Document Information Document Name: Aim: Evaluate the Transport Improvements Case Study and propose a solution.

Prioritise the steps to be taken in your approach, be systematic and motivate your assertions. Student Name: ID Number: Declaration: Donovan Jansen van Vuuren 7603315045082 I hereby declare that this assignment is entirely my own work, and that it has not previously been submitted to any other Higher Education Institution. I also declare that all published and unpublished sources have been fully acknowledged and properly referenced. This includes figures, tables and exhibits. Where modified by me, this has also been indicated. Signed:__________________________________________________ Print Name and Surname:___________________________________ Date:____________________________________________________ Individual Examination - Transportation Improvements Case Study

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Executive Summary Economic Development refers to progress towards economic goals, such as increased employment, income, productivity and tax revenues. This paper introduces the criteria and prioritisation process when selecting the Transport Improvement projects that JR the supervisor for the transport department should introduce at the commissioners budget meeting. The approach in this paper demonstrates the opportunity for the evaluation criteria and selection process to be aligned to the new Senates idea of maximising economic development benefits in Polk County. Polk County is the largest, most sparsely populated and poor county in the state. The commissioners should be looking at ways of finding economic development initiatives for the County. This will result in developed growth and an increase in tax revenue that will allow Polk County to fund continuous improvement projects, such as the transport improvements needs. Unfortunately there is no planning, leadership or support from the state, therefore Polk County has no strategy or vision that will allow the County to measure projects value against benefits of strategic importance. Because of this problem, JR and Zackary is presented with a challenge in convincing the commissioners at the budget meeting that the Transport Improvement projects should be funded to proceed.

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Table of Contents Executive Summary Table of Contents

1 2 3 4 Problems and causes identified in the Transportation Improvements case ................................................... 4 Recommendations .......................................................................................................................................... 7 Conclusion ..................................................................................................................................................... 17 Bibliography................................................................................................................................................... 18

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Problems and causes identified in the Transportation Improvements case

The problems presented in this paper are based on the findings, study and assumptions of the Transportation Improvements case study in the 5th edition of effective project management authors James P. Clements and Jack Gido. Following an in depth analysis of the case study, the researcher has identified several problems. The problems are: 1.1) No comprehensible strategy or vision for Polk County

The three transport improvement projects for Polk County must have clear objectives and be considered as the foundation necessary to achieve a larger strategic vision for Polk County. The three critical Transport Improvement projects must identify needs that can be aligned to complete the bigger-picture strategies for Polk County. Stephen G. Haines, describes in his book The Managers Pocket Guide to Strategic and Business Planning (May1999 page 8) the importance as The concept of an ideal-future vision is the starting point for a systems thinking strategic management process that helps clarify and implement tough choices. It focuses the organization and its core strategies on satisfying the customer The assumption in this case study is that the customers are the citizens of Polk County. Cause: The motivation for this assertion is that it clearly states that the new Senate is more focused on economic development than transportation. However, transport improvement planning and projects tend to support economic development. David Banister and Joseph Berechman, authors of the book, Transport Investment and Economic Development (2000, Chapter 12 page 318) explains that transport infrastructure investment acts as a complement to other more important underlying conditions, which must also be met if further economic development is to take place. The assumption is that the new Senate has a strategy on how to develop Polk Countys economy. The case study mentions no strategy or vision for the County and therefore one can assume that the commissioners do not know the goals and key objectives that the new Senate must implement to achieve economic growth for Polk County that can be aligned to the new Senates strategy for Economic Development. 1.2) No allocated sponsor for the Transport Improvement projects

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Authors James P. Clements and Jack Gido, Effective Project Management (2012:05) explains that a project has a sponsor or customer. The sponsor/customer is the entity that provides the funds necessary to accomplish the project Cause: The project funding should have begun in the earliest stages of budgeting and project planning for Polk County. Without funding, there is no project. It is unfortunate that Polk County is poor and that there is not much funds available. The County is also experiencing an increase in unemployment. Increasing taxes is not possible because a high percentage of the people living in Polk County are older than 65, retired and unemployed. The assumption is that the majority of citizens living in Polk County are living on social benefits. 1.3) Lack of strategic planning in Polk County

Cause: It is evident in the case study that JR, the supervisor, has identified the Transport Improvement projects as key needs. These critical Transport Improvement projects were not initiated from Polk Countys strategic planning, however they have originated from poor planning, maintaining the roads and the lack of funds, i.e. most of the transport departments funds are spent on clearing the snow and then salting the roads. In addition, the last time a budget planning meeting was held for the transport department, was 5 years ago. It is not evident from the case study whether the Transport Improvement projects will be providing benefits of strategic importance. Authors James P. Clements and Jack Gido, Effective Project Management (2012:32) states The initiating phase of the project life cycle starts with recognising a need, problem or opportunity for which a project or projects are identified in various ways: during an organisations strategic planning, as part of its normal business operations, in response to unexpected events or as a result of a group of individuals deciding to organise a project to address a particular need. 1.4) Dysfunctional organisational chart

Cause: Joe Schmoose, the previous senator, was heading up the transport department. Unfortunately when Joe Schmooze passed away, he was not replaced and the assumption is that the department in the last 5 years has been managed by a supervisor, JR. The assumption is that JR did not have the authority to ensure that the transport department has allocated budget for maintenance and continuous improvements, such as the Transport Improvement projects indicated in the case study. Following research on Americas top counties organisational charts, an example from Citrus Countys (based in Florida) organisational chart clearly indicates a functional organisational chart. http://www.citruscountyfl.org/commissioners/commissioners.htm. Citrus Countys organisational chart is outlined as image 1a below.

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The assumption is that Polk County does not have a functional organisation chart because the county has someone overseeing road maintenance and someone overseeing transportation services and improvements (see above image 1a). Each of these departments would have been allocated the necessary budget from the state. 1.5) There is a lack of leadership within Polk County

It is evident that none of the commissioners are taking responsibility for leadership. The commissioners are often in conflict at the commissioners meetings, in particular when key decisions must be made for Polk County. Cause: There can be many reasons why nobody is assuming the role of a leader. From the case study it is clear that the commissioners are retired. The assumption is they do not get paid much for been commissioners and in addition Commissioner Richardson still has to execute his day job. After researching and referring back to the organisational chart of

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, Citrus County (Image 1a), the researcher found that there is no chairman present at the commissioner meetings. A Chairman will take the lead in ensuring that decisions are made at the commissioner meetings. The chairman will focus on governing, maintaining ethical standards and build the commissioners into an effective, high performing team capable of fulfilling their responsibilities, including strategic planning and succession planning for Polk County. In addition, when it comes to deciding and prioritising the three Transport Improvements projects, a chairman will also ensure there are no biased decisions from the commissioners in the selection of the projects to fulfil their personal capacity, i.e. commissioner Harold will most likely be more in favour of the County Road 1045 project because his daughter travels over the bridge to work every day and there is a risk of the bridge collapsing when she drives over it; and commissioner Thomas will most likely be more in favour of the Big Johns Superstore project because his wife works at the store and she could can be seriously injured when entering or leaving the store. 2 Recommendations

The recommendations presented in this section are based on the problems identified in section 1. 2.1_ Identify a chairman: The first recommendation is to assign an independent chairman to the board of commissioners. The chairman will head all the commissioner meetings of the Board of County Commissioners. The chairmans responsibilities shall include, but not be limited to: Opening the meeting at the prearranged time; Following the agenda and announce the business to come before the Board of County Commissioners; Preserving good behaviour and order; in case of disturbance or disorderly conduct in the Commission Chambers, any disruptive commissioner or individual can be removed; Expediting business in every way compatible with the rights of the Board; Remaining objective. While the chairman must remain objective, the chairman may make motions, second motions and debate subjects only to such limitations of debate as are enforced by this Resolution on all Commissioners, and shall not be

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deprived of any of the rights and privileges granted to a commissioner simply by virtue of being chairman; Declaring all votes and announcing the decision of the Board on all matters presented before it; Declaring the meeting adjourned at the conclusion of the agenda.

2.2)

Develop a strategy that is aligned to Economic Development:

The next recommendation is to develop a strategy and vision that is aligned to the new Senates Economic Development plan for Polk County. This will allow Polk County to partake in projects that will improve transportation projects and provide benefits of strategic importance. The Transport Improvement projects will have the biggest impact on Polk Countys citizens, the shops, and the environment. The U.S Department of Transportation published an article called A Publication of the Transportation Planning and Capacity Building Program (September /2009) explaining the importance of planning. Transportation helps shape an areas economic health and quality of life. Not only does the transportation system provide for the mobility of people and goods, it also influences patterns of growth and economic activity by providing access to land. The performance of the system affects public policy concerns like air quality, environmental resource consumption, social equity, land use, urban growth, economic development, safety, and security. Transportation planning recognizes the critical links between transportation and other societal goals. The planning process is more than merely listing highway and transit capital projects. It requires developing strategies for operating, managing, maintaining, and financing the areas transportation system in such a way as to advance the areas long-term goals. 2.3) Evaluate the three projects following a project selection process:

Authors James P. Clements and Jack Gido, Effective Project Management Project Selection (2012:33) states project selection involves evaluating potential projects, and then deciding which of these should move forward to be implemented. There will be four key steps in the project selection process: Develop a set of criteria according to which the projects will be evaluated; List assumptions that will be used for each of the three projects; Gather information for each of the projects; Analyse the risks; Evaluate each project against the criteria; Prioritise each project.

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I.

Develop a set of criteria against which the projects will be evaluated in the project selection process is to develop a set of criteria against the opportunities that will be evaluated. Authors James P. Clements and Jack Gido, Effective Project Management Project Selection (2012:33) states Develop a set of criteria against which the project will be evaluated. These criteria will probably include both quantitative and qualitative factors. Since Zackary has a personal connection to the three Transport Improvement projects, it is important that for this step a third party consultancy company is approached and works in conjunction with JR. The third party consultancy company will have the knowledge and expertise to assist Zackary, who currently has no real-life work experience. The third party company will make sure that the selection and ranking criteria is consistent between the three critical Transport Improvement projects and that these projects are to the overall greatest benefit of the citizens of Polk County and are aligned to Polk Countys goals, objectives and economic development strategy, as discussed in 2.2. Ulster County Transportation Council published an article called Project Evaluation Criteria (July/2006 416). The criteria that was used and aligned to five key goals were:

Budget; Transportation improvements efficiency; Community and environmental impact; Economic development; Risk.

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Table 1a Goals Budget Criteria Funding availability and commitment (State/Polk County) Transportation improvement efficiency Community and environmental impact Economic development Risk Lowest project risk 1 is Low 5 is High Job creation Job retention 1 is Low 5 is High 1 is Low 5 is High Minimal environmental impact Greatest public support 1 is Low 5 is High 1 is Low 5 is High Provides long term reducing of traffic congestion Eliminates possible fatal accident Improves travel safety 1 is Low 5 is High 1 is Low 5 is High 1 is Low 5 is High Score 1 is Low 5 is High

II.

List the assumptions that will be used for each of the three projects: a) Financing from other Polk County departments budget, the state of Iowa and other sources can be available in time for the project or projects proceed; b) The Polk Countys citizens accepts the approved project; c) There are clear objectives, goals and strategy that these projects can be evaluated against; d) Polk County have the skills and expertise to manage these projects locally and if not the state will provide the skills and knowledge; e) No industrial action will be taken that will affect the project; f) An independent chairman has been appointed; g) There are funds available for consultancy purposes.

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III.

Gather information for each of the three projects: For this step a straightforward business case has been used that the company Tullow Oil Plc has adopted. Entrance to Big Johns superstore What is the basic summary or idea The idea is to widen the road to add a turning lane or to install a traffic light. What value does this idea create or what problem does it solve? It is a two lane highway at the base of the hill and implementing this idea will make it easier for cars turning left into the stores parking lot and for those pulling out of the parking lot; The number of cars travelling on the road has increased over the last three years since the store has opened and providing the store stays open, this idea will cater for an increase in the number of cars visiting the store. What makes this idea important to implement now? It is difficult for cars travelling in one direction to see cars travelling in the opposite direction until they come over the crest (hill). What specifically wants to be achieved by implementing this idea? Eliminate fatal car accident or death. Budget considerations No budget or funds has been allocated for this project; Commissioners are not willing to raise taxes for this project; Big Johns Superstore will not fund the project because it already provides a considerable amount of funds to the community and charities; The project may obtain funds from other departments budget. Risks (Authors James P. Clements and Jack Gido, Effective Project Management (2012:272) explains risks. Assessing each risk involves determining that the risk event will occur and the degree of impact the event will have on the project objective. This is the only shopping mall in Polk County. The construction works can cause a decline in shoppers; At present the store is only just making a profit and if it loses shoppers it may have to close down; Charities will also suffer as a result of the store closing; Polk Countys citizens might not support this project because the construction will have an impact on their grocery shopping; Long and tough winters might have an impact on the schedule.

a) Elk Mountain road What is the basic summary or idea

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The basic idea for this project is to widen and repair Elk Mountain road in the northwest part of the county. What value does this idea create or what problem does it solve? The winters have left the road with large deep potholes; Can eliminate fatal car accident or death; Job retention for the independent loggers; Increase in tourism for visitors wanting to fish and hunt; Job creation: Increase in tourism and independent loggers; The sawmills will gain an increase in staff because of the increase in independent loggers. What makes this idea important to implement now? The increase in unemployment in the County has led to an increase in independent loggers using the road to bring logs from Elk Mountain to several sawmills; The lack of repair over the years and heavy trucks are causing the road to deteriorate even faster. What specifically wants to be achieved by implementing this idea? Eliminate fatal car accident or death. Budget considerations No budget or funding has been allocated for this project; Commissioners are not willing to raise taxes for this project. Risks: Environmental impact from increased independent loggers; Summer is approaching, which means the hunting and fishing season will commence. Implementing this project will have an impact on tourism. Long and tough winters might have an impact on the schedule.

b) County Road 1045 What is the basic summary or idea Repair or replace a bridge close to the prison over Crockett Creek because it barely passed an inspection by the state four years ago and is about to be washed away. What value does this idea create or what problem does it solve? If the bridge is repaired or replaced it will mean that the people working at the prison do not have to drive an extra 15 miles to get to work. What makes this idea important to implement now? Each spring, during the winter thaw, Crockett Creek threatens to wash the bridge away. What specifically wants to be achieved by implementing this idea? Eliminate fatal car accident or death. Budget considerations No budget or funding has been allocated for this project; Commissioners are not willing to raise taxes for this project; The project may obtain funds from other departments budget;

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If the bridge is washed away before the project commences, the state might fund the project. Risks: It is a main road to the state correctional institution in the south-western part of the County, Long and tough winters might have an impact on the schedule. IV. Analysing the risks

For this step, a straightforward risk assessment matrix has been used that company Tullow Oil Plc has adopted. In completing the Risks identified in the section III, JR, Zackary and 3rd party consultant should follow the below approach: Assessment of impact, probability and risk rating The risks should be assessed and given a risk rating for each of the Transport Improvement projects; Assessments should consider: The impact on the project and the County should the risk materialise (High=3, Medium=2, Low=1); The probability that the risk will materialise, (High=3, Medium=2, Low=1); The risk rating for each risk is then calculated by multiplying the impact rating with the probability rating; Example: HIGH 3 x MEDIUM 2 = risk rating of 6. The risks should be plotted against the risk matrix, example below with risk plotted on matrix.

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 The overall project risk is determined by identifying where the majority of the risks falls on the risk matrix, e.g. if 3 risks fall in the high area of the matrix and 2 fall under the medium area, then the project is categorised as a HIGH risk project (see diagram above)

V.

Evaluate each project against the criteria. It is important to note that this step should be executed at the commissioners budget meeting. The people who should be invited are the new Senate, JR, Zackary, the new chairman (assuming a chairman is now selected), third party consultants who assisted Zackary, engineers (who have different backgrounds and experiences) and if possible key citizens of Polk County who can assist in the decision making process. The selection process will be approached by evaluating each project according to the evaluation criteria using table 1a and the information gathered for each project. It is important that the group concur on the project that is selected. Authors James P. Clements and Jack Gido, Effective Project Management (2012:35) explains that although it may take longer and be more stressful to gain group consensus on project priorities and selection, it will most likely be a better quality decision than if the decision is made by just one individual. Acceptance of the decision will also be greater.

VI.

Prioritising the three Transport Improvement projects

It is important that Zackary, JR and the third party consultant develop a clear understanding of the project requirements discussed in I, II, III, IV and then prioritise and rank the three critical Transport Improvement projects relative to the pre-defined criteria. This will help the new chairman (assuming a chairman is now selected) facilitate the budget meeting so that the commissioners, key citizens of Polk County and the new Senate comprehend the most important goals and in what order to develop them to meet the benefits of strategic importance aligned to the new strategy discussed in section 2.2 in this report. Dennis Comninos and Enzo Frigenti, authors in the book The practice of Project Management (2002 page 103) describes the importance of this process: The project selection and prioritization process is principally a method for assessing the relative merits of potential projects and ranking them against predetermined and weighted factors. The objective is to help upper management maximize the benefits that projects bring to the organizations business performance, and to make well-informed decisions on the allocation of limited resources. For this step a straightforward prioritisation process has been applied that the company Tullow Oil Plc has adopted. The company uses two models called the Obeng and Risk/Value Category,

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which are explained below.

Obeng: One way for the team at the commissioners budget meeting to understand the uncertainty and difficulty in analysing the three critical Transport Improvement projects is for them to understand what to do and how to do it and more importantly, know what kind of skills, techniques and expectations can be deployed. They should ask two important questions as follows: Are they clear about what to do i.e. the final end result to be accomplished? Do they know how to do it i.e. local talent, experience, procedures, methods and processes? Dennis Comninos and Enzo Frigenti, Authors in the book the practice of Project Management (2002 page 103) describes the Obeng theory as follows Obeng identifies the four corresponding types of projects as Fog, Movie, Quest, and Painting by Numbers: Fog-Type projects can be described as walking in thick but uneven fog. On these projects, the project participant and stakeholders are not sure what is to be achieved or how it is to be carried out; Movie-Type projects are projects where participants and stakeholders have a high degree of certainty of how the project is to be carried out, but not what is to be delivered; Quest-type projects are also known as semi closed projects. On Quest projects, the project participants and stakeholder have a degree of certainty of what should be done, but they are not sure of how to achieve it; Painting by Numbers projects are known as closed projects. The project participants and most of the stakeholders have a degree of certainty about what is to be done and how to achieve it. Image 2a specififies the four project types in terms of objective clarity, project management process and tools development.

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 Risk/Value Category: The second model JR and Co should use in conjunction with the Obeng model is weighing up the total risk value of each Transport Improvement project and calculating the total value. The total value should be aligned to the strategy that was discussed in item 2.2 in this report.

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No A

Name Entrance to Big Johns Superstore

Description 1. To deliver a widened road. 2. Add a turning lane or to install a traffic light.

Est. Cost TBC

Est. Time TBC

Obeng Type Quest

Risk Cat This is identified in section IV (Once the risks are assessed).

Value Cat This is aligned to the benefits of strategic importance (Discussed in section 2.2). This is aligned to the benefits of strategic importance (Discussed in section 2.2). This is aligned to the benefits of strategic importance (Discussed in section 2.2).

Elk Mountain Road

1. To deliver a widened road. 2. Repair Elk Mountain road.

TBC

TBC

Quest

This is identified in section IV (Once the risks are assessed).

County Road 1. Repair or replace a bridge. 1045

TBC

TBC

Quest

This is identified in section IV (Once the risks are assessed).

Risk/Value Priority This value is derived from when JR adds the risk Category and value category. This value is derived from when JR adds the risk category and value category. This value is derived from when JR adds the risk category and value category.

2.4)

Obtain budget (funds)

Authors James P. Clements and Jack Gido, Effective Project Management (2012:07) explains that the budget of a project is the amount the sponsor or customer has agreed to pay for acceptable project. It is evident in the case study there are many unrequited questions and doubts regarding financial support for the projects identified by JR. There is also concern about the future of the projects that will not get selected, assuming that at least one project is funded to proceed. It will therefore be necessary to review the budget in light of the outcome of the commissioners budget meeting and once a project charter is submitted. Authors James P. Clements and Jack Gido, Effective Project Management Project Selection (2012:36) explains the project charter: Once a project is selected, it is formally authorized using a document referred to as a project charter, sometimes called a project authorization or project initiation document. In this document, the sponsor provides approval to go forward with the project and commits the funding for the project.

Conclusion

All three of the critical Transport Improvement projects can cause accidents, injury, suffering, fear and death if not implemented. It is therefore vital that Polk County completes the critical Transport Improvements projects and maintain the roads that in return will improve economic development for investment, tourism and jobs that will keep Polk County working and growing. The researcher only discussed and compiled recommendations for the initiating phase of a project lifecycle. Authors James P. Clements and Jack Gido, Effective Project Management (2012:09) describes

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that The generic project life cycle has four phases, initiating, planning, performing and closing the project and in the initiating phase, projects are identified and selected. There is still a lot of work to do once a project is selected for Polk County. Authors James P. Clements and Jack Gido, Effective Project Management (2012:35) explains this once the project selection decision has been made, the next step is for the sponsor to prepare a project charter to authorise moving forward with the project. The financial challenges within Polk County will mean that the County will have to find significant funds, but they need to do this in a way that avoids creating problems for future generations of the County. The new Senate economic development strategy should provide the structure, goals and objectives that will direct Polk Countys approach to economic development over the next couple of years. The fundamental purpose of these continuous improvement projects for the transport department is to enable sustainable economic and social activity, i.e. it will enable Polk Countys citizens to get to work, to access services and visit places safely. It will also allow businesses, suppliers and customers to come together. The County needs to create a strategy and vision aligned to economic development and budget for continuous improvement projects that will offer the greatest benefits of strategic importance to Polk County. It is important that the county prioritises projects and goals that will keep Polk County up and running and will make the County an attractive place to do business that will lead to economic growth, creation of jobs, safety by reducing the number of citizens involved in car accidents and the funding to maintain the current and future transport infrastructure. 4 Bibliography

1) James P. Clements and Jack Gido (2012). 5th Edition. Effective Project Management; 2) Stephen G. Haines. (1999) The Managers Pocket Guide to Strategic and Business Planning; 3) David Banister and Joseph Berechman (2000), Transport Investment and Economic Development; 4) US Department of Transportation (09/2007) The Transportation Planning Process {Online} (http://www.planning.dot.gov/documents/briefingbook/bbook.htm); 5) The board of County Commissioners Citrus County Organisational Chart {Online) http://www.bocc.citrus.fl.us/commissioners/orgchart.pdf;

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6) Gainsville Hall Metropolitan Planning Organisation Project Evaluation Criteria/Wilbur Smith Associates Adopted 2006 {Online}; http://www.ghmpo.org/files/pdfs/GHMPO/Project_Evaluation_Criteria_FINAL_Adopted _11-14-06.pdf; 7) Ulster County Transportation Council Transportation Improvement Program Project Evaluation Criteria Revised 2006 {Online}; http://www.ulstercountyny.gov/planning/uctc/tip/criteria.pdf; 8) Polk County, Iowa, Economic Development Policy Adopted 2002/Revised 2005 {Online} - http://www.polkcountyiowa.gov/supervisors/PDFs/EconDevPolicy.pdf; 9) Neville Turbit, When does a project start 2006 {Online}http://www.projectperfect.com.au/info_project_start.php; 10) Dennis Comninos and Enzo Frigenti, the practice of Project Management; 11) Spectaris Business Training and Development Published an article Unequal Projects {Online} http://www.spectaris.co.uk/articles/unequalprojects.html.

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