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State Transportation Departments

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A budget crisis looms for most state agencies across the country including state departments of transportation. Although these departments receive much of their funds from the federal government, they must augment federal money with state funds.

An aging highway infrastructure and an urban and suburban housing boom will necessitate managing an increased number of projects -- for repairs of existing structures, more reliable public transportation and for expansion of new highways and roads -- to meet the needs of a growing population.

A comprehensive, well-established process for successfully managing projects will enable state DoTs to:

  • Complete existing and future projects using smaller budgets
  • Serve constituents better and maintain credibility through on-time and on-budget completion of projects
  • Mitigate the impact of a retiring workforce and successfully manage projects with fewer resources

Tight Budgets Require Expert Project Oversight

The largest challenge facing DoTs today is budget cuts. Money is tight, and the federal government is closely monitoring any projects already under way and asking that more formalized practices are in place, like more tightly managed budgets, to ensure project success.

The federal government plans to make workforce improvements, especially in project management, for federal IT projects. Funds for these projects will not be released without significant program management, including quantitative milestones to measure project effectiveness. Since state DoTs rely heavily on federal funds for many of their projects -- under TEA-21 most projects are now an 80% federal match regardless of type - the mandate for better program and project management may affect state DoTs as well.

Tight budgets require better budget management, however, states will also look to cutting costs. One cost-cutting measure will be to reduce staff size through attrition. Smaller staff sizes will challenge employees and organizations to do more with less. Using project management techniques will help state DoTs work within budget constraints for upcoming projects and ensure these projects come in on time even with reduced budgets and staff.

Successful Projects Maintain Credibility and Increase Service Quality

A good track record in managing projects is crucial to maintaining credibility. If projects are completed consistently on time and on budget, the department will gain recognition as being invaluable to the success of the organization and may more easily receive approval for budgets and future projects. Also, as the potential for outsourcing moves closer to reality, a department with demonstrated project credibility may be able to keep its functions in-house.

Successfully completed projects, from repairs of the aging highway infrastructure to better customer service through e-government, will better serve constituents. These complex projects will require detailed project plans. Using proven project management techniques, like cost control and scheduling, will enable state departments of transportation to increase their quality of service, through more efficiently run construction projects and rapidly deployed IT projects like e-government Web sites.

Smaller Workforce Calls for Increased Project Management Knowledge

As in the federal government today, a workforce shortage is looming in state government. Census studies show that, on average, 44% of state workers across the nation are 45 and older. In addition, more than half of executive-level managers and one-third of mid-level managers will be eligible to retire by 2005. Offering project management training and a more formalized career structure for project managers will help agencies recruit and retain qualified employees as well as ensuring processes are in place to continue to manage successful projects despite the smaller workforce.

Detailed documentation of completed projects will also help those employees and managers left to manage future projects. When retirees leave they take with them a large amount of intrinsic knowledge. Detailed documentation will help to retain this valuable knowledge and assist with managing future projects. Consistent, repeatable project management techniques and knowledge management will mitigate the impact of the retiring workforce and allow state agencies to successfully manage projects with fewer employees or limited resources.

Learn Proven Techniques from the Leader in Project Management

ESI International understands the unique needs of managers operating in state transportation departments. With more than 20 years of experience and a world-class project management curriculum, we can help you increase your competitive edge. We have helped several state transportation departments, such as the California Department of Transportation, and the Virginia Department of Transportation, improve performance in their operations.

ESI has the largest and most comprehensive repertoire of solutions to transition an organization's culture to one that is driven by project success and profitability. We will help your organization identify the issues affecting project performance and develop a means for tracking how project management can impact your budget. From there we will develop a custom solution that may include classroom training, e-training, executive workshops, mentoring and consulting.

ESI is a global company, working for a wide variety of clients throughout the United States and around the world. We can support your organization no matter where your offices are located, bringing our instructors and consultants to your site. Our experience with government organizations of all sizes gives us a unique insight into how government organizations can benefit from effective project management processes.

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