Project Management Institute’s (PMI) latest research shows that for the first time in five years, more projects are meeting original goals and business intent while being completed within budget – and that fewer projects are deemed failures.
Findings unveiled this month in PMI’s 2017 Pulse of the Profession®: Success Rates Rise: Transforming the High Cost of Low Performance demonstrate that last year organizations around the globe reduced the average amount of money they wasted on projects and programs by 20 percent compared to the previous year. Specifically, the study found that, globally, organizations wasted an average of $97 million for every $1 billion invested in projects and programs in 2016, compared to an average of $122 million per $1 billion in the year prior.
The report determines that organizations are becoming more mature with project management and are distinguishing themselves by:
- Developing project management talent
- Managing project benefits
- Establishing Project Management Offices (PMOs) and strategic Enterprise Project Management Offices (EPMOs)
- Driving executive sponsorship
- Addressing agile approaches
Of the industries included in the study, healthcare reported the highest average waste on project spending. A more detailed breakout of several key industries included in the study, ranked from highest to lowest, demonstrates the range of efficiency achieved:
Healthcare – $112 million per $1 billion
Telecom – $106 million per $1 billion
Energy – $101 million per $1 billion
Manufacturing – $98 million per $1 billion
Government – $97 million per $1 billion
Financial Services – $97 million per $1 billion .
Construction – $94 million per $1 billion
IT – $78 million per $1 billion.
The 2017 Pulse of the Profession features feedback and insights from 3,234 professionals globally who represent diverse levels of experience and industries, including government, information technology (IT), telecom, energy, manufacturing, healthcare and construction. The global totals in the report represent feedback from North America, Latin America, Europe, the Middle East and the Asia Pacific region.