Letter from Managing Director, PMI India   |   Download a PDF version     

More projects are meeting original goals and business intent backed by strong project management
PMI’s 2017 Pulse of the Profession®: Success Rates Rise: Transforming the High Cost of Low Performance demonstrates that last year organizations around the globe reduced the average amount of money wasted on projects and programs by 20 percent compared to the previous year. 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 previous year.

India reported the lowest average monetary waste on projects, $73 million per $1 billion invested, followed by China and the Middle East, both of which reported a loss of $82 million per $1 billion. The highest average waste was reported from Europe with $131 million per $1 billion.

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:

Commented PMI President and CEO Mark A. Langley, “We are encouraged to see that organizations are making significant progress and experiencing more success with implementing strategic initiatives and delivering intended project benefits. We have long advocated that project management is essential for any organization’s success and are excited that others are increasingly realizing this fact. Organizations that invest in proven project management practices waste 28 times less money because more of their strategic initiatives are completed successfully.”

Added Mr. Kalady, “Change in an organization takes place 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 breakdown of several key industries included in the study is given below:

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, telecom, energy, manufacturing, healthcare, and construction. These organizations are from countries in North America, Latin America, Europe, the Middle East, and the Asia Pacific.
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