Projects Continue to Fail and Cost Companies Billions – New Study Explains Corporate Strategy Link

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According to a recent research study by management consulting firm, Business Improvement Architects, organizations have implemented project management tools, templates and methodologies, but project success remains dismal. The high failure rate of projects and the PMO is due to the fact that organizations do not have a systematic approach to prioritizing projects and are therefore not implementing projects that align with the corporate strategy.

Without a systematic approach to prioritizing all projects with corporate strategy, executive sponsorship will always be a problem because senior management will not see a direct benefit

Organizations are missing an opportunity to align projects with corporate strategy and this is undermining project success. In a recent PriceWaterhouseCoopers survey of 10,640 projects valued at $7.2 billion, only 2.5% of global businesses achieve 100% project success and over 50% of global business projects fail.

According to a recent global research study by management consulting firm, Business Improvement Architects, From Crisis To Control: A New Era in Strategic Project Management , 73% of the 750 respondent organizations that had dismantled their Project Management Office (PMO) indicated the primary reason as “lack of executive sponsorship.” Furthermore, 87% do not align projects strategically with corporate strategy.

“Without a systematic approach to prioritizing all projects with corporate strategy, executive sponsorship will always be a problem because senior management will not see a direct benefit,” says Michael Stanleigh, President of Business Improvement Architects.

The research study provides a number of other recommendations for organizations to improve their project success including the need to build project management into the organizational culture, improvements in performance management and the use of project management best practices.

On the basis of the findings of this study Business Improvement Architects has developed a proprietary Project Culture Initiative™ process that helps organizations to establish an organizational culture that will align projects with corporate strategy.

For more information about this research study, or the “Project Culture Initiative™” contact Business Improvement Architects via e-mail.

Michael Stanleigh is President of Business Improvement Architects, a management consulting organization. Their research-based consulting solutions align operational project activities with business objectives to bring control back to an organization in crisis.

Contact: Sally Stanleigh, Director of Marketing, Ph: (416) 444-8825, x302 or Toll-Free: 1-866-346-3242, x302.

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