According to a recent study entitled ‘The High Cost of Low Performance’ by the Project Management Institute, organizations are completing fewer projects and failing to accomplish target objectives, resulting in significant monetary loss. How much? The study reports US$122 million wasted for every US$1 billion invested due to poor project performance, a 12 % increase over last year.
The explanation for this phenomenon is intricate; nevertheless, companies suffering from poor project management have to deal with deteriorating project outcomes, troublesome global trends, and a shaky economy.
Look Beyond Technical Skills
The most successful corporations and project professionals make it a priority to employ individuals who demonstrate supplementary skill sets in leadership and business, other than just technical skills. This in turn facilitates long-range strategic objectives. Therefore, the ultimate skill sets that corporations are looking for encompass technical, leadership, and strategic as well as business management expertise and acumen. The study’s authors note, “when organizations focus on all three skill sets, 40 percent more of their projects meet goals and original business intent.”
Drive Success with Executive Sponsors
With the participation of heavily committed executive sponsors, companies can overcome the communications gap among influencers and implementers, thus boosting cooperation and support, improving project success rates, and reducing risk as well as costs. In fact, when more than 80 percent of projects have a committed executive sponsor figure involved in the process, 65 percent more projects are executed successfully. Only three in five projects have committed executive sponsors involved. At Imperial Advance, we make employee recognition a priority and recognize achievements in technical, leadership and strategic skills.
Reinforcing the Importance of Project Management
According to research conducted by the Project Management Institute, “just over half of organizations fully understand the value of project management and less than two in five place a high priority on creating a culture that recognizes its importance as a driver of better project performance. Organizations that place a high priority on creating this culture report 71 percent of projects meeting original goals and business intent versus 52 percent that place a low priority on it.”
Executives and Project Management Officers (PMO) Leaders are Both Optimistic about the Future
Executive management leaders together with PMO directors see eye to eye in regards to the importance of constantly enhancing their competitiveness in the coming years. Eight in ten executive leaders and PMO directors agree they will accomplish this by applying the following measures: devising strategies suitable for varying market conditions, prioritizing as well as investing in viable ventures and/or initiatives that will result in strategic developments, as well as employing lessons learned from unsuccessful projects.
To sum up, organizations have a higher probability of succeeding when all of the employees are aligned with the company’s business objectives dictated by the company’s leaders (from all levels), who cultivate an atmosphere that advocates flexibility and advancement. Essentially, their goal is to expand and sustain the project, program, and portfolio teams that will convert their vision into feasible results.