Published on the 13/08/2013 | Written by Newsdesk
A new KPMG report shows only a third of projects are delivering the desired results, resulting in a “staggering waste of resources”…
The findings of KPMG’s 2013 Project Management Survey have showed that project failures are increasing. The survey is a biennial research project undertaken by KPMG New Zealand, which examines the real-life experiences of businesses who are working on the challenges of improving their project performance.
The 2013 analysis shows there’s been a significant increase in project activity across all sectors of the economy. In the 12 months to September 2012, 54 percent of organisations surveyed completed more than 21 projects – but two-thirds of those projects are failing.
“The average reported spend per project is $15m – and the survey results indicate that only one-third of that spend is delivering the desired outcome,” says Perry Woolley, a KPMG Director who specialises in project management.
“If those results are extrapolated across New Zealand’s public and private sector organisations, then it equates to a truly staggering waste of resources.”
Perry Woolley does say, however, that New Zealand organisations are generally more aware of the challenges of project management, and are showing a higher awareness of what must be done to improve.
New Zealand’s high-performing organisations do adopt a number of ‘good practices’ that correlate highly with project success. For instance, they use a proven project management methodology, and have effective risk management strategies.
Another key factor for success is having a Project Management Office (PMO) within the organisation.
Worryingly though, while PMOs become more common worldwide, the latest survey showed there has been a 30% decline in the number of PMOs across New Zealand since 2010.
“We strongly recommend that all New Zealand companies involved in significant project work should seriously consider the value of having a PMO,” says Perry Woolley.
“Companies that have poor delivery records are now waking up to the fact that project managers need support and infrastructure to deliver more reliably. The days of relying solely on the ‘superhero project manager’ are numbered.”
The full report is available here.
