Project Management Institute

The High Cost of Low Performance 2014

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There is a gap between strategy formation and its day-to-day implementation. While 88 percent of executives say that strategy implementation is important to their organizations, very few organizations (9 percent) rate themselves as excellent on successfully executing initiatives to deliver strategic results.

Consequently, only 56 percent of strategic initiatives meet their original goals and business intent. This poor performance results in organizations losing US$109 million for every US$1 billion invested in projects and programs.

Our research highlights key practices that maximize organizational value. In order to successfully complete more projects, become more flexible and waste fewer dollars, organizations should:

  • Mature project management capabilities
  • Focus on talent and change management
  • Insist on a benefits realization review

Organizations that report high alignment of their projects to organizational strategy average 65 percent of their strategic initiatives meeting original goals and business intent, compared with only 35 percent for those with low alignment.

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Part of Pulse of the Profession®, The High Cost of Low Performance 2014 series