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15th Mar 2022
Author: Rob McMartin MAIPM, Co-Chair of the International Centre for Complex Project Management (ICCPM)
The 2021 AIPM/KPMG Project Management Survey Report told us that “71% of respondents reported that project complexity is increasing”. Where once there were simple projects, now there are complicated projects, complex projects, and ‘megaprojects’, all of which can be entwined with wicked problems. No longer is a copy of the PMBoK Guide and a willing attitude enough to manage a project (not that it ever really was).
This has led to the development of new project management styles; new types, new methodologies, new technologies and new techniques, but the one thing that hasn’t changed is the attitudes of most organisations to project management.
While the project management profession has noticed the changes, most organisations have not. Even though most organisations are now involved in projects of some form, whether they are internally, or externally delivered products or services, the ongoing march to the ‘projectification’ (Projectification of the Western World, Andreas Wald, IRNOP Conference, 2017) of the world continues.
While projects and project management has been evolving and learning new techniques and adapting to the new types of projects, the business practices have remained in a steady state.
Revisiting the AIPM/KPMG Project Management Survey Report, we find the following:
Businesses accept that out of 100 projects, 27 of them will be over budget and late. 19 of these projects will fail to deliver the reason for their creation, while 18 of these projects will not meet stakeholder satisfaction.
According to the survey, only 36% of the respondents say that their organisation does enough to improve project management skills and capability.
More companies are doing projects, projects are gaining complexity, projects are failing, yet companies don’t see a need to provide training to deal with the changes.
Nearly all businesses involved in project delivery will have a director of projects role (guidance) and possibly a PMO (governance), and expect the projects to be delivered. But when the guidance and governance fail to improve project delivery, and the organisations have created centralised and decentralised, PMO and EPMOs, and every other new trend (Agile) spouted by ‘advisors and consultants’ and still nothing is improved, where does the problem actually lay?
Depending on the size of the organisation, the director of projects may report to a managing director, or they may report to a board of directors. In looking at boards only, we see a major disconnect.
This failure of alignment of project delivery and management in an organisation, rests with the board of directors (often referred to the C-Suite), who are responsible for the long-term strategy and direction of the organisation.
The most common examples of C-Suite members include:
So where does project management sit within the C-Suite? It doesn’t. Very few organisations have a chief project officer. Project management often sits under another function such as operations, engineering, marketing, information technology, finance or even administration. These executives are experts in their field, but very few of them have recent project experience, or any project management experience. If they do, it will be in an advisory capacity through an independent, or non-executive director.
A board is made up of people with a broad mix of skills, knowledge, and experience often with different skills and backgrounds, the goal is to ensure that board members have a range of skills that can work as a well-rounded team that can lead and direct the long-term needs and strategy of the organisation. Project management is becoming too important not to have the full attention of the board. Projects that are a part of another business function and have the wrong person responsible for project management and delivery will always be destined to have a continued high failure rate.
Each year the requirements to manage projects increases with the creep of complexity, or with more projects bordering megaproject status. Where once a project worth a billion dollars were few and far between, they are now becoming more frequent, with almost an inverse proportion of skills to manage them.
The days of a one size fits all management approach have long passed. The need for informed decisions and aligned strategies with regards to project management within organisations is now greater than any time in history.
It is now necessary to align business direction and strategy from the highest level with the governance, and guidance. It is not just direction and strategy; it is ensuring that the voice of the projects is heard at the highest level, that when project directors, PMO managers and project managers are calling out for training or additional resources, or improved risk management techniques that the organisation can act quickly.
Look within your own organisations; how much of the business is derived from projects? Can your company cope with 73% on time and on budget, or only 81% of projects delivering on original goals and intent, or worse 18% of your customers unhappy doing business with you? Ask the question “Where does project management sit within your organisation?” and “Doesn’t it deserve a chief project officer”?.
This article appears in the Autumn 2022 edition of Paradigm Shift magazine. Find out more about the AIPM digital magazine and take a look at the full edition.
If you liked this article, you can see more by reading the latest edition of the Australian Institute of Project Management’s digital magazine.
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