Project management in SA is arguably at a watershed moment in its evolution.
On the one hand, it is feeling the crunch of project cutbacks and delays running into billions of rand, as the global economic crisis takes it toll, though signs of an upturn are now discernible in some sectors.
Jeff Shaw and Johnny Burger
The flip side to this is that, despite the recession, skilled project managers are in huge demand to help drive SA's multibillion rand infrastructural programme, leading up to 2010 and beyond.How it adapts to these twin challenges could help define project management's role, with a greater emphasis on public-private partnerships now increasingly being touted as a likely option.
Already, project managers enjoy an increasingly influential status as an integral part of the strategic planning of corporate companies and organisations. However, cash flow - or the lack of it - and business stress are two of the main aspects that can lead to project failure.
One estimate earlier this year, cited by KPMG, was that about US$30bn in mining projects alone had been cancelled or put on hold over a six-month period due to low commodity prices. According to Jeff Shaw, director of major projects at KPMG, projects are significant consumers of cash at time when business needs to conserve cash. Poorly planned and managed projects lead to unpredictable cash demands.
Shaw says that international research by Bent Flyvberg of Denmark has demonstrated that the historical performance of major public sector infrastructure projects has been poor with cost overruns, delays and underutilisation being the norm. This puts strain on both public finances and the private sector contractors who deliver the projects.
Shaw's observations are echoed across much of SA business and industry, with the consensus viewpoint being that managing large projects in both the public and private sectors remains challenging.
WHAT IT MEANS
 Lack of cash flow and business stress can lead to the failure of a project
|
Says Johnny Burger, operations manager for ICT services and solutions company Xon Systems : "You can't expect a good manager to plan and execute all the details in a project from small to large. A good manager is someone who leads people well. A project manager is the person who has the responsibility for planning and executing projects."
Burger says good project management has enabled the company to make significant cost savings, one of the advantages being the ability to manage stock better.
"I don't believe that a manager can ever replace a project manager. Unfortunately, project managers are costly, but they are skilled and extremely marketable in the current market. In our company, project managers have significantly changed what we do and how we do it."
Andreas Bartsch, programme manager for business intelligence specialists the PBT Group, says that given the shortage of good project managers in SA, it becomes even more challenging to obtain the right resources in specialised areas. "This also brings about great opportunities for individuals who have the required expertise."
He contends that project management needs to focus more on understanding the business objectives of projects. "It's not just a matter of upskilling. We need to give people the opportunity to grow through the ranks and gain the necessary experience within the business itself."
He says the present economic downturn emphasises the need for proper project management, "not just from a delivery perspective".
Shaw says that the shortage of skilled and experienced resources is a major contributing factor to project failure. And while the current financial crises may ease the demand for these people, the shortage - in SA and globally - remains.
He makes the case for governance structures in major projects to be considered carefully. "It will have to become the norm to have independent oversight on all major projects. This oversight will cover technical deliverables, project management and performance of the project against socioeconomic objectives.
"Government departments and agencies responsible for projects need to have standardised project management methodologies, policies and process in place. Without these basics, project success is unlikely," he says.
