Canadian Government Executive - Volume 22 - Issue 5

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throughout the lifecycle of the project
to ensure that progress is appropriately
monitored?
PMI encourages the Canadian federal gov-
ernment to invest in a holistic project man-
agement framework for its infrastructure
strategy, especially with attributable results
of GDP “up-tick” at stake. A strong project
management framework will serve to align
the infrastructure project portfolio with stra-
tegic objectives, provide the means to mea-
sure outcomes, and increase transparency
of benefits and results obtained. Adopting
a proven project management framework
will also significantly decrease the opportu-
nity for project overrun and will increase the
likelihood that the infrastructure projects are
completed on time and within budget.
As the practice of project management
continues to mature, the connections be-
tween project management and bottom-
line results become more evident. With the
right resources, a clear timeframe for deliv-
ery and senior leadership support, strong
and disciplined project management prac-
tices will drive any project forward.
Leading organizations across sectors and
geographic borders have been steadily em-
bracing project management more strate-
gically as a means to control spending and
improve project outcomes. With significant
taxpayers’ dollars being used to move the
Canadian economy forward, the federal
government has the opportunity to realize
project success by embracing a culture that
strategically utilizes the benefits of an ef-
fective project management framework to
its advantage.
Craig Killough,
Vice President,
Organization Markets,
Project Management
Institute (PMI).
Special Report
In March, the Liberal government an-
nounced its first annual budget since
winning the 2015 federal election. As
was anticipated, the government im-
plemented a plan to invest approximately
$125 billion in infrastructure over the next
ten years, a focal point of the Liberals’ 2015
campaign platform. Phase one of this plan
aims to spend $11.9 billion on infrastructure
over the next two years.
According to the Financial Post, the fed-
eral government claims that its new two-
phase infrastructure spending program will
boost Canada’s GDP by 0.2 per cent this
year and 0.4 per cent next year. The gov-
ernment will then roll out more than $7 bil-
lion in infrastructure spending in the next
fiscal year. That will combine with other
measures announced in the budget to con-
tribute 1.0 per cent to GDP.
In his budget speech to the House of
Commons, Finance Minister Bill Morneau
claimed that for every dollar a government
spends on infrastructure, more than a dol-
lar of economic activity is generated. So
what is the downside of the plan?
In theory, the infrastructure spending
program is a win for Canada’s economy,
which is in dire need of a kick start. Invest-
ing in infrastructure creates good, strong-
paying jobs that can help the middle class
grow. By making it easier to move people
and products, well-planned infrastructure
can deliver sustained economic growth for
years to come.
However, it’s not as simple as it sounds.
Simply spending significant amounts of
money on infrastructure and in the process,
creating job growth, does not necessarily
mean that the projects being undertaken
will be managed in the most effective and
efficient manner. South of the border, in
Boston, that lesson was learned the hard
way. The city’s central artery/tunnel project
— more commonly known as the “Big Dig”
— was a megaproject aimed at rerouting
Boston’s Interstate 93, a chief highway that
ran through the heart of the city.
After starting construction on the US$14.8
billion project in 1991, the project, one of the
costliest United States highway projects
ever, was finally completed in 2007 — nine
years after it was supposed to be finished.
The Need for Effective Project Management
More Crucial than Ever for Federal Government
New Federal Budget Includes Heavy Focus on Infrastructure Projects to Spur Economy
By Craig Killough, Vice President, Organization Markets, PMI
Visit
to download the reports.
Unfortunately, the project created years
of tunnel leaks and epic traffic jams — all
while overrunning its original budget of
US$2.6 billion.
The project cost the city billions of dol-
lars, and caused Boston and its surrounding
regions to experience a drought of capital
funding. With the effects of the Big Dig still
casting a long shadow over the city — and
with a new wave of major infrastructure
projects now underway in Boston — proj-
ect sponsors and practitioners in the city
are determined to plan smartly and avoid
the mistakes that turned the Big Dig into a
huge debacle.
But Boston is not alone. Throughout the
world many well-intentioned infrastruc-
ture projects inevitably see considerable
overruns in budget, scheduling and scope
creeps. How substantial is the problem?
Project Management Institute (PMI) re-
search reveals that, globally, organizations
waste an average of $122 million for every
$1 billion spent on projects.
As the famous quote goes, those who do
not learn from history are doomed to re-
peat it. If the federal government does not
position itself for project success, billions in
Canadian taxpayer funds are at stake. Key
for the federal government and its numer-
ous infrastructure project partners will be
the establishment of a comprehensive proj-
ect management framework that is aligned
with and delivers on the government’s in-
frastructure strategy. There are a number
of key issues that should be considered and
questions that should be asked towards
ensuring the development of an effective
project management framework:
1. Talent Management – Is the competency
of the project’s managers aligned with
the complexity of the projects and do
project managers have the right mix of
technical project management, leader-
ship and strategic and business man-
agement skills?
2. Do the projects being undertaken have
actively engaged project sponsors who
fully understand their roles and respon-
sibilities?
3. Are procedures in place to identify proj-
ect benefits before the start of the proj-
ect, and then manage those benefits
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