2000

Seventy per cent of projects fail to be delivered successfully - 27 March 2000

Seventy per cent of organisations across Benelux are consistently failing to deliver project work, with timeliness being the poorest aspect of performance. This is one of the findings of new research published today by the international management consultancy PA Consulting Group. The research, The Rise and Rise of Project Management, looks at 85 projects within 38 companies from a cross section of industries and includes projects such as the delivery of new IT systems, relocations, business change and developing new products and services.

Alex Dowdalls, the Managing Consultant based in Utrecht, who managed the study comments: "It is alarming to find that while an increasing proportion of business work is done through projects, project management is seldom seen as a critical competence. In many cases of poor performance, we found an over-reliance on tools and techniques and insufficient leadership. This contrasted starkly with the successful projects where a strong team spirit and clear direction existed and projects were successful, even in high growth, unstable environments".

Dowdalls continues, "although most organisations applied good project management principles at the outset of a project, for example, by gaining senior management sponsorship, the research found that maintaining that discipline and managing change through the life of the project proved to be much harder."

Dowdalls adds, "the decline of enthusiasm through a project life-cycle is the reason so many projects under perform, either not being delivered within the timescales, going over budget, or not meeting the objective they set out to achieve. This is often the result of management attention being diverted to other issues, particularly when delivering medium and large programmes and when the programme is in the implementation phase."

Key findings for types of project: Relocation projects
Relocation projects scored best in completing to budget (90%) and meeting objectives (87%), yet were the worst projects for completing on time (58%). Major infrastructure delays may not always impact on the budget, but they can cause major disruption to operations. Project resourcing was seen to be the key differentiator of relocation project performance.

New product/service development projects
New product/service development specific projects tended to keep within budget (80%) and most met their objectives (73%) although 44% failed to meet their delivery timescales. Focusing on improving schedule management is the priority here, given the need to bring new products to market rapidly.

IT projects
IT projects do well in meeting the projects objectives (77%), but only 30% perform well on budgetary control and 40% on schedule management. The largest gaps between the best and the worst IT project performers were in the areas of project definition, project management and in how changes were controlled.

Organisational change projects
Organisational change projects keep within their budgets (78%) and timescales (76%), with a high score of 82% achieving their stated objectives.

How to get project management right:
PA's survey findings have shown that top performing companies view project management as a key competence and as such recognise the value of a supportive organisational structure. Such companies provide employees with a formal career path for project work, actively encourage team working, and train managers as leaders, with the most advanced companies incorporating rewards (for example through bonuses, promotions and pay rises) so that staff can see the value placed on results. An organisational structure of this nature - a projects culture - can dramatically improve project performance as shown by PA, where such companies yielded a 20% improvement in project performance.

The survey found that companies that performed well in delivering projects, regardless of size or industry sector, excelled in four key areas:

• Effective project management, with an emphasis on strong leadership and a structured project environment
• Good project definition at the outset, stating the objective, business benefits and timescales for delivery
• Supportive sponsorship throughout the project, at a high enough level within the company to overcome obstacles both within and outside the organisation
• Effective change control that allows enough flexibility to meet changing demands without losing control of project delivery.

For further information or to request a copy of the report please email: projects@pa-consulting.com

For more information, please contact:

PA Information Enquiry PA Consulting Group 123 Buckingham Palace Road London SW1W 9SR United Kingdom Tel: +44 20 730 9000 E-mail: info@paconsulting.com

Notes to editors
1. Survey sample
PA’s research sample included 85 projects within 38 companies from a cross section of industries. The survey focused on four main organisation project types: IT projects, relocation, new product/service development and organisational change projects.

2. Projects culture
PA believes a "projects culture" is fostered by introducing practices oriented towards project working, including a project-orientated performance appraisal, rewards and management information systems, establishing a programme office, effective sponsorship and governance and positioning project management as career enhancing. Together these measures contribute towards building a project value system or culture. Some of these practices are easier to implement than others and the benefit-to-complexity ratio varies widely depending on the circumstances.

3. PA Consulting Group is a leading management, systems and technology consultancy, with a unique commitment to the integration of these capabilities. Established almost 60 years ago, and operating worldwide from over 30 offices in some 20 countries, PA draws on the knowledge and experience of about 2,700 employees, whose skills span the initial generation of ideas and insights all the way through to detailed implementation, including:

• Strategic management, and managing for shareholder value
• Accelerating business growth, especially through innovation and technology
• Improving business design and performance, including customer relationship management, enterprise-wide systems for the supply chain, and full e-business solutions
• Mobilising human resources
• Delivering change effectively, including projects and programmes.

PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.

PA distinguishes itself from its competitors through the range and quality of its people, its development and use of technology, and also its independence. PA’s work in every area from strategic management to project delivery is enhanced by its expertise in all the other areas. PA’s consultants, whatever their special skills, all share:

• A highly commercial approach to clients’ problems and opportunities
• A technologically sophisticated view of both the industry sectors we serve and the solutions we deliver
• A culture of respect, collaboration and flexibility in working with our clients to achieve their aims.

We are proud that our clients say "PA makes it happen".

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