Chapter 2

Project Life Cycle and Organization

The PMBOK® Guide—Third Edition advises that “Projects and project management are carried out in an environment broader than that of the project itself.” Chapter 2 of the Government Extension describes some of the unique features of this environment for government projects.

2.1 The Project Life Cycle

A responsible government body will require an executive to submit intermediate deliverables during project development. The phases of government projects often correspond to these deliverables. Government construction projects, for instance, typically have the three phases with subphases as shown in Figure 2-1. Each phase in this example is required by a law adopted by the legislative body.

2.1.1 Characteristics of the Project Life Cycle

See Section 2.1.1 of the PMBOK® Guide—Third Edition.

2.1.2 Characteristics of Project Phases

See Section 2.1.2 of the PMBOK® Guide—Third Edition for an explanation of project phases.

One phase that is especially common in public sector projects is the origination phase, described below:

• .1 Origination Phase
  Every government project begins with an origination phase. The written product of this phase is called by many different names. These names include feasibility study report, basic planning report, project study report, project concept report, project location report, budget proposal, and funding request.
      The report, proposal, or funding request describes the product in sufficient detail to determine if the project should proceed. If there is a program of projects, the origination document is used to determine whether the project should be included in the program. (For a discussion of programs and program management, see Section 1.6.1.) If there is no program of projects, the government body must approve each project separately. In this case, the origination document is submitted by the executive to request funding.
      The budget must include some discretionary funds for the executive to produce project proposals. Without this funding, the executive cannot legally propose new projects.

2.1.3 Project Life Cycle and Product Life Cycle Relationships

See Section 2.1.3 of the PMBOK® Guide—Third Edition.

2.2 Project Stakeholders

The PMBOK® Guide—Third Edition lists key stakeholders on every project, including the project manager, customer, performing organization, project team members, and sponsor. On government projects, the project manager, customer, and project team members are the same as on private sector projects. The performing organization is a department or agency that reports to the executive. The sponsor is either an executive official or a government body.

Government projects have several other key stakeholders:

• The general public. In addition to participation through their representative bodies, individuals and organizations may participate directly in a project through public hearings and reviews, as well as in lobbying efforts for and against the project, and for and against the various project alternatives.
• Regulators. These are individuals or organizations that must approve various aspects of the project. Regulators enforce rules and regulations. They are actively involved in the project, but generally have no interest in its success, since it will not affect them. Regulators are either agents of a higher government, or of another agency in the same government as the performing organization. Inadequate communication between the project manager and regulators can delay or even destroy a project.
  • National government projects are regulated by national government agencies. They are generally not subject to regulation by regional and local governments. National projects may also be regulated by international compacts such as the European Union, North American Free Trade Agreement (NAFTA), General Agreement on Tariffs and Trade (GATT), and Convention on International Trade in Endangered Species (CITES).
  • Regional government projects are subject to the same regulation as national government projects and are also regulated by other regional government agencies but are generally not subject to regulation by local governments.
  • Local government projects are subject to the same regulation as regional government projects and are also regulated by other local government agencies.
• Opposition Stakeholders. Though not found in every project, this is a special class of stakeholders who perceive themselves as being harmed if the project is successful. An example is the homeowner who lives beside a park that is to be converted into a highway. Early involvement of opposition stakeholders may result in a more positive outcome for all stakeholders.
• The Press. In countries that have freely elected governments, the press is always present on major projects where large sums of money are involved. The press has a duty to report on the project in an objective manner, but often focuses more on problems than successes.
• Sellers. In the procurement process, these are often significant stakeholders. They are discussed in Chapter 12.
• Future Generations. During their limited tenure, governments have a responsibility to future generations regarding long-term debt, viable and affordable infrastructure, and a feasible environment.
• The Private Sector. The private sector provides counterpart funding and participates in public-private partnerships.

2.3 Organizational Influences

The organizational influences directly affecting government projects are determined by the type of government and how the officials are chosen. In elected governments, the voters elect representatives who establish laws, statutes, ordinances, regulations, and policies. The process is based upon consensus building with checks and balances in place to protect the stakeholders from fraud or abuse of power by the elected officials. The organizational system creates the environment for monitored, deliberate progress on a project. In this environment, clear limits are established, including roles and responsibilities for the project team, deliverables, funding resources and authority, the process for selecting and procuring necessary resources, and the necessary audit trail to successfully complete the project within schedule and budget.

The electoral cycle exerts an intense organizational influence on government projects and, consequently, projects must demonstrate policy success. If there is a change in the leadership of the government, there is the possibility of a reversal or change in policy, which can dramatically affect the life of the project. Also, the principle of civil service neutrality sometimes leads to decisions not being made if they could be interpreted as favoring one group versus another.

Another type of organizational influence for government projects exists in the area of historical information. Project decisions influenced by historical information must be carefully weighed against possible future changes in government leadership, policy, or methodology, since such changes can render historical information and decisions based on it as irrelevant.

2.3.1 Organizational Systems

The budgeting system and process for government projects are controlled by policy and law. Funds are budgeted for a specific time period. Projects compete for new funding for each fiscal year. Organizational systems and governance programs which ensure that projects meet the required standards for the government entity can cause delays in project progress and, in some cases, termination of the project due to expired funding.

Governance systems, including the use of Governance Boards, Change Control Boards, Configuration Management Boards, etc., are mandated by government entities to ensure proper use of taxpayer dollars and best value investment strategies.

Many times, the program office is separate from the project office. There must be an open and active communications system to keep any stakeholders informed of any potential changes to the status of the project and its ability to meet the requirements in fulfilling the mission of the organization.

The system of public scrutiny, allowing the public to hear both sides of the story, is necessary to ensure that the voter population is informed and understands both the advantages and disadvantages of the project.

The systems in place for government procurement are heavily regulated, and consequences for non-compliance can be severe, depending upon the nature of the violation.

The system for resolving conflicts, open issues, and change orders varies by organization, but is typically covered in the policies and guidelines published by the organization. If there is no existing remedy, there may be a requirement for new legislation or policy.

Systems for collecting, managing, and maintaining government records are required to meet the standards defined by law. The project archive must be maintained for the required number of years and in the required format as prescribed by governing records management standards.

2.3.2 Organizational Cultures and Styles

Communications requirements unique to government planning relate primarily to establishing a culture of information sharing in a functional bureaucracy. Government departments tend to be compartmentalized—not projectized. Therefore, when multi-agency communication will be required, consideration as to how this will be accomplished should be planned into the project.

In many organizations, performance contracts for project managers and team members are common. The contracts are linked to the relevant key performance indicators of the specific program being managed, and are monitored as part of the project evaluation reports. Performance measurement in government is likely to involve scrutiny by independent agencies (for example, the United States General Accountability Office).

The ability of citizens in many countries to view almost all government records, with a few non-absolute exceptions (prompted by secrecy and invasion of privacy laws), may restrict project managers in maintaining confidential information.

2.3.3 Organizational Structure

Organizational policies determine the functional-to-projectized structure used in managing government projects. The organization may only have specific powers (e.g., executive or legislative) assigned to it by the governmental leadership.

Also, different levels of government may have different and separate requirements for project approval. All of the requirements must be met by the project in order to gain approval.

A key feature of governments is the presence of opposition. Project managers should be aware that the project or the policy that causes the project to exist is likely to be subject to actively hostile scrutiny from the opposition.

Government policies will change during the course of a change in leadership. The merit-based civil service system is gaining popularity as a way to preserve neutrality in government service. Civil servants hold office from one administration to another, but they must remain politically neutral. For more discussion on the role of civil servants, see Chapter 9.

2.3.4 The Role of the PMO in Organizational Structures

Project management offices (PMOs) can be vital to the success of government projects. The ability to provide up-to-date source-driven project information can be very important to the continued life of the project and the successful transition from one project phase to another. Many government projects have multiple vendors, stakeholders, inspectors, etc. involved in the operations and oversight of the project activities, and these complex relationships would be more difficult to coordinate without a PMO. The use of a fully functioning PMO depends on the size and complexity of the project at hand.

A well-designed and developed PMO facilitates the active participation and review of all parties. It can also serve as the repository for all project records, including correspondence, memos, reports (written or electronic), presentations of content, and any other documents describing and detailing the project. This information may become available to the public.

2.3.5 Project Management System

See Section 2.3.5 in the PMBOK® Guide—Third Edition.