Improve business performance in a project-intensive world

A recent Economist Intelligence Unit report shows that around the world less than 6% of projects are delivered successfully, with the majority of projects delivered late, over budget or without fully meeting the scope and quality requirements originally set out. This is true even in ‘project-intensive’ industries; those industries that depend on project management for their success, and have worked to develop project management skills in their organizations. This is a critical issue for project-intensive organizations and the wider business community. The Project Management Institute (PMI) estimates that at approximately 20% of global aggregate Gross Domestic Product (GDP) is represented by project work. This rate of project failure represents a huge cost to global businesses.

These figures come into sharp focus when viewed alongside current economic and project delivery trends. Three trends that merit particular attention are:

  • Doing more with less
  • Increasing shortage of experienced professionals and the hero culture
  • Lack of standardization and interoperability

Each of these trends and challenges has a direct impact on project performance and the overall business performance of any project-intensive organization. Executives of project-intensive businesses have a direct responsibility in driving strategies that enable their project teams, their project delivery supply chain and their organizations as a whole to overcome these challenges.

There are three particular areas of project management that executives should focus on in order to address these challenges, safeguard project performance and optimize business performance:

1. Enterprise project resource management:

By carefully focusing on project resource utilization across all projects, the project-intensive business can maximize their resource value across the enterprise – cutting costs significantly while ensuring resource coverage for project delivery success.

 2. Enterprise project standardization, governance and best practices

An approach that recognizes the project delivery process, rather than the individual project deliverable, as the product of the project-intensive business, opens the door to standardization and economies of scale. It allows the project-intensive business to improve processes, capture efficiencies and cut costs to improve the performance of every project and the supporting functions, significantly improving overall business performance enterprise-wide.

3. Enterprise project process and collaboration automation

Process and collaboration automation can significantly contribute to a reduced resource footprint, reduced costs and increased resource value by freeing skilled resources for revenue generating tasks. To automate project delivery processes and collaboration, a technology platform that can fully support a project-intensive business’ standardized processes is needed. This platform must enable automation through configurable workflow definition, metric threshold recognition, project schedule and calendar tie-in, and full resource and role definitions. Through a careful review of standardized processes, and with executive leadership in collaboration with project teams, project-intensive businesses can use automation to drive project performance and improve business performance.

Enterprise Project Portfolio Management can help project-driven organizations build a competitive advantage and drive improved business performance by consistently delivering successful projects. With a good EPPM Platform such as Oracle Primavera, organizations can unite project stakeholders and team members through collaboration and business process automation to drive accountability and project delivery discipline. And at the enterprise level, organizations can establish and enforce best practices and define process improvements that are critical to long-term business success, while eliminating rework, waste and resource capacity constraints. Executives can optimize management of projects, programs, portfolios and people, and enable the organization to accelerate the return from projects, control costs across all projects, reduce contingency requirements, and maximize resource capacity and skills availability to meet current and future demand.

At all levels of the business, from the project team to the board room, EPPM can expose the hidden realities of project and business performance to facilitate proactive decision-making, mitigate risks and resolve issues so that executives can always make commitments to customers with confidence and ensure profitability. In short, an EPPM platform such as Oracle Primavera enables project-intensive organizations to drive project excellence and create value in every single project.

For further information, read the full business brief.




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