Effective PMO EffortsChallenging the Status Quo

Table of Contents

3 About the Research

5 ProjectManagementOffices:WhatWeKnowvs.WhatWeDo

6 TopBarrierstoProjectManagementOfficeSuccess

11 PositiveImpactsfromImprovedProjectManagement

13 5WaystoDecreaseDelaysandIncreaseProjectRevenue

16 Conclusion

17 AboutSmartsheet

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Table of Contents

✓ 70% knoweffectiveprojectmanagementisimportantfortheirbusiness

✓ Only 15% currentlyhaveeffectiveprojectmanagementefforts

✓ 50%reportedthatdelaysincreaseprojectcosts

✓ Almost 40%havelostatleast10%ofprojectedrevenueduetoprojectdelays

✓ Over 40%reportedmostdelaysoccurduringtheprojectinitiation phase

Based on this research, Smartsheet discovered that project management professionals are challenged by projects that take too long, go over budget, and result in overall lost revenue to the business. In particular, we learned that:

Howwouldyourankthehealthofprojectmanagementatyourorganization?Drawingonkeyinsightslearned fromanationalsurvey,commissionedbySmartsheet,thise-bookintendstoidentifythesuccessand challengesthatcompaniesfaceduringprojectmanagementefforts.

Thesurveyfindingsarebasedonresponsesfrom442completedsurveys,andallparticipantsreportedhavingsomeinvolvementwiththeircompany’sprojectmanagementefforts.Annualsalesrevenueofcompaniesparticipatinginthesurveyrangedfromunder$1milliontoover$500million,yetopinionsconcerning onboardingeffectivenessremainedconsistentregardlessofcompanysize.

About the Research

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About the Research

✓ Over 50% reported key causes of project delays include:• Poor communication •Clientcausedscheduleslippage•Lackofclarityandsetexpectations

✓ Over 67%evaluateprojectmanagementsuccessbylookingatwhetherprojectsarecompletedontime

✓ Top barriers to project management office success include: •Demandandprojectprioritization(55%)•Changingandevolvingbusinessprocessesandenvironments(46%)

•Lackofteamadoptionofprescribedtoolsandprocesses(46%) •“Businessasusual”wasalsocitedasabarriertoprojectsuccess(38%)

Continued from previous page

55% Performance gap between importance of

effective project management and ability to deliver

55%

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Increaseddemandandcomplexityofprojectsresultsinprojectmanagementteamsthatareconstantlyinreactivemode-busyfightingfiresratherthangettingaheadoftasksanddeadlines.Thisresultsinprojectsthatarebehindscheduleandoverbudgetbecomingthenewnormor“businessasusual”.

With over 70%ofsurveyrespondentsreportingthattheyknoweffectiveprojectmanagementisimportantfortheirbusiness,whythen,ofthosesame70%,didonly15% saytheireffortsarecurrentlyeffective?Thatmeansmore than 55%ofusknoweffectiveprojectmanagementiscruciallyimportant,butaren’tsuccessfulinimplementingimprovementsinourbusinesses.That’sabigperformancegap.

Additionally,whenprojectsaredeliveredlate,itaffectsyourbottomline.Almost 40%ofrespondentsloseat least 10%ofprojectedrevenueduetoprojectdelays,whileover 25% reportthatprojectdelaysresultinalossofprojectedrevenueofup to 20%.Thosearesignificantnumbersandrepresentaseriousrevenueproblemthatneedstobefixed.

Thequestionbecomes,whydowehavethisdisparitybetweenknowingeffectiveprojectmanagementmattersyetnotimplementingthestepsnecessarytomakeitsuccessful?

Project Management Offices What We Know vs. What We Do

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Top Barriers toProject Management Office Success

Top Barriers to Project Management Office Success

Thebiggestbarriertoprojectmanagementsuccessstartswithdelaysintheprojectmanagementlifecycle-about 80%ofrespondentsreportedthatdelaysincreaseprojectcostsand71% that delaysresultinlossofprojectedrevenue.

Knowingandbeingawareofwhenthosedelaystypicallyoccurcanhelp:

Whetherdeliveringprojectstoexternalorinternalcustomers,everydayaprojectislateresultsindelayedtimetovalueorlossofrevenuealltogether.

50

40

30

20

10

0

Organizational Strategy

and Vision

5% 12% 44% 6% 23%

ProjectIntake and

Prioritization

ProjectInitiation and

Execution

ProjectPortfolioTracking

Project TeamCollaboration

(or Internal Processes)

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1 Poor Demand and Project Prioritization Management

Overhalfofrespondentssaidmanagingdemandandprojectprioritizationwasanissue.Asmoreprojectscomeintothepipelineandtaketimeawayfromexistingprojects,resourcesbecomethinandprojectmanagementleadershipstruggletofindbalanceandprioritize.

Over half of respondents said managing demand and project prioritization

was an issue

OVER1/2

Top Barriers to Project Management Office SuccessToreducepotentialdelays,projectmanagementleadersmustalsobeawareofthecommonbarriersthatimpactprojects,andhelpreduceriskfromthestart. Here are the top five reported barriers that hinder PMO success.

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2 Changing Business Processes and Environments

Withthespeedoftechnologytoday,businessprocessesandenvironmentsareconstantlyevolving.ThisrequiresthatPMOseitheradapttothechangeorgetswallowedupwithit.Alackofappropriatechangemanagementcanleadtodisorderandconfusionamongtheteam,andultimatelyprojectdelays.

3 Lack of Team Adoption of Prescribed Tools and Processes

Whenprojectmanagersaren’tfollowingthesameprocessesacrosstheboard,mistakescanbemadeanddelayswilloccur.Oftenteammemberseitheraren’tawareofsetstandards,orthetoolsandprocessesaretoocomplexandrigidforthemtoactuallygettheworkdone.

Top Barriers to Project Management Office Success

Over 45% of respondents state that lack of team adoption of prescribed processes hinders

their success

45%OVER

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Over 45% of respondents state that lack of team adoption of prescribed

processes hinders their success

45%OVER

4 Multiple Disconnected Processes and Methods

Withoutauniversalworkmanagementplatformorstructuredprocess,managingprojectsbecomestrickier.Workgetsdoneinsilosanddetailsgetlostwithinthedifferenttoolsbeingused-includingemailandExcel.

5 “Business as Usual” Thirty-eightpercentofprojectmanagerscited“businessasusual”asa

topbarrier.Thismeanstheydon’talwaysknowwhytheystrugglewithdelaysbuttheydoandhavesimplyacceptedthissub-optimalstateasthestatusquo.

Top Barriers to Project Management Office Success

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Positive Impacts from Improved Project Management

Ifthosesameprojectmanagerscouldidentifythecauseofdelaysandtakestepstoavoidthem,theywouldexperiencedramaticimprovements,including:

Positive Impacts from Improved Project Management

ImprovedEfficiencies 79.5%

Increased TimeSavings 70.7%

Better Accountability 69%

SimplifiedProcesses 67%

Increased Revenue&Profit 51%

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5 Ways to Decrease Delays and Increase Project Revenue

1 Improve Transparency Shareagreed-upontimelineswitheveryonetoensurestakeholdersunderstand

milestonestheyshouldbetrackingto.Thissetsexpectationsupfront,andprovidesabaselinefordiscussionwhenchangesarerequestedthatimpactscope.

2 Increase Control Implementingrepeatableprocessesthateveryoneisawareofandthatareregularly

updatedisessentialtosuccessfulprojectmanagementprograms.Withprocessesinplace,you’llensurethatyourteamfollowsaconsistentworkflow,sothattheycanquicklyidentifypotentialissuesbeforetheyoccur.

5 Ways to Decrease Delays and Increase Project RevenueThecostofdoingbusinessdoesn’thavetoincludelosingrevenueeverytimeyoustartanewproject.Withtherighttoolsandprocessesinplace,youcanincreasecontrolandvisibilityintoPMOeffortsandensuresuccess.

Herearefivewaysthatyoucanavoiddelaysandsaveyourbottomline:

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3 Provide Visibility Createasinglesourceofprojectandprocesstrackingwithaworkmanagementtoolto

ensuretherightpeoplehaveaccesstoreal-timeprojectinformation.Thatway,noteammemberisleftbehind,andnocustomer(whetherinternalorexternal)isstuckinthedark.

4 Automate Processes Keepworkmovingforwardwithreducedmanualeffortanddashboardsthatrollupall

necessarydocuments,statusupdates,andtimelines.Ensureyouhaveautomatedalertssettonotifyyouandrelevantteammembersaschangesoccur,deadlinesareapproaching,orstatusisupdated.

5 Track the Right Success Metrics Establishandtracktherightsuccessmetrics,includingrevenuemilestones.Projectsoften

focusonoperationswithoutexplicitlytrackinghowmuchrevenueisdelayedandhowmuchrevenueisforgonewhenprojectsarelate.

5 Ways to Decrease Delays and Increase Project Revenue

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Withonly 15% ofprojectmanagementteamsfeelingliketheireffortsareeffective,itcanfeelimpossibletoleadnewprojectstosuccess.

Whenyourteammanagesthousandsofdetailsandhundredsofinternalandexternalstakeholders,nothavingtherighttoolsandprocessesinplacecanleadtoincreasedcostsperproject,missedrevenuetargets,andhaveamajorimpactonyourorganization’soverallsuccess.

Thesecrettoeffectiveprojectmanagementistounderstandthepotentialcausesofdelaysandcatchmishapsbeforetheysnowballoutofcontrol.Withthesetopfactorsandtipstoavoidthem,youcanidentifypotentialriskandmitigateissuesbeforetheyoccur.

Don’tletoneseeminglysmallfactoraffectyournextprojectandendupcostingyoubiginthelongrun.

Conclusion

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About Smartsheet

Organizationsneedawaytogetworkdone,notjusttalkaboutit.Smartsheetisthebestwaytoplan,track,automate,andreportonwork,enablingyoutomovefromideatoimpact-fast.Smartsheet’scloud-basedworkmanagementplatformempowerscollaboration,drivesbetterdecisionmaking,andacceleratesinnovationforover70,000brandsin190countries,includingmorethan50percentoftheFortune500.NamedbyForbesasoneoftheworld’stopprivatecloudcompanies,SmartsheetcomplementsexistingenterpriseinvestmentsbydeeplyintegratingwithapplicationsfromMicrosoft,Google,Salesforce,Atlassian,andmanyothers.

Want to learn more about how Smartsheet can help with your large-scale initiatives and project management offices?

Contact Our Team Today

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