Project Management System In Government: Institutions And Tools

Abstract

The article considers methodological aspects of project management formation in modern Russian economic policy. The demand for conceptual, methodological and empirical research in to areas of project management systems, project management systems formation, epistemological tools development, identifying beneficial effects of systems practices, were all justified by a number of reasons: 1) the need to analyze the evolution of project management rule formation in public policy; 2) the heuristic significance of creating monitoring models for the implementation of national projects at both federal and regional level; 3) the importance of active implementation of regional component road maps of national projects in the Russian Federation. The state administration of Russia aggregates organizational, regulatory, financial instruments, firstly, the implementation of new national plans, and secondly, the formation of mechanisms for complementing federal programs and national projects, or completely transforming components of federal programs and projects into national projects. The article defines the purpose and functions of the national project management system. Much attention is paid to the formation of a project-oriented approach in public management. Focusing the efforts of the public administration system on strengthening the economic growth of the Russian economy is currently creating conditions for the rapid adaptation of design technologies to the methods of public services. The risks of the implementation of a complex of national projects provided for by the Decree of the President of the Russian Federation “On National Goals and Strategic Goals of the Russian Federation for the Period Until 2024” are systematized.

Keywords: Institutional constraintsnational projectsproject management systemsregional components of Russian national projects

Introduction

Project management in the modern economic space is a system of regulatory and methodological foundations, tools, techniques and technologies that ensure the formation and implementation of business programs and plans of market subjects, authorities. The attention focused on project management mechanisms is due to the qualitative changes in the overall management environment of the national economic complexes, their increasing role in the public administration system and the problems of sustainable development across all Russian territories.

Currently, there is a slowdown in the growth of the Russian economy: from 5% in the mid-2000s to virtually zero by 2019. This circumstance stimulates the relevant stakeholders, state structures, the business sector, the scientific and expert community, to actively participate in overcoming the nationwide economic recession and enter a new stage of development.

  • During 2014-2019, a series of government acts were developed, formalizing the national institution of socio-economic strategic planning. The Presidential Decree of May 7, 2018 “On National Goals and Strategic Development Objectives of the Russian Federation for the period up to 2024” put forward central tasks, including: reaching world economic growth rates, stimulating innovative technological activity in non-primary sectors, increasing labor productivity, improvement of the investment climate in terms of both project quality and quantity, and, in general, facilitating the transition of the domestic economic model from “catching up” to “leading”

The Decree defines twelve areas of focus for national projects able to bring the Russian economy to a new level of development; (demography, education, labor productivity and employment support, health care, science, culture, housing and the urban environment, ecology, digital economy, safe and high-quality roads, small and medium entrepreneurship, and support for individual entrepreneurial initiative, international co-operation and export) (Official site of the Government of the Russian Federation. National projects, n.d.).

  • The methodological basis of the project management concept, based on the idea of balance and co-ordination of diverse business solutions, was supplemented in the first decades of the 21st century by methods and tools gained from experience in implementing national programs and projects in many countries of the world – for example, the USA, France, Germany, Great Britain, Japan, Canada, Australia, Thailand, Turkey. Using a project-oriented approach, the national economic systems ensure the achievement of high results, in the accomplishment of macroeconomic tasks, through the system completion of various areas of management

Russian scientists emphasize that the implementation of a new model of economic growth based on the implementation of national projects, is achievable if there are a number of factors: strong state institutions, transparency of methods and mechanisms for selecting projects, their control (Gurvich, 2019; Uskova & Lukin, 2016).

  • In the state administration of Russia, organizational, regulatory and financial instruments are aggregated through, firstly, the implementation of new national plans, and secondly, the formation of mechanisms for complementarity between federal programs and national projects or the transformation of all components of federal programs and projects into national projects

Problem Statement

2.1. This study is determined by the need to analyze the evolution of the laws of formation of public policy project management, the definition of the internal logic of its development in the coordinates of retrospective-historical generalization of the world practice of corporate management technology movement to their use in government institutions management effective practice, which gives the project management resources new functional qualities and opportunities in the development of effective national socio-economic systems. For modern Russian scientists, the importance of focusing public management efforts on supporting national economic growth is constantly emphasized (Tatarkin, 2016).

2.2. There is a heuristic significance for building monitoring models for national project implementation, across all levels of government.

2.3. It is necessary to draw road maps, firstly for the creation and implementation of regional components of national projects of the Russian Federation, secondly for the application of methods for forecasting regional economic development, thirdly to analyse national project implementation readiness by both stakeholders and municipalities (Gagarina, Dzyuba, Gubarev, & Fayzullin, 2017; Arkhipova, 2019).

Research Questions

  • What are the organizational and economic essence, principles and functions of the implementation management system for national projects?

  • What are the common and diverse features of state programs, national projects, federal projects?

  • What is the holistic framework (structure) of the national project implementation management system? Is there a relationship between the specifics of the management system structures of particular national projects and the nature of their underlying industries?

  • What macro-, meso-, and microeconomic risks of the Russian economy, accompany the formation and operation of a system for managing the implementation of national projects?

Purpose of the Study

Based on the theoretical analysis of the strategic documents of the Government of the Russian Federation devoted to development for the period up to 2025 and the existing practice of implementing government guidelines, determine the nature and functional areas of the management system for the implementation of national projects, as well as identify risks and institutional limitations for the effective implementation of national project plans.

Research Methods

The study is based on a system-functional approach, which allows constructive use of theoretical positions, scientific principles and conceptual positions, substantiated by leading scientists in the field of macroeconomics and regional economics, institutionalism, strategic planning, theories of strategizing and competitiveness.

The instrumental and methodological apparatus of research is formed in the context of the imperatives of the system-functional and institutional approaches. The methods of economic and comparative analysis were used, the empirical methods - indirect observation and qualitative description, the method of generalization and monographic survey.

5.1. The methodological basis was formed by economists in the field of project-oriented approach and strategic planning (Buchwald & Ivanov, 2017; Kudrin & Gurvich, 2014). Literature, reflecting the substantive aspects, conceptual approaches and practical feasibility of project management in public policy, can be classified by the following themes: 1) management theory, as an area of research, its conceptual and methodological foundations, instrumental and analytical apparatus and development logic. The scientific positions and conceptual statements of these scientists contributed to the formation of the epistemological foundations of management theory - the fundamental importance of separating ideas about management as the organizing start of business and state institutions, 2) the fundamental evolutionary-dynamic principles, strategies and paradigmatic directions of development of the project management concept; 3) scientific substantiation of instrumental and methodological algorithms of project management at the intra-economic level, the study of the interaction of state and business structures, and their inclusion in the management of institutions and commercial organizations; 4) issues of diagnosing the state of the project complexes of the activities of the constituent entities of the Russian Federation and stimulating the development of companies within regional economic systems.

5.2. The application of the historical method to the analysis of strategic planning documents in the Russian Federation in the second decade of the XXI century (Federal Law “On Strategic Planning in the Russian Federation” dated 06.28.2014 N 172-FL, Comprehensive Plan for Modernization and Expansion of the Main Infrastructure until 2024 (Comprehensive Plan) The Spatial Development Strategy of the Russian Federation for the period up to 2025 (order of the Government of the Russian Federation dated February 13, 201N 207-p) made it possible to trace the formation of institutions of state project management. The operational and methodological activities of state project offices (federal, constituent entities of the Russian Federation) are introduced and filled with the concepts of “project passport”, “national project targets” and others.

5.3. Empirical methods: indirect observation, qualitative description. Using the method of indirect observation, the essence of the system for managing the implementation of national projects and the method of qualitative description are defined – the goal and functions of the system for managing the implementation of national projects are summarized, the risks of the system for managing the implementation of national projects are structured.

5.4. Using the methods of analogy and comparative studies, it became possible to explore a little experience in project management in public management. Project management. Based on the universal method of analysis - synthesis - the combination of the selected features of the management system for the implementation of national projects into a single whole was made.

Findings

6.1 The program-target method, widespread in the economic policy of Russia at the turn of the 20-21 centuries, received in 2014-2019 its addition and transformation into a program-project approach in the form of national design in strategic economic, scientific, technological and social areas.

The full-scale implementation of project management in government began in 2016.

National projects are put forward in central government documents (The decree “On national goals and strategic objectives of the development of the Russian Federation for the period up to 2024” (07.05.2018), the Federal Law “On Strategic Planning in the Russian Federation” (June 2014), the Spatial Development Strategy of the Russian Federation for the period up to 2025 (February 2019) and others), provided with guidelines for their implementation.

6.2. The main objectives of the implementation of project management are: compliance of project goals with strategic development goals and directions; transparency, validity and timeliness of decisions at all levels of government; reasonable and efficient use of resources, including investment; ensuring conditions for achieving approved project objectives in a timely manner, at the required quality and within existing resource constraints; effective co-ordination of the activities of government bodies, project participants and other organizations, taking into account the priorities of the current tasks of the departments and tasks of the project activities.

The following organizational, monitoring and research procedures have been implemented for the management of national projects in the state administrative structures of Russia:

1) the interrelation of goals, indicators and results of national, federal and regional projects is ensured;

2) project activities are implemented primarily to optimize, or minimize the cost of, follow-up activities;

3) an assessment was made of the demand, as well as the cost and sources of financial support, for the maintenance of property objects created (acquired) in the framework of the implementation of national and federal projects;

4) project implementation is monitored on a regular basis, project implementation reports are reviewed at meetings of collegial bodies, and management decisions are made on the basis of monitoring data;

5) regular communications (meetings) on projects, including between the federal executive body and subjects of the Russian Federation, are organized, informational interaction is provided using information resources, contact information is communicated to the project participants;

6) organized “paperless document flow” between the project participants.

The emerging institute of national project management system contains two main parts: a subsystem for developing plans for national projects and a subsystem for managing the implementation of national projects.

6.3. The classification and cascading of projects within the framework of project management in government is structured as follows: National project is a project to be developed and implemented (in accordance with Presidential Decree 2018 No. 204; Federal project is a project that ensures the achievement of goals, targets and tasks of the national project; Regional project is a project that masters the goals, indicators and results of a federal project, whose activities fall within the statutory authority of the Russian entity Iisko Federation Departmental project - ensuring the achievement of the objectives and performance of the executive bodies at all levels. Departmental project is a project that ensures the achievement of goals and performance indicators of the executive authority at all levels. Also distinguish the Project in the subject of the Russian Federation - a project that ensures the achievement of goals and performance indicators of the subject of the Russian Federation. Municipal project - a project whose implementation relates to the tasks of local importance of municipalities located in the territory of the subject of the Russian Federation.

The economic and legal differences between the institute of national projects and the institute of state programs are investigated in the article by Buchwald and Ivanov (2017).

When introducing project management in government in Russia, foreign and Russian standards and effective practices are used.

6.4. The management of the system for the implementation of national projects is part of the management of national projects, organized on the basis of the method of end-to-end planning through the operation of a special complex of structures – Project Offices.

The principles of managing the system for the implementation of national projects include the following attitudes:

  • implementation in accordance with the coherence of national projects with the nature and mechanisms for the implementation of other Strategies, Concepts, macroeconomic development scenarios;

  • analysis of project results not only to achieve the final values stated in the draft target indicators, but also in their connection with the strategic objectives of current macroeconomic policies, as well as the real values of macroeconomic indicators in reporting periods (employment, investment activity, scientific and technological indicators ( the level of digital technologies introduced, etc.), the business climate, the level of income and pension coverage of households, quality of life and self-actualization, etc.).

Functions of the national project implementation system:

  • structuring general and tactical management mechanisms of the project, rational distribution of powers and responsibilities, drawing up regulations for management processes, coordination of project managers;

  • embedding target indicators of national projects in the system of strategic planning mechanism of the subjects of the Russian Federation;

  • the formation and use of the necessary amount of financial resources provided for specific projects, their optimization;

  • carrying out procedures for co-financing federal funds and funds of subjects, as well as interdepartmental financial control;

  • interaction of government bodies, business, expert community on monitoring the implementation of projects, updating project implementation plans, monitoring the final result of project implementation, its evaluation;

  • execution of project plans with the use (use) of a public-private partnership;

  • final evaluation of project results.

6.5. Experts and specialists in socio-economic forecasting expect positive economic growth at the level of 1.8% at the end of 2019 in Russia, including that obtained during the implementation of national projects (Gurvich, 2019). However, the implementation of national projects takes place in the context of a number of risks: systemic, institutional, and so on. Problems in managing the implementation of national projects can create the following risk groups:

1) systemic risks in the macroeconomics of Russia: a budget surplus, an imbalance of excess government savings and investments in the real economy; the projected decline in the working-age population, low unemployment; reduction of investment opportunities due to external sanction restrictions; nationalization of the economy (44% of the state sector), poor quality of institutions (Ivanter et al., 2007; Ketova, Kolesnikov, & Ovchinnikov, 2015);

2) the risks of the specifics of the economic policy of the Government of Russia. A number of scientists have expressed concerns in favor of the full and rapid implementation of national projects, since the plans of these projects do not take into account the issues of expanding industrial production, improving employment problems and improving the quality of life in rural areas (Bukhval'd & Voroshilov, 2018);

3) institutional risks include poor availability of high-quality personnel, including civil servants who possess the skills of a project-oriented approach in public management; risk overcoming, in particular, can be ensured, firstly, by applying the methodology for calculating key performance indicators (KPI) of officials - employees of the project offices in the constituent entities of the Russian Federation, and secondly, by stimulating regions with additional federal grants based on high KPI figures.

Conclusion

The use of adaptation forms and project management tools for managing state national projects, allows harmonized coordination, accelerating and enhancing projects effectiveness, and compliance with current state policy. The methodological principles of the concepts of, project management, strategic management, government regulation, etc., serve as grounds for the scientific position of the author of the article.

The application of project management methods and technologies in the practice of planning and implementing regional components of national projects ensures the optimization of government (administrative) decisions regarding the formation of resource and infrastructure components of projects, overcoming the lack of practical applicability of the regulatory framework of projects, reducing financial and commercial risks in general, strengthens the project management system.

The movement of the macroeconomic processes of the Russian Federation within the framework of the required model of advanced sustainable development depends largely on the actual experience of the implementation of national projects

When implementing state plans in the context of globalization and national changes in the second decade of the 21st century, there may be difficulties in managing projects that require extraordinary problem solving, concentration of financial and other resources.

References

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Publication Date

23 January 2020

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Future Academy

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Industry, industrial studies, project management, sustainability, business, innovation

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Zunde, V. V., Mezentseva, E. E., Bagratuni, K. Y., & Allen, C. G. (2020). Project Management System In Government: Institutions And Tools. In & I. O. Petrovna (Ed.), Project Management in the Regions of Russia, vol 77. European Proceedings of Social and Behavioural Sciences (pp. 237-244). Future Academy. https://doi.org/10.15405/epsbs.2019.12.05.28