Project Management Institute

Measuring project management's return on investment

This article summarizes a 1997 study by PMI members to develop a methodology for justifying return on the investment in project management tools, processes, and practices. Thirty-eight companies and government agencies benchmarked their current processes and practices by means of a rigorous and comprehensive questionnaire that covered eight functional areas and six project phases. Each organization was rated on a scale that measured project management process maturity. An analysis of the data demonstrated a correlation between improved project cost performance and higher levels of project management maturity, although it also showed diminishing returns at the highest levels. The study validated the methodology as a sound way of justifying investment in project management and recommended an Excellence in Project Management Practice Award as a way to recognize and encourage superior project management processes.
registered user content locked

Log in or join PMI to gain access

or Register

Advertisement

Advertisement

Related Content

  • PM Network

    Prefab Push member content locked

    To drive down construction costs, shave project schedules and sidestep the U.S. labor shortage hindering its build projects, hotel brand Marriott announced in 2017 that it would be embracing modular…

  • PM Network

    Transfer of Power registered user content locked

    By Parsi, Novid Anxiety and opportunity have gripped Germany's project management. With all eyes focused on post-Brexit repercussions, political and economic uncertainty threaten to slow Germany's full-throttle…

  • PM Network

    Leading Edge registered user content locked

    By Fister Gale, Sarah In the face of unprecedented disruption, organizations must adapt. This year's PMI® Project Excellence Award winners proved that, when teams embrace the need to pivot, they can deliver real value to…

  • PMI Sponsored Research

    The Management of Benefits

    By Aubry, Monique | Sergi, Viviane | El Boukri, Sanaa Questions pertaining to performance are crucial in any organizational context. Moreover, in the current economic climate marked by instability, performance, in general, has been attracting the…

  • PM Network

    Popular Demands registered user content locked

    By Fister Gale, Sarah Flawless project execution can change lives. This year's PMI Project of the Year finalists went all-out to prove that. All three teams mastered intense requirements to deliver critical improvements…

Advertisement

Publishing or acceptance of an advertisement is neither a guarantee nor endorsement of the advertiser's product or service. View advertising policy.