| Summary: | Since South Africa is a developing state, the roles of the parastatals in stimulating economic
growth and contributing to the alleviation of unemployment and poverty eradication are
inevitable. South African parastatals find themselves with numerous initiatives that become
projects as part of these initiatives. The projects vary from small to large capital investments.
Parastatals are strategic assets that need to account for taxpayers’ funds. This thesis
considers that the executed projects can add value only if there is a link to the strategic
objectives. The effectiveness of this link can be established by having benefit realisation
metrics. The metrics should have a process of measuring performance of projects based on
strategic objectives. The thesis views projects that are executed outside strategic objectives
as not viable. Without a clear process of using strategic objectives as a guide to measure
success of projects, the expenditure in parastatals will remain unaccounted for, resulting in
what could lead to a PFMA issue.
The argument in this thesis, as well as its theoretical concept, is that the lack of strategic
leadership has resulted in the challenges facing parastatals with regard to capital expansion
and small projects that are executed without linking them to strategic objectives. Aggravating
this situation is the blind loyalty to the PMBOK framework used by parastatals in executing
projects; yet the framework has a gap regarding the knowledge areas of leadership and
change management. The development of the thesis is through in-depth interviews carried
out in two parastatals, namely, Eskom and Transnet. The interviews were conducted with
respondents who are involved in projects, ranging from senior executives down to project
administrators.
The research was done in order to assess whether the projects executed in parastatals do,
indeed, support strategic objectives. The effectiveness of the link between projects and
strategy was based on the premise that when strategic leadership components are practised
by the leadership, an execution process requiring proof of value add to the business through
a link to the strategic objectives will be the basis for executing projects.
The research found organisational structures that were rigid, and bureaucracy was the norm.
The PMBOK framework that had been adopted was inadequate. Major findings were that
most projects were not linked to strategic objectives and that there was poor strategic
leadership at all levels. In view of this, there is a need to get the right leadership and have a
rigorous process of ensuring that initiatives that become projects are, indeed, linked to the
strategic objectives.
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