India surpasses China and Middle East in successful execution of projects
Mumbai – 10 February 2017 – 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 today 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. According to the latest report by PMI, India reported the lowest average monetary waste on projects ($73 million per $1 billion), followed by both China and the Middle East ($82 million per $1 billion). Conversely, Europe reported the highest average waste on project spending at $131 million per $1 billion. Commenting on the latest development Mr. Raj Kalady, Managing Director PMI India said “As organizations face increasingly complex challenges from forces such as innovation, disruption, uncertainties, and the demands of a global business environment, the inextricable link between strategy and implementation must be addressed. What’s also critical is an understanding of how change occurs: Operations run the business; but projects change the business. A formal approach to project and program management can be the link that ensures that an organization has the capabilities for change and strategy execution that it needs.” The report further determines that organizations are becoming more mature with project management and are distinguishing themselves by:
“We are encouraged to see that organizations are making significant progress and experiencing more success with implementing strategic initiatives and delivering intended project benefits,” said PMI President and CEO Mark A. Langley. “We have long advocated that project management is essential for any organization’s success and are excited that others are increasingly realizing this fact as well. Organizations that invest in proven project management practices waste 28 times less money because more of their strategic initiatives are completed successfully.” Raj Kalady also added, ‘’All change in an organization happens through projects and programs. When a project and program management mindset is embedded in an organization’s DNA, performance improves and competitive advantage accelerates. We need to strengthen the conversation around the importance of project management and the issues essential to improving project and business results—the right skill set, the EPMO, and executive sponsors.’’ 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.