Projects are responsible for achieving planned objectives and are usually deemed successful once they have achieved these, within an agreed timescale and budget.
Project management differs from just ‘management’ as it has a final deliverable and a finite timespan, unlike management (an ongoing process). Excellent project management is essential for the success of any business, no matter the industry. Therefore, project managers need a wide range of technical skills and a deep understanding into the business.
That said, it’s common to see many companies failing due to poor project management, so here’s 10 shocking statistics…
Fewer than a third of all projects were successfully completed on time and on budget over the past year (Source: The Standish Group)
3. On average, projects go over budget by 27% of their intended cost (Source: Harvard Business Review)
4. On average, 1 out of 6 projects saw a budget overrun of 200% (Source: Harvard Business Review)
97% of organizations believe project management is critical to business performance and organizational success
6. Most organizations have a 70% project failure rate (Source: 4PM)
7. Only 2.5% of companies complete ALL of their projects successfully (Source: Gallup)
8. 34% of projects have no baseline (Source: Wellingtone)
9. 39% of project failures are due to lack of planning, resources, and activities (Source: Study source)
10. 57% of projects that fail are due to “breakdown in communications” (Source: Study source)
It’s clear that there are many factors contributing to the success of a project, namely resources, planning, communication and project managers with the right skills. For an organization to be successful, it needs to invest in excellent project management; if you think your business is lacking and requires help with project management or supply chain improvement then call Dean Stennett on 07785 340375.