15 Shocking Project Management Statistics
The project management landscape is changing with an increased emphasis on productivity, reporting, and information technology. A number of studies have been completed that look into the success and failure rates of projects.
Below are 15 shocking statistics that reveal how project management has changed and is performing across various industries over the last 5 years.
- There is projected to be 15.7 million new project management roles to be added globally across seven project-intensive industries by 2020 reaching an economic impact of over $18 trillion, across seven project-intensive industries including Manufacturing, Finance & Insurance, Information Services, Utilities, Business Services, Oil & Gas and Construction (Project Management Institute)
- 75% of IT executives believe their projects are “doomed from the start. (Geneca)
- The healthcare industry is projected to increase project management roles by 30%, a higher growth rate than any current project intensive industry between 2010 and 2020. (Project Management Institute)
- A third of all projects were successfully completed on time and on budget over the past year. (Standish Group)
- 80% of “high-performing” projects are led by a certified project manager. (PricewaterhouseCoopers, Insights and Trends: Current Programme and Project Management Practices 2012)
- One in six IT projects have an average cost overrun of 200%. (Harvard Business Review 2004)
- 44% of project managers use no software, even though PWC found that the use of commercially available PM software increases performance and satisfaction. (Pricewaterhouse Coopers)
- More than 90% of organizations perform some type of project postmortem or closeout retrospective. (The Standish Group: CHAOS Research Report 2013)
- On average, it takes 7 years in the profession to go from entry-level to managing large, complex projects. (ESI International: Annual Salary Survey 2013)
- The average large IT project runs 45% over budget, 7% over time, and delivers 56% less value than expected. (Project Management Institute: Pulse of the Profession 2015)
- Only 64% of projects meet their goals. (Project Management Institute: Pulse of the Profession 2015)
- 60% of companies don’t measure ROI on projects. (KPMG New Zealand: Project Management Survey 2010)
- The United States economy loses $50-$150 billion per year due to failed IT projects. (Gallup Business Review)
- In just a 12 month period 49% of organizations had suffered a recent project failure. In the same period only 2% of organizations reported that all of their projects achieved the desired benefits. 86% of organizations reported a shortfall of at least 25% of targeted benefits across their portfolio of projects and many organizations failed to measure benefits so they are unaware of their true status in terms of benefits realization. (KPMG – Global IT Project Management Survey 2005)
- According to an IBM study, only 40% of projects meet schedule, budget and quality goals. (Harvard Business Review 2004)
If you have any other project management statistics please share them with us.
Fighting Gender Discrimination in The High-Tech World
New research suggests that tech-savvy women might face gender discrimination in jobs at high-tech firms, partly due to mismanaged projects.
It shows gender discrimination is still as prevalent in the UK as it was 20 years ago, and comes as International Women’s Day will be celebrated this week on March 8, for the 103rd year.
The book “The Recruitment, Retention and Advancement of Technical Women: Breaking Barriers to Cultural Change in Corporations” by the Anita Borg Institute for Women and Technology, a Palo Alto-based nonprofit organization focusing on the role of women at high-tech firms.
“More than a Quarter of Women Have Experienced Some Form of Gender Discrimination in the Workplace, a New Study Shows.”
Tech firms typically rely on a “hero mindset” to save poorly organised runaway coding projects. As a result, employees with family responsibilities (generally considered to be women) are left out, the report said.
The Research Also Suggests out of 1,500 Office Workers in the Uk, 26% of Women Felt That Having Children Held Them Back in Their Career
The research also suggests that there is evidence of bias against women in recruitment and job assignment in places where high-tech corporate cultures thrive on this “hero mindset” that “rewards a ‘last minute’ crunch where 24/7 work becomes necessary to ‘save’ a project.” However, these environments fail to acknowledge family responsibilities and flexibility needs, the report said.
This fly-by-the-seat-of-your-pants workday culture represents a pattern that’s grown mainly because an organization poorly defines project management and requirements.
For example, Silicon Valley’s sometimes frantic fire-fighting pace and in-your-face communication style produces many technical cultures that often “leave women feeling isolated and crushed,” notes the report.
The study also reflects what 59 senior business and tech managers — both men and women from companies like Cisco, Facebook, Goldman Sachs, Google, HP, IBM, Intel, Microsoft and Symantec — shared during a closed forum organized by the Anita Borg Institute. According to the report, it’s common in the high-tech world to find the modern equivalent of the “good old boys network” that tends to hire “people who are like them.”
Technical women these days are “still a rarity,” said Dr. Carolyn Simard, author of the report. She added that in the United States, women earn just 18 percent of computer science degrees in college. That figure is sharply down from the 37 percent observed in 1985. Yet technical demand is still expected to grow as much as 32 percent by 2018.
The Institute published a second report titled “Senior Technical Women: A Profile of Success,” which surveyed approximately 1,800 participants from seven unidentified high-tech firms in Silicon Valley.
It found that women now hold about four percent of the senior-level technical positions at high-tech firms and an estimated one-quarter of all tech jobs. On higher levels, women are more likely to end up in a managerial position compared to men (36.9 percent of women compared to 19 percent of men), who are more likely to hold “individual contributor positions” in technical coding jobs.
The second study also found that men and women in technical jobs value most of the same attributes for success, such as being analytical, questioning, risk-taking, collaborative, entrepreneurial, assertive, working long hours and being sociable.
Far more often than men, women generally have “primary responsibility for the household,” the study showed. However, senior-level tech women are much more likely to have a partner who holds primary responsibility for the household and children (23.5 percent of partnered senior women) compared to entry or mid-level women (13.4 percent). Senior-level tech women are also more likely than their male counterparts to forego a partner and children because they believe they might hinder their careers.
To improve work-life balance and stop any perceived gender bias against women in the high-tech world, the Anita Borg Institute is pushing a few ideas that will generate debate and controversy.
“The Equality Act 2010 Makes It Unlawful for an Employer to Discriminate Against Employees Because of Their Gender.”
One recommendation suggests that because there is evidence that women are eliminated in the hiring process at the resume review level, companies might consider “that all women candidates should at least get an interview.”
With backing from firms like HP, Google, Facebook, Intel and Intuit, the Anita Borg Institute even suggested that it might be possible to create a software tool designed to weed out any unconscious bias against hiring or promoting women in the tech world.
This “software tool for detecting bias” was proposed at the Institute’s forum. It can use language recognition to zero in on everything from performance evaluations to letters of recommendation that exhibit gender bias. An online tool like this can be found at Harvard’s Project Implicit.
“We envision building on such research to create a system where specific language can be fed and analyzed for the existence of bias,” the report said. “Using machine learning and text analysis methods would help organizations and individuals address the existence of bias before the damaging language is formally used in recommendations or evaluations.”
Additionally, the software would be a “high-impact diagnostic tool for calibrating organizations with regard to hiring and promotion decisions.”
66% of IT Projects Fail
Only one in three software projects will turn out to be successful. According to Standish Group’s 2015 Chaos report, 66% of technology projects (based on the analysis of 50,000 projects worldwide) end in partial or total failure. More surprisingly, these statistics have been the same for the last five years, the report shows. Furthermore, 17% of large IT projects go so badly that they can threaten the very existence of a company.
On Average, Large It Projects Run 45% over Budget and 7% over Time, While Delivering 56% Less Value than Predicted
Despite such failures, huge sums continue to be invested in IT projects and written off. For example the cost of project failure across the European Union was ┚¬142 billion in 2004.
It Projects Always Come with an Element of Risk, but There Are Huge Gains to Be Had If We Can Just Avoid Some of the Factors That Contribute Frequently to Project Failure
What makes a IT project successful, though?
According to the Standish Group, a successful project is on time, on budget and has satisfactory results (value, user and sponsor satisfaction, and meets target requirements). Other measures of success are widely known and accepted as true such as getting requirements right, providing effective leadership, and having full support and engagement from sponsors and users. Without these, it’s unlikely that any project would succeed.
But there’s more to success than what is widely known and, apparently, rarely followed. To reduce the risk of failure for your tech project, here are six key actions to take on the road to success.
1. Executive Vision and Involvement
Without a Executive Senior Sponsor Its Easy for Projects to Fail with the Organizational Resistance That Accompanies Large Change
Executive involvement is a primary variable in predicting the success of an IT project. Having a leadership team aligned across an organization articulating the purpose, value, and rationale for a project goes a long way towards getting stakeholders and end-users pulling the proverbial rope in the same direction.
2. Have a clear view of scope and timetable
Oftentimes, a tech project flops because its developers fail to plan and rush forward with an idea. However, some project managers plan so meticulously that they end up falling behind and lose momentum. The best approach is somewhere in between.
Interviewing team members, documenting requirements, prioritizing what is “mission critical” versus “nice to have,” getting agreement across stakeholders can feel like a never-ending cycle. As a result, requirement gathering has fallen out of fashion with many organizations in the past few years.
However, the ideal starting point for a successful technology project is to have a set of fundamental requirements with sufficient detail to develop against.
Requirement Gathering Is Labour-intensive and Challenging but Remains the Roadmap and Measuring Stick for Software Projects
This approach allows you to maintain sight of the business benefits as well as engaging stakeholders and responding to their feedback. In combination with a clear business case, a well-defined set of requirements also simplifies design and testing, two areas where projects tend to go sideways.
Ensure that requirements for the project are clearly defined and agreed upon among stakeholders and that you have a way to track, measure, and manage changes in requirements as appropriate during the project.
3. Define how you will deliver
When it comes to delivering a major project, one size does not always fit all. All products are customizable to some degree, so what might have worked in one company may not work in another company.
That being said, why reinvent the wheel if it’s already proven successful? Sometimes it can be more beneficial to use an existing off the shelf solution. Whichever direction you take, choose the delivery mode that works best for your company.
4. Risk Identification and Management
Every project has risk and there are many factors out of your control. People leave the organization, for better or worse, leadership changes, budgets get cut, however, many risks to projects can be mitigated or even eliminated with some forethought and on-going management. For example, do you have the resources you need to deliver the project (resource risk). Are project goals clearly understood and requirements clearly defined (scope risk). Do you have a realistic project plan and timeline (time risk).
Mitigating Risk Is a Combination of Science and Art, and Always a Balancing Process
5. Test your product again and again
A technology project is something that should overall support your business. It should not be something that dictates and forces you to change your operations. If this is happening, you should shift gears and focus on tweaking the technology, rather than lowering expectations and adopting less ideal requirements.
Adequate testing is a must for any tech project. While some features may be fine with automated testing, the best approach is to have a dedicated testing team. Testing activities should mirror those with the development team throughout the project’s lifetime. With thorough testing, a project should deliver with less design flaws or missing requirements.
6. Prioritize simplicity and performance
Developers often leave the external look and feel of a product to the wayside thinking these things are not necessities for the consumer to enjoy. However, user experience is absolutely critical to the success of the project.
Developers must consider things like storage, network requirements, processing speeds and overall performance in order to satisfy the customer. If users are going to have to wait for an extended period to allow information to load, there must be a good reason for the wait, otherwise they won’t return for future products.
Simplification and Improved Efficiency Is What Adds Value
Ultimately, using the product should be a smooth and intuitive experience. Additionally, tools and alternative routes must be placed logically without being intrusive. The process can be complicated, but the finished product should emit simplicity. After all, that’s what makes companies like Apple so successful. Simplification and improved efficiency is what adds value.
