PA Consulting Group’s latest survey examines management techniques of project-based businesses in the UK. It reveals that a large majority of organisations are failing to exploit competitive advantage by not focusing their organisational systems effectively on the delivery of projects.
PA initiated the survey in February 1997 as part of an ongoing study of project management within British business. It was conducted across 120 organisations from a range of industry sectors including manufacturing, construction, finance and information industries. In all, 84% of respondents agreed project management was key to business success, yet it was seen to deliver effectively in less than half the cases. Although PA’s report found examples of good project management delivering results, it concluded that companies will only be really successful if a ‘projects culture’ is established throughout the organisation.
Four factors emerged as critical to the creation of a projects culture:
- The degree of organisational focus on project management (supporting systems and processes, and management behaviours)
- The existence of appropriate project management systems and procedures
- The application of project-based performance management (as the basis of appraisal, development and reward)
- The recognition of project management as an important career route (underpinning the key role of the project manager and giving it status to attract the best people).
It is the integration and alignment of these factors with the way the organisation is managed that will determine the success and consistency of projects.
"Despite great efforts by British businesses to improve project delivery through training and internal procedures, much remains to be done, particularly in terms of management, staff motivation and IT," say Nick Chaffey and Gareth Firth of PA’s Project Management Practice.
Other key findings from PA’s survey indicate a lack of focused training in project management skills; the need for a structured career development path for project managers; a mismatch between responsibility and authority; and a clear indication that time and cost are the principal benchmarks of project success.
- 63% of respondents agreed most people in their organisation understand how project management fits into their organisation
- 74% of respondents reported the majority of people in their organisation do not have project management skills, despite specific project management training being provided by 70% of them. Further to this 58% felt this training to be inadequate
- Only 21% of respondents strongly agreed that project management was part of a recognised career path. The strong correlation with successful project delivery highlights project management career creation as a key area for action if UK business is to improve project performance
- Less than a quarter of respondents believed project managers do not have the full authority necessary to deliver projects successfully
- In nearly 90% of cases, the most common benchmarks for tracking project delivery are time and cost.
Based on this research, PA concludes there are significant opportunities for project orientated organisations to improve performance by focusing less on developing individuals as project managers and more on the development of a projects culture through the organisation.
