As always, your feedback is welcome in the comments.
- 3 min read
that I attended in October, I met many project management practitioners. Some of them asked me about my views on Project Management 2.0. One of the questions was “How is Project Management 2.0 different from what many organizations have today?” I decided to summarize my answers and came up with a short list of key factors that distinguish Project Management 2.0 from traditional project management. They are: Environment. Manuel Castells, the author of "The Information Age: Economy, Society and Culture (v. 1-3)" and a visiting professor in 15 universities around the world, states that we are currently experiencing an IT revolution, just like our predecessors lived through an agricultural revolution and an industrial revolution. According to Castells, there is a shift from industrialism (mass production) to informationalism (flexible production), and this new type of economy is empowered by the development of technologies— first of all, the Internet. As the world shifts from an industrial economy to an information economy and big part of the workforce becomes information workers, the importance of innovation, creativity and productivity rises. In traditional project management, people are often managed like any other resource, just like bricks and machines. In the present economy, people cannot be managed the same way, as it will simply be counterproductive. In Project Management 2.0, people are encouraged to participate in project planning, to introduce their ideas on project development and to give their feedback on other team members’ jobs. Environment as the main differentiator drives the other distinctions listed below: Collaboration and collective intelligence. In an information economy, only organizations that are flexible enough, so that people and capacity can be rearranged and recombined quickly without major structural change, will be able to thrive. Quick access to information and rapid data-sharing become critically important in this environment, as they help companies minimize expenses, innovate, make better decisions and make them faster. Project Management 2.0 emphasizes the importance of leveraging the collective intelligence of the whole team, no matter where the team members are located, at the same office or on different continents. At the same time, Project Management 2.0 stimulates collaboration and catalyzes the change in processes. Here I’d like to paraphrase Andrew MacAfee’s quote about Enterprise 2.0 and apply it to the new trend in project management: Project Management 2.0 technologies are “trying hard not to impose on users any preconceived notions about how work should proceed or how output should be categorized or structured. Instead, they’re building tools that let these aspects of knowledge work emerge.” Emergent structures, one of the basic principles of Project Management 2.0, empowers people on the team level to easily share information and make changes to their part of the project plan. This way, bottom-up field knowledge makes its way into a project schedule, and the schedule becomes more realistic. Comparing this approach with the one represented by most current project management platforms, wiki inventor Ward Cunningham highlights an important shortcoming of the traditional way. He says: “For questions like ‘What’s going on in the project?’ we could design a database. But whatever fields we put in the database would turn out to be what’s not important about what’s going on in the project. What’s important about the project is the stuff you don’t anticipate.” The Project Management 2.0 focus on collective intelligence stipulates the next differentiator. Shift in the project manager’s role. Traditionally, the project management role is focused a lot on tight control of the budget and schedule. This part of the project management job becomes more subtle in a talent economy. Organizational agility requires a more flexible approach to budgeting and deadlines. At the same time, the importance of leveraging the human talent becomes more prominent. Therefore, other parts of a project manager’s job, such as leadership skills, become more important. It's no longer enough for project managers to possess good people skills and to be fluent in project management best practices, tools and methodologies. To succeed today, project managers need enhanced leadership skills. They need to be flexible and focused on business value, writes Forrester Analyst Mary Gerush in “Define, Hire and Develop Your Next Generation Project Managers.” Productivity. Web 2.0 tools allow an unprecedented productivity increase when it comes to information-sharing and communications. There are many examples spanning from the consumer arena to the enterprise space, from Wikipedia and Facebook to GE’s corporate collaboration system. Project Management 2.0 focuses on taking advantage of this productivity to achieve better results in shorter periods of time. Have I enumerated all the distinguishing traits of Project Management 2.0? What’s your take on the main differentiators of Project Management 2.0? Please share your thoughts in the comments.
After the short holiday break, the new year quickly gained momentum. The first event on my 2013 speaking calendar was the dinner meeting at PMI Dallas Chapter. The topic of remote collaboration and its efficiency brought up a great discussion. The engagement of the audience is a clear sign of how many project managers face the challenge of dealing with mobile workforce today. And the trend will only expand: as Wrike’s survey revealed, every fourth worker foresees his or her office going virtual in the near future. Of the numerous post-presentation questions, there were a couple that were especially interesting, and I’d like to share some takeaway notes with you. One of the efficiency tips that I talked about during the session was the importance of remote work monitoring and sharing within a distributed team. According to our survey respondents, bad visibility into colleagues’ actions is one of the biggest problems in remote collaboration. Learning to share tasks, ideas, file and other work-related info is critical to making the workflow transparent to the team. The audience asked how to build up that culture of sharing. The word “culture” here implies that it’s not a rapid shift to make. One of the working tools is leadership by your own example. Say, when you assign a task or finalize an important document, make sure that your workers are aware of it and can easily check it out. Then, when you have some “champions” on the team who follow your example, you can use some peer pressure, too. As with many other changes, you can slice the big change into smaller steps that are easy to reach. You can approach it from two dimensions: horizontally (begin with a part of the team and then step-by-step roll it out to the rest of the employees) or vertically (in this case, the idea is to start by sharing a certain type of item, and then add more of them to the mix.) For example, it won’t be too much trouble for your team to exchange important documents they worked on before your weekly meeting. Adopted gradually, this practice should develop into people’s working habit that will naturally solve the challenge of poor visibility and siloed project data. Another remarkable question was asked about granular workload management. I spoke about the convenience of splitting work into smaller, tangible deliverables, instead of big tasks where a worker reports on what percent has been completed. One of the attendees asked how to make it work if you need to report on the progress to your customer? Once again, visibility is the key word for answering this question. Here’s a simple, real-life example. Imagine you’re having your house remodeled, and you want to check on the progress. “50% completed” doesn’t give you, the customer, any insight into what’s really happening. Is the bedroom ready, and can you bring the furniture in, or was it the kitchen, or is it just an abstract number, and none of the rooms are actually finished? So the point is to bring your customer in and give him or her more visibility. With smaller tasks, tracking progress (for managers, stakeholders and customers) and reporting (for workers) becomes easier. When the team reports on a more granular level, you don’t need to run meetings so often (which isn’t that easy for a virtual team!) to clear up the details. If you don’t want to overwhelm your customer with too many updates, or don’t want to share some operational details, then you can share the major milestones with him or her. One of the positive aspects of giving customers visibility into your projects is the opportunity to get earlier feedback from them and to make sure you’re moving in the right direction. One of the greatest things about conferences and other professional get-togethers is hearing first-hand what challenges fellow project managers currently face and seeking for efficient solutions to them. So I’m looking forward to the upcoming events on the calendar. This week, it’s IBM Connect in Orlando. In February, I’ll be speaking about remote collaboration at PMI Los Angeles Chapter dinner meeting. In April, you can meet me in PMI Chicago Chapter and at Stanford’s Strategic Execution Conference in Silicon Valley, where I’ll discuss how to make open innovation work in project management. Hope to see you there!
Need up-to-date facts and figures for a project management report, article, or infographic? Browse this collection of project management statistics collected from studies and reports from the past five years. The data and statistics below are sorted into categories so you can quickly skim to find the information you need. Simply grab the stats you want and find the corresponding original source information at the bottom of this page. TABLE OF CONTENTS 1. Benefits of Project Management —1A. Project Management Methodologies —1B. Project Management Best Practices —1C. Agile Project Management 2. Project Management Salaries 3. Project Management Training & Certification 4. Project Management Software & Tools 5. Project Management Industry Growth 6. IT Project Management Challenges 7. Portfolio Project Management (PPM) and Project Management Offices (PMOs) 8. 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Benefits of Project Management 80% of “high-performing” projects are led by a certified project manager. [4] ROI of project managers (including average salary and training costs): Entry level501% ROI Mid-level268% ROI Senior level358% ROI [8] 89% of high-performing organizations value project management, 81% actively engage sponsors, 57% align projects with business strategy. [6] 46% of organizations admit to not fully understanding the value of project management, even though that understanding boosts the success rate of strategic initiatives by 16%. [12] —1A. Project Management Methodologies 59% say either most departments or their entire organization uses standard project management practices. [6] Organizations that use a methodology:38% meet budget 28% stay on schedule 71% meet scope 68% meet quality standards 60% meet expected benefits [4] VS. Organizations that don’t use a methodology:31% meet budget 21% stay on schedule 61% meet scope 60% meet quality standards 51% meet expected benefits [4] Popular Methodologies:41% use PMBoK26% do not use a standard methodology9% use an IT methodology9% use another approach8% use a combination of methods4% use an in-house method to manage projects3% use PRINCE2[4] —1B. Project Management Best Practices Having a knowledge transfer process in place boosts the chance of project success by over 20%. [6] More than 90% of organizations perform some type of project postmortem or closeout retrospective. [9] 64% of organizations say they frequently conduct risk management. [6] 30% of project managers break up large projects into smaller segments, with deliverables and evaluations at the end of each segment. [5] How Project Success is Measured:20% — Satisfied stakeholders19% — Delivered on time18% — Delivered within budget17% — Achieves target benefits15% — Produces high-quality deliverables9% — Achieves acceptable ROI2% — Other[6] Keys to Project Success:48% say the team’s technical skills41% say executive support26% say effective team communication19% say Agile techniques17% say the leadership of certified Project Managers12% say effective soft skills among staff[5] —1C. Agile Project Management 38% of organizations report using agile frequently. [6] 75% of highly agile organizations met their goals/business intent, 65% finished on time, and 67% finished within budget. Compared to organizations with low agility, where only 56% met their business goals, 40% finished on time, and 45% finished within budget. [6] Agile organizations successfully complete more of their strategic initiatives than less agile organizations. (69% to 45%). [12] Agile organizations grow revenue 37% faster and generate 30% higher profits than non-agile companies. [6] Most Popular Agile Tools and Processes:Scrum – 43% Lean & Test Driven Development (TDD) – 11% eXtreme Programming – 10% Feature Development Driven – 9% Complex Adaptive System – 4% Crystal – 3% Dynamic Systems Development Method – 3% Other – 6% None – 10%[4] 2. Project Management Salaries Average Project Manager Salaries: Entry-level$54,953 Managing small, low-risk projects$65,818 Managing medium-size, moderate-risk projects$81,520 Managing large, highly integrated projects$103,047 [7] On average, it takes 7 years in the profession to go from entry-level to managing large, complex projects. [7] Average Salary of Senior-Level PM by Region: .graph .col{ text-align: center; width: 100px; display: inline-block; position: relative; padding-bottom:50px; } .graph .progress{ height: 111px; width: 90%; position: relative; margin: 0 auto; } .graph .bar{ position:absolute; bottom:0; height:50%; width: 100%; } .graph .text{ font-size:12px; padding-top:4px; position: absolute; width: 100%; word-wrap: break-word; } .graph .col:nth-child(1) .bar{background-color:#B85754;} .graph .col:nth-child(2) .bar{background-color:#6E99AF;} .graph .col:nth-child(3) .bar{background-color:#99BE68;} .graph .col:nth-child(4) .bar{background-color:#CC9662;} .graph .col:nth-child(5) .bar{background-color:#88C2C8;} .graph .col:nth-child(6) .bar{background-color:#919097;} .graph .col:nth-child(7) .bar{background-color:#D48AA4;} .graph .col:nth-child(8) .bar{background-color:#A2AFB1;} .graph .col:nth-child(9) .bar{background-color:#B693BB;} .graph .col:nth-child(10) .bar{background-color:#88C2C8;} .graph .col:nth-child(11) .bar{background-color:#7D84A4;} .graph .col:nth-child(12) .bar{background-color:#B85754;} .graph .col:nth-child(13) .bar{background-color:#6E99AF;} .graph .col:nth-child(14) .bar{background-color:#99BE68;} .graph .col:nth-child(15) .bar{background-color:#CC9662;} Southwest US$108,300 Southeast US$98,864 Midwest US$97,778 Mid-Atlantic US$110,096 Northwest US$101,446 Northeast US$103,511 Outside US$108,300 [7] Average Salary of Senior-Level PM by Industry: Energy/ Utilities$147,600 Aerospace/ Defense$116,100 Government – Federal$113,000 Information/ Technology$107,200 Construction/ Engineering$104,800 Financial Services$104,500 Telecommu- nications$102,800 Pharma/ Healthcare $101,800 Automotive/ Manufacturing $99,760 Management Consulting$100,700 Media$94,340 Government – City/State/Local$90,080 NonProfit/ Education$72,920 [7] According to respondents, five days per year of project-focused training reduced the amount of time it took to advance from an entry-level project manager to a senior project manager by 12.6 months. [7] How much do project managers make? In the U.S, Project Management Professional (PMP)® certified project managers make an average of 16% more (approximately $14,500) than their non-credentialed peers in 2011. [6] 3. Project Management Training & Certification 61% of project management practitioners say their organization currently offers ongoing project management training for staff. [6] PM Certification by Department:37% say their entire IT department is certified.33% say IT department managers are certified.26% say Business managers are certified.25% say Business staff is certified (both managers and non-managers).10% say Executive managers are certified.29% say no one on staff is certified.[5] Types of Project Management Training Offered by Organizations: Classroom setting – 28% Online self-paced course – 24% Online situational sessions – 18% Paper-based self-studies – 16% All of the above – 13% Other – 1%[4] Number of PMI Certified Project Managers: Total Number of PMP credential holders: 607,128 # of CAPM certification holders: 25,060Program Management Professional credential holders: 1,027 PMI Agile Certified Practitioner holders: 5,265[14] 4. Project Management Software & Tools 77% of companies use project management software, and 87% of high-performing companies use project management software. [5] Top Business Challenges that Lead People to Project Management Software: Capturing time/cost of projects: 62% Approvals are paper-based: 55% Re-entering lost data: 45% Lack of integration between tools: 38% No central source of project information: 35% Poor visibility & resource management: 31% Poor purchasing processes: 23% Lack of visibility into work in progress: 21%[10] Most-Wanted Features in Project Management Software: 1. Reliability 2. Ease of integration 3. Ease of use[10] 66% said they choose a project management software based on level of support available. [10] Popular Tools for Managing IT Projects:70% use status reports68% use the project plan documentation63% use spreadsheets53% use project management software45% use help desk tickets, work orders, or a task tracking system36% use time reporting at the project level31% use communication templates25% use quality assessments21% use real-time status dashboards20% use a homegrown/in-house solution18% use word processing documents10% use earned value management reports[5] The most important factor in choosing which software to purchase was functionality (40%), followed by ease of use (24%). [17] Most-used features include file sharing, time tracking, email integration, and Gantt charts. [17] Business aspects significantly improved by PM software: Team communication – 52% Quality of final product – 44% Number of projects completed on budget – 44% Number of projects completed on time – 44% Customer satisfaction – 38%[17] 66% of organizations use PM software to communicate with clients. [17] 76% of respondents said they are either “very satisfied” or “satisfied” with their PM software. [17] 5. Project Management Industry Growth Between 2010 and 2020, 15.7 million new project management roles will be created globally, and the project management industry is slated to grow by $6.61 trillion. [11] An expected 12% growth in demand for project management professionals will result in almost 6.2 million jobs by 2020. [11] Business services (2 million jobs) and Manufacturing (630,000 jobs) supported the greatest number of project management roles in 2010. Business services and healthcare are expected to lead job growth between 2010 and 2020. [11] The healthcare industry is projected to increase project management roles by 30% — a higher growth rate than any current project intensive industry. [11] Estimated Project-Oriented Job Openings 2010-2020: China8,153,340 India3,975,650 US2,348,830 Japan387,560 Brazil347,820 UK177,120 Germany153,230 Canada120,070 Australia74,900 United Arab Emirates18,000 Saudi Arabia12,670 [11] 83% of project organizations reported that they were understaffed at some level. 44% of the reported shortages were for senior-level project managers. 89.4% report that it is either very difficult or somewhat difficult to find senior-level talent. [7] 6. IT Project Management Challenges The average large IT project runs 45% over budget, 7% over time, and delivers 56% less value than expected. [6] One in six IT projects has an average cost overrun of 200% and a schedule overrun of 70%. [1] Nearly 45% admit they’re unclear on the business objectives of their IT projects. [3] Only 34% of respondents say IT projects almost always deliver value to the business. 21% say they sometimes deliver value, and 41% say results are mixed. [5] 78% said their project requirements are usually or always out of sync with the business. Depending on the situation, this may include technical requirements as well. [3] 75% of IT project leaders believe their projects are “doomed from the start.” [3] 17% of large IT projects (budgets $15M+) go so badly they threaten the existence of the company.[2] Top Contributors to Large IT Project Failure: Unclear objectives/lack of business focus Unrealistic schedule/reactive planning Shifting requirements/technical complexity Unaligned team/missing skills Unexplained causes[6] Only 47% say their teams achieve 70-89% of their goals. Nearly 20% say they only achieve 50-69% of their goals. [3] 80% of teams say they spend at least half their time reworking completed tasks. [3] Barriers to Success:38% cite confusion around team roles and responsibilities.31% point to being unclear or disagreeing on what constitutes project success.77% say they don’t always agree on when a project is done, leaving the door open for ongoing rework and scope creep.[3] 7. Portfolio Project Management and Project Management Offices Portfolio Project Management (PPM) 53% of respondents say they have a project portfolio management process in place. [6] The number of firms with a PPM process in place grew from 64% in 2003 to 71% in 2013. [13] Popularity by Industry:Finance – 87% Healthcare – 76% Retail/Consumer – 72% Insurance – 71% Information/Technology – 67% Manufacturing – 66% Automotive – 65% Banking & Capital Marketing – 60% Telecommunications – 55% Energy – 52% Defense – 51% Construction – 34% Other – 51%[13] 26% of firms say they get a 25% or greater ROI from implementing PPM processes. [13] How Companies Prioritize Projects:18% say strategic alignment14% say expected benefits14% say ROI[6] Top 5 PPM Functions: Portfolio tracking & performance monitoring – 75% Portfolio oversight – 68% Portfolio planning, resource allocation, and schedule – 66% Portfolio analysis, project selection, & prioritization – 65% PPM process implementation & management – 61%[13] Top 5 PPM Priorities: Improve resource planning & forecasting – 65% Implement/enhance reporting, analytics, & dashboard tools – 62% Implement/enhance PPM processes – 53% Implement demand management/capacity planning processes – 42% Implement/enhance performance measurement process – 39%[13] Top 5 PPM Challenges: Organization has silo mentality 49% Consistent application of defined processes – 44% Getting reliable/accurate project info – 42% Lack of info on resources- 40% Inadequate PPM skills- 39%[13] 42% of portfolios are comprised of more than 100 projects, while 25% of portfolios have fewer than 20 projects. [4] 55% of organizations surveyed review project portfolios monthly, 23% review them quarterly. [13] Project Management Offices (PMOs) PMO Popularity by Company Size:61% of small organizations ($1B) have a PMO[16] Number of companies with a PMO has grown from 47% to 80% from 2000-2012. 30% of companies currently without a PMO plan to start one in the coming year. [16] PMO Popularity by Industry:Healthcare – 93% Finance – 93% Information Technology – 85% Manufacturing – 78% Professional Services – 60%[16] Benefits of High-Performing PMOs:45% more projects aligned with business objectives28% increase in # of projects delivered under budget$101,000 cost savings per project27% decrease in # of failed projects18% improvement in productivity31% improvement in customer satisfaction[16] 49% of PMOs provide project management training. [16] Top 5 PMO Challenges:Resistance to change within the organization PMO is perceived as unnecessary overhead Not enough time/resources for strategic activities Value added by PMO is difficult to prove Poor resource management capabilities[13] In Organizations Without a PMO, Projects are Managed by:IT managers or business execs – 38% Non-management IT staff – 26% Project managers within IT department – 22% Project managers outside IT department – 9% Outsourced project managers – 1%[13] 8. Project Failure Only 64% of projects meet their goals. [6] 70% of companies report having at least one failed project in the last year. [15] Organizations lose $109 million for every $1 billion invested in projects and programs. [12] High-performing organizations successfully complete 89% of projects, while low performers only complete 36% successfully. Low performers waste nearly 12 times more resources than high-performing organizations. [12] Only one-third of companies always prepare a business case for new projects. [15] 60% of companies don’t measure ROI on projects. [15] Average Project Success Rates:39% of all projects succeed (delivered on time, on budget, and with required features and functions)43% are challenged (late, over budget, and/or with fewer than the required features and functions) 18% fail (either cancelled prior to completion or delivered and never used).[9] Average % of features delivered – 69%Average cost overrun – 59% Average time overrun – 74%[9] Small Projects (less than $1 million) VS. Large Projects (more than $10 million) Small Projects (less than $1 million)76% are successful 20% are challenged 4% fail[9] VS. Large Projects (more than $10 million)10% are successful 52% are challenged 38% fail[9] Large projects are twice as likely to be late, over budget, and missing critical features than small projects. A large project is more than 10 times more likely to fail outright, meaning it will be cancelled or will not be used because it outlived its usefulness prior to implementation. [9] Most Common Causes of Project Failure:Changing priorities within organization – 40% Inaccurate requirements – 38% Change in project objectives – 35% Undefined risks/opportunities – 30% Poor communication – 30% Undefined project goals – 30% Inadequate sponsor support – 29% Inadequate cost estimation – 29% Inaccurate task time estimate – 27% Resource dependency – 25% Poor change management – 25% Inadequate resource forecasting – 23% Inexperienced project manager – 20% Limited resources – 20% Procrastination within team – 13% Task dependency – 11% Other – 9%[6] Despite being the top driver of project success, fewer than 2 in 3 projects had actively engaged project sponsors. [12] 68% of projects don’t have an effective project sponsor to provide clear direction or help address problems. [15] Projects Completed in the Last Year:64% successfully met original goals/business objectives62% were supported by active project sponsors55% finished within budget50% finished on time44% experienced scope creep15% were considered failures[6] Strategic Initiatives:Organizations report that an average of 3 out of 5 projects are not aligned with business strategy.[12] Only 56% of strategic initiatives meet their original goals and business intent. [12] 44% of strategic initiatives were reported as unsuccessful. Top causes: -Lack of executive support -Lack of focus on key initiatives & projects that are strategically relevant -Lack of skills and/or personnel for effective strategy implementation[12] Over 25% of companies don’t conduct a strategic review to identify how a proposed project will benefit the business. [15] 60% of companies don’t consistently align projects with business strategy. [15] Want More Project Management Resources? Check out our collection of articles, free downloadable resources, and interviews with leading project managers for more tips and advice. Sources: Harvard Business Review: “Why Your IT Project May Be Riskier Than You Think” McKinsey & Company: Delivering Large-Scale IT Projects On Time, On Budget, and On Value Geneca: Doomed from the Start? Why a Majority of Business and IT Teams Anticipate Their Software Development Projects Will Fail PricewaterhouseCoopers: Insights and Trends: Current Programme and Project Management Practices 2012 InformationWeek: Enterprise Project Management Survey 2014 Project Management Institute: Pulse of the Profession 2015: Capturing the Value of Project Management 2015 ESI International: Annual Salary Survey 2013 ESI International: Talent Drain Fact Sheet 2013 The Standish Group: CHAOS Research Report 2013 The Access Group: Inbox Insight Survey 2013 Project Management Institute: Industry Growth Forecast – Project Management Between 2010 + 2020 Project Management Institute: Pulse of the Profession 2014 – The High Cost of Low Performance PM Solutions: The State of Project Portfolio Management (PPM) 2013 Project Management Institute Certification Registry, via LinkedIn Pulse. March, 2014. KPMG New Zealand: Project Management Survey 2010 PM Solutions: The State of the Project Management Office (PMO) in 2014 Capterra Project Management User Research Report 2015 document.addEventListener("DOMContentLoaded", function (){ var line_width,stat,line; $('.stat-line').each(function() { stat = $(this).find('.stat'); line = $(this).find('.line'); if(stat.attr('data-width')){ line_width = stat.attr('data-width'); } else { line_width = stat.text(); } line.width(line_width) }) });