Pulse Data Highlights

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| A SNAPSHOT

THE
HIGH
COST
OF
LOW
PERFORMANCE
2014
2014

THE SITUATION

HIGH-PERFORMING VS. LOW-PERFORMING ORGANIZATIONS*

$109 76 vs 38
MILLION

Poor performance results in organizations


wasting US$109 million for every US$1
billion spent on projects

44%

of strategic initiatives are

unsuccessful
WHY DO PROJECTS FAIL?

58

LACK OF ALIGNMENT

Percentage of projects not highly aligned to


organizational strategy

LACK OF AGILITY

Percentage of organizations that report high


organizational agility

9
%

LACK OF EXECUTION

15
%

Percentage of organizations that consider


themselves excellent at executing strategy
PMI.ORG/PULSE

Percent

Percent

High performers have twice as many successful strategic


initiatives vs. low performers

31 9 57 28
vs

Percent

vs

Percent

High performers are three times as likely to have high


organizational agility

Percent

Percent

High performers are twice as likely to have high alignment


of projects to organizational strategy

Three Strategic Focuses That Drive Organizational Success

PEOPLE

PROCESSES

Managing Talent and Change

Project, Program and Portfolio


Management Maturity

Benefits Realization

strategic initiatives by effectively managing their project

High-performing organizations fully understand the value

measuring and communicating the intended benefits of

management talent. Furthermore, they demonstrate

of project management, have a project management office

projects and programs.

successful organizational change management, which is

(PMO) and use standardized project management

more effective with actively engaged sponsors.

practices throughout the organization.

High performers achieve significantly more successful

times

Twice as many high performers have actively


engaged sponsors compared to low performers.

times

Four times more high performers have project,


program and portfolio management that is highly
mature compared to low performers.

* High performers are organizations that achieve 80 percent or more of projects on time, on budget and meeting original goals.
Low performers are organizations that achieve 60 percent or fewer projects on time, on budget and meeting original goals.

OUTCOMES

Organizations need to focus on effectively establishing,

times

Five times more high-performing organizations


have highly mature benefits realization compared
to low-performing organizations.

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