The Value of Project Management
Do any of the following statements sound familiar?
- What do I have to do to get things done around here
- We do not have time to plan
- It’s normal for jobs to overrun that’s just the way things are here
- We have done this type of project several times, we know what we are doing
- This deadline is not negotiable
- I don’t care what it takes just get it done
In today’s business environment those businesses that excel in what they do engage in meaningful and structured Project Management (PM) within their organisation. They have recognised the value of PM for their business. Increasingly today businesses are investing in PM to achieve their goals because PM is the science of getting things done.
The principal values of PM to any organisation can include:
- Smart goal setting and business case analysis
- Increased organisational efficiency and tracking
- Smarter control and use of resources
- Reduction in the complexity of inter-related tasks
- Real measurement of planned work versus achievements
- Early identification of problems and speedy correction
- Streamlined internal communications
Poor or lack of PM capability can impact on the bottom line. In their CHAOS Report, the Standish Group conservatively estimates that 20% of money spent on projects is wasted because companies have a lack of PM capability. Further research shows that PM improvement initiatives improve project performance by up to 50% for the first project and can continue for each new project if the business offers on-going support with PM tools and techniques.
Research at the University of California, Berkley found that on average, businesses that have poor PM capability miss schedule targets by up to 40% and cost estimates by up to 20%. It is crucial that the results of projects be predictable. Predictability improves with increasing levels of PM capability. Clearly this provides a compelling argument for organisations to assess their PM capability and set goals to achieve the levels where the return on investment is at a maximum.
Can any business afford to ignore these facts?
The introduction of a PM methodology into any organisation can be achieved at relatively little expense.