There was once a time when managing a project at work was fairly straightforward.
Effective project and program management can be a matter of economic life or death. While this may sound dramatic, it’s not an overstatement. A new research study released by the Project Management Institute (PMI) titled “Pulse of the Profession: The High Cost of Low Performance” lays out the real risks organizations face today.
The stakes are high
As the PMI report details, high performing projects and programs can positively drive organizational change. Yet there are a great number of low performing organizations that do not meet their project timelines or goals, which places unintended demands on their other resources and leads to lost revenue and market share.
Failed projects can be extraordinarily costly. To put a fine point on it, PMI’s report finds that even high performing organizations (those completing over 80% of projects on time and budget) risk losing US$20 million per every US$1 billion spent if projects fail to meet goals. That might sound like a lot until you learn that low performing companies (those completing just 60% or fewer projects on target) jeopardize a whopping US$280 million for every US$1 billion spent ― 14 times more!
Clearly, poor project and program management can lead down a perilous path where an enormous amount of money is not only wasted, it’s unrecoverable. With stakes this high, effective project and program management cannot be left to chance.
Cloud-based solutions stem the tide
PMI’s study found that high performing organizations are almost three times more likely than low performing organizations (36% versus 13%) to use standardized project management practices and strategies to drive organization-wide efficiencies, and they are also significantly more likely to provide employees with training on the use of project management tools and techniques.
Yet the reality is that not enough organizations are doing everything they can to minimize the risks posed by poor management processes. With this in mind, what can savvy project and program managers do to turn the tide? One answer is to adopt a project portfolio management software solution that promotes greater insights and ensures optimized processes.
A modern project management solution can provide needed visibility into project and program hours, costs, and resources, which will help managers to stem or alleviate project delays, cost overruns, and poor investment decisions. In fact, today it’s easier than ever before to improve internal project effectiveness with a cloud-based project and program management software solution that can track project time and costs, deliver projects on-time and on-budget, optimize resource allocation, and improve project planning and investment.
Investing in a competitive advantage
The PMI study shows that many low performing organizations undervalue project management, and suffer significant revenue loss as a result of project failure. Organizations that have more mature project, program, and portfolio management practices, on the other hand, enjoy much better project performance ― and a competitive advantage.
Investing in a cloud-based project portfolio management software solution helps to:
- Increase accurate project time tracking
- Ensure the ability to monitor project hours and costs in real time
- Gain insight into employee time allocation
- Guarantee better cost forecasting
The bottom line is clear ― whether an organization thrives, or fails, rests in part on ensuring optimal project and program management performance. Organizations that have strong project time and cost tracking solutions can create better efficiencies, improve alignment with organizational strategies, and put fewer dollars at risk.