Strategic leadership for good investments when executing projects

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The missing link between strategy and projects and their execution has caused many losses in investments by companies

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 is that the lack of strategic leadership has resulted in the challenges facing parastatals with regard to capital expansion.

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