Good News for Healthcare: Project Success is Trending Up
The Project Management Institute (“PMI”) recently released its Pulse of the Profession 2017 report. Each year, PMI conducts a global survey of project management professionals and highlights trends within the project management profession in its annual report.
The healthcare industry is estimated to increase project management roles at a higher rate than other industries. Given the ever-increasing project complexity and financial risks facing healthcare projects, it is important that healthcare organizations stay up-to-date on project management trends and best practices. Here are some highlights from this year’s Pulse of the Profession 2017 report:
Success is on the Rise
This year, for the first time in five years, survey respondents indicated an increase in projects meeting goals and objectives. Additionally, the cost of inadequate performance went down with an average of $97 million dollars lost for every $1 billion invested compared to $122 million lost for every $1 billion invested in 2016.
The Definition of Success Expanded
While the triple constraint has typically driven the definition of success (on-budget, on-time, on-target) organizations are now realizing that success can – and should – include additional factors such as stakeholder satisfaction, quality, value, and alignment to corporate goals. In this year’s survey, benefits realization (were the defined benefits of the project “realized and sustained” at the conclusion of the project) was factored into the assessment of project performance and success.
Investment in Professional Development Remains Stable
The PMI Talent Triangle emphasizes the importance of leadership and strategic/business management skills in addition to technical project management skills. Last year’s Pulse of the Profession report stated “when organizations focus on all thee skill sets, 40 percent more of their projects meet goals and original business intent.” In 2017 while actual investment in project management skills development remained stable, with 60% of organizations offering training, there was a slight increase (3%) in respondents considering skills development a priority.
“Champion” Organizations Have More Engaged Executive Sponsors
Project success rates improve with engaged executive sponsors and this year respondents reported that 62% of projects had an actively engaged sponsor, an increase of 3% over 2016. Emphasizing the importance of the Executive Sponsor, organizations defined as “Champions” (with a project success rate of 80%+) reported that 77% of projects had an actively engaged sponsor, whereas organizations considered “Underperformers” (with a project success rate of 60% or less) had actively engaged sponsors on only 44% of their projects.