Project Management: By the Numbers
November 16, 2016 by The FlexPro Group
In theory, every project we take on in life should have some form of guidance. We often rely on past experience for support, ensuring that the same mistakes won’t be repeated, but other sources can also provide direction. Maybe it’s the instruction manual on the 900-piece IKEA dresser or a wedding planner that helps us pull together the perfect night to remember – management can come from just about anywhere.
Walking into the office, large assignments need the same type of supervision and tracking. The major difference with professional projects, however, is that there is far more at stake than just our personal happiness. Millions of dollars in funding, patient care within the Life Sciences, and industry advancement all rely on our ability to successfully navigate through project plans.
The importance of project management to all organizations cannot be understated, whether we’re discussing an energetic startup or a corporate giants. Strong PM practices create a reliable backbone for consistent and sustainable business, and the numbers are there to prove it. Thanks to the Capterra Project Management Blog, we’ve got some very current statistics regarding PM work and its effectiveness. You can check out the full article here, but let’s examine a few of the more eye-popping figures below:
1. For every $1 billon invested in the United States, $122 million was wasted due to lacking project performance.
There are a multitude of reasons for poor performance in business, but to lose more than 10% of an investment from the outset is a tough blow to any group providing funding. Spending just a small amount to guarantee good project management practices over the course of a large venture seems more than worth its cost to avoid the financial letdown highlighted above.
2. 33% of projects fail because of a lack of involvement from senior management.
At first glance, this appears to advocate for micromanagement from senior-level personnel, but that couldn’t be further from the truth. Modern PM methodology is rooted in healthy communication between team members and high-level stakeholders, along with consistent project tracking. Effective project management helps bridge organizational gaps while driving the entire endeavor to the finish line.
3. An astounding 97% of organizations believe that project management is critical to business performance and organizational success.
Project management is a tried and true business practice for the most successful companies across all industries. Project tracking, resource planning, and personnel management just a few of the areas in which flourishing businesses benefit from steady hand of an experienced PM at the helm.