NEWTOWN SQUARE, PA (PRWEB) February 07, 2014
According to PMI’s 2014 Pulse of the Profession: The High Cost of Low Performance, the latest research from the Project Management Institute (PMI), organizational leaders are changing their approach to strategy. Though executives know what they should be doing—88 percent of them say that strategy implementation is important to their organizations—61 percent acknowledge that their firms often struggle to bridge the gap between strategy formulation and its day-to-day implementation. This gap demonstrates a lack of understanding among organization executives that all strategic change happens through projects and programs.
“While not all projects and programs rise to the level of a ‘strategic initiative,’ all of an organization’s strategic initiatives are implemented through projects and programs that inevitably change the business,” said Mark A. Langley, president and CEO of PMI. “Most in the C-suite fail to realize this simple truth. Maybe more would if they assigned a senior executive to oversee strategy implementation the same way many of them designate a Chief Strategy Officer (CSO) who has responsibility for strategy development. When that person is supported by an organizational culture of project management, including a high-performing PMO, we will see project success rates climb.”
PMI’s 2014 Pulse of the Profession demonstrates the significant implications of this chasm:
- Very few organizations (9 percent) rate themselves as excellent on successfully executing initiatives to deliver strategic results. Consequently, only 56 percent of strategic initiatives meet their original goals and business intent.
- This poor performance results in organizations losing $109 million for every $1 billion invested in projects and programs.
- High-performing organizations successfully complete 89 percent of their projects, while low performers complete only 36 percent successfully. This difference in success results in high-performing organizations wasting nearly 12 times less than low performers.
However, there is good news in this region. According to PMI’s 2014 Pulse of the Profession, organizations that focus on strategic practices surrounding people, processes and outcomes—and that closely align their projects to the strategy of the organization—successfully complete more strategic initiatives than those that don’t. To increase success and achieve these results, PMI’s 2014 Pulse of the Profession shows that organizations must continue to focus on:
- People: Managing and developing talent. Organizations need to create a culture receptive to change and increasingly focus on the critical “human factor” while providing ongoing training in project management tools and techniques. They also need a formal and effective knowledge transfer process; well-established competency development programs and career paths for project managers; processes in place to manage these programs; and actively engaged sponsors on projects.
- Processes: Maturing project, program and portfolio management capabilities. In order to achieve this, many organizations turn to their enterprise project management offices (ePMOs) to instill a top-down understanding of the value of project management throughout the organization, and to establish standardized project management practices.
- Outcomes: Measuring and communicating the benefits of successful projects. Establishing benchmarks and metrics for project results allows both high-level strategists and front-line executors to see the value that successful projects—and successful strategic initiatives—bring to the organization.
To download the full report, visit http://www.PMI.org/Pulse.
About the Pulse of the Profession Methodology
Conducted since 2006, PMI’s Pulse of the Profession™ study—the industry’s annual global outlook for project, program and portfolio management—examines the latest in project management around the world as well as future trends. The newest edition of the study features feedback and insights from nearly 2500 project management leaders and practitioners.
About Project Management Institute (PMI)
Project Management Institute is the world’s leading not-for-profit professional membership association for the project, program and portfolio management profession. Founded in 1969, PMI delivers value for more than 2.9 million professionals working in nearly every country in the world through global advocacy, collaboration, education and research PMI advances careers, improves organizational success and further matures the profession of project management through its globally recognized standards, certifications, resources, tools, academic research, publications, professional development courses and networking opportunities. As part of the PMI family, Human Systems International (HSI) provides organizational assessment and benchmarking services to leading businesses and government, while ProjectManagement.com and ProjectsAtWork.com create online global communities that deliver more resources, better tools, larger networks and broader perspectives. Visit us at http://www.PMI.org, http://www.facebook.com/PMInstitute and on Twitter @PMInstitute.