can be difficult and require detailed planning and implementation, the second type, those whose outcomes arc determined over the course of the project, are regarded as more challenging. They require more interaction with stakeholders and more openness to factors outside of the control of the project team. Because of the multiple stakeholders involved in public-sector projects, the types of projects the public sector engages in, and the difficulty of identifying measurable outcomes in the public sector, more public-sector projects are likely to be of the latter variety and more difficult. Project complexity and tools for managing complexity and chaos will be discussed later in this book. As a result of the distinguishing characteristics of public-sector organizations, public-sector projects require the management, not only of the project team, but of an entire community. Little is accomplished in the public sector by lone individuals or even by teams working in isolation. Instead, public-sector projects engage broad groups of stakeholders who not only have a stake in the project but also have a voice and an opportunity to influence outcomes. In public-sector projects, even though the project manager may be ultimately accountable, governance of the project and credit for successes must be shared. The good news for public-sector project managers is that the community of stakeholders, which may seem to be a burden, can also be an opportunity and a source of resources and support. Many of those stake- holders stand ready to provide help to the project manager as he or she attempts to navigate the constraints affecting the project. Others can be enlisted to support the project, and their authority can make the difference between project success and failure. In addition to the existing challenges of public-sector projects listed previously, some factors will place soon more stress on public-sector organizations and demand even more emphasis on solid project management. Some of the emerging challenges for public-sector organizations will include: Modest or stagnant economic growth Globalization and the loss of the industrial revenue base and, increasingly, the service-sector revenue base
18 | P a g e A decline in real wages and pressures for tax reform Private-sector practices that pass the corporate safety net back to individuals, who may then look to government for such essential security mechanisms as health coverage Difficulty in passing on the need for government revenue to taxpayers and a general loss of confidence in government Structural limitations on revenue generation, such as Proposition 13 and property tax indexing The redirection of scarce public revenues to homeland security and defense without the imposition of war taxes The erosion of public-sector income as entitlement programs drain revenues in response to an aging population An age imbalance, with fewer workers in the workforce to support an expanding number of retirees and children
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