Scope creep. Miscommunications. Disengaged sponsors. Stakeholder disinterest. All of these problems can sink a project or program, and they have something in common: They involve or impact requirements, the process of identifying, defining, documenting and managing the solution a successful project must deliver.
PMI surveyed more than 2,000 project practitioners and business analysts about the current state of requirements management and its impact on projects and programs. The survey revealed nearly half of unsuccessful projects fail to meet goals due to poor requirements management. Here, a few other key findings:
Poor Requirements = Poor Performance
Unsuccessful projects where poor requirements management is the primary cause of not meeting goals
Other reasons
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Areas negatively affected among organizations reporting that inadequate/poor communication is a primary cause of project failure
When inadequate or poor communication is a primary cause of project failure, three out of four organizations report that the issue negatively affects requirements management more than any other area of their projects.
For every dollar spent on projects and programs, 5.1 percent is wasted due to poor requirements management. This amounts to US$51 million wasted for every US$1 billion spent.
Yet Organizations Are Struggling
Fewer than half of organizations have the necessary resources in place to properly perform requirements management.
Only 24 percent of organizations report doing well in recognizing and developing skills needed for effective requirements management.
The majority of organizations report that requirements management is not fully valued as a critical competency for projects and strategic initiatives.
Key: 
Fully values 
Somewhat values 
Does not value at all
Organization as a whole
The Way Forward: People, Processes, Culture
When it comes to improving requirements management, the top three areas organizations are focusing on are:
High performers (completing 80 percent of projects on time, on budget and meeting original goals) are significantly more likely than low performers (completing 60 percent of projects on time, on budget and meeting goals) to have the necessary resources in place and develop employee skills for effective requirements management.
FOCUS ON FORMAL PROCESSES
Culture is Critical
When the organization as a whole, top management and executive sponsors fully value requirements management as a critical competency for their projects and programs, significantly more projects meet their original goals and business intent.
More projects meet goals when organizations as a whole fully value requirements management
More projects meet goals when top management fully values requirements management
More projects meet goals when executive sponsors fully value requirements management
DIVE DEEPER
Learn how to better your project success rates. Download Pulse of the Profession® In-Depth Report: Requirements Management—A Core Competency for Project and Program Success at PMI.org/Pulse.
OCTOBER 2014 PM NETWORK
PM NETWORK OCTOBER 2014 WWW.PMI.ORG
