Transcript Balkans Regional Infrastructure Program
Balkans Regional Infrastructure Program (RIP)
in association with Louis Berger, The Urban Institute, The Institute for Public-Private Partnerships, Transportation and Economic Research Associates
INSTITUTIONAL IMPROVEMENT IN ROAD AGENCIES IN THE BALKANS: THE ROLE OF PROJECT MANAGEMENT
Presentation prepared by: - Brian Stearman, Mclean, USA, Booz Allen - Dr. Marcus Ingle, Budapest RIP Office, Booz Allen - Dr. Rafael Aldrete, Budapest RIP Office, Booz Allen October 24, 2001 Bucharest, Romania
IRF South East Europe Road Congress
PRESENTATION C O N T E N T S I.
II.
III.
INTRODUCTION THE ROAD AGENCY CHALLENGE THE MODERNIZATION RESPONSE IV.
V.
MODERNIZATION STATUS IN THE BALKANS RIP`S REGIONAL PROJECT MANAGEMENT APPROACH VI.
INITIAL APPLICATIONS AND RESULTS VII.
LESSONS ON WHAT WORKS VIII.
OPPORTUNITIES FOR THE COMING YEAR REFERENCES
2 BALKANS R ∙ I ∙ P
Introduction...
ROAD AGENCY EXECUTIVES IN SOUTH EAST EUROPE MUST DEAL WITH A NUMBER OF CRITICAL INSTITUTIONAL “INSOMNIA” ISSUES …
BALKANS R ∙ I ∙ P • What changes in road agency structure & operations are required for accession to the EU, and modernization?
• How are road agencies modernizing -- in general, and in the Balkans?
• Why are road agencies giving priority to improving their project management systems (including project identification, tendering, supervision, control, etc)?
• What is the Balkans Regional Infrastructure Program (RIP) approach to project management improvement in the road sector?
…AND THIS PRESENTATION REVIEWS RIP`S LESSONS AND OPPORTUNITIES FOR TACKLING THESE ISSUES
3
The Road Agency Challenge...
GLOBAL AND REGIONAL PRESSURES ARE PLACING NEW DEMANDS ON NATIONS AND ROAD AGENCIES AROUND THE WORLD...
BALKANS R ∙ I ∙ P
Global and Regional Pressures:
• Global Institution Regulations • Efficiency & Performance Requirements • Information Technology Applications
National Context
Laws & Regulations Political Decisions Investment Standards & Requirements
Feedback
New Demands on Road Agencies
4
The Road Agency Challenge...
ROAD AGENCY EXECUTIVES AND ENGINEERS WORLDWIDE MUST DEAL WITH SEVERAL KEY LOCAL EFFECTS OF COMPLEX GLOBAL CHANGES...
BALKANS R ∙ I ∙ P • Redefined role of road agency as road regulator (not provider) • • Additional road network & transport performance requirements Budget tightening along with new procedures for accountability • Pressures for further personnel reductions, and concerns for survival • Rising stakeholder expectations and active involvement • Increasing priority on environmental, safety and social issues
...AND INSTITUTIONAL IMPROVEMENTS ARE REQUIRED TO DEAL WITH THESE EFFECTS
5
The Road Agency Challenge...
LOCALLY, IN THE BALKANS, ROAD AGENCIES ARE CONFRONTING A NUMBER OF INSTITUTIONAL CHALLENGES...
Institutional Challenges High level of political involvement and interference in decision-making Technical staff promoted to executive positions with minimal management experience and training Land expropriation laws not designed to handle new road construction needs Road sector improvement is severely under funded Unclear roles and responsibilities High influence from foreign aid donors Insufficient project management capacity to efficiently handle externally financed projects Lack of a clear project management system which links project identification to implementation performance targets Albania
Bulgaria Croatia Macedonia Romania
Lack of familiarity with international and EU procurement, monitoring,implementation, and reporting practices
6 BALKANS R ∙ I ∙ P
The Modernization Response
… IN RESPONSE TO THIS CHALLENGE, RIP BEGINS WITH A BEST PRACTICE MODEL OF A HIGH PERFORMANCE ROAD AGENCY…
BALKANS R ∙ I ∙ P CATEGORIES OF PROCESSES IN THE VALUE CHAIN FOR HIGH PERFORMANCE
STRATEGIC MANAGEMENT OF THE REGULATORY CONTEXT RESOURCE MOBILIZATION AND ALLOCATION RESOURCE MANAGEMENT TO ACHIEVE PERFORMANCE REQUIREMENTS
CORE AGENCY BUSINESS PROCESSES 1.1. Develop vision and policies based on review of regulations and stakeholder & performance requirements 1.2. Adapt organization structure to changing conditions 1.3. Recommend legal and regulatory changes to achieve performance requirements 2.1. Conduct strategic planing based on policies 2.2. Mobilize financing and other resources from multiple sources 2.3. Allocate resources and assign responsibilities consistent with performance requirements 3.1. Design programs and projects 3.2. Implement programs and projects including procurement management 3.3. Operate & maintain investments 7
MODERN, HIGH PERFORMANCE ROAD AGENCY
BALKANS R ∙ I ∙ P The Modernization Response
… ROAD AGENCIES GLOBALLY ARE TRANSITIONING THROUGH SEVERAL COMMON STAGES IN THEIR QUEST FOR MODERNIZATION AND HIGH PERFORMANCE IN EACH OF THESE THREE PROCESS CATEGORIES… TRANSITION CATEGORIES Strategic Management in the Regulatory Context TRADITIONAL
(Public Oriented) • Vison, policies and performance requirements unclear • Highly centralized and bureaucratic structure • Reactive stance to regulatory context
MIXED
(Transitional) • Vision and results articulated with mixture of old and new policies and regulations • Structure downsized but salaries still low • Formal dialogue with external stakeholders, but sporadic
MODERN
(High Performing) • Customer-oriented vision and mission understood and processes integrated • Small regulatory and contract management organization • Proactive stance to external stakeholders and context
Resource Mobilization and Allocation Resource Management to Achieve Performance Requirements
• Planning driven by domestic political interests and interests of financing entities • Government-assigned funds; not stable • Resources allocated on an ad-hoc basis with low accountability for results • Initial strategic planning underway with continuing political influence • Financing from multiple sources; increased stability • Resources and responsibilities allocated informally and performance not highly valued • Integrated network planning system incorporating all necessary requirements • Funds from stable mix of government and private funds • Allocation of resources driven by performance requirements with clear accountabilities • Stand alone projects with designs driven by technical considerations • Implementation by force account operations • Low priority given to road operation and maintenance of existing assets • Program planning in place but little coordination between projects • Priority given to procurement management systems • Medium priority given to road maintenance with pilot projects and systems 8 • Program and project management system fully integrated supported by IT • Programs and projects implemented successfully • Adequate operation and maintenance of assets is monitored and enforced
The Modernization Response...
THE CHANGES IN ROAD AGENCIES ARE BEING DRIVEN BY BOTH EXTERNAL AND INTERNAL NEEDS...
BALKANS R ∙ I ∙ P External Drivers The Push –The need for enhanced capacity within transport networks to handle the rapidly increasing traffic –The need for quality infrastructure –The need for infrastructure improvements based on economic value and user requirements –The need for improved user safety to reduce accidents –The need for reduced environmental impact
Roads Agencies… "on the move"
Internal Drivers The Pull –The Agency’s vision and performance requirements –The need for alignment with the regulatory environment –The need for stable, expanded sources of funding –The need for an efficient and effective organizational performance –The need for modern, streamlined processes –The need for integrated information systems 9
The Modernization Response...
SOME COUNTRY ROAD AGENCY CASES CAN BE REVIEWED FOR THEIR MODERNIZATION PROGRESS...
Case Illustrations
• • • • • • Virginia, USA Romania Croatia Bulgaria Macedonia Albania • • • • • •
Stage of Modernization
Modern Mixed Mixed Traditional to Mixed Traditional to Mixed Traditional to Mixed BALKANS R ∙ I ∙ P 10
• • • • The Modernization Response…USA...
STARTING IN 1994, THE VIRGINIA DEPARTMENT OF TRANSPORTATION HAS EMBARKED ON MEANINGFUL INITIATIVES TO MODERNIZE...
The 56,101-mile state-maintained road system with $2.6 billion annual budget of which 48% goes to construction and 38% to maintenance. Financial Sources: gasoline taxes, vehicle title fees, license tag fees, and general sales tax.
In 1995, a business process redesign (BPR) effort began that resulted in a clearly articulated strategy for the 21st century.
- Provide Highest Service Level - Focus on Customer - Define Success by Outcomes - Share Statewide Ownership - Keep Decision Making Close to Customer The Public Private Transportation Act (PPTA) was enacted to offer major incentives for private sector participation.
- Creative Approach to Involve the Private Sector - Design, Build, Maintain and Operate Facilities - Solicited and Unsolicited Proposals - Staged Review and Approval 11 BALKANS R ∙ I ∙ P
The Modernization Response...
VIRGINIA IS OPERATING AS A HIGH PERFORMANCE ROAD AGENCY IN MOST AREAS...
TRANSITION CATEGORIES Strategic Management in the Regulatory Context Resource Mobilization and Allocation TRADITIONAL
(Public Oriented)
MIXED
(Transitional) • • Planning done at the network level with a clear strategy • Mainly Federal and state funding. A few experiments underway with public/private partnerships • Resource allocations are clear and timely
MODERN
(High Performing) • • Well defined vision and strategy in place with focus on customer and providing highest service level • Highly decentralized. Planning, design and construction outsourced to contractors. Large maintenance workforce with initiatives in contracting.
• Streamlined regulations for transport. Changing regulatory environment for forward looking initiatives BALKANS R ∙ I ∙ P
Resource Management to Achieve Performance Requirements
• • Success defined by outcomes • Automated offices. E-mail. Integrated database systems. Increased contracting of systems design, development, and O&M. Robust IT leading to ITS/GIS 12
• • • • The Modernization Response… Romania...
IN ROMANIA THE NATIONAL ADMINISTRATION OF ROADS IS TRANSITIONING TOWARD A MORE MODERN AGENCY…
Romania’s National Administration of Roads (NAR) is a state-owned, but autonomous entity funded by the state budget and other revenue sources In 1994, NAR went through an institutional restructuring and commercialization process – In 1990 NAR’s staff reached 9,000, and today it has a staff of only 350 – Balance of staff divested and restructured as privatized companies that compete openly for contracts, creating a growing construction and maintenance industry Today NAR is the planner, contracting agency and use manager for the national roads with a clear strategy that stresses asset preservation and increased performance to meet the challenges of EU accession Several issues that need to be resolved to successfully implement the EU accession strategy – Regulatory environment needs to be adapted to current road sector needs – NAR’S project management and project preparation capacity needs to be improved – Insufficient experience with team structure and team work
… AND THE NAR IS PURSUING VARIOUS INSTITUTIONAL IMPROVEMENT ACTIVITIES, INCLUDING COOPERATION WITH RIP
13 BALKANS R ∙ I ∙ P
The Modernization Response...
THE ROMANIA ROADS SECTOR REPRESENTS A MIXTURE OF PROCESSES...
TRANSITION CATEGORIES Strategic Management in the Regulatory Context Resource Mobilization and Allocation Resource Management to Achieve Performance Requirements TRADITIONAL
(Public Oriented)
MIXED
(Transitional) •
MODERN
(High Performing) • Well defined strategy with focus on providing highest service level, but not clear on the way to obtain the necessary funds • Decentralized small and autonomous structure. Planning, design and construction outsourced to contractors. • Regulatory context still needs to be adapted to current sector needs • • Institutional Infrastructure to support strategic decision making on network management is in place but not fully operational • Multiple sources of funding, such as user charges, Road Fund, external loans and the state budget • • Project management system needs strenghtening • NAR’s Center for Road Studies and IT provides support for computerization of NAR’s activities. PMS and other stand-alone systems in the process of being implemented • First stage of program to monitor road maintenance only covers the national road network. Second stage will cover regional roads 14 BALKANS R ∙ I ∙ P
The Modernization Response…Croatia...
IN CROATIA, THE ROAD INFRASTRUCTURE ADMINISTRATION HAS BEEN RESTRUCTURED AND IS IN TRANSITION…
• • • • Transport demand for roads, has grown modestly (largely from Tourism) since the end of internal hostilities in 1995 Croatia`s road conditions are fair to poor due to deferred maintenance Croatia`s infrastructure responsibilities were recently split into two separate state-owned entities: – Croatian Road Authoritiy (HC) – Croatian Motorway Authority (HAC) The road construction industry is capable with some contractors able to compete on international level
…AND THE ROAD AGENCIES ARE ACTIVELY PURSUING ADDITIONAL OPPORTUNITIES FOR PUBLIC PRIVATE PARTNERSHIPS
15 BALKANS R ∙ I ∙ P
The Modernization Response...
THE CROATIA ROAD SECTOR IS REPRESENTED BY MIXED FEATURES, AND IS BECOMING MORE MODERN...
TRANSITION CATEGORIES Strategic Management in the Regulatory Context TRADITIONAL
(Public Oriented)
MIXED
(Transitional)
MODERN
(High Performing) • • A body of law generally suitable to govern the transport sector in a market economy has been created • Recent reorganization diluted the responsibility for planning and administration of road system • Institutions & policies are being reviewed & upgraded
Resource Mobilization and Allocation
• • Road investment strategy not firmly grounded on economic & environmental criteria and does not include rehabilitation of assets • Sources of funding include government, IFI`s, private investors & users • Resource allocations subject to political influence
Resource Management to Achieve Performance Requirements
• • Road staff involved in project design lack knowledge & experience in economic, financial, social & environmental analysis • Project implementation & procurement capacity for the road sector needs improvement • Pavement, bridge & maintenance management systems not fully operational 16 BALKANS R ∙ I ∙ P
The Modernization Response…Bulgaria
IN BULGARIA, RECENT STRUCTURAL REFORMS HAVE PUT THE ROAD SECTOR ON THE RIGHT TRACK TO BECOME A MODERN HIGHWAY ORGANIZATION …
• In 2000, the Government of Bulgaria embarked upon a major restructuring of the road sector, effectively separating its policy and regulatory functions from implementation – The Directorate General “Road Administration”, responsible for road policy and regulatory matters, was established – The General Road Directorate (GRD) was reorganized into a smaller implementing agency, the Roads Executive Agency (REA), downsizing from 6,000 to 3,000 staff • REA is responsible for planning, procurement and monitoring of the design, construction and maintenance in the national road network.
– Maintenance functions are outsourced to 66 individual state-owned maintenance enterprises with the intent of future privatization • The new structure of the road sector is also posing new challenges – REA staff are not trained to carry out core services in the new setting (procurement, implementation and monitoring of IFI and EU financed projects & contracts) – New players (maintenance enterprises) have limited capacity to carry out new roles and responsibilities
… HOWEVER, THE TRANSITION WILL REQUIRE FURTHER STRENGTHENING OF THE PLAYERS IN THE NEW STRUCTURE
17 BALKANS R ∙ I ∙ P
The Modernization Response...
THE BULGARIA ROADS SECTORS REPRESENTS SOME TRADITIONAL ALONG WITH A MAJORITY OF MIXED PROCESSES..
BALKANS R ∙ I ∙ P
TRANSITION CATEGORIES Strategic Management in the Regulatory Context Resource Mobilization and Allocation TRADITIONAL
(Public Oriented)
MIXED
(Transitional)
MODERN
(High Performing) • • Clear strategy for the sector, aimed EU accession and compliance with EU standards • Policy and regulatory functions separate from implementation, but still in transition • Downsized structure with focus on contract management focus, but previous practices still persist • Design and construction outsourced, but contractor market not sufficiently developed • • Planning increasingly following an integrated strategy, but external influences still play a major role • Multiple sources of funding, state budget, Road Fund and external loans • Assignment of maintenance work to O&M units is still based on quotas
Resource Management to Achieve Performance Requirements
• • Program planning in place but individual projects still uncoordinated and driven by technical considerations • In practice, transition from force account to O&M contractors has not been realized as units plan activities on an ad-hoc basis and are not accountable for performance 18
The Modernization Response…Macedonia...
IN MACEDONIA, DESPITE CURRENT DIFFICULTIES, THE ROADS AGENCY IS TRANSITIONING TOWARD HIGHER PERFORMANCE...
• • • • The country has a network of roads totalling over 9400 kilometres of which half are maintained and paved highways; links to neighbouring countries need renovation Macedonia handles the road sector by a “Fund for National & Regional Roads” – The Fund is in charge of the construction & maintenance of all roads – A state-owned company (“Makedonia Pat”) deals with maintenance The country`s strategic location as the Balkans crossroads has attracted substantial institutional finance for the motorway network Institutional weaknesses in the road sector (including over-regulation, limited training & low salaries) have led to inefficient core serviceses and inadequate maintenance
…AND SEVERAL IFI`S ARE WORKING WITH MACEDONIA TO MAKE INSTITUTIONAL IMPROVEMENTS
19 BALKANS R ∙ I ∙ P
The Modernization Response...
MACEDONIA IS TRANSITIONING FROM A TRADITIONAL TO A MIXED MODEL...
TRANSITION CATEGORIES Strategic Management in the Regulatory Context Resource Mobilization and Allocation Resource Management to Achieve Performance Requirements TRADITIONAL
(Public Oriented)
MIXED
(Transitional)
MODERN
(High Performing) • • Vision & policies of Road Fund established with transition to clarification of performance requirements • Policy & regulatory functions separate from service delivery, but procedures and support systems in transition • Along with Romania & Bulgaria, Macedonia has negotiated agreements with EU to liberalize transport agreements • • Informal network planning system in use but insufficient attention given to economic & environmental factors • Road development & maintenance is featured mainly from a petroleum products tax & users fees • Resource allocations strongly influenced by political & technical considerations • • Road Fund staff involved in project design lack knowledge on international standards & market oriented practices • Lack of familiarity with EU & IFI procurement, supervision & reporting procedures • Priority given to new construction leading to maintenance backlogs 20 BALKANS R ∙ I ∙ P
The Modernization Response…Albania…
IN ALBANIA, THE GENERAL ROADS DIRECTORATE (GRD) IS TRADITIONAL AND CENTRALLY CONTROLLED...
• • • Albania is opening to the Western world rapidly -- with substanial IFI and other investment resources in transportation In 1996 GRD was restructured, but the sector remains highly centralized – Functions were divested and personnel significantly downsized – Project Implementation Units were established to manage externally financed projects – Planning is centrally done and regions only carry out maintenance work Although design, supervision, construction and some maintenance functions are divested and privatized, capacities still need to be developed in several key areas – Staff are strong in traditional engineering disciplines but needs training in non-engineering competencies, – Routine maintenance is still carried out by force account and quality suffers due to lack of equipment and proper supervision BALKANS R ∙ I ∙ P
… BUT THE INCREASING DETERIORATION OF THE ROAD NETWORK IS CREATING AN ENORMOUS PRESSURE TO ACCELERATE ITS MODERNIZATION
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BALKANS R ∙ I ∙ P The Modernization Response
IN ALBANIA, THE GRD NEEDS TO FOCUS ON FURTHER INSTITUTIONAL IMPROVEMENTS IF IT IS TO SEIZE THE CURRENT OPPORTUNITY PROVIDED BY EXTERNAL FINANCING… TRANSITION CATEGORIES Strategic Management in the Regulatory Context Resource Mobilization and Allocation TRADITIONAL
(Public Oriented)
MIXED
(Transitional)
MODERN
(High Performing) • • Unclear strategy with mixture of old and new policies and regulations • Downsized structure with limited degree of autonomy for regions (only maintenance functions) with minimal staff resources • Increasing outsourcing of design and construction, to divested state-owned companies in the process of privatization. Some joint-venturing with foreign firms, but market needs to be further developed. Maintenance still done in-house • • Initiatives to develop an integratednetwork strategy, but still significantly influenced by politics and external financing entities • Funding mainly from state budget and external loans • No clear accountability for performance and results
Resource Management to Achieve Performance Requirements
• • Individual projects uncoordinated and driven by technical considerations • Quality of work is not uniform and efficiency is low due to lack of equipment and proper supervision • Staff competent in traditional engineering disciplines, but require training in modern systems of management, operations, economics and environment 22
Modernization Status in the Balkans...
RIP`S ANALYSIS INDICATES THAT BALKANS ROAD AGENCIES ARE IN THE PROCESS OF TRANSITIONING TOWARDS MODERNITY...
BALKANS R ∙ I ∙ P • • • • Change is imperative as a result of – increasing level of globalization – – – rising public expectations dwindling governmental resources standards associated with EU accession Change occurs through transitional stages -- at differing rates Institutional improvement of core agency processes can speed up the rate of transition leading to higher performance Transportation organization managers and engineers need to… – sense and map out where improvements are needed – lead and manage the change efforts
…AND RIP USES A “MODEL OF CORE PROCESSES” TO IDENTIFY AND SEQUENCE ITS IMPROVEMENT ASSISTANCE
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RIP`s Regional Project Management Approach...
RIP`S CORE PROCESS MODEL FOR ROAD AGENCY MODERNIZATION INCLUDES THREE INTERRELATED SUPPORT SYSTEMS...
CATEGORIES OF PROCESSES IN THE VALUE CHAIN FOR HIGH PERFORMANCE
STRATEGIC MANAGEMENT OF THE REGULATORY CONTEXT RESOURCE MOBILIZATION AND ALLOCATION RESOURCE MANAGEMENT TO ACHIEVE PERFORMANCE REQUIREMENTS
CORE AGENCY BUSINESS PROCESSES 1.1. Develop vision and policies based on review of regulations and stakeholder & performance requirements 1.2. Adapt organization structure to changing conditions 1.3. Recommend legal regulatory changes to achieve performance requirements 2.1. Conduct strategic planing based on policies 2.2. Mobilize financing and other resources from multiple sources 2.3. Allocate resources and assign responsibilities consistent with performance requirements 3.1. Design programs & projects 3.2. Implement programs & projects including procurement management 3.3. Operate & maintain investments INTERRELATED AGENCY SUPPORT SYSTEMS
EXECUTIVE MANAGEMENT SYSTEM NETWORK PLANNING SYSTEM PROJECT MANAGEMENT SYSTEM …AND OUR ANALYSIS SUGGESTS THAT IMPROVEMENTS IN THESE SYSTEMS ARE BOTH RELATIVELY EASY TO MAKE & WOULD YIELD SUBSTANTIAL BENEFITS TO ROAD AGENCIES IN THE BALKANS
24 BALKANS R ∙ I ∙ P
RIP`s Regional Project Management Approach...
THE USAID-SPONSORED RIP INITIATIVE UNDER THE STABILITY PACT IS INITIALLY FOCUSING ON THE AREA WHERE USA CONTRACTOR EXPERIENCE AND EXPERTISE CAN BRING THE HIGHEST VALUE...
BALKANS R ∙ I ∙ P
Road Agency Process Category
1 Strategic Management in the Regulatory Context 2 Resource Mobilization & Allocation 3 Resource Management to Achieve Performance Requirements
Needed Road Agency Institutional Improvements
• Strengthened “Executive Management System” • Strengthened “Network Planning Systems” • Strengthened “Project Management Systems”
…THAT IS IMPROVEMENTS IN PROJECT MANAGEMENT FOR THE ROAD SECTOR
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RIP`s Regional Project Management Approach...
ROAD AGENCIES GAIN MANY BENEFITS FROM IMPROVEMENTS IN THEIR PROJECT MANAGEMENT SYSTEM...
BALKANS R ∙ I ∙ P
Improvements in Project Management
1.
2.
3.
Identification of Quality Road Sector Projects Based on Multiple Political - Technical Economic - Environmental Social Criteria Projects Prepared Based on Thorough Feasibility Analysis with Clear Work Specifications Project Monitoring & Reporting Systems are Reengineered & Computerized
Benefits to Road Agencies
Projects Prepared and Financed More Quickly Project Contracting is Speeded up with Fewer Contractor Complaints Project Delays \ Cost Overruns \ Change Order Requests are Minimized 26
RIP`s Regional Project Management Approach...
RIP GROUNDS ITS ROAD SECTOR PROJECT MANAGEMENT IMPROVEMENT ACTIVITES IN THE “INFRASTRUCTURE PROJECT MANAGEMENT CYCLE”…
1. Strategic and Program Considerations 7. Benefit Sustainability Feedback loops 6. Project Execution 5. Project Start-up Process flow 2. Project Identification 4.
Planning 3. Project Preparation Implementation
27 BALKANS R ∙ I ∙ P
RIP`s Regional Project Management Approach...
RIP`S ORIENTATION IS THAT PROJECT MANAGEMENT IS A PROFESSION APPROPRIATE FOR MANY ROAD SECTOR PROFESSIONALS...
• Project management is the profession of mobilizing and applying resources (financial, human, information, etc.) to accomplish valued project objectives under conditions of risk and partial control.
• Project management is required in both phases of the project cycle -- project design and project implementation.
• Project management involves both a well-articulated body-of knowledge and a practical “tool kit” for road sector professionals 28 BALKANS R ∙ I ∙ P
RIP`s Regional Project Management Approach...
RIP BASES ITS WORK ON THE PROJECT MANAGEMENT INSTITUTE`S “BODY OF KNOWLEDGE (PMBOK)”…
BALKANS R ∙ I ∙ P
Scope Quality Integration Cost Communications PROJECT MANAGEMENT AREAS Procurement Human Resources Risk Time
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RIP`s Regional Project Management Approach...
RIP`S CORE INSTITUTIONAL AND TRAINING CURRICULUM IS ORGANIZED AROUND THE INFRASTRUCTURE PROJECT CYCLE...
BALKANS R ∙ I ∙ P Infrastructural Project Cycle Phases Pre-Project Project Design Project Implementation Core Modules on RIP Curriculum 1. Strategic Considerations 2. Project Identification 3. Project Preparation 4. Implementation Planning 5. Project Start-up 6. Project Execution 7. Project Sustainability Illustrative “Hands-on” Tools - Strategic Planning - Stakeholder Analysis - Alternatives Analysis - Project Proposals - Work Breakdown - Feasibility Studies - SOW Preparation - Cost Estimation - Tendering - Responsibility Charting - Work Supervision & Control - Change Orders - O&M Assessment - Asset Management
… AND INCORPORATES PRACTICAL “HOW TO” KNOWLEDGE & “HANDS-ON” TOOLS
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RIP`s Regional Project Management Approach...
THE BOOZ·ALLEN PROCESS APPROACH TO IMPROVEMENT OF HIGHWAY MANAGEMENT CAPACITY IS GROUNDED IN FIVE PRINCIPLES...
BALKANS R ∙ I ∙ P 1.
Improve management capacity based on the previous local experiences 2.
Plan for the future based on current strengths and opportunities 3.
Work as an integrated foreign and local team 4.
Use and adapt modern concepts and appropriate technologies 5.
Create and sustain a learning, team-based work environment
… AND THESE PRINCIPLES HAVE PROVEN TO BE EFFECTIVE ALL AROUND THE WORLD
31
RIP`s Regional Project Management Approach...
RIP FOLLOWS A NUMBER OF BEST PRACTICES IN STRUCTURING ITS INSTITUTIONAL IMPROVEMENT ACTIVITIES...
BALKANS R ∙ I ∙ P • • • • • Important objectives, with realistic time parameters, must be developed and believed in by top management... and these objectives need to be communicated and supported Key internal and external stakeholders need to perceive a sense of urgency around the improvement...in terms of crises or major opportunities A powerful guiding coalition is required (champions) to steward the improvements …both from inside the organisation … and from outside the organisation Short-term wins (results) need to be planned and created so, it is necessary to attack the problem from many angles, i.e. financing, restructuring, information technology, contracting etc; Options selected should be achievable and oriented toward measurable results Results need reinforcing and consolidating, by producing more improvements over longer periods of time 32
Initial Applications & Results...
RIP`S APPROACH COMBINES “REGION-WIDE TRAINING-THE-TRAINER (TTT) CAPACITY BUILDING” WITH “COUNTRY-SPECIFIC RESULTS-ORIENTED TRAINING”...
BALKANS R ∙ I ∙ P
RIP`sTraining Phases Introductory Infrastructure Project Management TTT-1
Networking Regional Trainers and Training Institutions & Applying RIP’s Adult Learning Methodology
RIP Executive & Policy Maker Workshop TTT-2
Regional Infrastructure Management Issues & Best Practices
Water and Transport Project Design Training Modules TTT-3
Preparing for Country Adaptation and Delivery
Results Oriented Training Sessions in Each Country
Oct. to Dec. 2001
Water and Transport Project Implementation Training Modules TTT-4
Preparing for Country Adaptation and Delivery
Dec. 2001 April 2001 July 2001 Sept. 2001
33
Initial Applications & Results...
IN 2001 RIP IS IMPLEMENTING SEVERAL INSTITUTIONAL IMPROVEMENT PROJECTS IN THE ROAD SECTOR -- EACH WITH TARGETED RESULTS...
BALKANS R ∙ I ∙ P
Countries RIP Institutional Training Project Title & Number Implementation Status Planned Results
Albania Bulgaria Croatia Macedonia Romania Regional Management Training for Local Contractors (A-10) Training Program for Independent Road and O&M Units (B-14) Local Contractor Management Training (C-10) Management Training for Local Contractors, Water Utilities and Road Fund (M-13) Management Training for the Road Administration (R-24) Regional Project Management of Training of Trainers and Infrastructure Managers (REG-1) Two workshops planned for Oct. & Dec.
Two workshops planned for Nov. & Dec.
Two workshops planned for November Three workshops on Project Tracking & Control One workshop planned for November Three workshops held; one planned for December.
-Procurement & Bid Processes improved - Maintenance Unit Business Skills upgraded - Procurement & Bid Processes improved - Project Management Practices upgraded -Project Management Practices upgraded -A Regional Network of 20 Trainers & Training Institutions Established 34
Lessons on What Works...
THE LESSONS RIP HAS LEARNED IN IMPLEMENTING OUR REGION-WIDE INSTITUTIONAL IMPROVEMENT ACTIVITIES DURING 2001 INCLUDE...
• • • • • • The value of continuously clarifying client/beneficiary expectations for our Projects The importance of a geographical presence for adapting to local conditions The value of RIP`s ability to offer and deploy assistance quickly and with a minimum of bureaucratic hurdles The importance of careful assessment prior to implementation, including involvement from key client and beneficiary representatives The importance of working through local trainers & institutions in order to have the right mix of technical and institutional experience In a program like this with many dispersed operations, a special effort is required to capture, share and regularly update RIP’s intellectual capital through our Best Practices website
…AND THESE LESSONS WILL GUIDE RIP`S INSTITUTIONAL IMPROVEMENT & TRAINING WORK IN 2002
35 BALKANS R ∙ I ∙ P
Opportunities for the Coming Year...
RIP INTENDS TO CONTINUE AND EXPAND ITS ROAD AGENCY PROJECT MANAGEMENT IMPROVEMENT FOCUS IN 2002 AND BEYOND...
1.
2.
3.
The Regional Training-The-Trainer Activity will focus on developing viable local and regional institutions with Project Management Training Capacity The country-specific institutional improvement efforts will target road agency: • Executive Management Systems (like the Infrastructure Monitoring Unit Effort in Albania) and • • Network Planning Systems (like skills development in HDM4) More intensive Project Management systems improvement (with a focus on Procurement & Contract Management Systems) RIP will support local and regional Project Management Associations (like the Regional union of Project Management Associations in Central & Southeast Europe (SENET) Conference in Dubrovnik in April 2002 and the new Romanian Project Management Institute (PMI) Chapter)
…AND WE LOOK FORWARD TO COOPERATING WITH ROAD AGENCIES IN THE BALKANS IN CARRYING OUT OUR INSTITUTIONAL IMPROVEMENT & TRAINING ACTIVITIES
36 BALKANS R ∙ I ∙ P
REFERENCES
–Aldrete, Rafael. 1998. “Feasibility Evaluation Model for Toll Highways”. Doctoral Dissertation. University of Texas. Austin.
–Berger, Louis. 2001. “Transport Infrastructure Regional Study (TIRS) in the Balkans”, Draft Report. June.
–Booz Allen & Hamilton. 1998. Viewpoints: INSIGHTS, "Knowledge —Critical Capital of Modern Organizations, November 8.
–Brinkerhoff, Derick. 1991. Improving Development Program Performance. Lynne Rienner, Boulder.
–Duncan, William. 1996. A Guide to the Project Management Body of Knowledge. Project Management Institute Standards Committee.
–European Commission. 2001. Transport and Energy Infrastructure in South Eastern Europe. Brussels. May 15. –K. Forsberg, H. Mooz, H. Cotterman. 2000. Visualizing Project Management. John Wiley & Sons, Inc.
–Frame, J. 1987. Managing Projects in Organizations. Jossey-Bass, San Francisco. –C. Hendrickson, T. Au. 1989. Project Management for Construction. Prentice Hall.
–Ingle, Marcus. 1997. "Managing Programs and Projects for Effectiveness and Sustainability," Booz Allen & Hamilton. –Ingle, Marcus. 1999. “A Guide to Tools and Techniques - Project Implementation Manual”. Booz∙Allen & Hamilton, Inc. December.
37 BALKANS R ∙ I ∙ P
REFERENCES (continued)
–Ingle, Marcus, N. Hieu. 1998. "Integrating Management & Technology for the Modernization of Vietnam's Transportation Network." Booz Allen & Hamilton, Inc.
–Ingle, Marcus, A. Mahr, B. Sheridan. 1998. "Putting Knowledge to Work: Helping Transportation Clients Perform in a Changing Global Context," Booz Allen & Hamilton, November 18.
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