Voices on Project Management

By Peter Tarhanidis, Ph.D.

Many leaders accept failure as part of their learning to enhance their future and mature outcomes. At the beginning of a new year, we must reflect on the past year’s successes and failures. Reflecting on project failures in 2024 offers leaders valuable insights to foster success in 2025. Understanding these challenges, supported by data and examples, is crucial for leaders aiming to enhance project outcomes in 2025.

Here are some notable quotes and perspectives on failure and resilience:

• Failure as the stepping stone to success: "Only those who dare to fail greatly can ever achieve greatly." — Robert F. Kennedy.
• The power of perseverance: "The secret of life is to fall seven times and to get up eight times." — Paulo Coelho
• The need to take risks: "Risk is not to be evaluated in terms of the probability of success but by the value of the goal." — Ralph D. Winter

Leaders should reflect on 2024 project failures with a focus on identifying root causes, assessing systemic issues, and implementing actionable lessons. Below are examples of challenges organizations and leaders faced or continue to struggle with:

1. Poor resource management: Inefficient allocation of resources led to project delays and budget overruns. TeamStage’s 2024 survey cites 60% of respondents identified poor resource management as their biggest challenge. Prosymmetry illustrates this impact; the Denver International Airport's automated baggage handling system faced severe delays and budget overruns due to inadequate resource allocation and management.
2. Lack of defined project management methodologies: The absence of standardized processes resulted in inconsistent project outcomes. Plaky’s 2024 survey indicates that 42% of project managers do not follow a defined project management methodology, making their projects 15% less likely to meet goals and stay within budget. Prosymmetry 2024 shares an example of when the Ford Edsel project failed due to the absence of a clear project management methodology, resulting in misaligned objectives and market misjudgment.
3. Unrealistic deadlines: Setting unattainable timelines leads to compromised quality and team burnout. Tempo 2024 states that 31% of project managers reported unrealistic deadlines as a top challenge. A key highlight noted by the Project Management blog is when the FBI's Virtual Case File project was abandoned after four years and $170 million spent, primarily due to setting unattainable deadlines that led to incomplete and faulty deliverables.
4. Insufficient budget: Unsurprisingly, underfunded projects struggled to procure necessary resources, affecting deliverables. Exploding Topics 2024 survey notes that 17% of project managers cited insufficient budget as a significant challenge. ProjectManager blog cites the California DMV's IT modernization project was canceled after $135 million was spent over nine years, largely due to chronic underfunding and budget mismanagement.
5. Poor project quality: Without the voice of the customer, deliverables failed to meet stakeholder expectations, necessitating costly revisions. This was noted by the Exploding Topics 2024 survey by 13% of project managers, who identified poor project quality as a major issue. ProjectManager blog notes the Healthcare.gov website launch in 2013 suffered from numerous glitches and downtime due to inadequate testing and quality assurance, leading to a poor user experience.

2025 Strategies to Ensure Success

1. Implement defined project management methodologies: Adopt a standardized framework like agile or waterfall to provide clear guidelines and improve project outcomes. Tempo 2024 confirms projects are 15% more likely to meet goals and stay within budget when following a defined methodology.
2. Set realistic deadlines: Engage stakeholders in setting achievable timelines based on resource availability and project scope. Leaders will reduce the risk of team burnout and maintain quality standards.
3. Ensure adequate budget allocation: Conduct thorough cost estimations during the planning phase to secure necessary funding. Leaders can prevent resource shortages and maintain project momentum.
4. Enhance project quality: Implement quality assurance processes and continuous improvement practices. Organizations can deliver products that meet or exceed stakeholder expectations, reducing rework.
5. Invest in resource management tools: Utilize project management software to optimize resource allocation and track progress. This will aid leaders in improving efficiency and in meeting project objectives.

By addressing these challenges with targeted strategies, leaders can build project maturity and drive more successful outcomes in 2025. What project challenges did you have in 2024, and what actions will you take to ensure success in 2025?

References

1. https://teamstage.io/project-management-statistics
2. https://www.prosymmetry.com/blog/4-famous-project-management-failures-and-what-to-learn-from-them
3. https://www.tempo.io/blog/failed-projects
4. https://plaky.com/learn/project-management/project-management-statistics
5. https://www.projectmanager.com/blog/failed-projects
6. https://explodingtopics.com/blog/project-management-stats

By Peter Tarhanidis, Ph.D.

One of the impacts artificial intelligence has had is prompting a reconstitution of project management. Here I look to leading industry experts to explore the benefits to project management systems due to matured AI software; and the maturity of the project manager as a data- and fact-driven champion of business outcomes and innovation. This combination of advanced project systems performance and leadership competence will significantly transform project success rates.

As a background to the current state of project management, HBR states that $48 trillion is invested annually in projects. The Standish Group notes that only 35% of projects are successful, and 65% of projects waste resources and have unrealized benefits.

Additionally, Proofhub attributes project failure to firms that lack project management delivery systems; they are prone to miss targets and overspend. It noted that 67% of projects fail because project management is undervalued; 44% of all managers do not believe in the importance of project management software; and 46% of firms place a high priority on project management. Also noted: Utilizing a good software program reduces failure by 10%, and scope creep by 17%.

More specifically, a PMI Learning Library article noted some reasons for project failure:

1. Unclear goals and objectives
2. Lack of resource planning
3. Poor communication across the organization
4. Inadequate stakeholder management
5. Poorly defined project scope
6. Inaccurate cost and time estimates
7. Inadequate risk management
8. Inexperienced project managers
9. Unrealistic expectations

Maturing Systems
An HBR article suggests that poor project success rates are due to a low level of available mature systems. Many firms continue to rely on spreadsheets, slides and other applications that haven’t matured current practices. While the current tools are adequate in measuring project performance, they do not allow for the development of intelligent automation and collaboration across the portfolio of projects. The opportunity to apply AI to project management could improve the success ratio by a quantifiable 25%, or trillions of dollars of newly realized benefits for firms and society.

Gartner Inc. analysts predict that by 2030, AI software—driven by conversational AI, machine learning and robotic process automation for gathering data, reporting and tracking—will eliminate 80% of all project management office tasks. Gartner identifies project management disruption in six aspects:

1. Better selection and prioritization
2. Support for the project management office
3. Improved, faster project definition, planning and reporting
4. Virtual project assistants
5. Advanced testing systems and software
6. A new role for the project manager

PwC envisions AI-enabled project management software will improve a project leader’s decision-making process across the following five key areas crucial to success:

1. Business insights improvements by filtering better data for relevant knowledge
2. Risk management assessing scenarios that offer mitigation strategies
3. Human capital in allocating resources more appropriately to meet the business priorities
4. Integrating various technologies and specialists to improve project outcomes
5. Active assistance by enhancing administrative tasks and stakeholder progress communications

PwC posits the advancements in project management software are an opportunity for firms and leaders that are most ready to take advantage of this disruption and reap the rewards.

PM Competence
PMI’s Project Manager Competency Development (PMCD) Framework provides an assessment and development of a project manager’s competence. It is based on the premise that competencies have a direct effect on performance. A project manager’s competence can be categorized in terms of project management knowledge, project management performance and their accomplishments, and personal competency in performing the project activities and personality characteristics. This combination is the stated success criteria for a competent project manager.

AI’s capability to assess disparate sources of big data to obtain actionable insights arms project managers with improved decision-making competence throughout the project lifecycle. However, a challenge noted by PwC’s recent analysis of OECD data (covering 200,000 jobs in 29 countries) warns that AI’s job displacement effect will automate 30% of jobs involving administrative manual tasks by the mid-2030s. This indicates a clear need to upskill project manager competence in order to thrive in the future.

In order to succeed, a firm’s culture of adaptability and lifelong learning is a cornerstone for shifting today’s project management roles into the future. They will need to expand competence in soft skills, business and management skills, technical and digital skills—all working in concert with each other.

IAPM states project managers will face fundamental changes over the next 10 years with job descriptions and roles. It suggests AI will make logical analysis and decisions, allowing the PM to focus their main area of responsibility on creativity, resolving conflicts, and innovation.

Lastly, with any transformation or disruption, one must consider the actions and obstacles—whether financial, management support, or workforce ability—to embrace and enact change. Here are some key considerations to reflect on:

1. Does your firm value project management?
2. Is your firm a quick adopter of intelligence-based project software?
3. Will your firm invest in your competence development?

Post your thoughts in the comments!

References

1. PMI: Project Management Competency Development Framework—Second Edition
2. PMI: Why do projects really fail?
3. HBR: How AI Will Transform Project Management
4. Gartner Says 80 Percent of Today’s Project Management Tasks Will Be Eliminated by 2030 as Artificial Intelligence Takes Over
5. IPAM: Will project managers soon be replaced by AI?
6. PWC: A Virtual Partnership? How Artificial Intelligence will disrupt Project Management and change the role of Project Managers
7. Proofhub: Top 10 Reasons Why Projects Fail (And How to Solve Them)

By Peter Tarhanidis, PhD

As the pandemic stretches on, work-from-home programs continue to keep teams working virtually. During this time, we have performed courageously to deliver our strategic and business outcomes. Here I will share a select review of advice from industry experts as they explore how to build a post-pandemic response strategy.

According to McKinsey (2022), organizations have pivoted to deliver sustainable and inclusive growth toward building a better world. And Harvard Business Review (2020) notes that all types of companies have navigated the pandemic by pivoting their business models in the short term to survive—becoming more resilient in the long term.

Yet not all pivots generated an improved business outcome. Three trends in particular can help ensure a successful pivot:

1. Align the pivot to a long-term trend driven by the pandemic
2. Extend the firm’s existing capabilities, further solidifying the strategic plan
3. Sustain profitability, which preserves and enhances the brand’s value to the customer

PWC’s Global Crisis Survey identified three key lessons that businesses can adopt for long-term resilience:

1. Plan and prepare for inevitable disruption by establishing a crisis team
2. Integrate teams and cross-company competencies to enable effective responses
3. Build resilience governance into the organization’s culture

An opportunity, therefore, exists to consider how to prepare your team’s competence in driving synergy and resilience in order to lead post-pandemic growth strategies—and simultaneously pivot from those same strategies.

Here is a shortlist of what leaders can do to prepare for a post-pandemic recovery and support an organization:

1. Develop mental agility to pivot among key strategies and deliver business outcomes as key shifts and business challenges arise
2. Allow the process of learning to take effect across key leadership levels
3. Integrate PMI and agile frameworks to ensure flexible planning activities
4. Employ data analytics to support key insights in customer and marketplace forecasts
5. Clarify the governance of key plans and what event would trigger a decisive strategic pivot
6. Develop talent to migrate into new areas of company strategies and projects
7. Gather teams in person in order to create synergy and move from “norm” to “perform”

In the end, the teams that are ready to execute and can pivot as necessary will be ready for the post-pandemic competitive environment.

Let me know if you have uncovered additional successful strategies—or any pitfalls to avoid—in building team synergy and resilience.

References

1. https://www.mckinsey.com/business-functions/risk-and-resilience/our-insights/covid-19-implications-for-business
2. https://hbr.org/2020/07/how-businesses-have-successfully-pivoted-during-the-pandemic
3. https://www.pwc.com/gx/en/issues/crisis-solutions/covid-19.html

By Peter Tarhanidis, PhD

Technology has demonstrated tremendous benefits and efficiencies (many of them unstated) over time. The technology lifecyle enhancements that started with our initial computers, software programs and the internet of the past have given way to the modern-day cloud, Big Data and artificial intelligence.

Throughout this maturing landscape, technology has affected all industries—especially how we collaborate. According to Peng (2021), here are some key impacts to consider:

• Digital transformations spending will exceed an estimated $2.39 trillion by 2024.
• Collaborative tools and technologies increased operational efficiency by 131%.
• Technology will displace an estimated 85 million jobs globally by 2025.
• AI augmentation will increase global worker productivity hours to an estimated 6.2 billion hours.

Project management has benefitted from the overall technology lifecycle, either by implementing aspects of it or by being a user of its collaboration outputs. Yet project managers are at the doorstep of being part of the next wave of AI disruption.

What a PM organization must consider is the methods and concepts used in managing past programs and become proactive in shifting to an AI-enabled PM organization. There is no doubt that the role of PMs and our methodology will be augmented with AI-enabled assistance.

PwC identified five areas of AI disruption and decision making in project management:

1. Business insights: Filter data to gain actionable perceptions
2. Risk management: Develop the ability to run multiple risk scenarios and outcomes
3. Human capital: Optimize teams and leverage staff skills or new areas of training
4. Action-taker: Provide analysis and optimization of schedules and staffing needs
5. Active assistant: Augment the collection process of information to generate progress reports

To prepare for these changes, project managers should:

• Invest in data sciences and digital skill sets
• Create a culture that adopts digital disruption
• Enable the use of digital tools and approaches to limit manual efforts and drive value-added work.

In order for these changes to emerge, there are a few considerations that may hold one back from the changes—such as organizational readiness, employee skills assessments, and the state of technical tools.

PwC outlines a change approach to assist in the transition that relies on updating project management strategy, leveraging technology investments, integrating digital and AI, and a comprehensive communication plan to generate awareness through adoption by the future project management workforce.

What other approaches have you used—or should be considered—to manage AI disruption in project management?

Reference:

1. https://www.pwc.com/m1/en/publications/documents/virtual-partnership-artificial-ntelligence-disrupt-project-management-change-role-project-managers-final.pdf
2. https://writersblocklive.com/blog/technology-in-the-workplace-statistics/

During the long duration of the pandemic, each of us had to shift our work/life balance. We had to curate a new workday schedule, perhaps adding more flexibility to support multiple needs between work and family. A changing focus with customer and colleague engagement, repurposing commuting time, tending to family needs, caring for those affected by COVID-19, and supporting relief efforts are just some of the changes we had to adapt to. The pandemic forced each of us to make personal and conscious ethical decisions on the tradeoffs, but most have of us have set into a new work/life balance.

After almost 20 months, the world is deploying COVID-19 vaccines under health authorities like the U.S. FDA and Europe’s EMA, who have expanded access protocol for emergency use. The world is hopefully on a trajectory toward a post-pandemic world. Many organizations have established their return-to-work policies, criteria, and expectations of colleagues. One may observe a continuum of return-to-work guidelines built by organizations as a highly collaborative model focused on high-touch customer experience, an innovation-driven design model, or task-based transactional work. Each organization is calling to us to spend some time back in the office or in front of our stakeholders.

How does this affect us, and what do we do to prepare? Our choices can be to simply go back to a pre-pandemic “normal”; stay in the work-from-home pandemic style; or re-engage in a post-pandemic style. Regarding this last choice, we should consider how to maneuver ourselves into a post-pandemic style while still maintaining the agility of working from home. This disruption to our current way of working creates a sense of stress and anxiety as it asks us to re-engage. One must re-learn and adapt to new behaviors and approaches.

One opportunity to be better prepared may be to create a personal contract for the post-pandemic work world. The contract can be a statement or a list of priorities. Here are some tips that I will use to help make the transition better and reset myself:

1. Revisit what you and your colleagues are professionally devoted toward, and why.
2. Curate the difference of a workday at home versus in the office (or traveling).
3. Coordinate specific dates and times for in-person versus virtual meetings.
4. Make lunch plans with newly hired colleagues.
5. Start a back-to-work focus group to help facilitate colleagues’ transition back.
6. Be clear about your constraints on social distancing, work hours, and time off.
7. Schedule healthy eating times, sleeping and exercise habits, family needs, etc.
8. Identify your new peeves and triggers; be mindful of behavioral changes (from both you and your colleagues).
9. Start a journal and chronicle your path and learnings.
10. Remember: Everyone has a different path—but together we will get through it!

What would your list include to enable a post-pandemic transition back to work?