Survey by PA Consulting Group in co-operation with GPM, the German Association for Project Management
Project management is part of everyday-life in many companies - companies define project management processes, write handbooks and train the employees. However, despite these measures, two-thirds of the companies participating in the survey were unable to meet the expectations for project performance. Only 27 out of 82 of these companies were able to finalise the project and deliver the expected outcomes within the planned time and budget frame.
The survey, which was conducted in 2007, is clearly pointing out four main reasons behind this low project management performance:
1. The results have to be measurable; even though this is often perceived as a minimum requirement to be defined before project launch, not all companies estimate costs involved or carry out a cost-benefit analysis at the end of projects. The most successful companies have communicated measurable information to management and stakeholders.
2. Conflicts inside the company between project and line organisation must be solved; Since projects often require access to resources that are already limited or cause changes in systems and operative entities, conflicts around project objectives and frictions internally are inevitable. It is characteristic that successful companies are able to address and solve these conflicts in a constructive way.
3. A 'lessons learned workshop' is not enough; A 'lessons learned workshop' at the end of a project is done by the successful companies as well as the unsuccessful ones. The main difference between the two is the way companies are able to use and integrate specific learning experiences from previous projects to a new one.
4. The project manager has a stronger position in companies that are successful; Companies that are successful in their project management approach place great emphasis on the project manager. The project manager is part of the project from the very beginning, discusses project objectives and benefits with management, and during resource conflicts the project manager has the necessary power to make decisions. At the same time, cultural aspects play an important role for the employee: career perspectives when the project is delivered, equal ranking with the manager in the line organisation as well as bonus payment.
The conclusions from the survey are confirmed by PA’s experienced project managers: Projects should not be launched before clear project objectives are defined. The project has to be lead by an experienced project manager who is able to deal and solve conflicts with the line organisation, and communicate project results. At last but not least, projects are more successful when the organisation is able to learn from previous experiences and uses these in new projects.
