Bad Requirements, Bad Results

  Requirements Management   Strategy   ProjectsAtWork  

Poor requirements management is costing organizations $51 million for every $1 billion spent on their strategic initiatives, according to new research by Project Management Institute. But focusing on people, processes and culture can raise requirements management maturity and greatly improve outcomes.

Organizations waste $51 million for every $1 billion spent on projects and programs due to poor requirements management, according to the 2014 Pulse of the Profession In-Depth Report: Requirements Management — A Core Competency for Project and Program Success, recently released by Project Management Institute. The report details the findings of a May 2014 research study, which set out to better understand requirements management in organizations and how these competencies can be improved to boost project success rates while reducing budget risk.

The Pulse study found that, while many organizations lack maturity in requirements management (only 20 percent reported a high level of maturity), some are already taking steps to make improvements in these areas. More than one-half of respondents report focusing on more defined practices and processes (58 percent) and revisions to current processes (53 percent).

Additionally, organizations are recognizing the need to create and maintain a higher standard of requirements management capabilities in their workforce, with 48…

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