Features of the application of project management in the implementation of agricultural programs

This article takes into considerationmany features of the state regulation of agriculture with the help of the state programs of the Republic of Kazakhstan. The role of agro-industrial complex in the domestic and foreign markets in connection with the membership of Kazakhstan in the Eurasian Economic Union and the World Trade Organization are also revealed. The authors analyzed the state program for the development of the agro-industrial complex, which is aimed at providing the domestic needs of the population for the demanded types of agricultural products as well as defining targeted export policy. Financial sources for the implementation of the state agricultural program of the Republic of Kazakhstan have been identified and aimed at implementing the priorities of the country's strategic development and ensuring national security. During the research, the authors identified a number of characteristic features of project management, which should be taken into account in the implementation of agricultural programs. The methodological approaches of project management are characterized as following: the approach based on the internal development of projects; an approach based on the high integration of various aspects of project management; an approach based on a model for the development of project management; marketing approach to project management. The article identifies the socio-economic and organizational problems that affect the effectiveness of the agricultural programs implementation by the state. The development of project management in the Republic of Kazakhstan and the possibility of applying the project management mechanism in the implementation of agricultural programs are also considered. 

Agriculture is one of the important sectors of the economy, which forms the food and economic security of the country, as well as the labor and settlement potential of rural areas. The agro-industrial complex of the Republic of Kazakhstan (RK) has good prospects for further development: the export positions of the oilseed and meat sectors are increasing and for grain and flour, Kazakhstan has become one of the largest exporting countries in the world in the shortest period of time. Kazakhstan's membership in the Eurasian Economic Union and the World Trade Organization creates opportunities and at the same time places high demands on competitiveness in both the domestic and foreign markets. In this regard, the role of state regulation of the agro-industrial complex is essential.

During the period of independence, nine program documents were developed on the basis of which the state policy in the agro-industrial complex was implemented: «Aul» socio-economic development program for 1991-1995 and for the period up to 2000, the Conceptual Program for the Development of Agroindustrial Complex for 1993-1995 and up to 2000, the Program for the Development of Agricultural Production for 2000-2002, the State Agro-Food Program for 2003-2005, the State Program for the Development of Rural Areas for 2004-2010, the Concept of Sustainable Development of the Agro-industrial Complex for 2006-2010, the Program of Priority Measures for the Implementation of the Concept of Sustainable Development of the Agro-industrial Complex of the RK for 2006-2010, the Agro-industrial Development Program for 2010-2014 and the Agro-business development program in the RK «Agro-business 2017».

The President of the Republic of Kazakhstan, N. Nazarbayev, in his address to the people of Kazakhstan, «The Third Modernization of Kazakhstan: Global Competitiveness», noted that «the agroindustrial complex of Kazakhstan has a promising future. In many respects, we can be one of the world's largest producers of agricultural exports. Especially, for the production of organic food. The brand made in Kazakhstan should become the standard of such products».

The President of the Republic of Kazakhstan also instructed the Government and mayors:

• to review the principles of subsidies and gradually switch to product insurance;
• to create all conditions for the unification of more than 500,000 households and small farmers in cooperatives within 5 years, which is necessary; 
• to increase the level of processing of products, create an effective system of storage, transportation and sale of goods;
• to increase the level of labor productivity and reduce production costs;
• to increase the efficiency of land use. To increase the area of irrigated land by 40%, thereby increasing to 2 million hectares within 5 years;
• to increase the amount of investment in agricultural research that will be in demand in production [1].

These tasks should be implemented within the framework of the new state program for the development of the agro-industrial complex. In this regard, the State Program for the Development of the Agro-industrial Complex of the Republic of Kazakhstan for 2017-2021 was developed in accordance with the instructions of the head of State and with the strategic objectives of the development of the RK, «100  concrete  steps» [2] and «Kazakhstan-2050» Strategy [3].

Thus, this Program will be aimed at ensuring the domestic needs of the population in demand for agricultural products and the definition of a targeted export policy. According to this, for the period from 2017 to 2021 for the implementation of the program will be used funds in the amount of KZT 2,374.1 billion (Table).

T a b l e

Sources of financing of the program for the development of the Agro-industrial Complex in the RK.

thousand tenge 

Note: Source [4]. 

As shown in Table, for the implementation of the state program for the development of the agroindustrial complex, more than 75 % of the funds will be allocated from the republican and local budgets. In order to increase the volume of agricultural production, with an emphasis on the most popular types of food products and the export development of processed agricultural products, it is necessary to ensure the maximum coverage of agricultural producers with state support by creating favorable conditions and infrastructure for the production of primary processing, storage and marketing of competitive products.

In modern conditions, the most relevant and effective method of managing state programs in the context of uncertainty and instability of the external environment is project management. Application of project management allows almost 60 states of the world to achieve: improving the effectiveness of public administration; clear planning and implementation of projects and programs; control over the expenditure of funds; optimality of forecasting the usage of resources and terms of execution; transparency of the project implementation process; reducing the risks of time and resources (including budget expenditures of all levels).

For many countries, project management remains a fairly unknown direction in the management methodology. Most of them still give preference to traditional approaches in management. In this context, the professional activity of civil servants is a complex of flexible social technologies for managing social processes, which are developing objectively. In connection with these, there is a constant complication of the content of the work performed by civil servants, the emergence of new professional requirements, specialties, scientific and technical equipment of labor, an increase in the degree of complexity of objectified forms of work, employment, jobs, etc. All this gives grounds to assert that at the present stage there are a number of contradictions and the sphere of professional activity of civil servants.

When applying project management in the implementation of agricultural programs, a number of characteristic features should be taken into account, the main ones of which are:

• a sign of change as the main content of the project (a targeted transfer from the existing to some desired state);
• a sign of limited duration in time;
• a sign of limited resources; 
• a sign of the «uniqueness» of the project and the novelty that the project implements;
• a sign of complexity (a number of environmental factors, participants, directly or indirectly affecting the process and results of the project);
• a sign of legal and organizational generalization (a specific organizational structure for the duration of the project);
• a sign of differentiation with other

The main elements of the project are shown in Figure.

Figure. The main elements of the project [5, 6] 

The main elements of the project include:

• uniquely formulated goals and objectives, which means the main purpose of the project;
• a set of project activities to expand the problem and achieve the goals;
• organization of the implementation of project activities, i.e. linking them by resources and executors to achieve the project objectives in a limited period of time and within the limits of the given cost and quality;
• the main indicators of the project (from the project objectives in general to the local (private) — for individual tasks, stages, activities, executors), including indicators that characterize its

Creation of creative environment and conditions for strategic thinking, joint discussion of problems and opportunities for development, establishment of strategic goals and implementation of other activities for the development of the strategy is successfully achieved within the framework of the project team. In addition, the joint work of managers and specialists on the most important issues in the organization makes it possible to improve the corporate culture, develop cooperation, strengthen motivation and responsibility.

Currently, the general trend of improving public administration is the increasing use of the methods of management development and successfully implemented in practice by organizations, including commercial ones. To date, one of the most progressive methodological approaches to the implementation of purposeful activities of the state is the application of the methodology of project management.

Considering some basic approaches and principles of the project management system, which are the basis for determining its structural elements:

1. An approach based on the internal development of projects. More and more attention in project management is given to specialists who are engaged in the practical implementation of the project. Specifically, coordinated and creative work of the staff that contributes to the emergence of new innovative ideas which give necessary flexibility for the projects in modern conditions. At the same time, the internal development  of projects includes:
2. individual development of employees;
3. development of management teams, corporate culture and production and economic relations on their basis;
4. industry-wide development and implementation of policies aimed at stimulating programs to improve project management [7].

In our point of view, the projects are characterized by a number of problems: poor management of communications, resources, requirements; uncertain criteria for project success; unrealistic budget; poor or even absent risk management; insufficiently clear processes for controlling and managing changes, etc. The solution to these problems often lies in the qualifications, experience, personal abilities of project managers. The success of the implementation of national projects for the first persons is equal to the possession of basic and advanced skills of project and operational management, a strategic vision of  the  project environment, and reflected leadership qualities.

The approach based on the high integration of various aspects of project management is to concentrate efforts on the strategic plan of the enterprise. The relationship between project management and the strategic plan is the precondition for the long-term success of the enterprise. Usually, in order to obtain more global advantages and excellence (in industry, business), project programs are integrated into portfolios that pursue the goals of the most recent strategic

It is the goals of the strategic level that are the key task of realizing projects. For their achievement is  the whole complex of project management tools. It is necessary to correctly identify the objectives of  projects and subprojects in their composition, to be able to manage the content of projects (intermediate — at the project level, medium-priority — at the program level, key — at the portfolios level).

Reorganization of project management in accordance with this approach may require a wide variety of changes from the training of project managers and employees to the change of the entire system of financial and economic management of the enterprise. Integration includes: a) the integration of the project and the strategic plan; b) integration in the management of a particular project [8].

The approach based on the project management development model (PMMM — Project Management Maturity Model). This model helps to develop strategic planning of the project objectives. The PMMM model consists of 5 basic levels (common language, common processes, unified methodology, comparison, continuous development), reflecting the varying degree of development of project management [9].

As we see, for the application of this management model needs to keep correct, modern planning of projects from the beginning to the completion stage, the precise control of the fulfillment of the assigned tasks. Implementation of the project is a multilevel workflow, long chains of agreements, interdependencies, complex budgeting schemes.

The marketing approach to project management is focused on creating the ideal product that satisfies consumers as much as possible. At the same time, a systemic approach is very important, in which all key characteristics of a product, its development, production, marketing, etc., are coordinated [10].

In general, the marketing approach in management (marketing management) is the analysis, planning, implementation of the business plan and monitoring the implementation of activities designed to establish, strengthen and maintain profitable exchanges with target buyers in order to achieve certain tasks of the organization, such as obtaining profit, sales growth, increased market share, etc. The marketing approach to project management can be called pre-project. It is the preliminary studies that outline the results, set the timing and efficiency of the project to create the product.

The development of a strategy or strategic plan in agriculture is formally implemented as a project. The charter and the project plan are developed, the goals and tasks, the time schedule are determined. The organization of works is carried out, specialists are selected, the project team is formed. The final product of such   a project is the planning and reporting documentation. After the delivery of the final product to the customer, for example, the board of directors, begins the process of operational planning and budgeting for the year,   the first in the strategic plan.

Nevertheless, there are problems that have a significant impact on the effectiveness of the implementation of agricultural programs by the state. These include:

• problems of formation of personnel structure of managing structures (high cost of hiring effective specialists, inability to allocate expenses for a number of projects);
• lack of motivation to achieve the final results of the project; 
• the complexity of a flexible response to changes in the project (prompt involvement of necessary specialists, preparation and implementation of changes in the project, prompt conduct of additional expertise of modifiable project solutions);
• insufficient level of possession of modern technologies of project

The advantages of the project approach to strategic planning are obvious. Firstly, it is possible to avoid the routine and formality of the planning process, which demotivates its participants. Secondly, a team of managers and specialists is selected, which together evaluate development alternatives, develop strategic goals and measures to achieve them. With the proper organization of work of the project team, it is possible to reach the best results when solving strategic planning tasks. Thirdly, there is no need to maintain a large apparatus of planners, and managers at different levels of the organizational hierarchy are involved in the planning process.

The Innovation Committee of the People's Democratic Party «Nur-Otan» developed a Concept for the Development of Project Management in the Republic of Kazakhstan for 2010-2020, the purpose of which was the activation of regulatory, legislative, socio-economic and organizational and methodological activities for the development of project management in all spheres of the state and society. This concept became a program document that initiates the development of project management in the Republic of Kazakhstan for the period until 2020 [11].

An important role in the development of project management in the country was played by the Association of Legal Entities in the form of the Association of Project Managers of the Republic of Kazakhstan, whose goal was to promote practices and methods of project management in the territory of Kazakhstan. To accelerate the introduction of modern technologies of project management in all spheres of the life of the state, the Union of Project Managers conducts training and training seminars on project management, provides consulting services for companies and organizations on the introduction of project management in the activities of the structures. On the initiative and with the participation of this Union, on November 7, 2014, the National Standard of ST RK ISO 21500-2014 — Project Management Guide was adopted, and a new instrument of state support project management consulting was introduced into the State Program «Business Road Map-2020» [12].

A major event in the promotion of project management technologies in Kazakhstan was the holding of the First International Congress of Project Managers on November 27, 2015, organized by the Academy of Public Administration under the President of the Republic of Kazakhstan, the Kazakhstan Public-Private Partnership Center, the Union of Project Managers of the Republic of Kazakhstan with the support of the European Union project «Reform and Modernization of public service of the government of Kazakhstan». The main purpose of the congress was to discuss conceptual approaches to the development and implementation of the principles of project management in the activities of the state and quasi-public sectors of the Republic of Kazakhstan. During the plenary session, foreign experts presented reports and presentations on the best practices of the countries of the European Union, the United States, China and Russia on the introduction of project management principles in the public administration system. In turn, Kazakh speakers focused on the application of the project approach in the management of state programs and projects, as well as on the issues of increasing investment attractiveness and competitiveness. As a result of the Congress, specific recommendations were developed and sent to the appropriate state bodies [13].

Thus, the use of the mechanism of project management in the implementation of agricultural programs should ensure the effectiveness of programs, because it allows to ensure:

• the predictability of the result due to a clear goal setting, the formation of a calendar plan for its achievement and risk management;
• increase of transparency of activity due to the possibility of monitoring the project in a constant mode according to the established benchmarks, which contributes to the growth of the quality of control and management of its implementation;
• increase the effectiveness of the work of the participants by creating a system of incentives, which cause direct interest in the success of the

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