One in four organizations frequently suffer delays and cost overruns with their projects, according to a study by Novations Group, a global consulting and training firm based in Boston. An additional 41% experience such problems occasionally, the findings indicated.
"The amateurish management of high-priced undertakings is a problem organizations fail to acknowledge, said Novations executive consultant John Rahiya. "Companies continue to waste shareholder equity, and there's seldom accountability. Overruns and missed target dates seem to be taken for granted. On the other hand, there's great opportunity for improvement.
Novations surveyed 2,000 senior HR and training & development executives nationwide on their organizations' experience with major projects.
Thinking of projects undertaken by your organization, what has been your observation about how well they are executed?
Our organization usually executes projects effectively. 35%
Our organization sometimes experiences delays and
cost overruns with projects. 41%
Our organization frequently experiences delays and
cost overruns with projects. 24%
The Novations' study identified the primary causes for missed deadlines and overruns: inadequate time and resources as well as lack of any project management discipline, reported by 68% and 48% of respondents respectively. Others cited were inexperience, too little oversight by senior management, and too much pressure from senior management. "But these factors are inevitably found in combination, explained Rahiya. "They go hand-in-hand with ineffective project management and poor project outcomes.
Half of the organizations using principles of project management reported success, while half have had mixed results. Ten percent do not rely on project management but plan to do so, while 16% have no such plans.
Project management is often the domain of Information Technology, the study found, and is currently used by 80% of IT departments. Among other functions using project management are human resources (56%), marketing (48%), finance (41%) and manufacturing (32%).
According to Rahiya, failed and delayed corporate projects should be recognized as a training issue. "Wise organizations make project management capabilities a priority and take pains to be certain the training and methodology are in place. But many companies have to learn the hard way, and that's no longer excusable now that the stakes have gotten so high.
The Novations Group Internet survey of 2,046 senior human resources and training & development executives was conducted by Equation Research.
