How Failed Projects Cost Companies Millions
Due to poor project performance, global organizations waste an average of $122 million for every $1 billion spent on projects, according to a recent report from the Project Management Institute. The resulting report, "Pulse of the Profession: The High Cost of Low Performance," indicates that a great many failures are due to the lack of project management practices that are standardized companywide, as well as the absence of an enterprise project management office (EPMO). As a result, only a minority of projects are tightly aligned to organizational strategies. And executive leaders and project management office (PMO) directors disagree on how well their company adjusts project execution to shifting market conditions. Through more consistent, enterprise-focused project planning, with a stronger sense of strategic intent, businesses can expect to reap more ROI from their efforts. "While technical skills are core to project and program management," according to the report, "they're simply not enough in today's competitive global economy, which is growing quickly, but with less predictability. The most successful organizations seek added skills in leadership and business—competencies that support and sustain long-range strategic objectives." More than 2,420 global project management practitioners, 190 senior executives and 280 PMO directors took part in the research.