McKinsey research conducted in collaboration with the University of Oxford, suggests that half of all large IT projects (over $15 million) massively blow their budgets. On average, they run 45% over budget, 7% over time, and deliver 56% less value than predicted.
Many studies focus on IT projects, but the same realities exist for all sorts of projects, including merger integrations, construction, new product development, and business reorganization to name a few. With accounts of project failure all around us, why do we still ignore project management as a necessary core competency within our businesses?
WHY DOES PROJECT MANAGEMENT MATTER?
At a very high level, running a business means delivering products or services to your customers while generating profits for your stakeholders through repeatable processes executed by the best people, equipment and systems.
Outside of running day-to-day operations, projects are what businesses depend upon to affect change. Projects usually result in new value, goods or services being created that weren’t there before. Which is why it is so critical to actively manage projects: any delay, cost overrun, or missed objective takes away from the value that was intended.
Successful projects start with clear objectives, appropriate executive commitment and financial resources, and the right people mobilized around an achievable schedule.
Companies that use a consistent approach and framework for managing projects deliver on expectations more regularly and predictably than those that don’t.
WHEN IS PROJECT MANAGEMENT NEEDED?
What would a group of world-class musicians sound like without an equally talented conductor?
Some managers and executives feel that planning a project is a waste of time, and that having people with a "get-it-done" attitude is all that is necessary to achieve goals. We find that time spent in planning a project and managing the plan as a team avoids costly mistakes and substantially improves the likelihood of success.
Formal project management is not necessary for all initiatives, but for larger projects with enough resources, people and complexity, project management is the only way to effectively coordinate the effort. Here are a few examples of where effective project management can make a significant difference:
- Acquisition and Merger integrations
- System selection and implementation
- Corporate facility expansion, or relocation
- Process improvement initiatives
- New product development/launch
WHAT DOES PROJECT MANAGEMENT GET YOU?
Our pragmatic approach to project management strikes a delicate balance between the need to bring structure and control, and the realities of conducting business, accounting for variables such as culture and other constraints.
Our project management framework generates many direct and indirect benefits:
- Improved predictability of project outcomes and costs
- Project teams are more engaged
- Project teams understand the consequences of their actions on the project
- Teams solve issues more quickly
- Individuals and teams are able to react more quickly to change
- Consistency in approach across projects reduces communication challenges
- Well managed projects attract investment because management understands that risk is better mitigated
HOW DO WE HELP YOU WITH PROJECT MANAGEMENT?
Our project management services range from helping you plan and control specific initiatives, to selecting and adopting your own method and framework, to implementing your own internal project management organization:
- Project planning, management and control
- Project management framework/capability definition, tailored to your business
- Project Management Office (PMO) development
- Project management tools and systems selection, configuration and implementation
- Project management training and coaching services