PROJECT MANAGEMENT STANDARDS: COMPARISON ANALYSIS OF KAZAKHSTAN AND BRITAIN

СТАНДАРТЫ УПРАВЛЕНИЯ ПРОЕКТАМИ: СРАВНИТЕЛЬНЫЙ АНАЛИЗ КАЗАХСТАНА И ВЕЛИКОБРИТАНИИ

Алтай Сабина

студент, факультет Бизнес школа, Университет имени Сулеймана Демиреля,

РК, г. Алматы

Амина Кудабаева

студент, факультет Бизнес школа, Университет имени Сулеймана Демиреля,

РК, г. Алматы

Алимбекова Гаухар

научный руководитель, магистр бухгалтерского учета и аудита, старший преподаватель, Университет имени Сулеймана Демиреля,

РК, г. Алматы

ABSTRACT

The research paper undertakes a comparative analysis of project management standards in Kazakhstan and Britain. It explores the evolving field of project management and highlights the critical role standards play in ensuring projects are executed efficiently, within budget, and on time. It analyzes results of two large and significant projects such as Astana Expo-2017 and The London 2012 Olympics. Through a literature review, case studies, and analysis, the paper investigates the challenges and effectiveness of national projects and project management standards in both countries, offering insights into their impact on project success.

АННОТАЦИЯ

В исследовательской работе проводится сравнительный анализ стандартов управления проектами в Казахстане и Великобритании. В ней исследуется развивающаяся область управления проектами и подчеркивается важнейшая роль стандартов в обеспечении эффективного выполнения проектов в рамках бюджета и в срок. В нем анализируются результаты двух крупных и значимых проектов, таких как Астана Экспо-2017 и Олимпийские игры 2012 года в Лондоне. На основе обзора литературы, тематических исследований и анализа в документе рассматриваются проблемы и эффективность национальных проектов и стандартов управления проектами в обеих странах, а также дается представление об их влиянии на успех проекта.

Keywords: project management in Kazakhstan, standard, national standard, PRINCE2, ISO-21500:2014.

Ключевые слова: управление проектами в Казахстане, стандарт, национальный стандарт, PRINCE2, ISO-21500:2014.

1. Introduction

2.1. The importance of project management standards

According to Thiry, Deguire & Koster project management standards (PMS) offer a structured framework for planning, executing, and monitoring projects. They define processes, methodologies, and tools that project managers can use to navigate through different project phases [8, 291-305]. Standards incorporate best practices for risk management, quality assurance, and compliance, which help in reducing project risks and ensuring project deliverables meet specified requirements [1, p. 93-104]. One of the main roles of PMS is to encourage organizations to adopt a culture of continuous improvement by providing mechanisms for feedback, evaluation, and learning from past experiences [7]. Its importance is underscored by their impact on project success, organizational performance, and stakeholder satisfaction.

Research indicates that adherence to project management standards is positively correlated with project success metrics such as schedule adherence, budget compliance, and stakeholder satisfaction. Rathore and Vyas state that organizations that adhere to widely recognized project management standards, such as PMBOK (Project Management Body of Knowledge) or PRINCE2 (Projects IN Controlled Environments), gain a competitive edge in the marketplace by showcasing their ability to deliver projects efficiently and effectively [6].

2.2. Project management standards of Kazakhstan

In an interview, given by expert I.R. Kambarova, it is said that project management in Kazakhstan began to develop after the global economic crisis of 2008-2010, when the concept of "project management" began to actively spread and emerge in the country. She claimed that Kazakhstan has not developed a unified methodological framework in the field of project management. This has led to the use of several project management standards and methodologies [5].

Since January 2016, the national standard of the Republic of Kazakhstan ISO 21500-2014 Project Management Manual, which was adopted by harmonizing the international standard ISO 21500:2012, has been in force. On November 18, 2016, two more national standards of the project management series were approved by the order of the Committee for Technical Regulation and Metrology of the Ministry of Investment and Development of the Republic of Kazakhstan:

-ST RK – Project management. Project management requirements

-ST RK ISO 21504-2016 – Project, program and portfolio management.

Kambarova states that if you study Kazakhstan’s national PMS carefully, you can see that this is a translation of the ISO-21500 standard. And this standard does not include details in the project management approach. Accordingly, under such conditions, it is difficult to assess the achievement of the program's target indicators [5].

2.3. Project Management Standards of Britain

De Souza and Tereso's systematic literature review on "The Influence of PRINCE2 on Project Success'' delves into how the PRINCE2 methodology, a staple in British project management, contributes to project success. The review synthesizes evidence from various case studies and academic research, concluding that PRINCE2's structured approach significantly enhances project alignment with business objectives, stakeholder satisfaction, and overall project delivery effectiveness [12].

Similarly, other studies demonstrate quantifiable improvements in project outcomes, attributing success to PRINCE2's emphasis on rigorous planning, regular progress reviews, and its adaptability to different project scopes and sizes [7].

3. Project cases in Kazakhstan and Britain

This part of the article will analyze project cases in two countries. The success of the project will be assessed in terms of its budget, time and its benefits.

3.1. The London Olympic Games 2012

The initial budget for the London 2012 Olympics was set at approximately £2.4 billion in the bid phase but was revised significantly upwards in the years leading up to the Games. The final public sector funding package for the Games was around £9.3 billion, which included the cost of building new venues and infrastructure, security, and the Paralympic Games [3]. However, BBC Sport writes that the cost of the London Olympics and Paralympics was £528m less than expected, according to the government. The combined budget for the two events was £9.29bn, but the cost has been revised to £8.77 bn [4]. In less than two years, they have managed to break even and will continue to be profitable. The UK economy had seen a £9.9 billion boost in trade and investment from hosting the Olympics, surpassing the costs [2].

The timeline for the London 2012 Olympics was meticulously planned, with the opening ceremony held on July 27, 2012. The project adhered closely to its schedule, with 80,000 seats construction and preparations completed on time.

3.2. Astana Expo- 2017

EXPO-2017 is an international exhibition held in the capital of Kazakhstan. This exhibition presented the latest technological inventions of mankind. According to the results of the exhibition Kazakhstan experienced some positive benefits such as opening of new hotels, new jobs, increased business activity, and new innovative projects.

Over the five years of preparation for EXPO-2017, the country has allocated 565.1 billion tenge or $2.1 billion [11]. According to various estimates, EXPO-2017 in Astana may be visited by between 4 million and 7 million people. An analysis of specialized exhibitions shows that one visitor "brings" about $130 in revenue. In other words, the revenue of EXPO-2017 could be from $520 million to $910 million. At the end, according to Vlast.kz the exhibition was visited by 4 million people, number of visits - 33 mln [10]. Despite the fact that there is no information on the exact revenue generated by the exhibition, the former president stated: “Funds spent on the exhibition EXPO-2017 have been fully recouped for the Kazakhstan economy” [9].

The decision to hold the exhibition in Kazakhstan was made in 2012, which means that the project was completed on time. However, the project was accompanied by several scandals. The most important ones are the corruption scandal (embezzlement of 10 bln 200 mln tenge) and the collapse of a decorative bridge structure. Such incidents undoubtedly resulted in loss of budget and time [11].

4. Analysis and discussion

Also, The paper highlights the importance of adapting and integrating international standards to suit a country's unique business environment, cultural nuances, and industry-specific requirements.