$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.
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Tilaa tiedotteet sähköpostiisi
Haluatko tietää asioista jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.
Lue lisää julkaisijalta Business Wire
FCF: Greenpeace Allegations Unfair and Deceptive26.5.2018 21:02 | Tiedote
FCF Fishery, Co. President Max Chou today released the following statement regarding recent misleading Greenpeace human rights abuse allegations made against the company: “We realize that as one of the world’s largest marine products integrated supply chain service providers with more than 30 subsidiaries, fishing bases, and shipping agents around the world, we are a prime target for organizations seeking to garner publicity and those not fully aware of the latest development and improvements that are currently taking place in the fishery industry. However, in their efforts to curb egregious human rights abuses, we believe it is unfair and deceptive to lump our company in with those who condone cruelty and neglect of their laborers. “Although we recognize the meaningful work of Greenpeace in exposing and eliminating human trafficking and sustainability abuses, we are equally disappointed that they are implicating FCF in old incidents and cases that have since been in all instances addr
NBC Universal, Havas Group and Endemol Shine Discuss a Future with AI, Blockchain and VR at IBC201825.5.2018 21:20 | Tiedote
As is fitting for the home of technical invention and innovation, IBC2018 will present a broad range of ambitious and timely elements to engage, inform and inspire content creators and owners from around the world that will visit the RAI, Amsterdam from 13-18 September 2018. The must-attend event includes fresh inspiring conference themes that will focus on innovative new platforms, audience engagement and interaction/immersion, as well as a wide-ranging exhibition that will encompass all the latest technologies from AI and VR to advanced cloud-based workflows. Registration for IBC2018 is now open at: https://ibc.itnint.com/IBC18/Online/RegLogin.aspx “The media landscape is evolving at an unprecedented rate, with new platforms, technologies and even new realities at our disposal that offer greater opportunities for content innovation and audience engagement,” said Michael Crimp, CEO, IBC. “IBC is preparing an outstanding programme of conference sessions, forums and exhibition features
Pavilion of France at the 16th International Architecture Exhibition – La Biennale di Venezia25.5.2018 12:26 | Tiedote
The concept for Infinite Places , developed by the Encore Heureux team, led by the architects Nicola Delon, Julien Choppin, and Sébastien Eymard, presents places produced by new and inventive processes that generate architectural processes of value. This exhibition project, which considers the territory as a whole, highlights initiatives on the part of civil society and communities that embody a certain free spirit of experimentation and the possibilities opened up by architecture. These projects are expressions of programmatic freedom and generosity, and they live up to the theme of Freespace adopted by the two commissioners of the 16th International Architecture Exhibition – La Biennale di Venezia, the Irish architects Yvonne Farrell and Shelly McNamara. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180525005191/en/ French Pavilion Venice Architectural Biennale, copyright S. Scher Statement of the curators « Through the I
SIA Acquires Card Processing Businesses in Central and Southeastern Europe from First Data25.5.2018 11:30 | Tiedote
SIA, a European high-tech leader in payment infrastructure and services, and First Data Corporation (NYSE: FDC), a global leader in commerce-enabling technology, have signed an agreement for SIA to acquire First Data’s card processing businesses in parts of Central and Southeastern Europe for €375 million. In 2017, these businesses generated a combined revenue of approximately €100 million for First Data. This acquisition by SIA provides card processing, card production, call center and back-office services, including 13.3 million payment cards, 1.4 billion transactions, in addition to the management of POS terminals and ATMs. These businesses are primarily located in 7 countries: Greece, Croatia, Czech Republic, Hungary, Romania, Serbia and Slovakia. As a result of the transaction, SIA will become a leading player in processing and services in the region. The agreement includes the transfer of about 1,400 First Data employees into SIA. “This acquisition is in line with our strategy to
BRIC HOLDING Offers Aimedis – ICO: Germany’s Leading eHealth Platform Goes Public25.5.2018 09:00 | Tiedote
Since Wednesday, May 16, investors finally have a chance to claim their share of a unique success story, the international market roll-out of Aimedis, by purchasing AIM tokens: AIM tokens are now available with a 20% presale bonus PLUS a 5% early bird-premium only at the Czech investment house BRIC INVEST https://www.bric-holding.com/home_en.html! Aimedis aims to shape the future of healthcare by providing an advanced and fully operational platform, secured by blockchain and supported by AI, that enables patients to take control, secure the exchange of their medical data, access the best healthcare providers, get advice, prescriptions, personal health upgrades and to become part of the health revolution. And we are not talking about the future: The revolutionary Aimedis platform is already deployed as a live working system and is already in use in major hospital groups in Germany! By issuing 300 million AIM tokens at a nominal value of 0,12 USD each, the Aimedis consortium will raise c
Westinghouse Accident Tolerant Fuel Development Moves Forward with Cooperation Agreement with ENUSA25.5.2018 09:00 | Tiedote
Westinghouse Electric Company today announced that it will collaborate in the development of its EnCore® Fuel, the revolutionary accident-tolerant fuel (ATF) design, with ENUSA Industrias Avanzadas (ENUSA) through a Frame Cooperation Agreement (FCA). “This agreement serves to strengthen the technical and commercial relations between ENUSA and Westinghouse as we work to develop leading nuclear fuel technology,” said Torbjörn Norén, European Fuel Group and EMEA Fuel Delivery Director at Westinghouse. “Westinghouse’s work with ENUSA in the Spanish and European Fuel Group markets will help to facilitate agreements with customers to launch EnCore Fuel demonstration programs in their plants.” Under the terms of the agreement, the newly signed FCA establishes the framework that will regulate the different Joint Development Programs (JDPs) to be launched between both companies. The first JDP will evaluate the application of the segmented rod concept and develop models of ATF / EnCore fuel beha
Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.Tutustu uutishuoneeseemme