DEVELOPMENT OF THE UKRAINIAN PROJECT MANAGEMENT CAPACITY

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1 DEVELOPMENT OF THE UKRAINIAN PROJECT MANAGEMENT CAPACITY Sergey D. Bushuyev Dr.Sc., Professor President of Ukrainian Project Management Association 31, Povitroflotsky pr., Kiev, Ukraine tel./fax (38044) , Web: Globalisation & Project Management Stream Short biography Sergey D. Bushuyev Dr.Sc., professor, head of Project Management Char of Kiev National University of Construction and Architecture and President of Ukrainian Project Management Association. Born in 1947 in Ukraine. In 1970 finished with award Kiev National University of Construction and Architecture. In 1974 defended PhD and in Dr.Sc. dissertations. He is author more then 200 science articles and 12 books in Project Management. From World Bank projects director and consultant. Member of Certification Validation Board of IPMA. Abstract In report will be considering the problem of development of the national project management capacity, based on International and Ukrainian experience. The development process of national project management capacity are going under influence of global unification knowledge, certification of competency of project managers, development of international business using project management tools and techniques into new INTERNET world. Will be presented method of evaluation national project management capacity index, based on the estimation of composition of different national development parameters (like: relation between quantity of projects and professional project managers, average project cost for one project manager and so on). As the result of evaluation we will consider international database and INERTNET presentation of national capacity for preparation of national development strategy, procurement of consultant etc. Introduction Today governments around the world have very much influence (and responsibility) related to programs and projects. This is certainly true of public-funded projects, such as defense, education, health and infrastructure. For this reason, it is of prime importance that the project management (PM) profession reach out to government everywhere, or at least establish linkages to significant agencies, in the name of advancing professionalism (or professional) PM in the public sector. Another key issue is the relationship of the PM profession to the economy. Some PM experts argue that PM is most dramatically needed in crisis, in developing economies, and for turnaround situations. Absolute highest productivity is often required. Broad stakeholder understanding and inclusion in project planning is needed in these environments. But huge problems are presented, especially to the PM profession itself. These issues are all now exhibited in the Ukrainian nation, which have undergone recent economic crisis. In this case, we need easy answer to such questions: What is the impact on the PM profession in development process? What are the opportunities and challenges? What should be done in development PM profession? One important consideration is that many of the local companies can no longer afford expatriate professionals, training or association memberships, etc. Everything must be local and localized, in the local currency. Project management profession transfer must occur. We need to begin to develop models, which show the relationship of PM profession (and professional organizations) to government, industry, economics, research and education, on local, national and global basis. Strategy of Development of Project Management Capacity The boundaries of developing societies can be constructed according to different criteria. By applying a functional differentiation as primary differentiation criterion for the construction of societies, subsystems, like economy, science, education, politics, law, art, religion can be defined. These subsystems can be differentiated from each other, by the assignment of communications to them, according to leading differences, so called

2 binary codes. The binary code e.g. for the economic subsystem is payment/not payment, for the science subsystem it is true/not true. Finding effective development strategy of PM profession in society is very difficult task. Decision of this task need to involve international effort. For this aim we used Delphi panel method. Goals of Delphi panel are: find out of expected results of development of PM capabilities; create effective step-by-step procedure of development PM capacity on the National level; develop opportunities for future project oriented society. The questionnaire of the Delphi panel has the next chapters: Goals of PM profession development; Stakeholders of development PM profession; View on the National level; International view; Important parameters for development PM capabilities; Structure of development PM capabilities step-by-step procedure. Results of Delphi panel are: Construction of the model of the development PM profession and definition of possible boundaries for societies (nations, regions). Development of metrics to describe and to measure the development PM profession and competence of a society. Definition of restrictions and potentials for co-operation between societies with different PMcompetencies. Development of strategies and of instruments for the PM-knowledge transfer. Development PM profession model and procedure Important characteristics of developing social systems are their complexity, self-reference and dynamics. The complexity of social systems depends on the extent of their differentiation in subsystems. This differentiation leads on the one hand side to a high extent of interrelationships and on the other hand side to the fact, that not all elements of a system can be connected with each other. Modern level of Project management development and experience has highly influence into international projects, where understanding project managers in team is very important to achieve project expected results. In this case, project implementation system (for instance: World Bank procurement and disbursement rules) stimulate different transfer speed of knowledge and skills managers from different country. Development of project management capacity and capabilities gives us challenges and opportunities: to recognize and accept PM profession on the State level; to create effective national and international project managers team and consultants of projects; to organize of preparation of project managers in height educational establishments, involve international professional certification system (like IPMA certification, PMP PMI, ets.); to analysis of dynamic of project management development into each country and estimate influence of competence project managers to effectiveness of project implementation; to provide analytical research of project management development dynamic - existing and critical mass of PM for country. Development of Ukrainian PM capabilities example Preparation of Ukrainian project Management capacity started form At the first step, have been trained more then 60 trainers. They passed the full course of preparation by the program of World Bank and the number (more then 2000) of specialists, passed the Ukrainian training program in At our estimation the critical mass into Ukraine until year 2001 of: professional project managers, worked in teams, is near persons (like project managers professional, level D of IPMA Certification ); professional project leaders are near persons (like level C,B of IPMA Certification or PMP PMI). Most important part of this program connects with next common problems for transition economy country.

3 Define main direction of using of project management capacity in development projects. Preparations of Project Management professionals and teams for National development projects. Transfer of project management standards form best International Project oriented Companies to local companies. Prognoses of influence of deviation of project management culture to implementation key National development projects. Development National projects procurement legislation, competence and strategy. Support of effective national consulting services in project management. Step-by-step procedure for Development of National Project Management Education Capabilities into Ukraine are: 1. Including Project Management as the profession into State Directory of Profession (four main names according 4 levels IPMA Certification of PM positions are included). 2. Preparation of professional project managers critical mass for implementation Key National development projects. 3. Development National Standard of Project Management Education in Ukrainian. 4. Implementation of Project Management Education for MS and PhD program in seven Ukrainian Universities. 5. Preparation and publication the best foreign textbooks and training materials in project management. 6. Preparation and publication the English- Ukrainian- Russian Vocabulary, PMBOK, ICB, NCB and Glossary of project management. 7. Creation of Ukrainian professional Certification System in project management, based in IPMA and PMI rules. 8. Benchmarking in project management IT and Multi Media- systems for computer training. 9. Development of regional capacity (project management departments) for the professional support of investment processes in regions. The specific competencies of National Project Management Education Capabilities can be measured by applying the concept of organizational maturity. According to maturity models a scale with four steps (not defined, partly defined, defined, and standardized) can be used, to measure the maturity of an organization. Here this scale is applied, to measure the competence. In order to define competence points at the scale, the ideal PM competencies for performing the specific processes have to be described: The project management competence can be described as the capability to manage projects professionally, by applying best practices regarding the project management process and the project management methods. The project portfolio management competence of a society can be described as the capability to manage project portfolios professionally, by applying best practices regarding the project portfolio management process and methods. The programme management competence can be described as the capability to manage programmes professionally, by applying best practices regarding the programme management process and the programme management methods. The competence to develop project personal is the capability to develop project personal, i.e. not just project managers, but also project owners and project team members, professionally. It is assumed that the personal development process takes place after the process of formal education at schools and universities. The competence for organizational development is the capability, to promote and to perform continuous organizational learning, by applying best practices regarding the development process and methods. The PM-marketing competence is the capability, to market project management as a profession and to communicate the benefits of project-, programme-, and project portfolio-management professionally. The PM-research competence can be defined as the capability to perform research in the areas of project-, programme-, and project portfoilo-management professionally, by applying best practices regarding the research process and the research methods. The PM-standardization competence is the capabilities to establish appropriate regulations, norms, and procedures for the professional management of projects, programmes, and project portfolios. The competence for the transfer of PM-know how is the capability, to transfer PM-know how professionally to another society, possibly in cooperation with other societies, by applying best practices regarding the transfer process and methods. Evaluation model of Ukrainian Project Management Capacity

4 Modern level of Project management development and experience has highly influence into international projects, where understanding project managers in team is very important to achieve project expected results. In this case, project implementation system (for instance: World Bank procurement and disbursement rules) stimulate different transfer speed of knowledge and skills managers from different country. We have deal with transfer process of project management competency. This process stimulates leveling knowledge and skills of team members. In this process local managers take more and more power under the project. But large differences in salary between local and foreign managers stimulate different conflicts into project team. Global evaluation of project management capacity for different countries gives us challenges and opportunities: to create effective international project managers team and consultants of project, make the prognoses of development this teams and members, evaluate level of potential conflict, stimulate decision of this conflicts; to organize of preparation of project managers in height educational establishments, involve international professional certification system; to analysis of dynamic of project management development into each country and estimate influence of competence project managers to effectiveness of project implementation; to plan dynamic leaderships strategy into large international projects; to provide analytical research of project management development dynamic - existing of critical mass of PM for country. There are such indicators: 1. Index of legal environment of project management activities. 2. Indexes of average level of project managers competence in the country and in the specific branches. 3. Indexes of main market mechanism development - procurement, financial and stock market. 4. Index of privatisation in the country and into the different branches (only for transition economy country). 5. Index of investment attractiveness. Creation of indexes system and their monitoring are allowed to develop the number of simple analytical models, estimated the common level of country and development different branches at the point of view of project management professional environment development. Evaluation model of country PM capacity could be as the part of National Project Office (like as Ukrainian Pilot Project Management Office of Ukrainian Project Management Association). In this case, each national team will be responsible for technical support and updating of National data and rule base using international and national simulation rules for evaluation PM capacity into certain condition. Interesting approach for evaluation model, concern with using project management IT for simulation. For this purposes, could be useful complex of next models: WBS> Network model> Rule oriented knowledge base. In this case we have some advantages: We use same project management IT. This IT is flexible and could be easy oriented on the national specific part of simulation model. Modern project management IT includes INTERNET support for globalization model. As the example of such model, is using for simulation P3 - Primavera Project Planner with WEBSTER for Primavera. WBS has 4 or more levels. For instance: WBS of evaluation model 1 Project of Evaluation National PM Capacity 1.1 Country Ukraine Kind if project (industry, education, etc) Size of Project PM Function (Procurement, Monitoring, etc) Network model, in this case, could be present by layout according activity of team members. It could be only 2 parallel activity for local and foreign managers - team members.

5 For simulation evaluation PM capacity rules, we can use GLOBAL CHANGE option of P3. For example: If Function = Procurement Then NInd = 0.5 Else NInd = 0.3 If Size = Large Then NInd = NInd * 0.6 Else NInd = NInd* 1.2 If Kind = Education Then NInd = NInd * 1.8 Where: NInd is National PM Index. Conclusions Development of National PM capacity is important issue of globalisation and development of project management profession of the next century. Step-by-step procedure in development different PM capabilities takes us opportunity to effectively promote PM profession on the way to Project Management Society Global Evaluation of PM capacity is important component of development of professional project management. The evaluation model should be easy on international level and precisely simulate national specific. Project management IT and simulation tools could be useful for preparation of Global network for evaluation PM capacity.