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The Value of Project Management

Ricardo Viana VargasChair, Strategic Planning & Program Alignment

CommitteePMI Board of Directors

PMI Madrid12 May 2008

Global Demand

• More complex projects

• Globalization and heightened competition

• Increased accountability

Global Response

• $10 trillion spent on capital projects

• >20 million project managers

• Explosive PM growth in Asia

Global Results

“80 percent of projects classified as higher-performing use a certified project manager.”

2007 PricewaterhouseCoopers global project management maturity survey

Global Results

“Portfolio management is

of significant value.”

2007 PricewaterhouseCoopers global project management maturity survey

PMI growth

•260,000+ members in 171 countries

•250+ chapters in 70+ countries

•30 SIGs, two colleges

PMI Global Membership and Certifications

11.4% Membership9.3% PMPs

4.2% Membership3.5% PMPs

70% Membership57.2% PMPs

14.4% Membership30% PMPs

PMI Family of Credentials

Organizational Strategy Successful Projects

• PMI certification: ISO 9001, widely recognized– Certified Associate in Project Management (CAPM®)– Project Management Professional (PMP®)– Program Management Professional (PgMPSM)– New: PMI Scheduling Professional (PMI-SPSM)

• Many organizations encourage PMI certification or base their internal training on PMI standards

Career Advancement

• “Glass ceiling” problem: project managers cannot rise to senior executive positions

• PMI Career Framework lets project managers:– Determine where their skill-set and experience place them on

the project management career ladder– Assess their strengths and weaknesses– Learn what they need to do to advance their careers– Determine professional expectations for other project managers

at the same career stage.

• Free to organizations

PMI Project Management Salary Survey, Fifth Edition 2007

Median PMP® salaries

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

Non-PMP PMP <1 yr PMP 1-4 yr PMP 5-9 yr

Demand Industries forProject Managers

• Information technology• Computers/software• Financial services• Telecommunications• Business management

services• Engineering

ChallengedSucceededFailed

Need for Project Management in IT Industry

• 33% of software investments used to repair projects*

• 56% of projects have cost overruns of >50%**

• 84% of projects have time overruns**

• 53% of organizations do not operate PMO**

*Atlantic Systems Guild**Chaos in 2007, Standish Group

Challenged53%Succeeded

29%

Failed18%

0%

20%

40%

60%

80%

100%

Cost 69% 45% 43% 56% 47%

Time 79% 63% 82% 84% 72%

1998 2000 2002 2004 2006

Project Management Impact Reduced Time & Cost Overruns

Chaos Chronicles, The Standish Group 2007

Organizations Recognize Value of Project Management

• Project management improves:– Efficiency – Budget – Timing

• More organizations adopting common methodology

• More organizations hiring credentialed project managers

Companies Requiring Companies Requiring PMI Certification PMI Certification

0

5

10

15

20

25

30

2003 2004 2005 2006

CHAOS Chronicles, The Standish Group 2007

Project Management Program Management

Portfolio Management

+

The Maturity Progression

Why Organizational Project Management Matters

• Aligns projects with strategic goals

• Focuses on performance

• Improves project time and cost management

• Delivers predictable, repeatable results

Ahead of Schedule and Under Budget

Fluor’s clean up of nuclear site

• Completed 12 years ahead of schedule

• Completed $7.8 billion below initial estimates

• Used project management standards and methodology

Company sponsored training

Indra Sistemas S.A.

• Methodology based on PMBOK© Guide

• Free training towards PMP® certification for all employees

Outreach

Ericsson Response program

• Assists international disaster efforts

• Supports relief agencies

• Applies project management standards

Acceptance in Education

• First Accredited Masters Program in Spain

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

PMI’s Envisioned Goal

Project Management Institute

Making project management indispensable for business results®

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Management Journal", "PM Network", and the PMI Today logo are registered marks of Project Management Institute, Inc.

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