Pulse of the Profession®: Retain Focus on People, Processes, and Outcomes
PMI recently unveiled the 2014 edition of its annual global research, Pulse of the Profession®
. This year’s report, Pulse of the Profession: The High Cost of Low Performance
, shows how organizational leaders are changing their approach to strategy.
Though 88 percent of executives, who were interviewed, said strategy implementation was important to their organization, 61 percent acknowledged that their firms often struggle to bridge the gap between strategy formulation and its day-today implementation. This gap demonstrates a lack of understanding among 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, 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 for strategy development. When that person is supported by an organizational culture of project management, including a highperforming project management office (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 (nine 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:
Click here for the detailed report.
- 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.