Critical Success Factors for the Success of Strategic Projects in the Finnish Public Sector

Abstract

This thesis has examined the critical success factors that best contribute to success in Finnish public-sector strategic projects. The basis for the study is that success in public projects cannot be solely evaluated through time, cost and scope. In addition to producing short- term results (time, cost, and scope), public projects are expected to create long-term value, support organizational strategic objectives, utilize public resources effectively and provide added-value for society as a whole. As such, the study will apply a six-criterion model for evaluating project success including: efficiency, effectiveness, relevance, sustainability, value-for-money and broader societal impacts. In terms of methodology, the research has been completed in two phases. The first phase involved conducting a systematic literature review in order to identify the most commonly cited critical success factors from previous studies on public projects; governance; procurement; risks; sustainability etc. A preliminary framework consisting of five major do-mains was then constructed: Governance & Leadership; Procurement; Risk & Front-End Planning; Digital & Data Governance; Sustainability & Life cycle Value. In the second phase, a qualitative web-based survey was used to gather information from professionals who have worked in the Finnish public sector. The survey resulted in the completion of four web-form surveys, which were analysed using thematic content analysis. Findings indicate that success in Finnish public-sector strategic projects is dependent upon having a combination of several interrelated elements rather than relying on a singular element. Most importantly, they included: effective governance/governance and clear active governance; effective front-end definition/preparation; procurement capabilities that go beyond low-cost/lowest price criteria; capable personnel/people and communications; consideration of life cycle value/sustainability during project development. Findings also indicated that these factors are influenced by the specific nature of the Finnish public sector's regulatory environment. Specifically, legislative requirements/procedural rules/transparency requirements and limited flexibility once key decisions have been made all impact how project development occurs in the public sector. In conclusion, multi-criteria success in Finnish public-sector strategic projects appears to occur when projects are well-defined at their outset, actively managed throughout the project life cycle, supported by skilled individuals and teams, and ac-quired through procurement processes that consider both long-term value creation and compliance with relevant regulations. Overall, the primary contribution of this the-sis is to present a revised Finland-specific framework of critical success factors for stra-tegic public-sector projects that incorporates practitioner experience/evidence from academic literature. Practical recommendations for enhancing the planning/delivery of strategic public-sector projects within Finland are presented.