Processes

For the past several years, the PMI Pulse research has confirmed that organisations can clearly benefit from maturing their project, program and portfolio management processes. The Pulse data demonstrates that process maturity leads to success. Despite this, our latest Pulse findings reveal that many organisations are not taking sufficient action to mature their processes—as evidenced by the trends in the perceived value of project management, the growth of project management offices (PMOs), the use of standardized project management practices throughout organisations, and the maturity levels of project, program and portfolio management.

Outcomes

Successful organisations have a continued focus on the outcomes of the intended benefits of their projects and programs. Benefits realisation is the practice of ensuring that the outcome of a project produces the projected benefits claimed in the business case. This is achieved through the establishment, measurement and communication of the expected benefits of an organisation's initiatives. High benefits realisation maturity is inextricably linked to the success of projects—and strategic initiatives. Despite this, our latest Pulse research reveals that fewer than one in five (17 percent) organisations report high benefits realisation maturity. High performers are nearly eight times more likely to be mature in their benefits realisation processes. 

Payoffs

The payoff for organisations maturing their benefits realisation is worth the effort. Organisations that report being highly mature with ‘benefits realisation' see an average of 73 percent of their strategic initiatives meeting original goals and business intent.

In the past few years, organisations have faced headwinds, resulting in a chasm between their actual state and their vision of success. High organisational agility and high alignment of projects and programs to an organisation's strategy have become integral to navigating an increasingly competitive market environment. Strategies are being shaped by customer expectations and demands and by the modest global economic growth forecasted for 2014.

This 2014 Pulse of the Profession report reveals a clear imperative for organisations to take action now to become high performers and optimise their project management practices to mitigate the millions lost on failed projects. Our research highlights three focus areas that, once developed and deployed, lead to increased success of both projects and strategic initiatives: people, processes and outcomes. Organisations that develop these competencies lose 12 times less money and mitigate the high cost of low performance.

Reference: Project Management Institute - Pulse of Profession Report, The High Cost of Low Performance 2014

The author is Managing Director, Project Management Institute, India

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