Research by the Project Management Institute highlights a significant shortcoming in meeting business goals, with one in four projects failing to achieve their intended objectives.
- The 15th edition of the Pulse of the Profession® report surveyed over 2,000 project professionals and 300 senior leaders worldwide.
- Findings reveal that while some projects deliver value, 10% provide no benefit, accounting for substantial financial losses.
- Remote work’s impact on project success is negligible, with focus shifting to essential skill development.
- Capability-building is crucial as many teams require new technical, power, and business acumen skills.
Research conducted by the Project Management Institute (PMI) has unveiled a concerning statistic in the realm of project management: a quarter of all projects do not meet their business objectives. This finding forms part of the 15th edition of the Pulse of the Profession® report, which gathered insights from over 2,000 project professionals and 300 senior leaders globally. The sectors analysed include Government, Technology, Manufacturing, and Healthcare among others.
While 26% of projects fail to hit their targets, 16% of projects manage to deliver some form of value or benefit to stakeholders. However, a stark 10% of projects fail to deliver any value, leading organisations to categorise these efforts as complete failures. These unsuccessful projects account for a quarter of the total budget lost, highlighting the severe implications of ineffective project management.
Lysan Drabon, PMI’s Regional Managing Director for Europe, aptly summarised the situation: “Projects are currently in crisis, which has dire implications for all organisations aiming to adapt to the challenges of our changing world. Whether its projects to help tackle climate change or integrating AI to boost operational efficiencies, continuing at this rate of failure is simply unsustainable.”
One interesting insight is that the location of work—be it remote or in-person—has no significant bearing on project success. While 35% of business leaders consider remote work less effective, the report suggests that work location does not influence the success rate of projects. This dispels the notion that remote work is a primary culprit in project failures.
Instead, the report underscores the importance of capability-building as a driver for better project outcomes. With the rapid transformation of work environments, 64% of project teams are in need of new or different technical skills such as data analysis and agile management practices. Moreover, 61% require power skills like communication and collaborative leadership, while 54% need to develop better business acumen, reflecting a push towards comprehensive skill enhancement.
In light of this, organisations are encouraged to pivot from the debate over work styles and instead focus on empowering their workforce through education, training, and mentoring programmes. Drabon further emphasised: “Being constrained to a specific way of working could actually lower morale and be detrimental to teams and organisations. Leaders must recognise that the remote work debate is a red herring and instead focus on upskilling their people.”
The efficiency and success of future projects hinge on the commitment to skill development and organisational adaptability rather than the mode of work.
