30 participants from 10 selected municipalities launched their unique path to establishing a project office within the framework of the U-LEAD with Europe Support Programme: “Establishment of a project office in municipality”. Since its launch, the Support Programme has already conducted 5 trainings on project cycle management. This time, the focus on project management in the municipality came from a slightly different angle.
“It’s a good thing to train people. But it is necessary to have a team of like-minded people, not always those working in the local self-government, as a project office dedicated to working broadly, engaging all stakeholders, writing, winning and implementing projects. Our programme aims to help you define exactly what your project office will look like. “Your” is the keyword here. There are no one-size-fits-all solutions. Everyone is going to plan and implement exactly what is best suited to their situation,” said Olena Tomniuk, deputy director of the U-LEAD Programme.
Project activities in Ukrainian local self-government bodies
The local self-government bodies are already aware of the importance of project activities for Ukrainian municipalities. But, according to experts, all municipalities have different practices of project activities. So far, the most basic and widespread scenario is when projects are handled by individuals from various departments or directly by the head of the municipality. A number of municipalities have already approached the so-called optimal scenario, with an established project department. But the local self-government administration and other departments have expectations for the project department to do everything on its own: write, win, and implement projects with no other units involved.
And the highest level of project activity development in the municipality is an optimistic scenario with a project department/team that interacts with other local self-government units to prepare and implement projects, and also participates in strategic planning for municipal development.
The organisational form of the project office that suits a particular local self-government body depends entirely on the established practices and scenarios of project work, or the willingness to change or improve them. This was emphasised by Nataliia Zaitseva, project manager and head of the project cycle management working group.
“Throughout the course of the Support Programme, we are going to work out specific models with the teams of the participating municipalities. We propose that each municipality choose one of the following project office organisational forms: a project manager, a working group, a structural unit or a municipal development institution. They can work equally well, depending on the needs of the municipality,” said Nataliia Zaitseva.
Formats of project office in the municipality
Oleh Demchuk, U-LEAD expert, spoke about the features, advantages and risks of various project office forms in the municipality.
1. Solo project manager
This can be a person with an individual entrepreneur status providing services to a local self-government body. Alternatively, it can be a local self-government official. It is easier to create such a unit, just by working with a certain list of documents to add job responsibilities to one of the local self-government officials or create a position. Job responsibilities of the project manager are an important aspect as they should clearly define his or her functionality, distinguishing between the work of other units.
2. Working group
A project office in the format of a working group represents the next stage of development, where a single project manager does not cover all tasks. This format makes it possible to bring together different people, including those outside the local self-government staff. And even involve them on the basis of civil law or other contracts, if the need arises.
“Both those who believe that this format “frees the hands” and those who believe that the working group disperses responsibility and leads to collective irresponsibility for the project are right. There is such an experience in Ukraine. Nevertheless, project offices in the status of working groups have the right to exist,” says Oleh Demchuk.
There are several modifications to this type of project office: a permanent group, a group to implement a specific project, a virtual working group.
3. Structural unit
This will require amendments to several documents, including the structure and staff list of the local self-government body. It may also be a separate legal entity with additional investment obligations and digital security.
“The project office, as a separate legal entity having own account and accounting department, is able to conduct their independent financial activities. The key is to work off the money allocated to them by the municipality at a ratio of one to three, five or even ten. This approach is absolutely correct and effective,” said Oleh Demchuk, U-LEAD with Europe expert.
4. Municipal development institution
A separate legal entity, established in the form of a municipal institution, municipal enterprise or joint utility company. This model has the broadest format and motivation. In fact, this is the creation of a business owned by a local self-government body. However, it will require a long way to go with the relevant decisions of the local council, statutory and registration documents. This model enables maximum utilisation of the development potential of the municipality.
There are benefits and risks to each of the project office formats, and the choice of a particular model depends on the municipality’s resources.
“Not all municipalities can afford to establish a project office in the separate unit format. Some may prefer the format of a working group and, in particular, the use of a virtual working group. It is the one that can fill certain resource gaps in municipalities related to the staff outflow and the issues of border and frontline areas. And the municipal enterprise model of a project office, in practice, is the most independent and highly profitable,” summed up Nataliia Zaitseva, head of the project cycle management working group.
Each project office model has its advantages and disadvantages, and in practice, its effectiveness depends on resources, teamwork, and the skill level of project managers. In general, there are certain challenges to institutionalising the project approach. As long as the project manager/office is not an official one (they have no powers and responsibilities documented), it all comes down to whether it worked or not.
Among the challenges of institutionalising the project approach, experts name the following:
- lack of positivity from the municipal leadership;
- lack of clear priorities in the municipality;
- lack of clear distribution of responsibilities;
- challenges in personnel policy within local self-government bodies;
- lack of skills among project managers and teams.