$1 Million Wasted Every 20 Seconds by Organizations around the World
The 2018 Pulse of the Profession®, a global survey conducted by Project Management Institute (PMI), reveals around $1 million is wasted every 20 seconds collectively by organizations around the globe due to the ineffective implementation of business strategy through poor project management practices. This equates to roughly $2 trillion dollars wasted a year.
This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180215005610/en/
Organizations that undervalue project management report much higher project failure rates. (Graphic: Business Wire)
The study shows that on average organizations waste 9.9 percent of every dollar* due to poor project performance, and that around one in three projects (31 percent) do not meet their goals, 43 percent are not completed within budget, and nearly half (48 percent) are not completed on time. Alarmingly, executive leaders may be out of touch with this reality, as 85 percent surveyed said they believe their organizations are effective in delivering projects to achieve strategic results. These factors are leading to colossal financial losses for businesses around the world, with a significant broader macro-economic impact.
“Project management is the driver of strategy, but organizations are failing to bridge the gap between strategy design and its delivery,” said Mark A. Langley, President and Chief Executive Officer, Project Management Institute. “Effective project management to implement an organizations’ business strategy is key, and has a significant impact on the bottom line.”
Of the geographic regions included in the survey, China reported the lowest average monetary waste on projects (7.6 percent or $76 million per $1 billion), followed by Canada (7.7 percent or $77 million per $1 billion), and India (8.1 percent or $81 million per $1 billion). Contrarily, Australia reported the highest average waste on project spending at 13.9 percent or $139 million per $1 billion. *Figures are U.S. dollar amounts, but represent a percentage that applies to any currency.
“There is a powerful connection between effective project management and financial performance,” continued Langley. “Organizations that are ineffective with project management waste 21 times more money than those with the highest performing project management capabilities. But the good news is that by leveraging some proven practices, there is huge potential for organizations to course correct and enhance financial performance.”
In an era of increased financial scrutiny, shifting competitive pressures, and business disruption from evolving technology, the survey results point to five critical factors that can help organizations drive performance through more effective implementation of strategy.
1. Executive Sponsor Engagement is the Top Driver of Effective Strategy Delivery
The top driver of projects meeting their original business goals is an actively engaged executive champion or sponsor. But at the same time, organizations report an average of 38 percent of projects not having active executive sponsorship, which points to the need and opportunity for executive leaders to be more engaged in the delivery of strategy.
2. Greater Connection Between Strategy Design and Delivery
Executives often fail to recognize that effective project and program management is what delivers on strategy. More than one in three organizations (35 percent) report not having strong alignment of initiatives and projects that directly deliver against strategy. This indicates the need for C-Suite executives to better recognize the full potential of project management to execute strategy, and to ensure they are leveraging the right programs to directly deliver against strategy.
3. Optimize Investment in Strategy Implementation
Organizations often prioritize investment in developing strategy over proper execution. There appears to be a big disconnect between executive leaders and project managers on strategy implementation funding. While 84 percent of executive leaders believe they are effectively prioritizing and funding the right initiatives and projects, only 55 percent of Project Management Office (PMO) leaders agree. This suggests that organizations might not be leveraging the optimum focus and investment to deliver against strategy.
4. Leverage Disruption – Don’t Just React to It – Get Agile
In a world with an accelerated pace of innovation, disruption is the new normal. So, it’s not surprising that 83 percent of project managers report digital transformation has either moderately or dramatically impacted their work over the past five years. What’s key to success in today’s business environment is leveraging an agile approach with project management and delivering against strategy through ongoing evaluation of shifting market dynamics, new technologies and innovation.
But while 71 percent of organizations report greater agility over the last five years, only 28 percent report having high organizational agility overall. Though agility is increasing, the pace of change is inconsistent. In fact, from a broader organizational perspective, only 40 percent of organizations report prioritizing the creation of a culture receptive to change.
Looking forward, organizations that can leverage disruption and remain agile can drive both financial gain and competitive advantage.
5. Define and Track Success Metrics
The survey showed that on average, around half (52 percent) of projects experience scope creep and roughly half (48 percent) are not delivered on time, leading to huge financial losses. Defining success measures upfront helps ensure projects stay on track, and meet budgets and goals.
The extent to which organizations within different regions are leveraging these project management best practices is reflected in the overall wastage, detailed below from the least to most wastage:
|$ wastage, least to most||Region||Amount wasted due to poor project performance*|
|1||China||7.6% or $76M per $1B|
|2||Canada||7.7% or $77M per $1B|
|3||India||8.1% or $81M per $1B|
|4||Middle East||8.5% or $85M per $1B|
|5||Asia Pacific||8.6% or $86M per $1B|
|6||Latin America||10.2% or $102M per $1B|
|6||U.S.||10.2% or $102M per $1B|
|7||U.K.||10.8% or $108M per $1B|
|8||EMEA (Europe, Middle East and Africa)||11.7% or $117M per $1B|
|9||Brazil||12.2% or $122M per $1B|
|10||Europe||12.7% or $127M per $1B|
|11||Australia||13.9% or $139M per $1B|
*Figures are U.S. dollar amounts, but represent a percentage that applies to any currency.
About the PMI Pulse of the Profession ® Survey
The Pulse of the Profession Survey® was conducted online in October 2017. The report highlights feedback and insights from 4,455 project management professionals, 800 Project Management Office (PMO) directors, and 447 executive leaders from a range of industries, including information technology, financial services, manufacturing, government, energy, healthcare, construction, and telecom around the globe.
About Project Management Institute (PMI)
Project Management Institute (PMI) is the world's leading association for those who consider project, program or portfolio management their profession. Founded in 1969, PMI delivers value for more than three million professionals working in nearly every country in the world through global advocacy, collaboration, education and research. We advance careers, improve organizational success and further mature the project management profession through globally-recognized standards, certifications, communities, resources, tools, academic research, publications, professional development courses and networking opportunities. As part of the PMI family, ProjectManagement.com creates online global communities that deliver more resources, better tools, larger networks and broader perspectives. Visit us at www.PMI.org, www.projectmanagement.com, www.facebook.com/PMInstitute and on Twitter @PMInstitute.
The full Pulse of the Profession Survey® can be viewed at www.pmi.org/Pulse.
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Price f(x) Files Petitions with US Patent and Trademark Office to Invalidate Vendavo’s Patents and Launches a Counter Lawsuit17.12.2018 07:08 | Pressemelding
Price f(x), the global leader in cloud pricing software, has filed petitions for “Covered Business Method (“CBM”) Review” of four Vendavo patents, and will imminently file a fifth, which together will cover challenges to all of the patent claims that Vendavo has asserted in litigation between the parties. In Price f(x)’s view, each of Vendavo’s patents qualifies for the specialized CBM procedure created by US Congress to “crackdown on low-quality business method patents.” Price f(x)’s petitions challenge Vendavo’s patents on a variety of grounds, including in all cases that the claims are directed to patent-ineligible abstract ideas (e.g., math for pricing of products), and in many cases that Vendavo simply tried to claim more than it actually invented. The petitions are now pending in the U.S. Patent Office, which should make an initial ruling on Price f(x)’s petitions in approximately six months. Price f(x) is concurrently moving to stay the patent portion of the parties’ litigation
ABB: Shaping a leader focused in digital industries17.12.2018 06:16 | Pressemelding
Fundamental actions to focus, simplify and lead in digital industries for enhanced customer value and shareholder returns Focus of portfolio on digital industries through divestment of Power Grids Divestment of Power Grids to Hitachi expands existing partnership and strengthens Power Grids as a global infrastructure leader with enhanced access to markets and financing Enterprise Value of $11 billion for 100% of Power Grids, equivalent to an EV/op. EBITA multiple of 11.2x1 Crystallizing value from the transformation of Power Grids including doubling operational EBITA margin since 20142 ABB initially to retain 19.9 percent in the equity of carved-out Power Grids to ensure transition; pre-defined exit option on 19.9 percent equity at fair market value with floor price at 90 percent of agreed Enterprise Value, exercisable by ABB three years after closing Closing expected by first half of 20203 ABB intends to return 100% of the estimated net cash proceeds of $7.6-7.8 billion4 from the 80.1%
AURAK Gains SACSCOC Accreditation15.12.2018 10:49 | Pressemelding
The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) officially announced the accreditation of the American University of Ras Al Khaimah (AURAK) at its 2018 Annual Meeting which was held in New Orleans, Louisiana, in the United States of America. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181215005017/en/ AURAK delegation during the SACSCOC conference in New Orleans” (Photo: AETOSWire) SACSCOC, the regional body for the accreditation of degree-granting higher education institutions in the Southern United States, has a membership of more than 800 institutions in the Southern states and other international sites approved by SACSCOC that award associate, baccalaureate, master’s, and/or doctoral degrees. SACSCOC also awards accreditation to other international institutions of higher education that satisfy all its requirements and demonstrate compliance with its accreditation standards. AURAK now
Lehman Brothers Treasury Announces Plans for Partial Wind-Down14.12.2018 17:41 | Pressemelding
Lehman Brothers Treasury Co. B.V. in liquidation (“LBT”) today, through its U.S. counsel Kramer Levin Naftalis & Frankel LLP, announced that LBT is planning a final cash distribution to its creditors. Professional holders of eligible notes will have the option to retain their investment by electing to receive substitute notes of one (or a few) series. Such election shall take place through a solicitation process. As a consequence, LBT will be able to reduce the number of series of notes outstanding from more than 3,700 to one or a few. Noteholders electing to receive substitute notes will be afforded the same economic entitlement to distributions received by LBT from Lehman Brothers Holdings Inc. (“LBHI”) through the substitute notes. The substitute notes will be denominated in U.S. dollars and future distributions will be made in U.S. dollars only. Noteholders who are not professional investors, or hold notes that are not eligible for substitution, or do not elect to receive substitut
Takeda Receives Positive CHMP Opinion for ADCETRIS® (brentuximab vedotin) for the Treatment of Adult Patients with Previously Untreated CD30+ Stage IV Hodgkin Lymphoma in Combination with AVD14.12.2018 17:00 | Pressemelding
Takeda Pharmaceutical Company Limited (TSE: 4502) today announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion for the extension of the marketing authorization of ADCETRIS (brentuximab vedotin) and recommended its approval in combination with AVD in adult patients with previously untreated CD30+ Stage IV Hodgkin lymphoma. ADCETRIS is an antibody-drug conjugate (ADC) directed at CD30, a defining marker of Hodgkin lymphoma. ADCETRIS is currently not approved as a therapy for previously untreated Hodgkin lymphoma in Europe. “For a large number of previously untreated Hodgkin lymphoma patients diagnosed with Stage IV disease, progression will occur with current treatments, highlighting a true unmet need in this population,” said Anna Sureda, M.D., Ph.D., Head of the Hematology Department and Hematopoietic Stem Cell Transplant Programme, Institut Català d'Oncologia - Hospital Duran i Reynals. “In the ECHELON-1 cl
Diamond CBD, POTN Subsidiary, Enters the $46 Billion Coffee Market With the Release of Premium Line of CBD-Infused Coffee & Tea K-Kup Capsules14.12.2018 15:42 | Pressemelding
Diamond CBD Inc., wholly owned subsidiary of PotNetwork Holdings, Inc. (OTC Pink: POTN), a leader in hemp extraction and innovative CBD products for the wellness market, enters the Coffee segment, an industry expected to reach revenues of $46 Billion in 2018. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181214005308/en/ Experience a cup of Chill (Photo: Business Wire) Produced in accordance with a universal K-Cup design, these pods fit in almost all modern single cup coffee makers, making it an easily integrated enhancement to any environment, delivering 25mgs of CBD in a tasty favorite beverage at less than $5 per cup. This new line of premium Chill Coffee Capsules was recently added to the Company’s broad range of cannabinoid and natural hemp products. Each box comes with 4 individual capsules in original chill coffee, decaf chill coffee, chill black tea, and chill green tea flavors. The unit price for each box is $10.00