Indispensable!

Project Management for

Organizational Results
Finance and Administration
Roundtable Meeting
24 October 2007
Presentation by
Steven Fahrenkrog, PMP
PMI Vice President
Regional Development
© 2007 Project Management Institute, Inc. All rights reserved. “PMI”, the PMI logo and “Making project
management indispensable for business results” are registered marks of Project Management
Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department.
 Globalization

Macro Trends

Increased
competition
Organizational Impacts

Increased
Globalization
outsourcing
/offshoring

Quicker
Increased time-to-
competition market
Project Management Impacts

Increased More
Globalization outsourcing virtual
/offshoring projects

Lack of
Quicker project
Increased time-to- resources
competition market
Stressors

Stakeholders
Shareholders
Legal
Transparency
Integrity
 More Projects, More
Complexity, More Risk
Comparison of 2003 and 2005
KPMG Project Management Surveys
19%
81%

Number of Projects
12%

88%
Project Complexity
21%

Project Budgets 79%

Reasons for Project
Failures
Bad
estimates
/missed
deadlines

Scope
changes Changes in
environment

Boosting Business Performance Through Program and Project Management, PWC 2004
Financial Performance
Pressure
• Earnings pressure drives
decisions
• Pressure impacts project
environment
• Transparency and visibility
a must
• Greatest Pressures:
– Deadlines
– Timeframes
– Speedy time to market
 On Time Delivery

Most
organizations’
greatest priority
is on-time Tolerance for
delivery time overruns
has decreased
 Time & Cost Overruns

100%

80%

60%

40%

20%

0%
1998 2000 2002 2004 2006
Cost 69% 45% 43% 56% 47%
Time 79% 63% 82% 84% 72%

Chaos Chronicles, The Standish Group 2007

 Five Deadly Sins of PM

• Over ambitious
• Arrogance
• Ignorance
• Abstinence
• Fraudulence

My Life is Failure, Jim Johnson

 Role of Project Management

• Project management makes more effective and

efficient delivery of projects of all types in all
industries, business, government agencies, non-
profits and communities possible
– Cornerstone to building the future of nations
– Essential for delivering the strategic plans of
organizations
– Critical for infrastructure
– Beneficial for all levels of work
Top 10 Factors for Success

• User Involvement
• Executive Management Support
• Clear Business Objectives
• Agile Optimizations
• Emotional Maturity
• Project Management Expertise
• Financial Management
• Skilled Resources
• Formal Methodology
• Tools and Infrastructure
Standish Group Chaos Chronicles 2007
 Lessons for Success

• Recognize the importance of the project

management discipline
• Knowledge-sharing between and among
agencies within the same organization
• Progress, not perfection
• A project management-based approach in the
public sector mirrors the private sector
approach and makes public-private partnership
interactions more efficient
PMI’s Envisioned Goal

Worldwide,
organizations will
embrace, value and utilize project
management
and attribute their success to it.
Project Management Delivers
Results

Right On
Goal Time
PMI
PMI
Global
PMI Global
Global
Right Standards
Standards On
Standards
Strategy Budget

Right On
People Target
Meeting Our Promise
 Use These Four Core Global
Standards to Optimize Your Most
Valuable Assets
Standardized PM Practices Equal
Better Project Performance

Project Outcomes
by Level of
Standardization
(Percentages)

2007 PMI Pulse of the Profession Survey

For consistent, predictable,
and repeatable outcomes…

…project management supports:

Proper Refined planning

Proper
resource
planning projections
Structured performance measurement
Expanded
communication
Refined resource projections
Structured
performance
Expanded communication
Improved
risk
measurement management
Improved risk management
Why These Resources Are
“Globally Accepted”
 Ethical Behavior is Key

• All PMI members and people credentialed by PMI

to PMI Code of Professional Conduct & Ethics
• Code is anchored in the values of
– Responsibility
– Honesty
– Respect
– Fairness
• Values we all share
• Reputation of project management profession is
shaped by the actions of project managers
• Ethical standards provide guidance for behavior
 Project Management
Maturity Creates Agility

• Adoption and adherence to documented global

best practices
• Senior-level acknowledgement that PM is an
integral part of operations for the organization
• Internal training and career development
• Project management expands into program and
portfolio management
• Recognition that leadership is an essential
component of project management
Performance Rises With Maturity

High performance (60-100%)

Low performance (0-40%)

Boosting Business Performance Through Program and Project

Management, PWC 2004
 The Value of Project
Management Maturity

•Miss budgets by 20%

•Miss schedules by 40%

Better cost/schedule
predictability
Lower project mgt. cost
Quantifying the Value of Project Management, W. Ibbs, J. Reginato,
PMI 2002
OPM3 ProductSuite
®

Assess the maturity of your organization

Successful Projects

OPM3

Organizational Strategy Successful Projects

OPM3 is scalable, flexible and customizable

 Organizations Recognize the
Value of Project Management

• Project management Companies Requiring

improves: PMI Certification*
– Efficiency 30
– Budget 25
– Timing 20
• More organizations 15
adopting common
methodology 10

5
• More organizations
hiring credentialed 0
project managers 2003 2004 2005 2006
Value of PMI
Credentials

*2006 Chaos Chronicles, The Standish Group

 PMI Certification Program

PROGRAM

PROJECT
PORTFOLIO

Project Scheduling Project Risk Management

PMI Membership Rises

August ’07:
245,845
PMI Credentialing Escalates
Dramatically

Sept. ’07
Growth in PMP® Certification 251,782
 PMI Global Membership
and Certifications

70% Membership
59% PMPs 11% Membership
14% Membership
68% CAPMs 9% PMPs
29% PMPs
20% CAPMs
11% CAPMs
4% Membership
3% PMPs
1% CAPMs
 Median Salaries for PMPs vs. Non-
PMPs in the United States

$105,000 $102,500
PMP
Non-PMP
Median Salary

$100,000
$96,675

$95,000 $95,000

$90,000
$88,500
$84,000
$85,000

$81,975
$80,000
3 to 4 years 5 to 10 years 10 to 15 years
Years of PM Experience
Source: PMI Project Management Salary Survey – Fifth Edition
Do you know where you are heading?

PMI Career Framework

 Project Management
Academic Degree Programs

2007
300+ programs at over
250 institutions
•China Ministry of Education
1994: authorized 96 universities
•Primarily construction to offer master level project
management degrees management degrees
•2 bachelor and 9
master level degrees •PMI has accredited
programs at 13 universities
Our Promise To You

Making project
management
indispensable
for business
results.®

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