Why Investing In Project Management Pays Off
In various sectors, leadership teams are willing to invest substantial amounts into crucial projects.
These projects are designed to drive transformation, spark innovation, and enhance performance. However, despite having significant budgets and competent staff, up to 40% of strategic projects fail, turning potential into disappointment.
Many organisations instinctively attribute these failures to shifting market dynamics or insufficient technologies. However, the real issue often lies within the organisation itself, specifically in the areas of project management and governance.
When crucial priorities go off course, it’s not usually due to a lack of ideas or initial funding. Instead, the projects that are most vital to an organisation’s vision need active oversight to transform potential into tangible impact. Without robust project managers guiding resources, mitigating risks, and providing clarity, promising initiatives can become vulnerable to several issues:
- Unclear requirements: Proceeding without clear scoping can lead to expensive confusion and rework later on.
- Mismatched expectations: Relying on assumptions instead of a shared understanding can result in dissatisfaction.
- Unforeseen problems: Neglecting to regularly validate the status allows unidentified issues to escalate unchecked.
- Diverging interests: Failing to keep stakeholders continuously engaged can lead to disengagement and eventually dissent.
These common issues can undermine project outcomes across organisations. Ad-hoc status checks and reactionary decisions are not enough to maintain high-performing initiatives. To excel, projects need vigilant governance, expert management, and proactive mentoring from experienced project managers who can bring order to complexity.
The steep cost of project instability
Projects that are burdened by ambiguity and missteps can rapidly drain resources, time, and morale. Over half of organisations face project budget overruns, which on average amount to 43%. Additionally, delays in timelines derail over 55% of efforts, causing a significant loss of momentum. These avoidable excesses, along with quality assurance issues and capability gaps resulting from uncoordinated work, lead to nearly a third of the project budget being wasted on unproductive activities.
However, the true cost of troubled projects extends beyond these direct losses. Missed delivery timelines also incur significant opportunity costs by preventing the realisation of value from investments. In highly competitive markets, where delivering cutting-edge capabilities even a few months late can result in obsolescence, organisations cannot afford to leave their innovation initiatives in limbo. Despite recognising the impact of flawed execution on key projects, many companies continue to underfund project management.
Evidence that project management generates significant returns
Enriching project teams with seasoned leaders to provide active governance can yield significant returns by preventing unnecessary expenditures and enhancing returns on investments. The evidence is in the performance differences between organisations with advanced project management maturity and those that still rely on ad hoc updates.
Organisations that leverage project management best practices report:
- Increased productivity: A 34% rise in productivity levels.
- Faster time to market: A 41% reduction in time to market.
- Improved product quality: A 29% improvement in product quality.
- Profitability growth: A 23% increase in profitability.
In addition to enhancing projects, experienced project managers also amplify gains by nurturing specialised talent and motivating teams for continued success. Consistent governance builds capabilities to maintain excellence, while clear direction unlocks discretionary effort that drives performance.
Progressive organisations maximise these enduring benefits by appointing knowledgeable leaders who focus solely on strategically governing portfolios. As project manager specialists entirely focus on delivery, Ballards LLP’s Project Management as a Service (PMaaS) integrates within client teams to provide the customised oversight that vital initiatives need to not just meet baseline expectations, but consistently surpass them.
Take charge with proven project managers
Complex projects require governance that can keep pace with market dynamics without losing sight of the end goals. Attempting to accelerate innovation without dedicated leaders can lead to preventable risks proliferating, potentially derailing even the most critical efforts. Investing in project management reduces volatility by focusing valuable resources directly on achieving results.
Revise scattered initiatives into measurable progress by collaborating with the experienced project professionals at Ballards LLP. Experience first-hand how mature project governance, powered by certified Project Management as a Service (PMaaS) specialists, can help your organisation optimise returns across projects year after year.
For more information, please contact Sean Devlin on firstname.lastname@example.org or call 01905 794 504.
Disclaimer. This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated with us.