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УДК 338.2
DOI https://doi.org/10.38161/1996-3440-2024-2-93-100 I. T. Pinegina
ELEMENTS OF STRATEGIC MANAGEMENT OF LARGE INTERNATIONAL PROJECTS WITHIN THE PMBoK FRAMEWORK
Pinegina I. T. - Ph.D. in Economics, Associate Professor of the Department of Economics and Management, e-mail: 000238@pnu.edu.ru (PNU)
This article explores theoretical approaches to defining and characterizing management within project systems, as well as the application of strategic management elements within the PMBoK framework. Additionally, conclusions are made regarding the conditions and peculiarities of implementing large projects in the Far East.
Keywords: PMBoK 6, PMBoK 7, project management, strategic management elements
In modern conditions, project management is an important and frequently used tool for achieving specific goals of economic entities at various levels of management. This is because project management involves clearly defining goals and objectives, establishing deadlines, financial resources, and the quality of work. The identification of a specific object for project management allows for the construction of an effective mechanism for managing the implementation of all stages of the project and the establishment of a control system, which will not only perform control functions, but primarily generate comprehensive information for managerial decision-making.
One of the key factors of sustainable state development and an effective tool for implementing state regional policy is a project approach based on the concept of creating project value. Analysis of modern public administration practices indicates that about 45% of all socially useful activities of government authorities are implemented through projects and programs, which are largely project-oriented. Therefore, for stable socioeconomic development of territorial communities and effective functioning of businesses, state authorities must use scientifically substantiated methodologies and project management tools[1].
Project management, according to the definition in the ANSI Project Management Book of Knowledge (PMBoK), is the field of activity in which clear project goals are defined and achieved while balancing between work scope, resources (such as money, labor, materials, energy, space, etc.), time, quality, and risks [2]. The adoption of a new version of PMBoK changes traditional project management recommendations to fundamental approaches in project management system (Fig. 1) [3].
© Pinegina I. T., 2024
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6th Edition of the PMBoK Guide 7th Edition of the PMBoK Guide Elements of Strategic Management
Project Management Guide Project Management Standard
Introduction Introduction Philosophy
Project Significance, Project Environment, and Application of Project Management Value Setting System Formulating a Development Philosophy (Mission) and Principles, and a Value Setting System
Areas of Knowledge Principles of Project Management Application of Balanced Scorecard System
Integration Management Scope, Cost, Resources, Risks, Processes and Schedule, Quality, Procurement, Communications, Stakeholders Responsible Planning and Management Team, Value, Leadership, Quality, Stakeholders, Holistic Thinking, Adaptation, Complexity. Setting strategic goals: - Customers - Business processes - Personnel - Finances. Creating Gantt charts
Opportunities and Threats Adaptability and Resilience Change Management Strategic analysis, SWOT matrix, positioning, alternative strategies
Responsible Planning and Management Team, Value, Leadership, Quality, Stakeholders, Holistic Thinking, Adaptation, Complexity. Decomposition of strategic goals into local groups or project performers: - Customers - Business processes - Personnel - Finances
Project management standard Project Management Guide Areas of Activity Strategic planning and management
Initiation Planning Execution Team, lifecycle, stakeholders, planning, dealing with uncertainty, delivery, execution, project work Alignment analysis of strategic goals with local groups or project performers Parameters of team performance effectiveness (possible application of KPI)
* In the standard scheme of differences between the 6th and 7th editions of the PMBoK, the author has defined and added elements of strategic planning and management
Fig. 1. Elements of strategic management within project management standards
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Considering the specifics of implementing large (mega) projects in the real sector of the economy, it is noted that much work by well-known specialists such as S. Bushueva, V. Burkova, V. Voropaeva, I. Mazur, A. Makarov, O. Ponomareva, G. Tsipes, V. Shapiro, and others, has been devoted to developing and implementing project management methodologies in the field of state regulation of regional development. These authors emphasize the significant participation of the state in planning, financing, implementing, and controlling projects. The most interesting findings are by V.F. Yershov, who defined the characteristics of mega-projects [4]. One of the significant conditions is the inclusion of large projects in strategic documents and their infrastructural-industrial significance for the national economy, particularly regional economies.
Questions of methodology and conceptual apparatus of social design in the implementation of projects of regional development have been carefully studied by well-known sociologists such as G. Antonyuk, T. Dridze, V. Kurbatov, G. Lenkov, V. Lukov, I. Petrova, E. Samburov, V. Safronova, Zh. Toschenko, and other scholars [5]. Analyzing the scientific groundwork in the field of designing socio-economic processes at the regional level, their modeling and management allow us to consider project management as a tool for realizing the joint interests of economic entities: territories and the real sector of the economy. In his address to the Federal Assembly, V.V. Putin noted: "The main result of our programs is measured not in tons, kilometers, or the sum of money spent. The main thing is the assessment of people, how their lives change for the better..."
From the perspective of strategic management, such objectives not only determine socio-economic indicators but also form the basis of the state's development philosophy. At the same time, regional characteristics are included as basic principles in the region's development philosophy, without contradicting the national position. For example, in the strategic development programs of many regions, the peculiarities of the historical-cultural heritage of indigenous peoples are taken into account, as evidenced by sections on preserving and promoting the culture of ethnic minorities. All this confirms that in the PMBoK 7 project management standard, the "Introduction" section - the project value system - characterizes the definition of the philosophy (mission) within the framework of regional strategic development. The development philosophy and principles, which presuppose a common idea of project implementation considering the socio-economic development strategy of the region, allow assessing the long-term significance of the project for the territory, and the specific features of the project are identified already at the proposal stage.
Considering the section "Project Management Principles" in the PMBoK 7 edition, we add the Balanced Scorecard system to the elements of strategic planning as
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the most suitable for project management. Although project management has its theoretical peculiarities in goal formulation. Usually, the goal of a project is a desirable outcome achieved after project implementation, detailed in tasks. The Balanced Scorecard system ensures responsible planning and management by providing an understanding of specific indicators that need to be achieved and adapting project management to the specific processes of achieving target indicators. Since the Balanced Scorecard system facilitates monitoring the accuracy of project goal achievement, the quality of project management significantly increases.
The application of strategic tools in project management within analytical and marketing work also enhances the quality of project planning and implementation. Applying strategic analysis at the meso and macroeconomic levels, calculating the impact of factors from these economic levels on the project using correlation analysis, more accurately identifies all positive and negative conditions for project implementation.
Considering that international projects have their own peculiarities and implementation complexities, attention is drawn to the problems encountered during project implementation and the functional processes involved in management. Researchers identify the following problems:
- Significant differences in corporate behavior;
- Cultural differences and language complexities;
- Educational background and occupation (formation of competencies).
The features of international projects manifest themselves in the management system during their implementation, in adaptation to the external environment of international partners, in team selection (especially concerning top managers with national superiority objectives), and in the integration of cultural values and ethical behavior of the project team.
It should be noted that the current economic and political situation creates conditions for the application of project management with the toolkit of strategic planning and management:
1. Political processes in the global economy contribute to the interaction of national partner states in solving specific investment projects, taking into account the interests of national partners.
2. Infrastructure opportunities undergo fundamental changes, especially in the field of logistics. The main trends in international logistics observed in 2023 will persist in 2024. A more stringent market environment for transport services will contribute to the increased role of multimodal transport solutions, demand for logistics outsourcing services, and turnkey transportation to minimize sanction risks [6].
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3. A shift in the paradigm of border openness and psychological mistrust of foreign specialists limits the ability to attract highly qualified professionals. Consequently, it becomes more difficult to select project top management and form project teams with the same level of competencies.
4. Sanction restrictions directly involve plans for the implementation of major international projects in the territory's development strategy, allowing for the efficient use of local resource bases.
5. Among the advantages, we can include an unlimited information field, which allows all stakeholders to exchange information in real-time and make management decisions fairly quickly.
Considering large regional international projects (focusing on the territory of the Far Eastern region) included in the territory's investment and innovation development programs and oriented towards the real sector of the economy, formal features (the specifics of their implementation) documented in the project documents can be noted:
1. Financing of real sector projects is not proportionally distributed among investors; Russian private investors provide funding of no more than 30%.
2. Each project entails the creation of additional jobs, which is also specified in the documents. However, all projects financed by Chinese investors prefer to use their own workers for the project implementation process (i.e., specifically for the construction of the facility). This goes against the interests of the territory hosting them.
3. Proj ects implemented in the Far Eastern region (Khabarovsk region, Amur Ob-last) have focus on utilizing local natural and mineral resources (which is logical). However, since these are large projects, they are located in remote areas with very low population density. Sometimes the ratio is 1:3 or more, which does not contribute to a normal social environment. For example, in the Ayan-Maysky District, there are only 1.87 thousand inhabitants, but 6 thousand foreign workers and their families are expected to arrive. The Chinese state corporation China Chengtong Holdings Group planned to implement a project to build a pulp and paper mill in Amursk worth over a billion US dollars and create 1.5 thousand jobs. At the same time, in 2020, the population of Amursk was 38.9 thousand people. It should be noted that from the perspective of the region's development strategy, these projects, besides economic interest, should also be oriented towards the social conditions of regional development.
4. Projects proposed by Chinese investors are usually focused on environmentally hazardous productions. For example, a project by the Chinese company Sirius Holding to build a large methanol plant (with a production capacity of about 10% of the world methanol market) in the Ayan-Maysky District in the north of Khabarovsk region was rejected
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in a referendum due to the potential environmental damage to the Far Eastern rivers and taiga.
All of this necessitates finding additional ways to implement large Russian-Chinese projects, taking into account their specifics and determining the "benchmark" points of interests of territories and investors.
It should be noted that project financing has its peculiarities. The method of project financing of an investment project involves sharing the risks of implementing the investment idea among all its participants. The financing scheme of an investment project is a system of organization, implementation, and control over the composition of investors, the volume of required funds, their structure, and the dynamics of investments at each stage of project implementation. The application of the balanced scorecard system in the project allows for precise tracking not only of investment inflows but also of the timing of project implementation processes.
There are various views in economic literature on the composition of methods for financing investment projects. One of the main disagreements is related to the understanding of the term "project financing." Despite the variety of interpretations of this term, its narrow interpretation can be distinguished [7, 9]:
- In a narrow definition, proj ect financing is seen as a method of financing investment projects characterized by a special way of ensuring the return on investments, based primarily or exclusively on cash flows generated by the investment project, as well as the optimal distribution of all project-related risks among the parties involved in its implementation.
The most complex process in the development and implementation of a large international project is the selection of top managers and the project team. First and foremost, economic and political interests of project partners are taken into account. International infrastructure projects are usually concluded at the level of Governments, financed mostly through development programs (state budget), and have a long-term socio-economic impact on the development of a specific territory.
Integrating into the project management system not only the definition of roles and detailed target indicators for managers and leading specialists but also indicators of employee performance will allow for the most accurate tracking of the results of project implementation itself and the contribution of a specific manager, employee, or functional group.
In conclusion, it is noted that large investment projects in the Far East can be defined as projects aimed at producing export goods from raw material industries with demand in the external market, to meet the demand and utilize the resource base of the partner country.
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The Far East region is promising and developing, which leads to a large number of investment projects, the implementation of which contributes to the development of the territory in economic and social aspects [7].
Although national states are trying to move away from globalization processes and focus on regionalization - national interests have become particularly evident during pandemics and sanction regimes - the significant importance of large projects (megaprojects) should be emphasized [8]:
1. In global practice, large logistics and production megaprojects emerge, which are located on interrelated national territories.
2. The complex of large projects affecting national and regional territories is synchronized and included in programs (strategies) of socio-economic development.
3. Megaprojects are becoming increasingly common and attractive from both an investment and political perspective.
4. When applying elements of strategic management in project management, "zones of intersection of interests" emerge, allowing for the identification of specific goals and the interest of national governments in the implementation of multisectoral megaprojects.
It should also be noted that strategic management pays sufficient attention to the application of digitization in financial, industrial, and service sectors, which will have a positive impact on project management implementation overall.
The communicative environment of project management in PMBoK 7 is presented in a more expanded form compared to the sixth edition. At the same time, new requirements arise for the communication system - differences in cultures, national characteristics, terminology, time zones, distances, and territorial conditions require the application of elements of strategic planning and management and the development of consistent approaches within project management.
References
1. Yusupova I. V. Project Management of Territorial Development : Lecture Course. Kazan : Kazan University Press, 2018. 150 p.
2. Briggs C., Dodyk P. Understanding the Project Management Process in China. URL: http://www.pmi.org/~/media/PDF/Surveys/pp_dodyk.ashx (дата обращения: 20.04.2024).
3. Project Management Institute. URL: https://www.pmi.org/-/media/pmi/other-images/standards/changes-to-pmbok-guide-7th-edition.png?la=en&v=ae1c02cf-a00f-48f5-bed4-479bccf6c53c (дата обращения: 20.04.2024).
4. Temchina M. Is the 7th PMBoK the End of Classical Project Management? Part 1. URL: https://infostart.ru/1c/articles/1184273/ (дата обращения: 20.04.2024).
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5. Yershov V. F. Business Designing. St. Petersburg : Peter, 2005. 288 p.
6. Logistics Development Forecast: Key Trends of 2024 and How "My Export" Platform Services Can Help with Cargo Delivery. URL: https://ex-port 10 .ru/news/prognoz-razvitij a-logistiki-glavnye-trendy-2024-goda-i-kak-servisy-plat-formy-moj-jeksport-mogut-pomoch-v-dostavke-gruzov/ (дата обращения: 20.04.2024).
7. Okunev N. E. Assessment of Labor Market Capacity of Far Eastern Federal District Subjects in the Implementation of Investment Projects Considering International Investments and Projects: Master's thesis / Supervisor Pinegina I. T. Khabarovsk, 2020.
8. Zubarev A. E., Wu Peng, Pinegina I. T. Features of Global Projects in Terms of National Territories // Bulletin of PNU. 2022. № 4. P. 101-106
9. Guide to the "Project Management Body of Knowledge (PMBOK®) Guide." Sixth Edition. URL: https://biconsult.ru/files/datavault/PMBOK-6th-Edition-Ru.pdf (дата обращения: 20.04.2024).
Заглавие: Элементы стратегического управления крупными международными проектами в рамках PMBoK
Автор:
Пинегина И.Т. - Тихоокеанский государственный университет, г. Хабаровск, Российская Федерация
Аннотация: В данной статье рассматриваются теоретические подходы к определению и характеристикам управления в системе проектов и применение элементов стратегического управления в рамках РМВоК. Также представлены выводы по условиям и особенностям реализации крупных проектов на Дальнем Востоке.
Ключевые слова: РМВоК 6, РМВоК 7, управление проектами, элементы стратегического менеджмента
