Monday, 22 April 2013

What is PMI and how can it help you save £169 million?


If you read the Times this morning, then you may have come across a rather stark and terrifying advert from PMI, the headline:

"UK organisations risk on average £169 million for every £1 billion spent on projects."

Imagine having that conversation with your Boss, 'Ed, would you care to explain how you wasted £169 million worth of the companies money?' Something tells me you are not going to get that Christmas bonus you've been waiting for.

So how true are these figures, and should you really be worried? Follow Firebrand as we talk you through PMI, the 2013 Pulse of the Profession report and how to mitigate project risk.

What is PMI?

The Project Management Institute (PMI) is the World's leading not-for-profit, professional association for Project Management. PMI currently offers six Project Management certifications including the Globally recognized Project Management Professional (PMP) certification held by more than 520,00 practitioners worldwide.

Where do these figures come from?

The deeply concerning figures form part of PMI's 2013 Pulse of the Profession report, an annual global survey of project managers. The report takes market research from insights on projects fed back by project, portfolio and programme managers to chart existing and future trends within the industry. The current report takes feedback from more than 800 project management leaders across North America, Asia Pacific, Europe, the Middle East, Africa (EMEA) and Latin America and Caribbean regions. 

Should I be worried?

According to PMI, yes. The report suggests that project success rates are on the decline, with more than a third of projects failing to meet business goals since 2010. Scope creep; uncontrolled changes or continuous growth in a project's scope, has also seen an increase from 2010 to the present day with a movement from 41 percent to 45 percent of projects affected. 

Can I prevent this from happening?

Risk is an inherent part of any project, however, implementing proven success measures and a robust project plan are strongly linked with mitigating risk. PMI's report shows that High performing organisations practising such measures see a reduced risk; 14 times that of their Low performing counterparts, and experience greater success rates with 90 percent of organisations achieving original project goals.

PMI also outlined that organisations achieving project success have the following practices in common:
  • 76 % have embrace portfolio management a foundation and framework that guides the implementation and development of specific practices.
  • 74% have active sponsors on 80% or more of projects
  • 71% have a defined career path for project managers
  • 70% use standardised project management practices such as PMI's PMBOK® Guide
  • 69% have over 35% of project managers certified with the PMP®

So what now?

Avoid those awkward " I lost £169 million" conversations by getting to grips with project management practices. Book yourself on Firebrand's 4 day PMP course, and start planning for project management success today.

About the Author:
Edward is a member of the Marketing team overseeing the Content Strategy for Firebrand. Working in the Industry for 2 years, Edward has experience with Microsoft Technologies including SharePoint 2007 and Windows Server 2008 R2. Edward writes for a variety of Blogs and Publications on all things Technology.