Description
The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. The primary constraints are scope, time, quality and budget.[6] The secondary —and more ambitious— challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives.
The Value of Project Management
Linda Vella, PMP Chair, PMI Board of Directors PMI-GTISLIG Toronto, Ontario 15 February 2007
1
“Making Project Management Indispensable for Business Results”
How do we know that society values project management?
2
How can we make project management even more valuable?
3
Worldwide, organizations will embrace, value and utilize project management, and attribute their success to it.
4
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
? Companies that employ full-time professional project managers rose from 73% to 76% IMPLICATION: Demand for project managers is growing
5
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
? More projects managed using a common methodology IMPLICATION: Acceptance of PM processes is growing
6
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
? Leaders of project management divisions almost always have access to top management IMPLICATION: Executive sponsors are more involved in projects and acknowledge PM’s role in organizational strategy
7
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
8
? Senior executives significantly more likely to assign trained, certified, full-time project managers to change initiatives IMPLICATION: Trust in PM process and professionals for high-stakes projects is growing
Annualized Salary by PMP® Status in Canada ($C)
Status Have PMP® Certification 50%* ? 84% of projects have time overruns* ? 63% of organizations do not operate PMO*
11
*Chaos in 2005, Standish Group
Evidence of Improvement in Software Projects
Categories Average time overruns Average cost overruns Success rate (on time, on budget, within scope) Failed 1994 164% 180% 16% 31% 2004 84% 56% 29% 18%
12
Chaos in 2005, The Standish Group
Time & Cost Overruns
100% 80% 60% 40% 20% 0% Cost Time
13
1998 69% 79%
2000 45% 63%
2002 43% 82%
2004 56% 84%
2006 47% 72%
Chaos Chronicles, The Standish Group 2007
Membership Is Growing
250,000 200,000 150,000 100,000 50,000 0
14
2002: 99,483 2005: 208,660
1996: 25,004 2001: 86,698
1981
1986
1991
1996
2001
2006
Growth in PMP® Certification
240,000 200,000 160,000 120,000 80,000 40,000 0
15
2003: 52,781 2005: 184,461
1
8 9 9
1
9 9 9
2
0 0 0
2
1 0 0
2
2 0 0
2
3 0 0
2
4 0 0
2
5 0 0
2
6 0 0
PMI Global Thought Leadership Survey: Key Findings
? Top-of-mind benefits
? Efficiency (60%) ? Budget (30%) ? Timing (24%)
? Common methodology used more ? Professional project managers used and valued more
16
KPMG: PM Essential to Success of Corporate Initiatives
Effective Project Management and Quality Assurance is critical to the successful implementation of any major corporate initiative.
17
Global IT Project Management Survey, KPMG 2005
KPMG: PM Essential to Success of Corporate Initiatives
? Establish processes that help manage risks associated with large-scale projects ? Manage critical, complex projects ? Assure senior executives of effective program/ project management controls ? Enhance an organization's program management office
18
Global IT Project Management Survey, KPMG 2005
Higher profile for project management
These trends are encouraging, and will continue to positively influence organizations’ project management competencies, capabilities and successes
2005 Global IT Project Management Survey shows
? ?87% of organizations report projects to their Board of Directors ? More PMOs, with 17% now reporting to CEO ? HR processes recognize the specialized project management skills required to be effective
19
Global IT Project Management Survey, KPMG 2005
Top 10 Success Factors
User Involvement Executive Management Support Clear Business Objectives Agile Optimization Emotional Maturity Project Management Expertise Financial Management Skilled Resources Formal Methodology Tools and Infrastructure
20
20 15 15 10 10 10 5 5 5 5
Chaos 2007 Rex, The Standish Group
Performance Rises With Maturity
High performance (60-100%) Low performance (0-40%)
21
Boosting Business Performance Through Programme and Project Management, PWC 2004
Value of Project Management Maturity
Organizations with more mature PM boast
? Better cost/schedule predictability ? Lower project management direct costs
Organizations with less mature PM
? Miss budgets by 20% ? Miss schedules by 40%
22
Quantifying the Value of Project Management, W. Ibbs, J. Reginato, PMI 2002
Greater PM Maturity = Better Project Performance
CPI, SPI Step 2: Maturity-Based Gain
Step 1: Efficiency-Based Gain
Project Management Maturity
Two-Step Project Management Maturity Improvement
23
Quantifying the Value of Project Management, W. Ibbs, J. Reginato, PMI 2002
Microsoft: PM Maturity and Business Strategy
…transform business imperatives into action and results
…you’ll be involved in making Worldwide Operations better, faster, and cost-effective. …Previous experience in project, product, and program management will serve you well in this fast-paced environment.
24
http://members.microsoft.com/careers/careerpath/worldops/programmgt.mspx
Why Project Management Maturity Matters
? ? ? ? ? Increases project alignment with strategic goals Increases project performance Improves project cost management Focuses on performance Identifies most strategic areas for improvement
25
Thank you
Questions?
26
© 2007 Project Management Institute, Inc. All rights reserved. Not for further distribution without the express permission of PMI. “PMI,” the PMI logo, “PMP,” and “Making project management indispensable for business results” are registered marks of Project Management Institute Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department.
doc_357614799.pdf
The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. The primary constraints are scope, time, quality and budget.[6] The secondary —and more ambitious— challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives.
The Value of Project Management
Linda Vella, PMP Chair, PMI Board of Directors PMI-GTISLIG Toronto, Ontario 15 February 2007
1
“Making Project Management Indispensable for Business Results”
How do we know that society values project management?
2
How can we make project management even more valuable?
3
Worldwide, organizations will embrace, value and utilize project management, and attribute their success to it.
4
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
? Companies that employ full-time professional project managers rose from 73% to 76% IMPLICATION: Demand for project managers is growing
5
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
? More projects managed using a common methodology IMPLICATION: Acceptance of PM processes is growing
6
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
? Leaders of project management divisions almost always have access to top management IMPLICATION: Executive sponsors are more involved in projects and acknowledge PM’s role in organizational strategy
7
PMI Thought Leadership Survey: Growth in Size and Acceptance
Since 2004 benchmark survey
8
? Senior executives significantly more likely to assign trained, certified, full-time project managers to change initiatives IMPLICATION: Trust in PM process and professionals for high-stakes projects is growing
Annualized Salary by PMP® Status in Canada ($C)
Status Have PMP® Certification 50%* ? 84% of projects have time overruns* ? 63% of organizations do not operate PMO*
11
*Chaos in 2005, Standish Group
Evidence of Improvement in Software Projects
Categories Average time overruns Average cost overruns Success rate (on time, on budget, within scope) Failed 1994 164% 180% 16% 31% 2004 84% 56% 29% 18%
12
Chaos in 2005, The Standish Group
Time & Cost Overruns
100% 80% 60% 40% 20% 0% Cost Time
13
1998 69% 79%
2000 45% 63%
2002 43% 82%
2004 56% 84%
2006 47% 72%
Chaos Chronicles, The Standish Group 2007
Membership Is Growing
250,000 200,000 150,000 100,000 50,000 0
14
2002: 99,483 2005: 208,660
1996: 25,004 2001: 86,698
1981
1986
1991
1996
2001
2006
Growth in PMP® Certification
240,000 200,000 160,000 120,000 80,000 40,000 0
15
2003: 52,781 2005: 184,461
1
8 9 9
1
9 9 9
2
0 0 0
2
1 0 0
2
2 0 0
2
3 0 0
2
4 0 0
2
5 0 0
2
6 0 0
PMI Global Thought Leadership Survey: Key Findings
? Top-of-mind benefits
? Efficiency (60%) ? Budget (30%) ? Timing (24%)
? Common methodology used more ? Professional project managers used and valued more
16
KPMG: PM Essential to Success of Corporate Initiatives
Effective Project Management and Quality Assurance is critical to the successful implementation of any major corporate initiative.
17
Global IT Project Management Survey, KPMG 2005
KPMG: PM Essential to Success of Corporate Initiatives
? Establish processes that help manage risks associated with large-scale projects ? Manage critical, complex projects ? Assure senior executives of effective program/ project management controls ? Enhance an organization's program management office
18
Global IT Project Management Survey, KPMG 2005
Higher profile for project management
These trends are encouraging, and will continue to positively influence organizations’ project management competencies, capabilities and successes
2005 Global IT Project Management Survey shows
? ?87% of organizations report projects to their Board of Directors ? More PMOs, with 17% now reporting to CEO ? HR processes recognize the specialized project management skills required to be effective
19
Global IT Project Management Survey, KPMG 2005
Top 10 Success Factors
User Involvement Executive Management Support Clear Business Objectives Agile Optimization Emotional Maturity Project Management Expertise Financial Management Skilled Resources Formal Methodology Tools and Infrastructure
20
20 15 15 10 10 10 5 5 5 5
Chaos 2007 Rex, The Standish Group
Performance Rises With Maturity
High performance (60-100%) Low performance (0-40%)
21
Boosting Business Performance Through Programme and Project Management, PWC 2004
Value of Project Management Maturity
Organizations with more mature PM boast
? Better cost/schedule predictability ? Lower project management direct costs
Organizations with less mature PM
? Miss budgets by 20% ? Miss schedules by 40%
22
Quantifying the Value of Project Management, W. Ibbs, J. Reginato, PMI 2002
Greater PM Maturity = Better Project Performance
CPI, SPI Step 2: Maturity-Based Gain
Step 1: Efficiency-Based Gain
Project Management Maturity
Two-Step Project Management Maturity Improvement
23
Quantifying the Value of Project Management, W. Ibbs, J. Reginato, PMI 2002
Microsoft: PM Maturity and Business Strategy
…transform business imperatives into action and results
…you’ll be involved in making Worldwide Operations better, faster, and cost-effective. …Previous experience in project, product, and program management will serve you well in this fast-paced environment.
24
http://members.microsoft.com/careers/careerpath/worldops/programmgt.mspx
Why Project Management Maturity Matters
? ? ? ? ? Increases project alignment with strategic goals Increases project performance Improves project cost management Focuses on performance Identifies most strategic areas for improvement
25
Thank you
Questions?
26
© 2007 Project Management Institute, Inc. All rights reserved. Not for further distribution without the express permission of PMI. “PMI,” the PMI logo, “PMP,” and “Making project management indispensable for business results” are registered marks of Project Management Institute Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department.
doc_357614799.pdf