Contents

Government Projects: Why Don’t I See The Real Benefits?
Abstract:
Introduction
The Present Challenges
So, Then…How to Address These?
Project Organization – define clear accountability
Define – A Business Case – Always
Maintaining the business case:
Benefits Review Planning
Bringing Visibility for Everyone
Conclusion
Finally….
Author’s Profile

Government Projects: Why Don’t I See The Real Benefits?

Authored By:
1) Sachin Sadanand Dhaygude, PMP, PRINCE2-Practitioner, CSM, CSP, PMI-ACP

Abstract:
This paper reflects a common man’s perspective. A common man is surrounded by variety of problems. We come across so many government projects which are always “in progress” every day! The aim of these government projects is to address common man’s problems. However, still the day to day life of a common man is not simplified. Almost every day, you will see projects which should never have been done or have not delivered any benefit to common man! It’s our money which is literally drained on these projects, bringing almost no benefits to us!
This paper would restrict its scope to this specific issue, and to projects which we all see every day around us. This paper will try to explore reasons behind this issue and how this specific challenge can be addressed, using some of the proven techniques of “professional project management”.
So the scope of this paper will be limited to exploring some changes that can bring some discipline and accountability for every rupee that is spent in government projects happening around us. And to bring that discipline and accountability, we will have to rely on some of the proven professional PM techniques.
Deliberately, this paper will restrict focus to small local government projects, which directly affect a common man. If we can bring discipline in each of these small steps (projects), hopefully it will help at a macro level as well – over a period of time. So that nation building happens in a structured and disciplined manner!

Keywords: Business case, benefits review, project management by stages, project governance

Introduction

As a common man one comes across many government projects, almost every day, where one wonders – “is this project desirable, viable and therefore worthwhile?”. Finally it’s our, the tax payers, money that is being used.
For instance, recently all the internal small roads of various localities in Pune city were reconstructed with concrete. Where, the condition of all existing roads was excellent! Another example is of elevated pedestrian crossings. For instance, in Pune city, within periphery of a couple of kilometers, there are 3 to 4 elevated pedestrian crossings constructed. However, none of them is being used by the citizens! So, why was “our money” drained? Were these projects worth it? Who is accountable?
Although this paper will have examples from a specific city, they are just representative examples, and they pretty much represent any part of the nation!
Another observation has been that, these projects go on for months! Some parts of these projects remain undone for several months! And we have no clue as to why nothing is moving. As an honest tax payer of this nation and also as a professional project manager, one wondered what the exact scope of any such project was, and what were the benefits envisaged before this project was initiated and who is ultimately accountable if these projects don’t deliver the expected benefits to the citizens, after draining “their” money?
Can the government projects be done in a more structured and disciplined manner, by leveraging some of the very basic but professional techniques of project management?

The Present Challenges

While there will be variety of challenges, in this paper we will focus on following specific problems, in line with the scope of this paper. Almost all of us, easily see these challenges in any government project (be it small or large)
1) Projects are undertaken without proper analysis of
a. Whether the project is desirable (cost versus benefit versus risk balance),
b. Viable (can the project deliver the result, in the given time and cost)
c. Achievable (can the product of project provide the benefits)
2) We, the citizens, expect the government administration to track the exact deliverables and progress, when we are the end beneficiaries of this project’s outcome
3) There is no accountability if either the project gets delayed or the project fails to deliver the expected benefits to the citizens
4) In fact there is no mechanism to track if the project has delivered the expected benefits or not
We come across many such examples where the project is completed but didn’t really help the citizens! Take an example of a flyovers built at various busy junctions in any city! For instance, the flyovers near university of Pune – we know that these have not really addressed the traffic problem at that junction! Also, the construction of these flyovers takes years! Or – an elevated or underground pedestrian crossings are not at all used when crores of rupees are drained to build them! It’s our hard earned money which is drained. So who is accountable for all this?

So, Then…How to Address These?
Project Organization – define clear accountability

Every project needs effective direction, management, control and communication. Establishing an effective project management team structure at the beginning of every project will be essential for any project’s success. All projects must have a defined temporary organization to unite various parties involved in common goals of the project.
Every project will always have 3 primary categories of stakeholders involved. 1) The Suppliers – who may provide the resources with required skills to produce the project’s product, 2) Users – the ones who will use the product of the project so that they see some benefits and 3) Business – who funds or sponsors the project (e.g. government). Thus all of these SUB communities must work together for successful project. “SUB” ka sath “SUB” ka vikas
The overall project’s organization should allow separation of direction and management of the project from delivery of project outputs. Every project should have a project governance which will provide overall direction, vision and support. And thus, the project governance must include representation of all the three communities mentioned above, so that they always work together. Together, the sponsor (government’s administrative executive), the supplier SPOC and the corporator (or equivalent), who represents the users community, should make up the project governance.
Governance should have the accountability for success or failure of the project. Although the project governance will be responsible for the project, the sponsor (government executive) should be ultimately accountable for project’s success and is the key decision maker, supported by supplier SPOC and user SPOC. Sponsor has to ensure that the project gives value for money (viable business case).
The user SPOC (corporator or equivalent), who should represent user community (i.e. citizens), should have responsibility of specifying what the needs of citizens are. And also to ensure that the project’s output will meet those needs within constraint of business case. This role has to specify the benefits and should be held accountable for demonstrating that the forecasted benefits are also realized.
The supplier (vendors) SPOC represents interests of those designing, developing and implementing project’s products. This role is accountable for quality of products and is responsible for technical integrity of the project.
The overall day to day management will not be done by the project governance, but a dedicated project management team, led by the project manager. They will have to work closely with project governance to manage the project work on a day to day basis. The project manager may have different teams (depending on size of project) who will actually produce the deliverables of the project.
This will help to address the challenges associated with lack of accountability. Now you would know –
1. Who is accountable to ensure that the project is always viable and worth it (sponsor)
2. Who is accountable to define why some project should be done, what benefits it would bring and also demonstrate those benefits (user SPOC)
3. Who is responsible to manage it on a day to day basis (PM)
4. Who is responsible to produce which deliverables of the project (Vendors)

Define – A Business Case – Always

Every project must also have a continued business justification – a clear answer to “why are we doing this project?”. Thus, every project must have a business case justifying reasons for the project based on estimated costs, risks and expected benefits. The stakeholders should realize that the projects is only a means to an end and not the end itself.
A project should always remain viable, desirable and achievable. Every project should have a business case defined at the start of the project and maintained throughout the project, formally verified by project governance at key decision points.
Every project should have –
1) An output – e.g. elevated pedestrian crossing
2) An outcome – e.g. more than 90% of the citizens use elevated pedestrian crossing to cross busy roads
3) Benefits – e.g. Increased safety and convenience while crossing busy roads, especially for senior citizens and children
As the project’s outcomes and benefits are often realized only after the project is closed, unfortunately the projects may have a business case today, but may not remain viable tomorrow. And the projects become too much focused on the output. However, the link between output and outcomes and then the benefits should be made visible to all stakeholders, all throughout. Because, project is a means to an end and not the end itself!

Maintaining the business case:

The project governance and stakeholders (which includes citizens) must have confidence at all times that the investment in a project is worthwhile, all the time. Since the viability question is ongoing, business case can’t be static. It should not be used only to get initial funding! But it should reflect current information on cost, risks and benefits, at any time during the project. The business case should be reviewed by the project governance
• During initiating a project
• As part of impact analysis of any issue or risk
• At the end of each stage end review (more details of this in sections below)
• As part of the benefits review
Benefits Review Planning
The user SPOC should be accountable to specify the benefits and also demonstrating that forecasted benefits, that formed the basis of project’s approval, are in fact realized. In a typical government project this should be a corporator or MLA, etc – anyone who represents the users of the product of the project (i.e. citizens). Every project, thus, must have a benefits review plan. It will use the project’s business case to define the scope, timing and responsibility of number of reviews of expected benefits of the project. For this, the benefits should be clearly identified and objective measures of the same should be defined at the initiation stage of the project, when the business case is reviewed and approved. This accountability should be brought in to justify every rupee being spent.
Bringing Visibility for Everyone
Project management by Stages
Usually a project will be big and will run into several months. And it may have many technical phases in it – e.g. feasibility study, technical design, construction, commissioning, etc. These phases may also overlap with each other.
Thus, in order to bring some visibility of what exactly is happening at any point of time in a project, it is recommended that we partition that project with “management decision points”. One of the better ways to create these “partitions” is by dividing a project on a time scale. Say, we create management partitions after every 4 to 6 weeks, as shown in figure 4. These are called project management stages.
What’s the advantage?
• Project management stage is a collection of activities and products whose delivery is managed as a unit
• No two management stages should overlap. Although technical phases of project will.
• This approach helps to create a number of formal review and decision points in the project.
• It will also limits the work that the project manager will have to manage at any one point of time.
• This will provide an ability for the project governance to ensure that key decisions are made at the right time.
• This will force to follow rolling wave planning – by having an overall project plan for entire project and a much more detailed planned for the immediate management stage.
• At the end of each management stage, it provides the opportunity for the project Governance and the project teams to inspect and adapt.
• Every project management stage end review should challenge if the project is still worth continuing? And then only approve the plan for next project management stage.
• Thus, after every few weeks (not more than 4 to 6 weeks), there will be clear visibility.
• The exact scope of the project (work breakdown) should also be in line with this concept of managing a project stage by stages.
• Deliverables in WBS for immediate stage should be broken in more detail – much more refined. Whereas the deliverables in WBS which are meant for later stages can be broadly described – again enforcing rolling wave planning.
• At any point of time, stakeholders and also the project governance would know what they should expect to be in progress or complete, and if it is complete or not
The complete WBS and overall plan, project management stage specific plan and overall status should be visible for all stakeholders, including the citizens at any point of time. In fact this summary should be visible at the actual work site also!
At the end of each project management stage, the PM should submit an end stage assessment to the project governance, highlighting what has been delivered as planned, what was left, what worked well, any issues and risks. Also the plan for next project management stage should be delivered, to the project governance. These two artefacts together should provide enough information for the project governance to make a decision on whether the project is viable and should continue. Only if there is sufficient business justification to continue the project (return on investment), then only the project governance should authorize next management stage plan for execution. This is nothing but “kill point”.

Conclusion

Thus, if you are building an elevated pedestrian crossing and if the expected outcome is that 90% or more citizens should use it so that their safety and convenience is ensured on busy road junctions, then it’s the local corporator or MLA or equivalent person who represents citizens, should be accountable to define these benefits and also be accountable to ensure that these benefits are actually realized.
If this means provisioning an escalator or lift at the pedestrian crossing, so that senior citizens would find it convenient to use it, or if it means educating people not to cross busy junctions on roads, or penalizing them for doing so – then all these should be part of project’s scope – they are deliverables of project, must be visible in WBS of the project and must be done! And the same must be visible to all citizens.
This project may run into a few months. Thus, it should be broken into multiple management stages of 1 month each. It should be planned and executed, month by month. E.g. first month focuses on feasibility study and initial site survey. These deliverables should be there in WBS of project and must get planned for 1st month and should be reviewed at the end of 1st month. On same lines, say vendor finalization and basic excavation and foundation work should be done in 2nd month then these should appear in project’s WBS and should get planned in 2nd stage (2nd month) and so on and so forth.
And this should be overall governed, stage by stage, through a project governance team, headed by the sponsor (government administration executive). Project success or failure is accountability of project governance team, ultimately the sponsor!
Finally….
Project is a temporary endeavor by the stakeholders, for the stakeholders and of the stakeholders! In government projects we all are stakeholders, because they are being done for us! And we see our own money being invested everyday but not in a disciplined manner. It thus, doesn’t return the results that we expect.
There are proven techniques and methods using which any project can be done in a disciplined manner. We as professional project managers and also the citizens of this country come across projects being done in chaotic manner! It is our professional responsibility to suggest improvements that we have experienced and learnt. And this is an attempt in the same direction.
Project management is all about bringing visibility and predictability in an ever changing environments of project. Some discipline and structured use of proven techniques and methodologies can definitely contribute in nation building!

Author’s Profile

Sachin Dhaygude, PMP®, PRINCE2-Practitioner®, PMI-ACP®, CSP®, CSM®
Email: sdhaygude@gmail.com
Contact: +91-9890059989
in.linkedin.com/in/sachindgud/

• Engineering graduate from Pune University, with PGDF from Symbiosis Institute of Business Management
• Experience with fortune 500 organizations, within India and abroad
• Experienced in project, program and portfolio management.
• Managed portfolio worth more than 15 million USD
• Experience in transition of projects from traditional to agile (Scrum), and assessment of scrum maturity
• An experienced and certified trainer and consultant in project management and agile                                                           methodologies
• Delivered assignments across APAC, Middle East, USA and Switzerland
• Hand-holding and coaching of teams new to scrum or experienced with scrum