Root cause analysis of project gate review failures when evaluated against a project lifecycle process methodology. (A Transnet Capital Projects Case Study)
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Date
2016
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Abstract
Abstract
Many organisations are integrating project management as a best practice for building core
competencies in the manner in which they manage and operate their businesses. Projects are
initiated out of a strategic necessity, in the quest to capitalise on opportunity to advance
profitability or to increase market share by providing a new value proposition. These
initiatives require the investment of capital and hence it is imperative to evaluate the
feasibility and sustainability of the investment before committing substantial expenditure to
the project initiatives. Transnet, a state owned enterprise, embraced the project management
philosophy in the management of the delivery of their capital investment infrastructure
programme. Transnet developed a generic standardised Project Management Process
Methodology (PLP) based on industry best practice as implemented on project phases,
divided and controlled by sequences of stage gate evaluations. The company is currently
experiencing a major conundrum since the inception of the PLP stage gate review
methodology, in which many of the capital projects that have been evaluated against this
criterion have failed. The study was undertaken to gain an understanding of the root causes
and factors influencing project gate review failures through an exploratory mixed qualitative
and quantitative methodology. The target population was project managers and engineers
who are the users of the PLP methodology in which data was collected through interviews
and a survey research instrument. The main conclusions are that the PLP methodology lacks
support in the form of training, provision of sample documentation, standard templates and
guidelines on how to prepare project deliverables. The gate review panel members are
inconsistent in rigour, objectivity and lack competence to undertake reviews. A large
proportion of the project managers and engineers (approximately 36% on average) are not
competent and have a low maturity level in successfully managing large infrastructure
projects. The study also attributed low quality, insufficient and incomplete business cases,
project execution plans, owner’s requirement specifications, risk management plans and
operational readiness plans as possible causes of gate review failures. Recommendations in
the form of a project management academy which focusses on training and other
development initiatives for gate review panel members and project management resources
are proposed together with process and procedure reengineering. In doing so, project
management processes can be improved and skills competency levels be uplifted, resulting
in a lower gate review failure rate. Scope for further research in examining the role of a
Project Management Office (PMO), the use of organisational project management maturity
model (OPM3) and extending the study to include other industries is proposed.
Description
Master’s Degree. University of KwaZulu-Natal, Durban.