The 2018 Pulse of the Profession, a global survey conducted by Project Management Institute (PMI), reveals around Rs 6.5 crore is wasted every 20 seconds collectively by organizations around the globe due to the ineffective implementation of business strategy through poor project management practices. This equates to roughly Rs 1 lakh 28,000 crores wasted a year. The study shows that on average organizations globally waste 9.9 percent of every dollar due to poor project performance and India loses 8.1% of every dollar* invested by businesses, pointing to a significant opportunity to drive financial performance. (*Figures are U.S. dollar amounts, but represent a percentage that applies to any currency.)
Commenting on the report Mr. Raj Kalady, Managing Director, Project Management Institute India said, “A higher level of maturity of project management practices is seen in India in sectors viz. IT, automotive and financial services compared to capital-intensive sectors. The private sector also reports a higher level of induction of project management than the public sector. Of the total 40,000 certified professionals in India, 55% certified project managers belong to IT industry (Source: PMI January 2018). Hence, it comes as no surprise that the 2018 Pulse of the Profession® India results which have 34% respondents representing the IT industry shows a more positive outlook (less wastage) for the country compared to the global average. This is in spite of the fact that we keep hearing about time and cost delays in government and construction projects. However, increasingly, even public sector companies have started laying emphasis on training programs and strengthening their existing project management units and professionals.”
“Project management is the driver of strategy, but organizations are failing to bridge the gap between strategy design and its delivery,” said Mark Langley, President and Chief Executive Officer, Project Management Institute.
“Effective project management to implement organizations’ business strategy is key, and has a significant impact on the bottom line.’’
“There is a powerful connection between effective project management and financial performance,” continued Langley. “Organizations that are ineffective with project management waste 21 times more money than those with the highest performing project management capabilities. But the good news is that by leveraging some proven practices there is huge potential for organizations to course correct and enhance financial performance.”
“As organizations face increasingly complex challenges with new technology and new business models continually altering the landscape of business and how work gets done, the inextricable link between strategy and implementation must be addressed. An understanding of how needed change occurs is also critical: 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 both change and strategy execution that it needs, ” added Raj Kalady.
In an era of increased financial scrutiny, shifting competitive pressures, and business disruption from evolving technology, the survey results point to five critical factors that can help organizations drive performance through more effective implementation of a strategy.
