Current Reality - Business Case for the Need of Project Management

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Information about Current Reality - Business Case for the Need of Project Management

Published on June 3, 2019

Author: MarkWillis33

Source: slideshare.net

1. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL INTRODUCTION TO PROJECT MANAGEMENT PROJECT MANAGEMENT TRAINING SERIES 01

2. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL DR. MARK R. WILLIS Experience • 15 Years in the Medical Device / Pharmaceutical Industry • 5 Years in the Financial / Global Communications Industry • Graduate Level Professor of Project Management & Regulatory Affairs, Northeastern University • Under Graduate Professor of Health Economics, Massachusetts College of Pharmacy & Health Sciences • Project Management Lecturer, Harvard University School of Business Education • Notre Dame University - BS Economics • Northeastern University - MS Regulatory Affairs for Drugs, Biologics, and Medical Devices • Northeastern University – Doctorate, Law and Policy Achievements • Certified: PMP, cSQE, cTFL, cQA, cQM/OE • ISO 2012 Colleague of Distinction Award Winner • ISO Standards Board Member – Quality Management Chair (2009 – 2012) • ISO Standards Board Member – Software Chair (2010 – 2013) • ISPE Standards Board Member (2013) • Participant in ISO 9001 update

3. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT CURRENT REALITY High-performing organizations demonstrate that adhering to proven project, program, and portfolio management practices provides results: • Reduction in risk, • Cutting of costs, and • Improvements in project success rates

4. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS Only 2.5% of companies successfully complete 100% of their projects. (Source: Gallup Business Journal) What we can learn: • Organizations must strategically choose the appropriate projects to be performed • Selection of the “right” project is as important as, if not greater than, the management of the project itself.

5. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS One in six projects have an average cost overrun of 200% and a schedule overrun of 70%. (Source: Harvard Business Review) What we can learn: • Be realistic with the budgets • Plan up-front for all possible scenarios • More time spent on planning will result in low risk to missing targets

6. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS Fewer than a third of all projects were successfully completed on time and on budget over the past year. (Source: Standish Group) What we can learn: • If you do not properly organize, plan and define projects, you will not succeed • Understanding Tasks & Assignments leads to a higher likelihood for success

7. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS The United States economy loses $250-$750 Billion (USD) per year due to failed projects. (Source: Gallup Business Review) What we can learn: • Project failures are a huge strain on the global economy • The further a project has progressed in execution, the greater the cost of the failure

8. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS 75% of businesses and executives anticipate their projects will fail. (Source: Genica) What we can learn: • Project success will lessen the expectations of failure • Common practices across the organization will lead to a higher success rate 2010 2016 Consistently on budget 48% 33% Consistently on time 36% 29% Consistently delivering stated deliverables 59% 35%

9. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS 57% of projects fail due to “breakdown in communications. (Source: IT-Cortex) What we can learn: • Communication skills are the Project Manager’s greatest asset • Successful communication translates into successful projects

10. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL PROJECT MANAGEMENT STATISTICS The failure rate of projects with budgets over $1M is 50% higher than the failure rate of projects with budgets below $350,000. (Source: Gartner) What we can learn: • Breaking large scale projects into smaller manageable pieces is the key to success • Work packages should not surpass two weeks in duration

11. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL Businesses identified “capturing time/costs against projects” as their biggest project management challenge. (Source: TheAccessGroup) What we can learn: • Budgets and Schedules are best created after the Project Scope has been completely vetted and established PROJECT MANAGEMENT STATISTICS

12. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL Barely over half (56%) of project managers are certified. (Source: Wrike) What we can learn: • The more educated someone is regarding project management, the more successful they will be at performing that job. • Corporations that value Project Management have a proven record of success PROJECT MANAGEMENT STATISTICS

13. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL 80% of high performing companies understand the value of project management. 36% of low-performing companies understand the value of project management. (Source: Project Management Institute) What we can learn: • Project Management is a key component of any high performing organization. • More and more companies are realizing that project management skills are a valuable commodity PROJECT MANAGEMENT STATISTICS

14. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL By 2020, Project Management positions will increase by 12% matching a 37% global increase in GDP. (Source: Project Management Institute) PROJECT MANAGEMENT STATISTICS

15. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL Here’s one more statistic to close out this section: An astounding 97% of organizations believe project management is critical to business performance and organizational success. (Source: PricewaterhouseCoopers) That’s pretty obvious, and the takeaways are equally obvious: “Great project management is the key to success.” It’s worth heeding the numbers, and asserting our expertise so we don’t become part of those troubling statistics. PROJECT MANAGEMENT STATISTICS CONCLUSION

16. Project Management Training Series 01 © Copyright Willis QS Consulting 01 Jan 2019 STRICTLY CONFIDENTIAL  High Performing Companies Value Sound Project Management Practices: Project Management Reduces Risk, Reduces Cost and Improves Project Success Rates  Successful Companies chose their Projects wisely; fully aligning with business strategy  3 Keys to Project Success: Fully Organize, Plan and Define the Tasks of each project  Communication is the #1 responsibility of the Project Manager  The evidence clearly shows: Companies that value project management perform better than those that do not  Project Management as a career choice will be in high demand in the coming years PROJECT MANAGEMENT LESSONS LEARNED

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