Emerging need for improvement of project management practice in state enterprises


By Emils Pulmanis

Riga, Latvia



Project management approach as a tool for organizing implementation process of different investments is nothing new and we definitely could consider project management application in different areas as a good methodological basis for efficient spending of state enterprises funds.

Nevertheless there are still many problems areas as not always state enterprises and big corporation business shows transparency of funds allocation and expenditures. Mostly that is covered behind the laws and regulations to ensure companies have not put at risk their trade secret. State shares in enterprise are linked to the allocation of certain financial funds, especially in the fields which request important investments.

Paper analyzes the project management maturity level in state enterprises in EU member state Latvia. Author provides overall view on state enterprise structure in Latvia, investment environment and project management practices. Empirical research reveals that there are many problem fields in state enterprises and project management process not always well established.

Key words: project management, Maturity, Public administration, State enterprise

JEL codes: O220, H430, H540


Effectively managing knowledge in projects is the key factor in the company gaining a decisive advantage. This is of special importance in those organizations running a significant number of projects on a yearly basis. This creates a multi-project environment which could generate challenges. However, it should be perceived as an enormous source of information. The companies which are able to profit out of this situation will definitely gain a competitive advantage on the market as the fast and efficient application of knowledge to the projects can effectively reduce their duration, budget and enhance the quality of their outcomes (Spalek, 2014).

In the terms of the economy’s main sectors of the added value in operating capital, are public services, trade and services, as well as transport. The largest contribution to the total added value source is transport sector, forestry sector, as well as public services. Most of companies, where the state is the largest shareholder, work only in the internal market. The largest capital is operating in sectors where there are monopolies (mostly energy sector). They are often compared to existing or potential competitors and that is a strong cost advantage. However, there are a number of industries in which capital operates in relatively strong competitive conditions, such as telecommunications, real estate, financial services and agricultural entrepreneurs training.

Project management application can be implemented as enterprise project management office. In many state enterprises that’s an option what works best but meanwhile formal setting of such a project management office not always ensures success of the projects.

Enterprise Project Management (EPM), in broad terms, is the field of organizational development that supports organizations in managing integrally and adapting themselves to the changes of a transformation. Enterprise Project Management is a way of thinking, communicating and working, supported by an information system, which organizes enterprise’s resources in a direct relationship to the leadership’s vision and the mission, strategy, goals and objectives that move the organization forward. Simply put, EPM provides a 360 degree view of the organization’s collective efforts.


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About the Author

Emils Pulmanis

Riga, Latvia



Emils Pulmanis
is a member of the board of the Professional Association of Project Managers in Latvia and development project manager at State Audit Office of the Republic of Latvia. He has gained a BSc. in engineer economics, a professional master’s degree in project management (MSc.proj.mgmt) and currently is a PhD candidate with a specialization in project management. He has elaborated and directed a number of domestic and foreign financial instruments co-financed projects. He was a National coordinator for a European Commission-funded program – the European Union’s financial instruments PHARE program in Latvia.

Over the past 8 years Emils has worked in the public administration project control and monitoring field. He was a financial instrument expert for the Ministry of Welfare and the European Economic Area and Norwegian Financial Mechanism implementation authority as well as an expert for the Swiss – Latvian cooperation program as a NGO grant scheme project evaluation expert. He has gained international and professional project management experience in Germany, United States and Taiwan. In addition to his professional work, he is also a lecturer at the University of Latvia for the professional master study program in Project management. He has authored more than 30 scientific publications and is actively involved in social activities as a member of various NGO’s.

Emils can be contacted at [email protected].

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