Project Waste Up 12%

  Lessons Learned   Manufacturing   PMO   Strategy   ProjectsAtWork  

Organizations waste an average of $122 million per $1 billion spent on projects, according to the latest Pulse of the Profession report from Project Management Institute. The findings demonstrate the need for stronger implementation of project, program and portfolio management practices.

Project Management Institute’s (PMI) 2016 Pulse of the Profession: The High Cost of Low Performance reveals organizations around the world waste an average of $122 million for every $1 billion spent on projects as a result of poor project management practices (U.S. dollars). This represents an increase of 12 percent over last year. Amid worsening project outcomes, increased competition, an uncertain economy and other disruptive global trends, the report identifies a number of ways organizations can improve their performance.

The 2016 Pulse of the Profession findings show that organizations that effectively use formal project, program and portfolio management practices waste 13 times less than organizations that don’t; however, the report also demonstrates that few organizations are successfully embracing these proven capabilities. The report concludes that organizations should place a greater emphasis on project management training and development, strategic alignment and benefits realization. Further, more organizations should utilize executive sponsors who can lend project …

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