interviews have been designed to address the core issue
of implementation delays in projects in different thematic approaches. Interviews have been
conducted at a time and place which were convenience to the participants in their preferred
languages such as English, Sinhala and Tamil. The data collection model in figure 4.1 at page
31was used for primary and secondary data collection for this research study. According to this
model, the primary data were gathered from managers namely Project Director, Project
Executive Officers and Donor Coordinators with the tool of in-depth face to face interviews
whereas documents of DPMM, respective line Ministers and Donor Agencies were referred for
secondary data. Especially under this model managers from different entities (PIU, PEA and
Donor Agency) were interviewed in respect of a particular one project for reliable data. This
strategy was also helped to crosscheck the data for its accuracy.
31
Data Collection Techniques
Figure 4.1: Data Collection Techniques
In-depth face to face interviews with semi-structured questions
Documents References
(Source: Author)
Primary Data
Secondary Data
32
4.5 Methods of Data Analysis
According to Babbie (2007) the aim of data analysis is to discover the patterns among data for
understanding the concepts of social reality. For that, the key process in qualitative data analysis
is coding, that is, categorizing several pieces of texts in a format of concepts to retrieve the data.
Coding qualitative data is entirely different from the statistical data analysis; researcher
organizes the raw data into general ideas, themes and concepts and it is an integral part of data
analysis guided by research question. This leads to new questions to encourage researchers to a
high-level thinking in qualitative data analysis (Neman, 2006). Therefore, the interview records
have been transcribed with the help of the expert knowledge of project management and then the
texts have been conceptualized in common themes by using open coding system. Then the first
coded data underwent for axial coding where the core concepts have been identified. Finally, the
selective coding has been executed on the propositions produced by axial coding to determine
the central theme of data. Therefore, the factors related to managerial causes for delayed
projects were stream lined under the common themes of project management driven by the
theoretical underpinning. All coding of this study were carried as mentioned in the figure 4.2
below;
Data Coding System
Figure 4.2: Data Coding System
4.6 Conceptual Model for Data Analysis
To analyze and present the descriptive characteristics of the data, a conceptual model described
in figure 4.3 at page 33 has been developed and used for finding the central thematic concepts
related to the research problems. According to the conceptual model, the project success / failure
factors have been identified into two ways such as management related factors and other factors
in the data. The management related factors have been incorporated with the theoretical concepts
of PMBOK in the chapter two where project management is categorized under three major
management components with nine management knowledge areas for efficient management.
(Source: Author)
33
Figure 4.3: Conceptual Model for Data Analysis
(Source: Author)
34
4.7 Conclusion
This research study was designed as a qualitative approach to extract the social reality that delays
in development projects. As qualitative approach is based on the epistemological stance of
constructionism and the theoretical perspective of interpretivism, the facts and means for delayed
projects were constructed from the experience and interaction of project managers those who
have engaged in both delayed and non-delayed development projects. Therefore, the sample is a
purposive group of project managers whereas the instrument of data collection is in-depth face to
face interviews. To know the in-depth reasons for delays in development projects, two delayed
projects and one timely completed project have been selected for case study analysis. Further, 15
participants have been selected from the purposive group as a sample for in-depth interviews.
The sample was selected as a heterogeneous group of mixture of project managers in different
development sectors in order to meet the diversity in the nature and location of projects. The
secondary data were collected from the DPMM and respective project line ministries, including
donor agencies in addition to the primary data collected through the semi-structured interview
questions.
In case-study analysis, the data were analyzed under three categories, which are managerial role
and responsibilities, management skills and capabilities, and, success and failure factors in
project management. When carrying out in-depth interviews, the data were manually coded and
then core concepts were identified with the help of nine project management knowledge areas
defined in PMBOK. Thus, this study is a qualitative approach and the data collecting instruments
are case study analysis and in-depth face to face interviews with a purposive sample of selective
project managers.
The next chapter is data analysis where raw data will be transformed into useful information to
construct findings for research questions. In this chapter, there are three case study analysis were
undertaken with the help of theoretical conceptual model followed by fifteen in-depth interview
reviews with the help of interpreting the subjective managerial issues into objective views.
35
CHAPTER FIVE
DATA ANALYSIS
5.1 Introduction
As this study is mainly based on the qualitative approach for a social research, the data collection
was the epistemological stance of constructionism and the theoretical perspective of
interpretivism, that is, the managerial reasons for project implementation failures and its
unsuccessfulness were constructed through the interpretations of own experience from the view
of project managers who are engaged in both delayed and non-delayed projects in the context of
Sri Lanka.
In General, projects have three phases such as Planning and Formulation, Implementation
and, Post-operation and Sustainability. According to the past experience enlightened in the
literature reviews and empirical studies, implementation phase has high degree of managerial
involvement. Hence, managerial reasons have high probability for many project implementation
failures, especially in development projects in the context of developing countries. Therefore,
project management issues with respect to managerial aspects were largely focused under the
data analysis because of its high involvement in the implementation phase. However, managerial
factors associated with failures in all three phases were considered for the completion of the
examination in the point of research rationale.
As project success or failure mainly depends on its implementation stage and failures are
confined to either time overrun or cost overrun of a project, projects that are rated as behind
scheduled (less than 50% of financial disbursements within the scheduled time period) were
identified as failed projects in the manner of inefficiency to meet its objectives within the time
and allocated budget. Hence, the project managers of the ongoing behind scheduled projects and
timely completed project were chosen as a purposive sample for primary data collection.
Accordingly, the subjective outlook of management issues were interpreted into the objective
views of managers and their perceptions by a way of an analyzing process as shown in the figure
5.1 at page 36; The three case study analysis have used to find out the common factors
associated with implementation delays in project management in order to prepare the interview
questions to obtain the perception of fifteen project managers on delayed projects. Therefore, the
case study analysis has done first followed by purpose group interviews. Hence the case study
examinations are the supplementary studies for the complementary of the interview analysis.
36
Figure 5.1: Data Analyzing Processing
(Source: Author)
5.2 Presentation of Descriptive Characteristics
Among the nine foreign funded development projects mentioned in section 4.3 of Chapter 4, two
behind scheduled projects and one on scheduled completed project have been selected for case
study analysis. The data source for case study analysis basically depends on the website
information of INDIS of DPMM as secondary data and the perception of fifteen interviewees is
the primary source of the data. However, the case study analysis was initially done for fact
findings followed by in-depth analysis of face-to-face interviews in order to extract the root
causes for project delays.
5.2.1. Case Study Analysis of Delayed Development Projects
In Sri Lanka, most of the development projects are executed in road, health and education sectors
in the sense of providing infrastructure facilities to public and investors for their mobility and
access to other facilities such as workplaces, markets, hospital, schools, etc. For example, there
are 245 projects in Port and Highway sector and out of which 52 are foreign funded projects
costing 123.707 billion in Year 2011 (MOFP, 2011). Health and Education sectors are also have
significant number of foreign funded projects in Sri Lanka, too. Hence, projects in these sectors
are crucial to consider as potential development projects for analysis and one project in each
sector was selected for case study analysis. Thus, the following two delayed development
projects and one on-scheduled completed project were chosen for case study analysis;
1. Pro-poor Eastern-Infrastructure development Project – Road sector
2. Construction of Korea Sri Lanka Friendship Hospital, Godagama, Matara- Health sector
3. Technical Education Development Project – Education sector.
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Final Thesis with cover page

  • 1. I In Masters in Development Studies At Faculty of Graduate Studies University of Colombo Sri Lanka Factors hindering the Implementation of Development Projects in Sri Lanka: Perceptions of Project Managers with Special Reference to Managerial Responsibilities By Sivananthan Pathmanathan
  • 2. II Title: Factors hindering the Implementation of Development Projects in Sri Lanka: Perceptions of Project Managers with Special Reference to Managerial Responsibilities Name of the Course: Masters in Development Studies Name of the Researcher: Sivananthan Pathmanathan Registration Number: 2011/MDS/57 Date of Submission: 7th of June, 2013
  • 3. III Dedicated to my Parents Late Mr. Pathmanathan Sabapathy and Late Mrs. Manonmany Pathmanathan
  • 4. IV DECLARATION This is to certify that this research study is done by me and the work reported herewith is my own except references. Further, I declare that this research report of mine does not contain any material or document of others that have been accepted for the award of any other degree or diploma programme in any institutes, and, it is to the best of my knowledge and faith that the report contains no material previously published or written by any other person, except where due reference is made in the report. Sivananthan Pathmanathan Author Date: 07.06.2013. Endorsement of Supervisor ………………………………… Mr. V. Sivagnanasothy Chartered Accountant and Secretary to the Ministry of Traditional Industries and Small Enterprise Development, Colombo. Date: 07.06.2013.
  • 5. V ACKNOWLEDGEMENTS It is the great pleasure to extend my sincere gratitude to all who tremendously supported to enable me to complete this task of reporting the research study on the factors hindering the Implementation of Development Projects in Sri Lanka. Also, it is my bounded duty to thank Mr. V. Sivagnanasothy, Secretary to the Ministry of Traditional Industries and Small Enterprise Development for his tireless help in a way of providing guidance and supervision to my research in the field of project management. My special thanks also goes to the project managers, project executives / implementing agencies and respective donors for their valuable inputs in order to extract the in-depth facts associated with the issues related to the implementation of development projects in the context of Sri Lanka. The Department of Project Management and Monitoring and its staff are appreciated for their support to access the secondary data, in respect of development projects. I would also like to extend my heartfelt thanks to Dr. W. Wimalaratne and Mr. Sarath Vidanagama, the Course Coordinators and faculty members of the Master of Development Studies Programme in the Faculty of Graduate Studies, University of Colombo.
  • 6. VI ABSTRACT Projects play an effective role in bringing the development in a country. Thus, development projects get popularity not only in business organizations but also in public sector. However, there are instances where projects have failed to deliver the expected outputs within the time and cost due to numerous reasons. Time overrun and cost overrun are the key reasons for inefficiency in the project implementation phase. Therefore, role of the managers and their responsibilities are vital for the implementation success in project executions. In Sri Lanka, more than 50 percent of development projects were rated as behind schedule projects due to not delivering their outputs within the planned timeframe and allocated budget in 2010. Accordingly, this issue has been studied by a data collection instrument of semi-structured face-to-face in-depth interviews with fifteen project managers of nine behind scheduled development projects. In addition to that, a case study analysis of two behind scheduled projects and timely completed projects were analyzed with the help of a two-factor conceptual model under the qualitative research methodology. The data analysis reveals that projects meet their objectives even after the time delays and extra cost overruns. However, the performance of the projects is adversely affected when there is time and cost overruns. In fact, weak institutional arrangements and poor technical capacity of agencies are few factors that adversely affected the performance of project implementation and related with project system whereas lack of stakeholder coordination and communication, poor contract selection and its management, weak mechanism for monitoring and supervision, and, lack of interpersonal skills of managers are the factors related with managers for delays in projects. However, poor quality of workforce, shortage of project materials, donor conditions are also negatively attributed to delays in projects in a few occasions. There are seven critical success factors and five failure factors were also determined in this research study. Accordingly, the success factors are pre-planning and time management, efficient co-ordination and communication, team work and its cohesion, manager‟s personal commitments, goal identification and walk-on, power delegation, and, continuous interaction with the system. It is found that project success heavily depends on the skills and capabilities of managers in their roles and responsibilities. Therefore, competencies of project managers are the core areas to be developed for the success of project implementation in development projects in the context of Sri Lanka. Thus, project managers need to upgrade their skills and knowledge through professional education and hands-on experiences for the betterment of both individuals and the nation as a whole.
  • 7. VII TABLE OF CONTENTS Chapter One: Introduction of the Research Study................................................................01 1.1.1. Background..........................................................................................................01 1.1.2. Statement of the Problem ....................................................................................01 1.2. Research Objectives ...........................................................................................02 1.2.1. General Research Objective ................................................................................02 1.2.2. Specific Research Objectives ..............................................................................02 1.4. Significance of the Research Study.....................................................................03 1.5. Research Methodology and Methods .................................................................03 1.6. Limitations, Assumption and Design Controls...................................................04 Chapter Two: Theoretical Background ............................................................................05 2.1. Introduction .........................................................................................................05 2.2. Definition of Key Terms......................................................................................05 2.3. Role of Project Managers ....................................................................................06 2.4. Theoretical Concepts of Project Management.....................................................08 2.4.1. Project Scope Management .................................................................................10 2.4.2. Project Time Management...................................................................................10 2.4.3. Project Cost Management....................................................................................11 2.4.4. Project Quality Management...............................................................................11 2.4.5. Human Resource Management............................................................................11 2.4.6. Communication Management..............................................................................12 2.4.7. Risk Management................................................................................................12 2.4.8. Procurement Management...................................................................................12 2.4.9. Integration Management......................................................................................13 2.5. Conclusion...........................................................................................................13 Chapter Three: Literature Reviews ..................................................................................14 3.1. Introduction .........................................................................................................14 3.2. Project Success and Failure Factors ....................................................................14 3.3. Development Projects..........................................................................................16 3.4. African Countries‟ Experiences...........................................................................16 3.5. Asian Countries‟ Experiences .............................................................................19 3.5.1. Sri Lankan Experiences.......................................................................................21 3.5.2. Managing Development Projects in the context of Sri Lanka.............................25 3.6. Conclusion...........................................................................................................26
  • 8. VIII Chapter Four: Research Design and Methodology..........................................................27 4.1. Introduction .........................................................................................................27 4.2. Population and sample.........................................................................................28 4.3. Organization of Data Analysis ............................................................................29 4.4. Data Collection and Instrumentation...................................................................30 4.5. Methods of Data Analysis ...................................................................................32 4.6. Conceptual Model for Data Analysis ..................................................................32 4.7. Conclusion...........................................................................................................34 Chapter Five: Data Analysis ..............................................................................................35 5.1. Introduction .........................................................................................................35 5.2. Presentation of Descriptive Characteristics.........................................................36 5.2.1. Case Study Analysis of Delayed Development Projects.....................................36 5.3. Finding of the Case Study Analysis ....................................................................51 5.3.1. Managerial Role and Responsibilities in Project Management...........................51 5.3.2. Management Skills and Capabilities in Project Management.............................53 5.3.3. Success and Failure Factors in Project Management ..........................................55 5.4. Analysis of In-depth Face to Face Interviews with Project Managers................56 5.4.1. Managerial Role and Responsibilities of Project Managers................................58 5.4.2. Management Skills and Capabilities of Project Managers..................................60 5.4.3. Success and Failure Factors of Project Managers ...............................................61 5.5. Summary of the Findings ....................................................................................62 5.6. Result of the Research Study...............................................................................63 Chapter Six: Conclusion.....................................................................................................64 6.1. Introduction .........................................................................................................64 6.2. Conclusions of the Research Study .....................................................................64 6.2.1. Management Related Factors .............................................................................65 6.2.2. Other Factors .......................................................................................................68 6.3. Future Research ...................................................................................................69 References ............................................................................................................................70 Appendices...........................................................................................................................74
  • 9. IX LIST OF TABLES Table No. Title Page Table 5.1 Sector – wise Summary of Case Study Analysis for Project Success / Failure factors 50 Table 5.2 Success and Failure Factors in Project Management 55 Table 5.3 Demographic Characteristics of Interviewees 58 Table 5.4 Critical Success and Failure Factors of Project Managers 61 Table 5.5 Summary of the Findings 62
  • 10. X LIST OF FIGURES Figure No. Title Page Figure 2.1 Project Triple Constraints 08 Figure 2.2 Overview of Project Management Knowledge areas and its Process 09 Figure 4.1 Data Collection Techniques 31 Figure 4.2 Data Coding System 32 Figure 4.3 Conceptual Model for Data Analysis 33 Figure 5.1 Data Analysis Processing 36 Figure 5.2 Frequency of Nine Core Concepts among Management related Factors in the Findings 57 Figure 5.3 project Management Role and Responsibilities and their weights 59 Figure 5.4 Management Skills and Capabilities and their Priorities 60 Figure 5.5 Critical Success and Failure Factors of Project Managers 61
  • 11. XI ACRONYMS AND ABBREVIATIONS ADB - Asian Development Bank BBC - British Broadcasting Corporation CAPC - Cabinet Appointed Procurement Committee CEB - Ceylon Electricity Board COT - College of Technology CPM - Critical Path Method CSF - Critical Success Factor DFABM - Department of Foreign Aid and Budget Monitoring DLD - Department of Legal Draftsman DMS - Department of Management Services DPMM - Department of Project Managing and Monitoring DTET - Department of Technical Education and Training EIS - Electronic Information System GA - Government Agent GIZ - German Technical Corporation HR - Human Resource ICRC - International Council for Red Cross ICTAD - Institute of Construction Training and Development ICB - International Competitive Bidding ICT - Information and Communication Technology IDP - International Development Project INDIS - Integrated National Development Information system
  • 12. XII IRDP - Integrated Rural Development Project IT - Information Technology JAICA - Japan International Cooperation Agency JFPR - Japan Funds for Poverty Reduction KKS - Kankesanthuri KOICA - Korean International Cooperation Agency KSA - Kingdom of Saudi Arabia LFA - Log Frame Analysis LKR - Lankan Rupees MOFP - Ministry of Finance and Planning MYASD - Ministry of Youth Affairs and Skills Development NGOS - Non Government Organizations NVQ - National Vocational Qualification NVQF - National Vocational Qualification Framework NWSDB - National Water Supply and Drainage Board OCH - Outer Circular Highway ODA - Official Departmental Assistance PERT - Programme Evaluation and Review Technique PMI - Project Management Institute PIU - Project Implementing Unit PMU - Project Monitoring Unit PMBOK - Project Management Body of Knowledge RDA - Road Development Authority SLTES - Sri Lanka Technical Education Services
  • 13. XIII ST - Secretary to the Treasury TC - Technical College TEC - Total Estimated Cost TVET - Technical and Vocational Education and Training UAE - United African Emirates UNIVOTEC - University of Vocational Technology UNDP - United Nations Development Programme UNICEF - United Nations International Children‟s Emergency Funds USA - United States of America VAT - Value Added Tax WB - World Bank WBS - Work Breakdown Structure
  • 14. XIV
  • 15. 1 CHAPTER ONE INTRODUCTION 1.1. Background Projects are effective tools to achieve desired goals and objectives in an organization. Accordingly, project management is identified as a prerequisite to plan, design, implement and control the targets of a project. Despite this general identity of project management, many projects had gone off the track and failed to meet their aims for numerous reasons. Project failure means that the failure of a project to achieve its objectives scoped within the resources allocated to deliver the outputs (services or products) with the quality standardized. Specially, the status of time overrun and cost overrun of a project is commonly called project failures, (NetoAlvarez, 2003). Thus, this study refers the project failures as implementing failures caused by managerial factors in the sense of inefficiency in meeting objectives within time and cost. A survey conducted by Standish Group (2002) reveals that the failure rate of Information Technology (IT) related projects was 16% in U.S. causing US $ 145 billion losses to companies in 2001. On the other hand, in Sri Lanka, only a handful number of development projects (47.7%) met their objectives within the allocated budget and timeframe in 2010 and they were rated as successful projects by the Department of Foreign Aid and Budget Monitoring, Sri Lanka (DFABM, 2010). Many previous studies indirectly extracted the causes for project failures by analyzing the success factors associated with project performance. Only a few of them have focused on managerial skills and knowledge of project managers. Yet, there is only limited number of qualitative studies in this field in Sri Lanka. Therefore, this study examines the perceptions of project managers in their role of management in failed projects in order to identify the insight of failures of implementation related to them. This study restricts its task to development projects and managerial difficulties faced by project managers in Sri Lanka due to time and cost constraints. 1.2. Statement of the Problem Project failures occur in all three project phases namely planning and designing, implementation and post-operational arrangements due to various reasons. However, in the context of developing countries, particularly in Sri Lanka, more than 41 % of the projects (89 projects) are rated behind schedule out of 217 foreign funded development projects in 2009, (DMPP, 2010). Further, in 2010, there were 300 development projects behind schedule due to
  • 16. 2 implementation issues and 71 projects out of 215 (over Rs. 50 Mn.) foreign funded projects were also in the same status in that year as reported by Ministry of Finance and Planning. Moreover, 40% (291 out of 736 projects) of the development projects experienced time overrun in 2011 and only 47.7% is the success rate of projects in Sri Lanka (DPMM, 2012). Therefore, the problem focused in this study is “a significant number of development projects are not successful (inefficient) in Sri Lanka”. In fact, this is obvious that most of the project failures are occurring at the implementation stage of projects rather than project formulation or post implementation stages. As project management is the core area in project implementation and managers‟ performance is the key factor for its success, this problem statement is converted into the following research question in order to extract the in-depth reasons for project failures with special references to the managerial responsibilities; How do project managers distinguish and understand their role and responsibilities in project implementation failures in Sri Lanka? In order to address this research problem, the following three sub-questions are identified; 1. How do project managers understand failed projects? 2. What role and responsibilities do they see themselves as playing in the failure of a project? 3. How do project managers view their capabilities and skills in managing critical issues? 1.3. Research Objectives 1.3.1. General Research Objective To elucidate the managerial role and responsibilities for the success of development projects. 1.3.2. Specific Research Objectives 1. To identify the success and failure factors of development projects. 2. To explore the management skills required to improve management capabilities and skills for successful project management. 3. To measure how managers‟ role and responsibilities affect the outputs of the development projects. 4. To investigate the non-managerial factors for project failures.
  • 17. 3 1.4. Significance of the Research Study As there are not many researches carried out on project failures in the context of Sri Lanka, especially implementation failures due to managerial reasons, this study tries to fill this gap in the literature. Most of the research reports on donor funded projects are mainly analyzing the relevance, effectiveness and suitability of project outcomes in the context of Sri Lanka and focusing the outcomes or impact of development projects, but not the efficiency of project outputs. Thereby, this research is aiming to see the efficiency of development project in the same context. The aim of this study is to examine the opinions of project managers on failure factors associated with them and to analyze how managers feel and understand their role in failed projects by their own experiences and situations. Constraints that arise from personal biases and interests of managers are taken into consideration. According to Neuman (2006), in qualitative research, the context is vital and it provides meanings in research question. Thus, it is also an attempt to understand the failures or success as an event of human activities. 1.5. Research Methodology and Methods This study is mainly based on the qualitative research methodology through focused group interviews of project managers. Two delayed projects and one timely completed project were selected for case study analysis as a supplementary of a complementary of a purposive sample of 15 project managers in different managerial levels to explore the management skills required for successful project management with the tool of in-depth face to face interviews through semi- structured questions. In short, the methodology is a qualitative approach based on the epistemological stance of constructionism and the theoretical perspective of interpretivism where factors for failure or success are constructed by the experience and interaction of project managers in various sectors. The factors identified in the case study analysis will enable to extract the facts for delays in projects in the prospect of managerial role and responsibilities. Thus, the primary data have been captured via in-depth interviews with managerial people while secondary data were collected from the documents of DPMM and respective project line ministries and donor agencies. A heterogeneous group of project managers were chosen from 30 delayed development projects as a purposive sample in order to analyze the perception of managers for delays. The data were coded under thematic or issues related subjects and then these subjective issues were interpreted into an objective views for analyzing them for findings with the help of a two factor conceptual model constructed in line with the theoretical concepts of project management knowledge areas.
  • 18. 4 1.6. Limitations, Assumptions and Design Controls This study is conducted within a period of six months with the base of behind scheduled foreign funded projects in Sri Lanka. It is the limitation of the study that the findings have been generalized for development projects in developing countries from the data of narrow range of sample. However, most of the development countries have the similar situations and conditions like in Sri Lanka and in this basis, findings could be generalized. As one of the data sources is focus group interviews, there may be individual biases of delayed project managers due to their image of career. To overcome this issue, project manager of delayed project were chosen with their previous experience in non-delayed projects. Finally, as this research follows an interpretative approach, the findings depend on the way of interpretation of data by the researcher. The next chapter will provide the theoretical background and concepts for this research study with definitions for a few numbers of key terms related to project management field.
  • 19. 5 CHAPTER TWO THEORETICAL BACKGROUND 2.1. Introduction This chapter provides a comprehensive theoretical background and definitions for main terminologies to ease the burden of analyzing the data to find solutions for research problem and introduces the project management concepts of PMBOK under specific topics. The theory is the backbone or foundation to construct new ideas or concepts in a progress manner with the witness of data analysis. Moreover, new findings could be formulated and rationalized in light with the theatrical principles. Thereby, this chapter describes the theoretical concepts of nine management knowledge areas in project management with the definition of key terms in order to understand and apply that knowledge to validate and give meanings to research findings. To the deep understanding of the theory, definition of the key terms is given below. 2.2. Definition of Key Terms Although there are many definitions for Project from different schools of thought, project means as a temporary measure for development needs by meeting specified objectives through certain activities with the inputs from limited resources in terms of scope, time and cost. “A project is a temporary endeavour undertaken to create a unique product, service or result” (PMBOX 2004). The Project Management Institute (PMI) of United State of America (USA) stated that “Project is a one-shot, time limited, goal oriented, major undertaking requiring commitment of varied skills and resources, a combination of human and non-human resources pooled together in a temporary organization to achieve a specific purpose ”(cited in Khanna, 2011). Therefore, project is a tool to satisfy the needs and desires of people for their socio-economic development in a country. Project management is defined as “Project management is the process of achieving project objectives through traditional organization structure and over the specialties of the individual concerned. Project management is applicable for any unique, one-time or one-of-a-kind understanding concerned with specific and objectives”, (Kerzner, 2004). Olsen defines that “Project management is the application of a collection of tools and techniques to direct the use of diverse resources towards the accomplishment of a unique, complex, one-time task, within time, cost and quality constraints. Each task requires a mix of these tools and techniques structured to fit the task environment and life cycle (from conception to completion) of the task”,
  • 20. 6 (cited in Khanna, 2011). Thus, project management is a process for managing resources towards specific outputs to meet the prescribed objectives within the allocated time and budget by applying tools and techniques. Project Success is defined as “Successful projects are those that achieve their objective within the specified time frame, at the specified cost and to the specified quality”, (Khannan, 2011, p.9). Thus, a project called as a success that will meet its objectives within the allocated resources and expected quality. The contrast of this, in general, called failed projects. However, projects which are unable to deliver its deliverables within the allocated time and cost due to exceptional reasons such as national disaster and unexpected changes in its scope beyond the control, is not treated as failed projects. 2.3. Role of Project Managers As long as project have a set of planned activities and process to meet desired goals and objectives within limited resources, management take vital role in achieving that task within the time and cost constraints. For that, managers are allocating required resources in an efficient and effective manner. Indeed, project management is the driving force and managers become the key personnel for better performance in a project. In fact, most of the occasions in developing countries, project managers are not professionals or skilled people and perhaps they are civil servant though there may be exceptions. Diallo and Thuillier (2004) studied that a project has seven stakeholders in the case of international development projects and they are coordinator (project managers), task manager (project supervisor of the funding agency), national supervisor (representative of the recipient country), project team (subordinate of project manager), steering committee (interface between recipient country and donor agency), beneficiaries (project clients) and population (people of the recipient country) excluding contractors, experts and consultants. Further, they point out that the issues in project success are more political problems rather than technical or subject matters; Project managers have to act as political players and play a role of mediation between local political authorities (leaders and policy makers) and multilateral development agencies by making decisions on project designing and appraisals while managing stability in the implementation phase. Thus, the project management and the role of managers become more important ingredients in the process of leading the projects on right track by managing complex tasks in multifaceted situations.
  • 21. 7 As the traditional constraints (time, cost and quality) are top of the list of project success factors, the project management and the perception of managers are playing a vital role in the evaluation of project success, Diallo and Thuillier (2004). The relationship between the project manager and task manger of donor agency is a significant factor in the sense of sharing powers and preferences among them. Hence, the role of managers is very critical in managing the balance between preference of donor agency and the needs of locals and the power of political authorities which appoint project managers. Jha and Iyer (2006) jointly identified the project manager‟s role as a coordinator in estimating, identifying, organizing and assigning resources for project functions in building construction projects in India. Moreover, they state that coordination is harmonizing and integrating the project ingredients from different stakeholders in a specific industry while predicting and minimizing problems in design and construct manpower, materials and equipment in a project. Thus, coordination role lead the project harmony among key players in terms of saving time and cost while gaining quality and reducing disputes among project stakeholders. Ahsan and Gunawan (2010) emphasize that as many stakeholders (donor agencies, host country, beneficiaries and multi contractors and project coordination units) are involving in the process of project management, it is a complex task for project managers to control the schedules of time, cost and performance within the scope of desired deliverables to meet the specific project goals and objectives. Diallo and Thuillier (2005) identify that trust, communication and team cohesion are some of the key success factors related to project management in development projects. Therefore, the role of project managers is the most deciding factor for project success in the context of third world countries. Balassi and Tukel (1996) identify critical success factors of project performance and categorize them under four areas, namely project, project managers and their team members, organization and external environment. As factors related to project managers broken down further as ability to delegate authority, ability to trade-off, ability to coordinate, perception of project manager’s role and responsibilities, and, their competence and commitment, it is rationale to consider these factors to be examined in this study. In literature, one would find similar identities as factors for project success or failure in their studies.
  • 22. 8 2.4. Theoretical Concepts of Project Management The PMBOK1 defined nine management knowledge areas for good practices in project management field as the protocols for project managers which are categorized into three major areas. These are namely core management areas, facilitating management areas and integration management. The core areas contain the triple constraints of a project such as scope, time and cost managements. These management concepts could be used as a theoretical base for this study in determining the project managers‟ capabilities and knowledge to manage their projects towards the success. The concepts of project management facilitating knowledge areas are quality management, human resource management, communication management, risk management, procurement management and integration management. Triple Constraints of a Project Khanna (2011) emphases that the triple constraints of a project namely scope, time and cost are very crucial in project management in a way of balancing them without losing their degree in the quality of a project because a change in one factor will affect at least one of other factors. Therefore, these three factors are accounted as core areas in project management as mentioned in figure 2.1. Figure 2.1: Project Triple Constraints (Source: Kahanna, 2011) 1 “An inclusive term that describes the sum of knowledge within the profession of project management as with other professions such as law, medicine, and accounting, the body of knowledge rests with the practitioners and academics who apply and advance it the PMBOK includes proven traditional practices which are widely applied as well as innovative and advanced once which have seen more limited use” (PMBOK 2004).
  • 23. 9 The nine management knowledge areas have further expanded as several sub-managerial activities as illustrated in figure 2.2. These expanded sub activities have definite inputs, tools and techniques and outputs for achieving better results by the project managers in the process of coordinating and managing them well. (Source: PMBOK Guide, 2004) PROJECT MANAGEMENT 9. Project Integration Management 1. Project Scope Management 2. Project Time Management 9.1 Develop Project Charter 9.2 Develop Preliminary Project Scope Statement 9.3 Develop Project Management Plan 9.4 Direct and Manage Project Execution 9.5 Monitor and Control Project Work 9.6 Integrated Change Control 9.7 Close Project 1.1 Scope Planning 1.2 Scope Definition 1.3 Create WBS 1.4 Scope Verification 1.5 Scope Control 2.1 Activity Definition 2.2 Activity Sequence 2.3 Activity Resource Estimating 2.4 Activity Duration Estimating 2.5 Schedule Development 2.6 Schedule Control 3. Project Cost Management 4. Project Quality Management 5. Project Human Resource Management 3.1 Cost Estimating 3.2 Cost Budgeting 3.3 Cost Control 4.1 Quality Planning 4.2 Perform Quality Assurance 4.3 Perform Quality Control 5.1 Human Resource Planning 5.2 Acquire Project Team 5.3 Develop Project Team 5.4 Manage Project Team 6. Project Communications Management 6.1 Communications Planning 6.2 Information Distribution 6.3 Performance Reporting 6.4 Manage Stakeholders 7. Project Risk Management 7.1 Risk Management Planning 7.2 Risk Identification 7.3 Qualitative Risk Analysis 7.4 Quantitative Risk Analysis 7.5 Risk Response Planning 7.6 Risk Monitoring and Control 8. Project Procurement Management 8.1 Plan Purchase and Acquisitions 8.2 Plan Contracting 8.3 Request Seller Response 8.4 Select Sellers 8.5 Contract Administration 8.6 Contract Closure Figure 2.2: Overview of Project Management Knowledge Areas and its Processes
  • 24. 10 2.4.1. Project Scope Management The scope management is the process to define and control all the works and only the works required to be completed to the project for its success. It consists of five sub management activities namely scope planning, scope definition, create Work Breakdown Structure (WBS), scope verification and scope control. In scope planning, develop a scope statement as a basis for project decision whereas in scope definition, subdivide the major project deliverables into smaller more manageable components. Organizing all the elements of these major project deliverables as the glance of overall total project scope is called creating WBS. Scope verification is the function of formulizing the acceptance of the project scope by the stakeholders by review and confirms the work products in terms of its correctness in a satisfactory manner. The scope control is influencing the factors which are causing for scope changes while determine the actual changes benefited to the project scope and manages them when occurring. 2.4.2. Project Time Management Project time management is the process to complete the project timely without time overrun and it contains six project sub-processes such as activity definition, activity sequencing, activity resources estimating, activity duration estimating and schedule development and its control. Identifying specific activities that have to be performed for producing various project deliverables is called activity definition whereas identify and document the project activities correctly in sequence manner for having interactivity dependencies is named as activity sequencing. Activity resource estimating is the process of identifying and estimating the resources what needed in what quantity for each activity according to the activity sequence and work period. Meanwhile, estimate the number of work period needed to complete each and every individual activity is the process coming under the activity duration estimating. In schedule development, project schedule will be created by analyzing activity sequences, durations and resource requirements. Having control over the influencing factors that are caused to changes in schedule while determining the actual changes benefited to the project and manage them when needed is called schedule control.
  • 25. 11 2.4.3. Project Cost Management Project cost management is the process to ensure that the project will be completed within the approved budget without cost overrun and it consist three sub processes which are cost estimating, cost budgeting and cost control. Estimate and develop the cost of resources that are needed to complete the project activities is called cost estimating whereas allocate the overall cost estimation for individual work of project activities in order to develop a cost baseline for measuring project performances, is named as cost budgeting. In cost control, the factors which create changes in cost baseline will be influenced while determining the actual changes benefited to the project and managing them when occurring. 2.4.4. Project Quality Management Quality management of a project is the process, in which, the needs of the project is satisfied and it has three sub processes which are quality planning, perform quality assurance and perform quality control. In the process of quality planning, quality standards which are relevant to the project and satisfy them will be identified. Evaluate the project performance in regular basis and ensure that the quality standards are satisfied by the project is called perform quality assurance whereas perform quality control is identifying the ways to eliminate the unsatisfactory performance to confirm that the specific project results are complying with relevant quality standards determined. 2.4.5. Human Resource Management Managing the people most effectively in HRM process and which has four sub processes such as human resource planning, acquire project team, develop and manage project team. In human resources planning, project role and responsibilities to the individual or group personnel will be identified and documented for assigning them, in addition to plan their relationships. Obtaining the human resources required and assigning them to work on the project is called acquire project team whereas develop and manage the project team is the process of developing the managerial ability (Leading, Communicating, Negotiating, problem solving and influencing the organization) and technical skills of stakeholders to be act as an individual and group to perform as a team to enhance project performance.
  • 26. 12 2.4.6. Communication Management Communication of Information in terms of generation, collection, dissemination, storage and disposition of appropriate data timely among the project stakeholders will be in this process. It provides linkages among the people, ideas and information for leading the project towards the success via four sub process that are communication planning, information distribution, performance reporting and manage stakeholders. Determine the information what and when needed and how it could be communicated among the project stakeholders is communication planning while make available the timely information to the project stakeholders is information distribution. In performance reporting, performance information will be collected and disseminated among the project stakeholders and thereby stakeholder management is in the process of managing stakeholders. 2.4.7. Risk Management Risk management is the process of identifying, analyzing and responding to the project risks by maximizing the benefits while minimizing the consequence of adverse impacts. It has six sub processes which are risk management planning, risk identification: determine risks which are likely affect the project and document its characteristics, qualitative risk analysis, quantitative risk analysis: evaluate the risk and risk interaction to access the range of possible project outcomes, risk response planning: define the steps to enhance the opportunities and respond to the threats by the technique of avoidance, mitigation and acceptance and risk monitoring and control: respond to the changes in risk over the course of the project. 2.4.8. Procurement Management The process of acquire goods and services from outside the project performing organization is called procurement management and it has six sub processes such as plan purchase and acquisition: Determine what to purchase and when, plan contracting: Prepare the documents required products and identifying potential source of supplies, request seller responses: Obtain quotations, bids and offers or proposals as appropriate, select sellers: Choose the product sellers among the suppliers., contract administration: Manage the relationship with various sellers, and, contract closure: completion and settlement of contracts by product verification and recording.
  • 27. 13 2.4.9. Integration Management This is the overall process in project management in coordinating various elements of project properly by trade-offs among completive objectives and options in order to meet the satisfaction of project stakeholders in terms of their needs and aspirations in an integrated manner. There are seven sub processes in this management which are develop project charter, develop preliminary project scope statement, develop project management plan, direct and manage project execution, monitor and control project work, integrated change control and close project. 2.5. Conclusion In conclusion, PMBOK has defined nine knowledge areas in the field of project management as a protocol for managing projects in order to ease the burden of managers in their professions. Scope, time and cost are the core management knowledge areas have been identified and the proper management of these areas will bring the success along with quality in projects. However, human resource, procurement, risk and communication management areas are also facilitating to gain the management success in a way of integrating management. Therefore, these nine management knowledge areas have been chosen as a theoretical framework to create a conceptual model for analyzing the data in this study.
  • 28. 14 CHAPTER THREE LITERATURE REVIEWS 3.1. Introduction The concept of development becomes broader than the ideology formulated in early days and it is emphasizing the dynamic changes in societies in a holistic way. Although different schools have various definitions about development, it has transformed from the economic growth to social improvements and human wellbeing with the participation of people. People‟s involvement and their degree of influence in development initiatives are also a shift from the act of consuming development outcomes to engaging in the process of producing those outputs (Arnstein, 1969). Therefore, citizen‟s participation is the key instrument or an element in development projects; people are well focused and their needs and expectations are given more focus in an objective manner rather than their subjective role. Therefore, people are the heart of the development and they are the owners of development projects rather than the project proponents. This concept was firstly practiced in British Colonies in 1930s for combining local resources in order to gain benefits at community level. Then it has widely spread in industrial nations and developing countries by 1960s, MacIntyre, 2003. Therefore, development projects, such as aiming to find out own solutions to overcome resource constraints with people‟s participation became popular for sustainable development. In sustainable development, people‟s involvement and their empowerment in taking the project ownership is vital for lasting the development benefits to meet their goals. But, the level of participation and the degree of their involvement is crucial and this is the determining factor of sustainability. Thus, this chapter examines the development projects in its different dimensions by reviewing the past literature of Africa and Asia countries, including Sri Lanka. The main scope of this literature review is to identify project implementing issues in terms of the role and responsibilities of project managers. 3.2. Project Success and Failures Factors Before undertaking the review of project success factors, it is useful to define the project success or failure in different point of views. In general, projects are treated as unsuccessful when they failed to deliver the planned outputs and not meeting the expected objectives or goals. But, specifically, projects are identifying failed when it exceeds its time of completion and this
  • 29. 15 situation is called time overrun. When projects draw more funds to complete the tasks is called cost overrun, NetoAlvarez (2003). For an example, in case of a construction project the critical success factor is time whereas in the case of a product development project the critical factor is cost. But, today the situation is different and it is difficult to determine the project status whether it has achieved the target or not due to the complexities associated with management. Belassi and Tukel (1996) point out that even a delayed project meets its goal by incurring an extra-cost which is recovered from project managers as a penalty for delays. Accordingly, the project is successful from the organization‟s perspective. However, it will be a failure if managers do not meet the time targets. On the other hand, a project could satisfy the customers by providing outputs within the time and cost while not meeting the expectation of top-level management, Balassi and Tukel (1996). This type of project is also a failure in the view of organization. Diallo and Thuillier (2005) argue that management success does not mean project success because the success directly depends on the act that who is doing the evaluation; whether it is the project manager or the client. Therefore, defining the project failure is somewhat ambiguity and it depends on the perception of person who is undertaking the assessment. However, many studies identified the success factors in connection of the project performance. As project performance is executed with the support of management, this study examines the factors related to project management and managerial performance in the implementation stage of development projects. Thus, this study determines the project success in terms of meeting the time and cost targets. As such, project failures imply a situation where time and cost overruns. Belassi and Tukel (1996) emphasize that combination of lack of top level management support and inadequate competencies of project manager lead inefficiency in the performance of project activities, in which, project failures often take place due to weak organizational communication and lack of institutional coordination. This is visible in matrix organizations rather than flat one. Project manager‟s competency is crucial for effective planning, scheduling and controlling projects. Delays in critical activities may cause for time overrun and then cost overrun. It is also vital to communicate those issues with primary stakeholders and to find appropriate solutions. Thus, the role of project managers and their managerial capabilities and skills are important to lead the personnel and resources towards the project goal.
  • 30. 16 3.3. Development Projects Development projects are far different than the commercial or industrial projects. Although they have some hard components such as construction and installation of sophisticated equipment like industrial projects, Development projects are mostly related to providing services or facilities to citizens in terms of social and human development without business focus. Most of the development projects address the issues related to poverty alleviation, improvement of the living standard and protecting human rights with the assistance of local and international donors. However, the jeopardy is measuring the outcomes of those projects due to the intangible of project/programme impacts associated with people and their betterment (Ahsan and Gunawan, 2010). Therefore, development projects are quite different than other projects and it is hard to manage and evaluate their outcomes, especially in the context of developing countries where there is lack of institutional arrangements and human resource capacity. Thus, this is difficult to manage projects in public sectors incorporate with the existing Project Management Body of Knowledge (PMBOK). 3.4. African Countries‟ Experiences African continent consist of many developing and undeveloped countries and most of those countries are needed external assistance to overcome their development challenges in the sectors of health, education, transport, policy reforms, governance etc. Yet, many of them are under poverty, unemployment, political instability and facing difficulties to find own solutions for their economic growth and social development. Despite poverty and unemployment, social unrest and health issues are more aggressive in those countries and they are struggling with those problems for many decades. Malnutrition, maternal deaths and AIDS are major challenges among the people and they become first in their list of priorities for development solutions rather than housing, education and livelihoods issues in African countries. Nevertheless, governments, social bodies and non-governmental organizations are continuously fighting against these ruthless factors with the support of international assistance. Not surprisingly, many International Development Projects (IDPs) and Programmes are taken place in those countries with the integration of national policy framework of local governments. A part of that, the World Bank (WB) assistances to the sub-Sahara Africa is an incredible contribution through IDPs for the development of such region.
  • 31. 17 However, surprisingly more than half of the WB projects were failed in Africa until 2000 (see Meltzer Commission, 2000). But the WB independent project evaluation report revealed that the success rate of their projects is 61% in 2010 in Africa, (Chauvet et al., 2010). Considering these statistics, at least 40% of the WB projects failed in Africa even though they were well designed and coordinated by the Bank. Thus, project failures are common in everywhere due to several reasons depends on the nature and context of the project and its locations. Kwak (2002) emphases that the reasons for unsuccessful projects in African context are imperfect project design, poor stakeholder management, delays between project identification and start-up, delays during project implementation, cost overruns and co-ordination failure under two categories such as managerial and organization problems. Though IDPs funded by WB is different than the other local projects in African countries, WB‟s projects are very specific in terms of rare complexity, high delicacy and large number of heterogeneous stakeholders, divergent perspectives among the stakeholders, need for compromise the politicians and unique cultural differences between the project designs and the recipient countries and its beneficiaries (Honadle and Rosengard, 1983; Rondinelli, 1983; Gow and Morss, 1988; Youker, 1999; Kwak, 2002; Crawford and Bryee, 2003; Diallo and Thuillier, 2004, 2005; Khang and More, 2008; Ika at al., 2010). So, the IDPs could have numerous problems in its implementation stage rather than their design and planning phases in African countries. According to the WB projects, a project has to pass three stages namely preparation, implementation and evaluation. As implementation phase is undertaken by the recipient country and its national project coordinator defined as „project manager‟, the project implementation responsibility falls under the national government and several elements are involved in the success of project implementation. The Bank itself evaluates the projects in terms of relevance, efficiency, effectiveness, impact and sustainability as a whole. Furthermore, Ika, Diallo and Thuillier (2012) jointly argue that project success is evolving through its efficiency and effectiveness and success is a matter of perception which has a set of doctrine or standards used to be determine the success as Critical Success factors (CSFs). Hence, the CSFs become more popular criteria to determine project success. Although many CSFs are in the literature of project management, a significant number of CSFs are common and widely used by the researchers, which are project mission, top-management support, project schedule, client consultation and acceptance, personnel, technical tasks, monitoring and feedback, communication and troubleshooting (Pinto and Slevin, 1998).
  • 32. 18 However, Diallo and Thuillier (2004) list out ten success criteria under three broader categories such as project management success (objectivities, time and budget), project success or impact (beneficiary satisfaction with project deliverables: goods and services), project profile2 for IDPs in the context of 26 African countries. Moreover, Khang and Moe (2008) added some more factors in the above mentioned list in the context of Vietnam and Myanmar, which are relevance of project needs, choice of the project implementing agency and an alignment between the priorities and interests of key stakeholders. Meanwhile, a study of Diallo and Thuiller (2005) point out that project success is very much associated with the trust and communication between the project supervisor of WB and national project coordinator (project manager) in African prospective whereas Ika (et al. 2010) argue that project planning tools and techniques are not significantly affecting the project success even though there is a potential correlation between the tools of monitoring and evaluation and project profile. However, later in 2012, the same researchers jointly proved that project success is heavily depends on five CSFs such as monitoring, coordination, design, training and institutional environment along with success measures namely efficiency/time, efficiency/cost, effectiveness/objectives, relevance/country, relevance/beneficiaries, impact, sustainability and project success. Further, they stated that the design and monitoring have strong correlation and in the top of the CSFs list while competency and communication ability in the role of project managers determine the project success as coordination be a CSF. In contrast, the research study of Khang and Moe in 2008 critique that most of the issues arising in the project implementation phase and the effective consultation will lead the project success more than the competency of project supervisors and managers. However, project managers should not started project with “empty headed and empty handed” (Rondinelli, 1983, p.325). Therefore, the project success is a matter of handling the CSFs in a positive way by an effective and efficient interaction with project stakeholders. Thus, poor project design, imperfect plans, delays, cost overruns, coordination failures, scope changes, weak institutional environment in developing countries, especially in the case of post-disasters or conflicts should be focused and eliminated for avoiding unsuccessful projects in the context of developing nations in Africa. Conclusively project success or failure is mostly take place in its implementation stage and largely depend on the factors associated with managerial activities. Thereby, the performance of project managers is crucial for successful projects and it determine by 2 Project Profile means “conformity of the goods and services, national visibility of the project, project reputation with international development agencies and probability of additional funding for the project” (Diallo and Thuiller, 2004).
  • 33. 19 3.5. Asian Countries‟ Experiences In India, the construction industry is the major engine for the economic growth of the country next to agriculture sector. The construction industry is alone contributed 6 to 9% to the country‟ national economy in terms of GDP while having the investment of US $ 50 billion in 2008, (Doloi et al., 2012). In light of this view, it is rationale to analyze the construction related development projects and it could be a good sample for other sectors in Indian context. According to Iyer and Jha (2005), construction projects in India are severely affected by poor performance across the country whereas a study conducted by Ahsn and Gnawan in 2010 reveal that the average time overrun is the highest failure factor in India when compare to other countries (China, Bangladesh and Thailand); it is recorded as 55%. The critical example in India is the weak infrastructure projects for the last Commonwealth Games in 2010. In the view of the Ministry of Statistics and Programme Implementation of India, there are 309 projects were experienced cost overrun while 474 projects were delayed out of 952 projects being monitored and the cost increase was US $ 8.4 billion due to 466 delayed projects, (www.mospi.nic.in). The causes for those were listed as problems in land acquisition, improper planning and budgeting, poor coordination and monitoring of the projects (Doloi et al., 2012). Not surprisingly, the last factor (poor coordination and monitoring) is confined to project management and within the control of project managers. Perhaps, coordination is one of the seven processes of management and a critical factor in evaluating project success. Coordination is harmonizing and integrating the project ingredients from different stakeholders in a specific industry while predict and minimizing problems in design and construct manpower and materials, including equipment for a project (Jha and Iyer, 2006). They identified six most important coordination activities such as preparing quality plan, arranging remedial work methods, estimating optimum resource requirement, developing team spirit and receiving constructive inputs, arranging required inputs and detailed method of construction. Thus, coordination activities lead projects in terms of cost and time saving, quality achievement and reduction of disputes among key players in a project. In spite of these common identities in Indian context, Chan and Kumaraswamy (1997) found a few different characteristics in their study in the context of Hong Kong, which are poor risk management and supervision, unforeseen site conditions, slow decision making and work variations. Whereas in Malaysia, material shortage is one of the key factors, that affect the time delays in construction projects (Sambasiavn and Soon, 2007). In China, more than 50% of
  • 34. 20 construction projects were cost overrun due to lack of coordination (Wang, 2000). Therefore, examine the success factors related with project management and the role and responsibilities of managers is an unavoidable need for the improvement of literature. Nevertheless, apart from the contexts of South and East Asian countries, delay of construction projects in UAE is more than 50% due to delays in obtaining approvals for drawings, poor pre-planning and slow decision making process while in the case of KSA, the causes for delays in construction projects are delayed approvals, slow decision making of owners and shortage of materials (Faridi and El-Sayegh, 2006). A similar study was conducted by Al- Khalil and Al-Ghafly in 1999 and it reviews that the lack of agreement between project stakeholders is the reason for project delays in KSA while the chronic nature of issues and disparities of project stakeholders were identified as causes for the same in KSA by Al- Kharashi and Skitmore (2009). In the view of Egypt, the project stakeholders do not have common consent about the importance of factors related with delays. They blame each other for delays and not ready to take the accountability of their responsibilities (El-Razek et al., 2008). Hence, the middle-East countries experience has identified the similar factors and causes for project delays in Indian prospect, too. When specifically examine the causes associated with failure projects in the context of India, the root cause is conflict among key role players in projects. This was identified by Iyer and Jha (2005). They list out the attributes of failure factors are conflict among project participants, ignorance and lack of knowledge, presence of poor project specifications and non-existence of cooperation, unfriendly socio-economic and climatic condition, reluctance in timely decision, aggressive competition at tender stage, short bid preparation time. In conclusion, the significant evidence for the factors and causes related with construction projects in the prospect of Indian conditions could be generalized to all most all other sector projects related with project management. There are seven critical failure factors such as lack of commitment, inefficient site management, poor site coordination, improper planning, lack of clarity in project scope, lack of communication and substandard contract. In fact, these all seven factors are related with project management and the role and responsibilities of project managers. Significantly, poor coordination and monitoring, unforeseen site condition and poor risk management, slow decision making and lack of agreements among stakeholders, poor labour productivity and shortage of materials, reluctance for design changes and rework due to mistakes are the most crucial factors for delays in projects in the context of Asian countries.
  • 35. 21 3.5.1. Sri Lankan Experiences Although Sri Lanka does not have a long history in executing development projects, it is used for that after the independence of the country in 1948 by stepping up in Galloya project initiated by the first Premier of the country late Mr. D. S. Senenayake. However, the implementation of “Mahawali” project created the path to Sri Lanka to vastly using development projects as a key instrument for rapid development of the country in parallel to many other developing countries in the South Asian region. With the recovery and rehabilitation programmes and projects to the drastic damages caused by the Tsunami in 2004, Sri Lanka has had numerous numbers of such development projects. Those have been executed by various donor agencies, including international and local Non-governmental Organizations (NGOs). Despite these huge donor contributions, significant numbers of government projects were also in track with the utilization of domestic funds in Sri Lanka. This was the peak period of the development arena of the country in the aspect of running many projects in parallel to other long-term development progrmmes. Thus, the scope of these projects is meeting the betterment of people rather than commonly aiming to achieve the economic growth in the country. At present, many development projects are being implemented by the direct execution of the government and donor agencies such as UNDP, GIZ, JAICA, KOICA, UNISECF, ICRC etc., after the end of civil war lasted for more than 30 years. This war has caused severe damages to the country in both human capital and national resources. As the result of this, there is an emerging need for rapid development and many such development projects are identified and pipelined again after the Tsunami recovery period. Considering some of these projects is worthwhile here to understand the value of development projects and their contribution to the growth of a developing country like Sri Lanka. Greater Colombo Urban Transport Development project and Vavuniya and Kilinochchi Transmission line project are the two major development projects funded LKR 44 billion (33 billion Yen) by the Japanese government through JAICA. The target of the first project is to construct 8.9 km length of road section of the Outer Circular Highway (OCH) from Kaduwela to Kadawatha. The objective of this project is to ease the traffic congestion in the Colombo metropolitan region while improving the access of southern expressway (Colombo - Katunayake) and connect other national roads with Colombo city. The second project‟s aim is to provide reliable, adequate and efficient electricity to the people in Northern Province and reconstruct 132 KV power transmission network lines from Vavuniya to Kilinochchi with the construction of a grid sub-station at Kilinochchi, (Media centre 24.03.2011). These two projects
  • 36. 22 are tremendously supporting to the improvement of economy and the well beings of the public. It is also incorporated with the government policy that provision of infrastructure facilities to exercise economic activities in the sphere of production for people‟s betterment. Construction of 50,000 houses for war victims in North is one of the mega projects initiated by the pledge of Indian government. The aim of this project is resettling the internally displaced people in their own places. Apart from that, the development of the regional seaport of Kankesenthurai (KKS) with the support of US $ 40 million grant of Indian government is another mega project under its assistance for North and East. It will diffidently support the local farmers in Jaffna to market their agro-products to other parts of the country by cargo-shipping to Trincomalee, Hambantota, Galle and Colombo while importing fertilizer, cement and non- cultivated food items such as dhal, potatoes, species, etc. in cheaper price rates from Indian markets (Tuticorni and Chennai), (Media Centre 16.03.2011). In the meantime, this project will also contribute to the regaining of the KKS cement factory in a way of providing transport facilities to its production to other part of the country. Moreover, in the context of security of the country, Navy can also use this port to carter their vessels which are operating in the Park Sea near to this port as a base for Northern peninsula. Therefore, this is a multi-purposes project in the aspect of economy, security and social development of the people in the North part of the country. By considering the government policy that provides infrastructure facilities for development, transportation is given high priority not only in the improvements of road and highway networks but also in the development of port and aviation. The aim of this policy is inviting foreign investors by giving fast market access to their products in low transportation cost and cheaper labour wages. In this circumstance, the emergence of a second international airport in Hambantota district with the support of China (US $ 200 million loan and US $ 100 million aid) will boost the railway network in south of the Island. This will surely contribute to the major improvements in the transport network in order to enable the country to enjoy and engage in international trades more than the present size of it. Further, the location of the second international seaport of Sri Lanka at Mahampura in Hambantota district will synergies the outcomes of these two projects. Yet, the Indian credit of US $ 70 Mn for upgrade the southern railway lines will also reinforce the railway network in order to integrate the strength of transportation of the country. However, all most all these project are suffering from various issues ranging from project formulation to monitoring and evaluation. Hence, it is worthy to consider a few of them in the prospective of Sri Lankan.
  • 37. 23 3.5.1.1. Project Formulation Issues The ODA report (2009) emphasizes that the assistance of Japan met the targets by appropriate operations in general but, the function of project formulation should be strengthened in addition to expose to the design-build system. Subsequently, the ODA Report (2009) revealed that two of the Japan Funds for Poverty Reduction (JFPR) projects through ADB in Sri Lanka was advanced more than those in Indonesia. Those were exhibiting high relevance and positive effectiveness and impact, though there was a concern about the sustainability. However, the report point out that the local bodies would have been taken leadership in the process of project formulation by the activity of identifying needs which led the projects to delay, even there was an urgent rehabilitative support required for fast actions. On the other hand, in the process of implementing projects, awareness of projects did not correlate with the effectiveness of those projects and low self-containment of projects is a key factor for that in non-project grant aids, (ODA, 2009). Thus, this indicates that project formulation is also somewhat problematic in Sri Lanka, in addition to its implementation. As project manager‟s skills and capabilities are highly related with the implementation part of a project, the next topic will focusing the implementation issues in managing development projects. 3.5.1.2. Project Implementation Issues In general, post-evaluation of projects will show the success of the project implementation in terms of delivering the outputs in order to meet the expected outcomes and goals. Accordingly, a third party evaluation was undertaken (from June, 2008 to March, 2009) by the external advisory committee on Official Department Assistance (ODA) for evaluates the Japan‟s assistance in respond to Tsunami disaster projects. Such report revealed that the exact preparation of projects in non-project grant aid is the design-build system and it is heavily depend on the selection of contractors for construction. But, in Sri Lanka, the understanding of this design-build system by the local contractors is very poor even though the assistance to Sri Lanka was evaluated as manageable and implemented properly. However, when comparing with other recipient countries such as Indonesia and Maldives, Sri Lankan project performance was relatively high quality and effectiveness along with good degree of necessity and usefulness, (ODA, 2009). Hence, it shows that performance of local contractors in development projects is not satisfactory and their selection and managements are poor in Sri Lanka in a view of implementation issues.
  • 38. 24 However, either this ODA report or any other studies does not deeply examine the managerial skills related with poor performance of contractors or their management. This is the grey area had examined in this research study what factors influence the contract management in the context of Sri Lanka. The next topic will address the coordination issues in managing development projects. 3.5.1.3. Project Coordination Issues The findings of the ODA report (2009) reflect the weakness of project management in the aspect of project coordination. Some disaster rehabilitation projects in Sri Lanka are not properly coordinated with other donor projects or rural infrastructure programme for poverty reduction. As a result of this, they lost their success due to poor project coordination. Therefore, the success of a project is vital and it is strongly depend on the coordination ability of managers. Gunatilaka (1999) analyzed the project coordination in different angle in his studies. He pointed out that the government is executing projects through their line ministries in Sri Lanka and the project implementation capacity of the government sector has been weakened through the fragmentation3 of the public institutional arrangements. Thus, this fragmentation causes for lack of synergy within the projects which are covered large area and required number of agencies for consultation and coordination. In fact, the institutional arrangement of central and provincial governments is a constraint to projects to obtain such consultation and coordination from different stakeholders when the ruling political parties are different and having conflict political agendas in those places. This issue has become worsen after the devolution of power since late 1980s, (Gunatilake, 1999). Therefore, the project coordination can have complex issues in different paradigm. Poor coordination, lack of technical capacity and weak institutional arrangements are a few areas to be considered in managing development projects in the Sri Lankan context. Although poor coordination has been identified in his studies as a cause for implementation failures, there is no specific indication what management factors are caused for this poor coordination or where managers lacking and what skills required for better coordination. Therefore, these areas had studied in this research to fill the gap in the literature. In next topic, project monitoring and evaluation will be reviewed. 3 “Fragmentation has occurred because of the proliferation of ministries, departments, public corporations and statutory bodies”, (Gunatilake, 1999).
  • 39. 25 3.5.1.4. Project Monitoring and Evaluation Issues In the Integrated Rural Development Projects (IRDPs) of Sri Lanka, the project outcomes have given disappointments to the managers. The quality control was the serious constraint to the success of that project due to lack of technical capacity to provide high level supervision for monitoring. In contrast, the community projects funded by “Janasaviya” Trust Fund and implemented by NGOs were successful by the systematic implementing procedures. These projects were adopted by the appraisal and monitoring procedures by the engineers at various stages of implementation, (Gunatilake, 1999). Hence, the quality of project outputs is vital and it was lost in the first project without proper supervision and monitoring due to lack of manager‟s technical capacity. Further, these two contradicted examples indicate that the implementation of a project is heavily depending on the project manager‟s role in their responsibilities to lead the project towards success. The manager‟s responsibility is to have a systematic mechanism to monitor and evaluate the project in terms of scope, time, cost and quality. Thus, the next topic will try to extract the role of project managers in their managerial responsibilities. 3.5.2 Managing Development Projects in the Context of Sri Lanka In Sri Lanka, the institutional capacity and human resources capabilities of managing development projects are not satisfactory. According to Koria (2009), inadequate field capability, including weak planning and insufficient coordination of resources are major reasons for unable to obtain the ownership and participation of locals in project implementation in post-tsunami recovery programmes in Sri Lanka. Yet, he pointed out that most of the organizations did not have the appropriate technical and managerial expertise and knowledge to undertake the reconstruction projects due to not having inherent competence to manage extensive portfolios of programmes and projects. Also, it is noticeable in his view that the organizations were searching resources for projects while they run those projects and government also struggled to provide full technical support and coordination to many development agencies of post-tsunami programmes in Sri Lanka. Although, over 200 recovery projects were running with the cost ranged from a few hundred thousand to 10 million rupees in different sectors such as rebuilding of homes, hospitals, schools and water and sanitation, there was no well organized programme or project office in Sri Lanka. However, most of the national organizations have their own project staff for project implementations (Koria, 2009). Therefore, it is understood that the institutional capacity and technical resources are not enough to cater the needs of project management in the public sector of Sri Lanka.
  • 40. 26 Although there are not many researches in this field in Sri Lanka, the study of Koria (2009) identifies several potential project management issues which are worthwhile to mention here to understand the urgent needs of further studies. Koria (2009) identified that projects are handled by line ministers instead of formally certified project managers or professionals and thereby, the common project protocols or industry standards of project management and planning tools are not applied; time is not considered as a cost and monitoring is not in systematic way to meet the goals. The severe criticism on this field in Sri Lanka is about the management role. This is unclear by overlapping the staff, responsibilities and tasks between the programme and project management. Thus, this will create a vacuum in the programme management (Koria, 2009). Therefore, examine the role of project managers is useful to professionals, government organizations and countries that are having the similar issues in this field. Consequently, the focus of this study is to analyze the gap that how project managers‟ roles without deliberately contribute to the failures in managing development projects and how their skills and capabilities bring the success in projects. 3.6. Conclusion In Sri Lankan context, there are many development projects behind scheduled due to issues in their implementation phase. Local contractors‟ poor performance, lack of institutional capacity and weak organizational communication and resources coordination, including poor planning and quality controls are some of the key reasons for delays in those project executions. Moreover, lack of human resource capabilities for managing development projects is also a constraint in the country due to not having inherent competences. Specially, most of the organizations do not have appropriate technical and managerial expertise and knowledge to manage extensive portfolios of programmes or projects. The management role is not clear and it is overlapping by staff, responsibilities and tasks. Further, many projects are handled by the line ministries, instead of separate PMU or professionals in the field of project management. Thus, the common project protocols or industrial standards and planning tools are not applied in managing projects. However, in Sri Lanka, there is less number of research studies in the field of project management. On the other hand, none of them were not deeply analyzed the root cause of project failures in respect of managerial skills and responsibilities in managing development project in the context of Sri Lanka. The next chapter is structuring the research methodology and methods what were used in the study. The key focus of this chapter is to rationalize the method and methodology of analyzing data analyzing in order to find solutions for the research questions.
  • 41. 27 CHAPTER FOUR RESEARCH DESIGN AND METHODOLOGY 4.1 Introduction As per the research methodology chosen in chapter one, this research study was conducted in a manner of qualitative research with case study analysis in addition to the focus group interviews. However, data were analyzed with the help of a conceptual model described later in this chapter. Crotty (1998) suggests that researchers pay attention to answer two questions in developing a research study. One is what methodology and methods are going to be used and how it justifies those selections of particular methodology and methods. To answer these two questions a researcher should understand the epistemology4 and the theoretical perspective underpinning the research, that is, the researcher has to explain how she/he see and understand the social reality. Therefore, this research is based on the epistemological stance of constructionism and the theoretical perspective of interpretivism. According to Crotty (1998), the view of constructionism is all about the knowledge, that is, meaningful reality which was not discovered or created by human. But, it is constructed by the interaction of human beings and their world in a way of interpreting it and it is not waiting for someone to come up with. Constructionist‟s view is there is no single reality in the world, but people construct their own reality by their own experience and situation they face. Different people perceive different meanings to the same object and situation (Crotty, 1998). Therefore, this study has extracted the social reality for project implementing failures by the interpretation of different project managers, executive agencies and donors through their own experience and interactions with delayed projects. Hence, interpretive approach was used here to construct the meaning of failure experiences and situations of project managers to make sense the reasons for project implementing failures in managers‟ point of view. According to Neuman (2006, p.89), interpretive approach sees that the “social life is based on socially constructed meaning” and “it is intentionally created out of the purposeful action of interacting social beings”. It claims the notion that “facts are fluid and embedded within a meaningful system; they are not impartial, objective and neutral. Facts are contingent and content specific; they depend on combinations of specific events with particular people in a social setting” (Neuman, 2006, p. 92). Thus, in this study, the project implementing failures were explained as how it was perceived by project managers who worked in the context of development projects in Sri Lanka. Accordingly, 4 Epistemology means the way of looking at the world through our knowledge and making sense of it, that is, certain understanding about the reality that “how we know what we know” (Crotty, 1998).
  • 42. 28 the meaningful data comprised what project managers‟ views about their managerial experience and attitudes about on delayed projects. As this study based on the constructivist epistemology and theoretical perspective of interpretive approach, people‟s knowledge, views, understandings, interpretations, experiences, and interaction could be the meaningful properties of social reality. Which is the ontological position of qualitative research (Mason, 2002); hence qualitative data will be useful to provide a rich picture of the context. Therefore, in-depth face to face interviews with project managers, executive agencies and donors have been conducted to generate the data to this study. For this purpose, 30 delayed development projects have been chosen by the help of DPMM and then 15 project managers and respective project executive officers and donor coordinators have been selected as a purposive sample. Because the purposive sample is a particular group that is representing a specific population which has to be examined for gathering required data in a qualitative study. To avoid the individual bias of project managers, the individuals who have played managerial role in both delayed and non-delayed projects have been selected. It would also help to confirm the failure factors by interviewing the same individuals for finding the success factors. To confirm the managerial reasons related with role and responsibilities of project managers, one success project and two failed projects have been examined as a case study analysis, before the in-depth face to face interviews were carried out with selected project managers. 4.2 Population and Sample The sample provides the data to generate information in order to address the puzzle of research question. There are two elements pointed in sampling namely data and data source by Mason (2002). Those have useful and meaningful empirical contexts, illustrations or scenarios. The ability of data source is generating meaningful data and ideas to develop empirical and theoretically grounded arguments about the intellectual research puzzle. According to Neuman (2006), the purposive sample is useful to identify types of case to do in-depth investigation and gain deeper understandings of those types. As the research puzzle was to investigate the project implementing failure factors associated with project managers, the sample has been identified in a specific manner where the sample has represented a particular type that is delayed (time overrun) project and its managers. Therefore, 30 delayed development projects and its project managers, executive agencies and donors, were prepared as a population with the support of DPMM. Then a mixed sample of project managers was identified in terms of small, medium and
  • 43. 29 large scale budgetary projects where managers engaged in both delayed and non-delayed projects. The experienced project managers, especially the senior managers were included in the sample to acquire their vast knowledge and experience. Participants have been informed that the conversation will be recorded and then transcribed before starting the interviews. For the confidentiality of information and the privacy of participants, the data have been protected by keeping in a lockable cabin and password protected computer in addition to assigning pseudonyms for them for de-identifying data in the research analysis. 4.3 Organization of Data Analysis To generalize the findings of descriptive characteristics, the sample was selected as a heterogeneous group by having different kinds of project managers comprised in terms of gender, age, experience and nature of their projects such as different sector, scale, size and location. To avoid the personal bias of project managers and to extract the truthful facts, project executive officers and respective donor coordinators were also included in the sample in an appropriate way without affecting the importance of key informants. A structured set of questions in Appendix 1 is used as a guide for the semi-structured face to face interviews. Thus, the project managers, executive agency officers and donor coordinators of the following ongoing behind scheduled, completed and halted projects were selected as the primary sources for data feeding; 1. Smallholder Plantation Development Project – Infrastructure Development Sector. 2. Trincomalee Integrated Infrastructure Project – Power and Energy Sector. 3. Construction of Korean Sri Lanka Friendship Hospital, Godagama, Matara - Health and Sanitation Sector. 4. Pro-poor Eastern-Infrastructure Development Project – Road and Highways Sector. 5. Establishment of Integrated waste Management System in Dompe Area – Environment Sector. 6. Trincomalee Integrated Infrastructure Project Component 2 (Water Supply Network Rehabilitation Project) – Water Supply and Drainage Sector. 7. Galle Port Development Project (Halted) – Port and Aviation Sector 8. Improvement of Rajagriya Junction and Kiribathgoda – Kadawatha Road (Completed) – Road and Highways Sector. 9. Technical Education Development Project (Completed) – Education Sector.
  • 44. 30 4.4 Data Collection and Instrumentation Miller and Glassner (1997) advises to choose qualitative interviews to understand and document others understanding about social world. Because, it provides the means for exploring the point of view of research subject by accessing the meanings and people attributes in their experience in the social world. Punch (1998) also suggests that the interview is one of the main data collection techniques in qualitative research for understanding others by accessing people‟s perception, meanings and definitions of situation, and, construction of reality. So, in this study, the subjective views of project managers‟ experiences have been formulated as an objective view of the social reality for project delays; face-to-face semi-structured interviews with participants have been conducted for data collection. Mason (2002) argues that the meaning and understanding are created by the interaction of researcher and interviewees and construction of knowledge is a co-production. Further, she emphasizes that semi-structured face-to-face interviews are allowed the researcher to develop a thematic, topic-cantered or issues related subjects. Therefore, the semi-structured interviews have been designed to address the core issue of implementation delays in projects in different thematic approaches. Interviews have been conducted at a time and place which were convenience to the participants in their preferred languages such as English, Sinhala and Tamil. The data collection model in figure 4.1 at page 31was used for primary and secondary data collection for this research study. According to this model, the primary data were gathered from managers namely Project Director, Project Executive Officers and Donor Coordinators with the tool of in-depth face to face interviews whereas documents of DPMM, respective line Ministers and Donor Agencies were referred for secondary data. Especially under this model managers from different entities (PIU, PEA and Donor Agency) were interviewed in respect of a particular one project for reliable data. This strategy was also helped to crosscheck the data for its accuracy.
  • 45. 31 Data Collection Techniques Figure 4.1: Data Collection Techniques In-depth face to face interviews with semi-structured questions Documents References (Source: Author) Primary Data Secondary Data
  • 46. 32 4.5 Methods of Data Analysis According to Babbie (2007) the aim of data analysis is to discover the patterns among data for understanding the concepts of social reality. For that, the key process in qualitative data analysis is coding, that is, categorizing several pieces of texts in a format of concepts to retrieve the data. Coding qualitative data is entirely different from the statistical data analysis; researcher organizes the raw data into general ideas, themes and concepts and it is an integral part of data analysis guided by research question. This leads to new questions to encourage researchers to a high-level thinking in qualitative data analysis (Neman, 2006). Therefore, the interview records have been transcribed with the help of the expert knowledge of project management and then the texts have been conceptualized in common themes by using open coding system. Then the first coded data underwent for axial coding where the core concepts have been identified. Finally, the selective coding has been executed on the propositions produced by axial coding to determine the central theme of data. Therefore, the factors related to managerial causes for delayed projects were stream lined under the common themes of project management driven by the theoretical underpinning. All coding of this study were carried as mentioned in the figure 4.2 below; Data Coding System Figure 4.2: Data Coding System 4.6 Conceptual Model for Data Analysis To analyze and present the descriptive characteristics of the data, a conceptual model described in figure 4.3 at page 33 has been developed and used for finding the central thematic concepts related to the research problems. According to the conceptual model, the project success / failure factors have been identified into two ways such as management related factors and other factors in the data. The management related factors have been incorporated with the theoretical concepts of PMBOK in the chapter two where project management is categorized under three major management components with nine management knowledge areas for efficient management. (Source: Author)
  • 47. 33 Figure 4.3: Conceptual Model for Data Analysis (Source: Author)
  • 48. 34 4.7 Conclusion This research study was designed as a qualitative approach to extract the social reality that delays in development projects. As qualitative approach is based on the epistemological stance of constructionism and the theoretical perspective of interpretivism, the facts and means for delayed projects were constructed from the experience and interaction of project managers those who have engaged in both delayed and non-delayed development projects. Therefore, the sample is a purposive group of project managers whereas the instrument of data collection is in-depth face to face interviews. To know the in-depth reasons for delays in development projects, two delayed projects and one timely completed project have been selected for case study analysis. Further, 15 participants have been selected from the purposive group as a sample for in-depth interviews. The sample was selected as a heterogeneous group of mixture of project managers in different development sectors in order to meet the diversity in the nature and location of projects. The secondary data were collected from the DPMM and respective project line ministries, including donor agencies in addition to the primary data collected through the semi-structured interview questions. In case-study analysis, the data were analyzed under three categories, which are managerial role and responsibilities, management skills and capabilities, and, success and failure factors in project management. When carrying out in-depth interviews, the data were manually coded and then core concepts were identified with the help of nine project management knowledge areas defined in PMBOK. Thus, this study is a qualitative approach and the data collecting instruments are case study analysis and in-depth face to face interviews with a purposive sample of selective project managers. The next chapter is data analysis where raw data will be transformed into useful information to construct findings for research questions. In this chapter, there are three case study analysis were undertaken with the help of theoretical conceptual model followed by fifteen in-depth interview reviews with the help of interpreting the subjective managerial issues into objective views.
  • 49. 35 CHAPTER FIVE DATA ANALYSIS 5.1 Introduction As this study is mainly based on the qualitative approach for a social research, the data collection was the epistemological stance of constructionism and the theoretical perspective of interpretivism, that is, the managerial reasons for project implementation failures and its unsuccessfulness were constructed through the interpretations of own experience from the view of project managers who are engaged in both delayed and non-delayed projects in the context of Sri Lanka. In General, projects have three phases such as Planning and Formulation, Implementation and, Post-operation and Sustainability. According to the past experience enlightened in the literature reviews and empirical studies, implementation phase has high degree of managerial involvement. Hence, managerial reasons have high probability for many project implementation failures, especially in development projects in the context of developing countries. Therefore, project management issues with respect to managerial aspects were largely focused under the data analysis because of its high involvement in the implementation phase. However, managerial factors associated with failures in all three phases were considered for the completion of the examination in the point of research rationale. As project success or failure mainly depends on its implementation stage and failures are confined to either time overrun or cost overrun of a project, projects that are rated as behind scheduled (less than 50% of financial disbursements within the scheduled time period) were identified as failed projects in the manner of inefficiency to meet its objectives within the time and allocated budget. Hence, the project managers of the ongoing behind scheduled projects and timely completed project were chosen as a purposive sample for primary data collection. Accordingly, the subjective outlook of management issues were interpreted into the objective views of managers and their perceptions by a way of an analyzing process as shown in the figure 5.1 at page 36; The three case study analysis have used to find out the common factors associated with implementation delays in project management in order to prepare the interview questions to obtain the perception of fifteen project managers on delayed projects. Therefore, the case study analysis has done first followed by purpose group interviews. Hence the case study examinations are the supplementary studies for the complementary of the interview analysis.
  • 50. 36 Figure 5.1: Data Analyzing Processing (Source: Author) 5.2 Presentation of Descriptive Characteristics Among the nine foreign funded development projects mentioned in section 4.3 of Chapter 4, two behind scheduled projects and one on scheduled completed project have been selected for case study analysis. The data source for case study analysis basically depends on the website information of INDIS of DPMM as secondary data and the perception of fifteen interviewees is the primary source of the data. However, the case study analysis was initially done for fact findings followed by in-depth analysis of face-to-face interviews in order to extract the root causes for project delays. 5.2.1. Case Study Analysis of Delayed Development Projects In Sri Lanka, most of the development projects are executed in road, health and education sectors in the sense of providing infrastructure facilities to public and investors for their mobility and access to other facilities such as workplaces, markets, hospital, schools, etc. For example, there are 245 projects in Port and Highway sector and out of which 52 are foreign funded projects costing 123.707 billion in Year 2011 (MOFP, 2011). Health and Education sectors are also have significant number of foreign funded projects in Sri Lanka, too. Hence, projects in these sectors are crucial to consider as potential development projects for analysis and one project in each sector was selected for case study analysis. Thus, the following two delayed development projects and one on-scheduled completed project were chosen for case study analysis; 1. Pro-poor Eastern-Infrastructure development Project – Road sector 2. Construction of Korea Sri Lanka Friendship Hospital, Godagama, Matara- Health sector 3. Technical Education Development Project – Education sector.