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Survey of Project Management PracticesSurvey of Project Management PracticesRESULTSRESULTS

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OverviewOverview• Project Management Survey by Ernst & Young Hungary in cooperation with PMI

Budapest. The first survey of overall project management practices in Hungary.

• Benefits of the Survey:– Knowledge Sharing:

• Evaluate the current state of project, programme and portfolio management• Identify critical areas• Identify benchmark possibilities through country-wide and industry-wide

comparisons– Promote project management expertise, create awareness– Activate project management experts in Hungary

• Main focus of questions: project management experience, success rates, major reasons for failure, tools and methodologies, project portfolio management experience

• Main target group: major companies in Hungary, including banks and insurance firms

• Project Management Survey by Ernst & Young Hungary in cooperation with PMI Budapest. The first survey of overall project management practices in Hungary.

• Benefits of the Survey:– Knowledge Sharing:

• Evaluate the current state of project, programme and portfolio management• Identify critical areas• Identify benchmark possibilities through country-wide and industry-wide

comparisons– Promote project management expertise, create awareness– Activate project management experts in Hungary

• Main focus of questions: project management experience, success rates, major reasons for failure, tools and methodologies, project portfolio management experience

• Main target group: major companies in Hungary, including banks and insurance firms

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OverviewOverview• Process

– Phase 1:• Web based survey, ensuring full anonymity for respondents• Timing: Questionnaire sent out on 11th of May 2006, responses received until end of

June 2006• Results: presentation and executive summary in September 2006

– Phase 2 (plan):• Further discussions on hot topics, critical areas (September-November 2006)• Final PM Survey Report with in-depth analysis (November/December 2006)

• In “Phase I” 41 responses were obtained (response rate: 13%)

• Results are compared to other international Project management surveysE.g. project management surveys done by Ernst & Young in other countries, EQuest Consulting and IGATE project management survey of Australian IT project management landscape 2004, KPMG’s international programme management survey 2002-2003, PriceWaterhouse Coopers’s global project management survey 2004, Computer Weekly project / programme management survey: the state of IT project management in the UK 2002-2003

• Process

– Phase 1:• Web based survey, ensuring full anonymity for respondents• Timing: Questionnaire sent out on 11th of May 2006, responses received until end of

June 2006• Results: presentation and executive summary in September 2006

– Phase 2 (plan):• Further discussions on hot topics, critical areas (September-November 2006)• Final PM Survey Report with in-depth analysis (November/December 2006)

• In “Phase I” 41 responses were obtained (response rate: 13%)

• Results are compared to other international Project management surveysE.g. project management surveys done by Ernst & Young in other countries, EQuest Consulting and IGATE project management survey of Australian IT project management landscape 2004, KPMG’s international programme management survey 2002-2003, PriceWaterhouse Coopers’s global project management survey 2004, Computer Weekly project / programme management survey: the state of IT project management in the UK 2002-2003

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Some HighlightsSome HighlightsNumber of projects are increasing in

almost every industry Number of projects are increasingprojects are increasing in

almost every industry The major reason for project failures is the change of project scope during the

project’s process

The major reason for project failuresproject failures is the change of project scope during the

project’s process

In the Telecommunications & Technology sector, most of the Project

Offices were created in the past 3 years. Their tasks and responsibilities

were/are still developing according to the initial experiences. A good

benchmark for PMOs could be the Financial services sector.

In the Telecommunications & Technology sector, most of the Project

Offices were created in the past 3 years. Their tasks and responsibilities tasks and responsibilities

were/are still developingwere/are still developing according to the initial experiences. A good

benchmarkbenchmark for PMOs could be the Financial services sector.

Only 50% of the respondents, who have a Project Management Office were

satisfied with the current capabilities of the PMO.

Only 50% of the respondents, who have a Project Management OfficeProject Management Office were

satisfied with the current capabilities of the PMO.

Business case is regularly used by almost all respondents. But

Status report is very rarely used: 63% of the respondents’ companies

never (or rarely) use status reports during the project process!!!

Business caseBusiness case is regularly used by almost all respondents. But

Status reportStatus report is very rarely used: 63% of the respondents’ companies

never (or rarely) use status reports during the project process!!!

90% never (or rarely) use Performance evaluation for project team members.

90% never (or rarely) use Performance Performance evaluationevaluation for project team members.

Benefits realisation is considered as an area for improvement by many of the respondents.

Benefits realisation Benefits realisation is considered as an area for improvement by many of the respondents.

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StructureStructure1. Respondents

2. Project Trends– Most typical projects

– Project size

3. Project Success Rates– Success rates per industry

– Major reasons for failure

– Evaluating project success

4. Project Leadership

5. Outsourced functions in Projects

1. Respondents


– Project size






6. PMO– Project / Programme / Portfolio

Management Office

– Activities

– Project approval

– Qualities

7. Project Management Tools

8. Project Management Standards & Methodologies

9. Overall assessment– Project management evaluation

– Summary of findings


Management Office

– Activities


– Qualities





Content of the ReportContent of the Report

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– Project size







– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities





1. Respondents1. Respondents

StructureStructure

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RespondentsRespondents• Represented Industries

The major industries represented:• Telecommunications & Technology (39%)• Financial services (15%)• Public Sector (10%) and • Other Services, which mainly consists of Consultancy and IT Development companies (20%).

Other represented industries: Manufacturing (7%), Real Estate / Construction (5%), Utilities (2.4%) and Pharmaceuticals (2.4%)

• Respondent companies were of varying sizes similar split of companies according to number of employees and to annual sales

• The average local sales of the respondent’s companies were USD 164.5m per annum

• 56.1% of the respondents were international companies, and 43.9% have only local operations.

• The respondents were most often C-level managers, department heads (responsible for project management), PMO heads/PMO members or project managers

• Represented Industries The major industries represented:

• Telecommunications & Technology (39%)• Financial services (15%)• Public Sector (10%) and • Other Services, which mainly consists of Consultancy and IT Development companies (20%).

Other represented industries: Manufacturing (7%), Real Estate / Construction (5%), Utilities (2.4%) and Pharmaceuticals (2.4%)

• Respondent companies were of varying sizes similar split of companies according to number of employees and to annual sales

• The average local sales of the respondent’s companies were USD 164.5m per annum

• 56.1% of the respondents were international companies, and 43.9% have only local operations.

• The respondents were most often C-level managers, department heads (responsible for project management), PMO heads/PMO members or project managers

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– Project Size






1. Respondents


– Project Size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities






– Project size


– Project size

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Project TrendsProject Trends

• Number of projects at respondents’ organisations increased or at least stayed the same compared to last year (96% of the companies)

• Over 46% of companies started at least 20 new projects in the past 12 months

• Number of projects at respondents’ organisations increased or at least stayed the same compared to last year (96% of the companies)

• Over 46% of companies started at least 20 new projects in the past 12 months

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Project Trends / Most typical projectsProject Trends / Most typical projectsMost frequent projects over the past five years:Most frequent projects over the past five years:

The top 3 projects are 1. IT-related

improvements, inc. system integrations

2. Process/organisationimprovement

3. New product development

Cost reduction, major investments & infrastructure enhancements and compliance projects are also relatively frequent.

The top 3 projects are 1. IT-related

improvements, inc. system integrations

2. Process/organisationimprovement

3. New product development

Cost reduction, major investments & infrastructure enhancements and compliance projects are also relatively frequent.

Frequency of project types

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Project costs– Average project budgets over the past 5 years are typically above 20,000

USD (86% of the respondents);– Average project budgets are between 20,000 USD and 100,000 USD at 56%

of the companies;– Average project budgets are above 100,000 USD at 30% of the companies.

Project duration– Most typically, project duration is between 3 and 12 months (76%);

– Only 10% of the respondents said that average project duration over the last 5 years were more than 12 months;

– 12% said that average project duration over the last 5 years was from 1 to 3 months

Project costs– Average project budgets over the past 5 years are typically above 20,000

USD (86% of the respondents);– Average project budgets are between 20,000 USD and 100,000 USD at 56%

of the companies;– Average project budgets are above 100,000 USD at 30% of the companies.

Project duration– Most typically, project duration is between 3 and 12 months (76%);

– Only 10% of the respondents said that average project duration over the last 5 years were more than 12 months;

– 12% said that average project duration over the last 5 years was from 1 to 3 months

Project Trends / Project SizeProject Trends / Project Size

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Project Team Size & Team composition– 78% of the respondents said that projects had less than 10 members on

average in the last 5 years;

– Only one respondent (out of 41) said that the average project team size was more than 50 members over the past 5 years;

– 76% of all respondents said that their typical projects involve multiple functions / departments or divisions;

– Most frequent project composition is a project team involving multiple functions / departments and also external contractors.

Project Team Size & Team composition– 78% of the respondents said that projects had less than 10 members on

average in the last 5 years;

– Only one respondent (out of 41) said that the average project team size was more than 50 members over the past 5 years;

– 76% of all respondents said that their typical projects involve multiple functions / departments or divisions;

– Most frequent project composition is a project team involving multiple functions / departments and also external contractors.

Project Trends / Project SizeProject Trends / Project Size

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International Outlook based on other international Project Management studies

– Project Size: In Hungary, the average project size, in terms of project duration and in project team size is similar to other countries in Central and Eastern Europe (CEE), to Western-European countries and also similar to Australia and the U.S.

The average project size is between 3 and 6 months, and the average project team is less than 10 people.

– Budget: in terms of project budget there are much bigger differences.

Project budget is similar to other CEE countries. (E.g. in the Czech Republic, the project budget is less than 100,000 USD in most cases.)Not surprisingly, project costs (and budgets) are bigger in Western countries (Western-Europe, Australia, USA) where most typical project budgets are in excess of 100,000 USD.

– Number of projects: in Hungary, as well as in the Czech Republic, companies run around 25 projects per year. As a contrast, the average number of projects per year in Western countries is more than 50. Of course the number of projects per year heavily depends on the size of the country and on the size of its economy and industry.

In general, we can assume that the average projects are significantly more complex in bigger Western-European countries than in the CEE.

International Outlook based on other international Project Management studies

– Project Size: In Hungary, the average project size, in terms of project duration and in project team size is similar to other countries in Central and Eastern Europe (CEE), to Western-European countries and also similar to Australia and the U.S.

The average project size is between 3 and 6 months, and the average project team is less than 10 people.

– Budget: in terms of project budget there are much bigger differences.

Project budget is similar to other CEE countries. (E.g. in the Czech Republic, the project budget is less than 100,000 USD in most cases.)Not surprisingly, project costs (and budgets) are bigger in Western countries (Western-Europe, Australia, USA) where most typical project budgets are in excess of 100,000 USD.

– Number of projects: in Hungary, as well as in the Czech Republic, companies run around 25 projects per year. As a contrast, the average number of projects per year in Western countries is more than 50. Of course the number of projects per year heavily depends on the size of the country and on the size of its economy and industry.

In general, we can assume that the average projects are significantly more complex in bigger Western-European countries than in the CEE.

Project Trends / International OutlookProject Trends / International Outlook

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– Project size






1. Respondents


– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities











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Project Success RatesProject Success RatesThe average number of projects over the past 5 years were 130.

The average success rates:

The average percentage of delay at the respondent’s organisations is usually between 10% and 20%. 71% of the respondents said that delays typically stay within 20% of the original time frame.

The average percentage of budget overrun at the respondent’s organisations is typically below 10% or between 10% and 20%. 78% of respondents say that budgets are usually exceeded by up to 20%

The average number of projects over the past 5 years were 130.

The average success rates:

The average percentage of delay at the respondent’s organisations is usually between 10% and 20%. 71% of the respondents said that delays typically stay within 20% of the original time frame.

The average percentage of budget overrun at the respondent’s organisations is typically below 10% or between 10% and 20%. 78% of respondents say that budgets are usually exceeded by up to 20%

But:Average numbers can hide some excessive overruns, and are very dependent upon the average size of projects.And of course there is also a big deviation between industries…….

But:Average numbers can hide some excessive overruns, and are very dependent upon the average size of projects.And of course there is also a big deviation between industries…….

• On time and within budget: 51%• Late: 34%• Over budget: 25%• Failed/cancelled before completion: 5%

• On time and within budget: 51%• Late: 34%• Over budget: 25%• Failed/cancelled before completion: 5%

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Project Success Rates / per IndustryProject Success Rates / per Industry

The respondent’s organisations have varying “project-intensity”.

The more “project-intensive” industries are:

– Telecommunications & Technology– Financial Services– Real Estate / Construction– Other Services

The highest number of projects are at “Other services”. This is understandable, as these were mainly consultancy and IT development organisations, where projects are developed as deliverable within the main line of the business (project organisations).

Public Sector organisations also had a relatively high number of projects.

The respondent’s organisations have varying “project-intensity”.

The more “projectproject--intensiveintensive” industries are:

– Telecommunications & Technology– Financial Services– Real Estate / Construction– Other Services

The highest number of projects are at “Other services”. This is understandable, as these were mainly consultancy and IT development organisations, where projects are developed as deliverable within the main line of the business (project organisations).

Public Sector organisations also had a relatively high number of projects.

Average number of projects: 130Average number of projects: 130

Number of projects over the past 5 years

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Project Success Rates / per IndustryProject Success Rates / per IndustryNot surprisingly, industries show a big deviation in terms of project success rates, which relates to the different project management maturity of the industries.Not surprisingly, industries show a big deviation in terms of project success rates, which relates to the different project management maturity of the industries.

• Real Estate / Construction companies and Pharmaceuticals have a very good project success rate.

• Among the Financial Services, Telecommunications and Technology and Manufacturing and Utilities sectors, less than half of the projects are completed on time and within budget.

• The Public Sector companies are in the middle range; this is because the respondents of this group are significantly heterogeneous in terms of their project maturity (number of projects range from 20 to 200, and projects completed on time and within budget vary from 5% to 96%.)

• Real Estate / Construction companies and Pharmaceuticals have a very good project success rate.

• Among the Financial Services, Telecommunications and Technology and Manufacturing and Utilities sectors, less than half of the projects are completed on time and within budget.

• The Public Sector companies are in the middle range; this is because the respondents of this group are significantly heterogeneous in terms of their project maturity (number of projects range from 20 to 200, and projects completed on time and within budget vary from 5% to 96%.)

Average on time & within budget: 51%Average on time & within budget: 51%

Average share of projects completed on time and within budget

93%80%

60% 58%50% 48% 41% 40%

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Project Success Rates / per IndustryProject Success Rates / per Industry

• Time over-run is generally more frequent than budget over-run.

• Among the Financial Services sector, 56% of projects are completed late. The share of late projects in the Utilities, Telecommunications and Technology, Manufacturing and Other services sectors is significant, too (more than 30%).

• In the sectors of Telecommunications and Technology and Manufacturing and Financial Services, more than 20% of projects also over-shoot the originally planned budgets.

• Time over-run is generally more frequent than budget over-run.

• Among the Financial Services sector, 56% of projects are completed late. The share of late projects in the Utilities, Telecommunications and Technology, Manufacturing and Other services sectors is significant, too (more than 30%).

• In the sectors of Telecommunications and Technology and Manufacturing and Financial Services, more than 20% of projects also over-shoot the originally planned budgets.

Average late: 34%Average late: 34%

Average over budget: 25%Average over budget: 25%

Average share of projects completed late

56%

40% 38% 35% 33%

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Project Success Rates / per IndustryProject Success Rates / per Industry• The share of cancelled projects is relatively low.

In almost all industries only less than 5% of the projects are failed or cancelled before completion.

• But low share of cancelled projects is not necessary a positive signal……

• The share of cancelled projects is relatively low. In almost all industries only less than 5% of the projects are failed or cancelled before completion.

• But low share of cancelled projects is not necessary a positive signal……

Low share of cancelled projects can have different reasons:

• The organisation has an effective projectselection & pre-approval process, which ensures,that projects that should not start, are really notstarted.

• There is an effective project management in theorganisation (including good risk managementand change management).

• Cancelled projects are not visible.

• There is no formalized process for terminatingprojects before completion. Cancelling projectsbefore completion doesn’t have a corporate“culture”, and considered as a negative result.The benefits of stopping projects if necessary is not recognised.

Low share of cancelled projects can have different reasons:

• The organisation has an effective projectselection & pre-approval process, which ensures,that projects that should not start, are really notstarted.

• There is an effective project management in theorganisation (including good risk managementand change management).

• Cancelled projects are not visible.

• There is no formalized process for terminatingprojects before completion. Cancelling projectsbefore completion doesn’t have a corporate“culture”, and considered as a negative result.The benefits of stopping projects if necessary is not recognised.

Average cancelled:5%

Average cancelled:5%

Projects cancelled before completion

17%11%

4% 3% 3% 3% 0% 0%0%

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Project Success RatesProject Success RatesHaving a visible and fair process to terminate projects is necessary from a strategic management and business governance point of view, and has direct and indirect benefits.

Having a visible and fair process to terminate projectsvisible and fair process to terminate projects is necessary from a strategic management and business governance point of view, and has direct and indirect benefits.

“…shifts in the organisation’s politics or strategic goals… means that there could be a reduced organisational will to complete some existing projects. Those should be cancelled or suspended, while others that were previously rejected should be re-evaluated.” … “The culture must not stigmatize failure.” – says Richard Brenner, Chaco Canyon Consulting, Mass. USA in PM Network, June 2006 (PMI)

“…shifts in the organisation’s politics or strategic goals… means that there could be a reduced organisational will to complete some existing projects. Those should be cancelled or suspended, while others that were previously rejected should be re-evaluated.” … “The culture must not stigmatize failure.” – says Richard Brenner, Chaco Canyon Consulting, Mass. USA in PM Network, June 2006 (PMI)

“By putting a halt to projects on the path to failure, organizations can divert resources to more valuable endeavours. Yet most companies don’t have a process for shutting down projects before their scheduled demise – and that’s proving to be a costly mistake. …Not pulling the plug means lost time and money and the delayed progress of other projects that could have used the resources from the failed project.” – Xiaojin Wang, Ph.D., PMP Yunnan University, Kunming, China and Lonnie Pacelli, Leading on the Edge International, Wash. USA in PM Network, June 2006 (PMI).

“By putting a halt to projects on the path to failure, organizations can divert resources to more valuable endeavours. Yet most companies don’t have a process for shutting down projects before their scheduled demise – and that’s proving to be a costly mistake. …Not pulling the plug means lost time and money and the delayed progress of other projects that could have used the resources from the failed project.” – Xiaojin Wang, Ph.D., PMP Yunnan University, Kunming, China and Lonnie Pacelli, Leading on the Edge International, Wash. USA in PM Network, June 2006 (PMI).

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Project Success Rates / Reasons for FailureProject Success Rates / Reasons for Failure

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Major Reasons for Project Failure Project’s scope changing in time

Insufficient or overoptimistic budgeting / scheduling

Insufficient support from top management/sponsorship

Misunderstanding the Project’s deliverables

Environmental change

Inadequate resource capability / availability orcoordination of resourcesStaff resistance / insufficient change adoption outsidethe Project teamPoor Project management processes in execution andmonitoringLack of compelling case / clear vision

Inadequate management of risks and issues

Communication issues (insufficient personal contact,language or cultural barriers)Unclear Project governance / organization structure

Lack of a robust (appropriate) business case

Poor resource / costs management and controls

Low motivation or issues within the Project team

Vis major

Incompatibility with organizational processes and/orstrategic goalsPoor vendor management process and subsequentweak control over vendorsInsufficient project team competency

Industrial relations

Lack of Project team leadership

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Project Success Rates / Reasons for FailureProject Success Rates / Reasons for FailureThe top 7 reasons for project failure are:

1. Project’s scope changing in time2. Insufficient or overoptimistic budgeting / scheduling3. Insufficient support from top management4. Misunderstanding the projects’ deliverables5. Environmental change6. Inadequate resource capability / availability, or coordination of resources7. Staff resistance / insufficient change adoption outside the project team.

The top 7 reasons for project failure are:1. Project’s scope changing in time2. Insufficient or overoptimistic budgeting / scheduling3. Insufficient support from top management4. Misunderstanding the projects’ deliverables5. Environmental change6. Inadequate resource capability / availability, or coordination of resources7. Staff resistance / insufficient change adoption outside the project team.

An interesting aspect of this result is that among the top 7 reasons for failure, five are out of the perceived direct control of the project manager.

As also confirmed by several other international surveys, in many cases project failures can be related to organisational and other management issues. Such “other management issue” could be the lack of change management or the lack of the organisation’s ability in efficient resource coordination. Scope changes, environment changes and insufficient estimates are also among the top reasons in other international survey results.

An interesting aspect of this result is that among the top 7 reasons for failure, five are out of the perceived direct control of the project manager.

As also confirmed by several other international surveys, in many cases project failures can be related to organisational and other management issues. Such “other management issue” could be the lack of change management or the lack of the organisation’s ability in efficient resource coordination. Scope changes, environment changes and insufficient estimates are also among the top reasons in other international survey results.

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Companies usually use “time”, “budget” and “meeting expectations” together when evaluating the success of a project. Companies usually use “time”, “budget” and “meeting expectations” together when evaluating the success of a project.

Project Success Rates /Evaluating project successProject Success Rates /Evaluating project success

Failed (delayed, or overspent) projects have an impact not only on the direct project costs, but also on indirect losses, not included in the original calculations…Failed (delayed, or overspent) projects have an impact not only on the direct project costs, but also on indirect losses, not included in the original calculations…

What are the measures for evaluating Project Performance?

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Meeting budget Meetingexpectations

Completion ontime

Each of the threepreceding options

equally

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But:• Alarmingly high number of unknown opportunity losses (34%)!!!• Some respondents expressed the difficulty in measuring the loss caused by

failed projects…

But:• Alarmingly high number of unknown opportunity losses (34%)!!!• Some respondents expressed the difficulty in measuring the loss caused by

failed projects…

34%Not known

5%Loss of more than 10 % of sales

5%Loss of 5% to 10 % of sales

24%Loss of 1% to 5 % of sales

17%Loss of up to 1 % of sales

15%Only the direct costs of the projects

Opportunity loss caused by failed Projects annually

56% of the respondents answered that the opportunity cost is only the direct costs of the failed project, or up to 5% of the annual sales. 56% of the respondents answered that the opportunity cost is only the direct costs of the failed project, or up to 5% of the annual sales.

Project Success Rates /Evaluating project successProject Success Rates /Evaluating project success

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Project Success Rates / International OutlookProject Success Rates / International Outlook• Losses from Project Failures:

As shown on page 13, Hungary has a similar project complexity to the Czech Republic, whereas the project environment is more complex (and project costs are higher) in bigger Western-European countries, in Australia, and in the USA. This might be the reason why the losses caused by project failures are usually bigger in many other countries. Other international studies confirm the difficulty of measuring the loss caused by project failures. On an international level, the unknown opportunity losses are even bigger than the results in Hungary show. The post-survey discussions in the Czech Republic have uncovered that at many companies opportunity loss calculations are only performed on the most important projects, on a high level basis and only when priorities have to be assigned.

• Project Success Rates: the results show that time overrun is generally more frequent than budget overrun in Hungary, whereas international surveys show a more balanced picture.An interesting question for debate: Is it true that time overrun is more frequent? Or is it possible that time overrun is generally more visible (and easier to measure) than budget overrun, therefore the budget overrun is not seen as critical in every case?

• Reasons for Failures: Interestingly, the top reasons for project failures are very similar in almost all international surveys. In most cases there are external (mostly organisational) issues behind the failures, which means that successful project management should encompass organisational issues.

• Losses from Project Failures:As shown on page 13, Hungary has a similar project complexity to the Czech Republic, whereas the project environment is more complex (and project costs are higher) in bigger Western-European countries, in Australia, and in the USA. This might be the reason why the losses caused by project failures are usually bigger in many other countries. Other international studies confirm the difficulty of measuring the loss caused by project failures. On an international level, the unknown opportunity losses are even bigger than the results in Hungary show. The post-survey discussions in the Czech Republic have uncovered that at many companies opportunity loss calculations are only performed on the most important projects, on a high level basis and only when priorities have to be assigned.

• Project Success Rates: the results show that time overrun is generally more frequent than budget overrun in Hungary, whereas international surveys show a more balanced picture.An interesting question for debate: Is it true that time overrun is more frequent? Or is it possible that time overrun is generally more visible (and easier to measure) than budget overrun, therefore the budget overrun is not seen as critical in every case?

• Reasons for Failures: Interestingly, the top reasons for project failures are very similar in almost all international surveys. In most cases there are external (mostly organisational) issues behind the failures, which means that successful project management should encompass organisational issues.

26



– Project size






1. Respondents


– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities





4. Project Leadership4. Project Leadership

27

Project LeadershipProject Leadership

• Most companies have dedicated project managers to run projects.• Although 46% of companies mentioned that they typically use external contractors

in their projects, only one company mentioned the external contractor as being the usual project manager. (In the case of bigger consultancy involvement though most companies have a project manager from the company side and a project manager from the consultants side)

• 49% of companies have at least 5 project managers.• 17% of companies have no positions called “Project Manager”.

• Most companies have dedicated project managers to run projects.• Although 46% of companies mentioned that they typically use external contractors

in their projects, only one company mentioned the external contractor as being the usual project manager. (In the case of bigger consultancy involvement though most companies have a project manager from the company side and a project manager from the consultants side)

• 49% of companies have at least 5 project managers.• 17% of companies have no positions called “Project Manager”.

How many employees have "Project Manager" title?

17%

22%

12%15%

27%

7%

None

Up to 3

From 3 to 5

From 5 to 10

From 10 to 20

More than 20

W ho is usually the project m anager?

26

8

3 3 2 10

5

10

15

20

25

30

Ded

icat

edpr

ojec

tm

anag

er

Team

lead

er

Ana

lyst

Div

isio

nm

anag

er

Firs

tpe

rson

avai

labl

e

Ext

erna

lco

ntra

ctor

28

Project LeadershipProject Leadership• According to the respondents, in almost all cases (97%) the project managers

do have sufficient knowledge on subject matter.

• On the other hand, the view on the project managers’ knowledge on PM tools and techniques is not so positive. 20% of the respondents reported that project managers rarely possess sufficient PM skills and are not familiar enough with the required PM tools and techniques.

• According to the respondents, in almost all cases (97%) the project managers do have sufficient knowledge on subject matter.

• On the other hand, the view on the project managers’ knowledge on PM tools and techniques is not so positive. 20% of the respondents reported that project managers rarely possess sufficient PM skills and are not familiar enough with the required PM tools and techniques.

Do project managers possess sufficient knowledge and experience

on the project subject matter?

33%

65%

3%

AlwaysMostlyRarely

Do project managers possess sufficient knowledge and experience

on the project subject matter?

33%

65%

3%

AlwaysMostlyRarely

Do project managers possess sufficient knowledge and experience of project management tools and

techniques?

23%

58%

20%

Always

Mostly

Rarely

29

Project LeadershipProject Leadership• Professional development of project managers is usually ensured by internal or

external training.

• 9 respondents mentioned that one or more colleagues have a professional PM qualification. They’ve mentioned IPMA and PMP.

• Professional development of project managers is usually ensured by internal or external training.

• 9 respondents mentioned that one or more colleagues have a professional PM qualification. They’ve mentioned IPMA and PMP.

How is the professional development of Project manager ensured?

2923

139 8

05

101520253035

Internaltraining

Externaltraining

Mentoring Formalcertif ication/qualif ications

None

30

Project LeadershipProject Leadership

• 85% of respondents said that project managers always or mostly run more than one project simultaneously.

• Where they run more parallel projects, 2 or 3 projects are typically managed by one project manager.

• 85% of respondents said that project managers always or mostly run more than one project simultaneously.

• Where they run more parallel projects, 2 or 3 projects are typically managed by one project manager.

Do Project Managers run more parallel independent projects?

2%10%

61%

24%

0%10%20%30%40%50%60%70%

Never Rarely Mostly Alw ays

How many projects are managed by one project manager simultaneously?

56%

20%

10%

0%

10%

20%

30%

40%

50%

60%

2-3 3-5 More than 5

31



– Project size






1. Respondents


– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities







32

Outsourced functions in projectsOutsourced functions in projectsWhat function in Projects are usually outsourced?

82% 82% 79%91%

37%

78%94%

39%

94%78% 81% 88%

12% 12% 12%6%

40%

13%

3%

32%

3%16% 9%

8%9%23%

9%29%

6% 9%6% 4%3%3%

3%6%

0%10%

20%30%40%50%

60%70%80%

90%100%

Preliminaryanalysis

Business casedevelopment

Project planset-up

Resourcemanagement

Advisorysupport in

projectimplementation

phase

Project riskreviews

Vendorselection and/

or management

Projectimplementation

Postimplementation

reviews

Regular projectaudit/

monitoring

Changemanagement

PMO Audit

Rarely Often Always or Mostly

33

Outsourced functions in projectsOutsourced functions in projects

The most important criteria for selecting a contractor are:

• Price

• Experience in the industry

• Experience with the company

The most important criteria for selecting a contractor are:

• Price

• Experience in the industry

• Experience with the company

• Project implementation and project implementation support are the most frequently outsourced functions.

• Several companies outsource the project plan set up, project risk reviews, and project audit / project monitoring, too.

• Post-implementation reviews and, surprisingly, vendor selection / vendor management are the least outsourced functions.

• Project implementation and project implementation support are the most frequently outsourced functions.

• Several companies outsource the project plan set up, project risk reviews, and project audit / project monitoring, too.

• Post-implementation reviews and, surprisingly, vendor selection / vendor management are the least outsourced functions.

Key criteria for selecting a contractor

30 2826

11 108

0

5

10

1520

25

30

35

Price Experience iny our industry

Experiencewith y ourcompany

Experience inproject

management

Teamcomposition

Head of f icepref erence

34



– Project size






1. Respondents


– Project size







Management Office

– Activities

– Project Approval

– Qualities






Management Office

– Activities

– Project Approval

– Qualities






Management Office

– PMO activities


– PMO qualities


Management Office

– PMO activities


– PMO qualities

35

PMO Project / Programme / Portfolio Management OfficePMO Project / Programme / Portfolio Management Office

• 35% of the respondents have no project office at all.• 65% of the respondents have a PMO in operation, but with varying

responsibilities:

• 35% of the respondents have no project office at all.• 65% of the respondents have a PMO in operation, but with varying

responsibilities:• 15%: PMO for Portfolio Management• 15%: PMO for Programme Management• 23%: PMO for Project Support (e.g. methodology, templates)• 28%: one PMO responsible for all the above.

• 15%: PMO for Portfolio Management• 15%: PMO for Programme Management• 23%: PMO for Project Support (e.g. methodology, templates)• 28%: one PMO responsible for all the above.

Existence of a PMO & responsibilities

15%

15%

23%28%

35%

One dedicated body for ProjectPortfolio Management

One dedicated body for ProgrammeManagement

One dedicated body for ProjectSupport (e.g. methodology support)

One dedicated body for all the above

None

36

59%No answer

24%Enterprise PMO for all business projects

17%(IT) PMO for IT projects

In which function(s) do the PMO(s) operate?

30%More than 5 years

20%From 3 to 5 years

30%From 1 to 3 years

20%Less than 1 year

How long does the PMO operate in the Company?

32%95 - 100 %

21%75 - 95 %

11%50 - 75 %

21%20 - 50 %

16%max. 20 %

What percentage of Projects is covered by the PMO?

More companies commented that the responsibilities and the tasks of the PMOs are still developing, and are being revised according to the initial experiences.

The necessity for the PMO heavily depends on the project-intensity of the organisation.

Organisations with higher PMO maturity have, on average, a better project management performance.

More companies commented that the responsibilities and the tasks of the PMOs are still developing, and are being revised according to the initial experiences.

The necessity for the PMO heavily depends on the project-intensity of the organisation.

Organisations with higher PMO maturity have, on average, a better project management performance.

The characteristics of the PMOs(roles and responsibilities, as well as their maturity) show a varying picture among the respondents.

The characteristics of the PMOs(roles and responsibilities, as well as their maturity) show a varying picture among the respondents.


37

The maturity of PMOs and the span of portfolio and programme management is different in the different industries.

• In the Financial Services sector it is very common to have a Project Office in place. Only 17% of the respondents have no PMO at all.

• It is less common in the Telecommunications & Technology industry to have a PMO. 31% of the respondents have no PMO at all…. This is a surprising result, as this is one of the most project-intensive sectors. (156 projects over the past 5 years.)

This result is also confirmed by the percentage of projects covered by the PMO:• In the Financial Services sector the PMO usually covers 75-100% of all projects.• In the Telecommunication & Technology sector most respondents said that less than 50%

of the projects are covered by the PMO.

The maturity of PMOs and the span of portfolio and programme management is different in the different industries.

• In the Financial Services sector it is very common to have a Project Office in place. Only 17% of the respondents have no PMO at all.

• It is less common in the Telecommunications & Technology industry to have a PMO. 31% of the respondents have no PMO at all…. This is a surprising result, as this is one of the most project-intensive sectors. (156 projects over the past 5 years.)

This result is also confirmed by the percentage of projects covered by the PMO:• In the Financial Services sector the PMO usually covers 75-100% of all projects.• In the Telecommunication & Technology sector most respondents said that less than 50%

of the projects are covered by the PMO.

Observation - 75% of the respondents from the Telecommunications & Technologysector say, that the PMO has been in operation for less than 3 years. Therefore, its tasks and responsibilities are probably still developing.

Observation - 75% of the respondents from the Telecommunications & Technologysector say, that the PMO has been in operation for less than 3 years. Therefore, its tasks and responsibilities are probably still developing.


38

PMOs at the respondent’s organisation usually report to the CEO / Division Head or a C-level manager.

The Project Offices at the respondent’s organisations can be grouped into two distinctive types:

A “best practice” example for the structure of a “broader” PMO came from the Financial Services industry. Here, the Head of the PMO has 3 distinctive teams: the Project Managers (PM pool), the Project Coordinators (responsible for project portfolio and/or programme management) and the Project Support Team.

PMOs at the respondent’s organisation usually report to the CEO / Division Head or a C-level manager.

The Project Offices at the respondent’s organisations can be grouped into two distinctive types:

A “best practice” example for the structure of a “broader” PMO came from the Financial Services industry. Here, the Head of the PMO has 3 distinctive teams: the Project Managers (PM pool), the Project Coordinators (responsible for project portfolio and/or programme management) and the Project Support Team.

PMO (in the “traditional” sense):

Project offices concentrating mainly on project co-ordination (portfolio management and/or programme management).

The PMOs of these organisations usually have 3-8 employees.

PMO (in the “traditional” sense):

Project offices concentrating mainly on project co-ordination (portfolio management and/or programme management).

The PMOs of these organisations usually have 3-8 employees.

“Broader” PMO:

Project offices that include dedicated project managers (project manager pool), plus project coordination (portfolio and/or programme management) and project support.

The PMOs of these companies have 10-26 employees.

“Broader” PMO:

Project offices that include dedicated project managers (project manager pool), plus project coordination (portfolio and/or programme management) and project support.

The PMOs of these companies have 10-26 employees.

PMO Project /Programme /Portfolio Management OfficePMO Project /Programme /Portfolio Management Office

39

PMO / ActivitiesPMO / Activities

3%Assessment of the business readiness to change

8%Coordinating business benefits management

18%A mentoring platform for Project managers

20%Resources sharing and coordination

23%Consolidated portfolio reporting and controlling (continuous tracking)

23%Coordinating post project reviews

23%Setting priorities for project approval (reflecting strategic priorities)

23%Maintaining a centralized archive of completed projects

25%Intermediating between strategic management and operational project managers (top down and bottom up communication, intermediate in negotiations on resources, etc.)

25%Coordinating project approval and project portfolio planning

25%Quality assurance and / or quality management

25%Cost accounting and control

25%Centralized repository and management for both shared and unique risks for all projects

28%Central office for operation and management of project tools, such as enterprise-wide project management software

30%Coordination of interdependencies between projects

38%Identification and development of project management methodology, best practices and standards

40%Central monitoring of all project timelines and budgets

48%Clearinghouse and management for project policies, procedures, templates, and other shared documentation

What functions are carried out by the PMO?

40

More respondents noted that PMO is responsible for the “central knowledge management”across the company’s projects (e.g. organising PM “club” events, making sure that lessons learned are stored and archived, etc.)

“Coordinating Business Benefits Management” and “Assessment of the business readiness to change” have achieved relatively low scores. This may be because these aspects are usually not part of the PMO’s activities or that these activities are not performed in the organisations at all. According to our analysis (see also slides 50-53), it is more probable that these activities are not regularly carried out and these areas can be / should be improved.

More respondents noted that PMO is responsible for the “central knowledge management”across the company’s projects (e.g. organising PM “club” events, making sure that lessons learned are stored and archived, etc.)

“Coordinating Business Benefits Management” and “Assessment of the business readiness to change” have achieved relatively low scores. This may be because these aspects are usually not part of the PMO’s activities or that these activities are not performed in the organisations at all. According to our analysis (see also slides 50-53), it is more probable that these activities are not regularly carried out and these areas can be / should be improved.

PMO / ActivitiesPMO / ActivitiesThe top 5 activities of the PMOs at the respondents’ organization:

1. Clearinghouse and management for project policies, procedures, templates, and other shared documentation

2. Central monitoring of all project timelines and budgets3. Identification and development of project management methodology, best

practices and standards4. Coordination of interdependencies between projects5. Central office for operation and management of project tools, such as

enterprise-wide project management software

The top 5 activities of the PMOs at the respondents’ organization:1. Clearinghouse and management for project policies, procedures,

templates, and other shared documentation2. Central monitoring of all project timelines and budgets3. Identification and development of project management methodology, best

practices and standards4. Coordination of interdependencies between projects5. Central office for operation and management of project tools, such as

enterprise-wide project management software

41

5%None28%Project management audits20%Post-implementation reviews 28%Compliance checks13%“Project Health Check”

Are any of the following specific activities performed by the PMO?

• 28% of the respondents said that the PMO performs compliance checks as well as project management audits.

• Post-implementation review is done by the PMO at 20% of the respondents’organisations. As this was in many cases a “missing” or “to be improved” project management tool, the PMO probably can have a crucial role to make it a more common activity in these organisations. This task is also connected to the knowledge management responsibilities which were mentioned by some respondents as a PMO role and which have an increasing importance / visibility in project management. Post-implementation reviews can be performed (and in most cases are performed) by the project team itself.

• 28% of the respondents said that the PMO performs compliance checks as well as project management audits.

• Post-implementation review is done by the PMO at 20% of the respondents’organisations. As this was in many cases a “missing” or “to be improved” project management tool, the PMO probably can have a crucial role to make it a more common activity in these organisations. This task is also connected to the knowledge management responsibilities which were mentioned by some respondents as a PMO role and which have an increasing importance / visibility in project management. Post-implementation reviews can be performed (and in most cases are performed) by the project team itself.

PMO / ActivitiesPMO / Activities

42

Most of the respondents reported that there is a formalised project approval process in place. • Only 11% of the respondents said that no formal approval process exists in their companies. • 57% of respondents said that they have a formalised, centralised project approval procedure (either

continual or periodic).• Less respondents have continual approval process (23%), and more periodic (34%).

Most of the respondents reported that there is a formalised project approval process in place. • Only 11% of the respondents said that no formal approval process exists in their companies. • 57% of respondents said that they have a formalised, centralised project approval procedure (either

continual or periodic).• Less respondents have continual approval process (23%), and more periodic (34%).

PMO / Project ApprovalPMO / Project ApprovalIs there a formal, centralised project approval process?

34%

23%

31%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Yes, a periodic project(portf olio) rev iew & approv al

by a centralised projectapprov ing body

Yes, a continuous project(portf olio) rev iew & approv al

by a centralised projectapprov ing body

Indiv idual project approv al,without centralised procedure

No f ormal project approv alprocess exists

43

Among those respondents who have a central approval process in place, approximately half of them have a threshold for the central approval requirement, the other half has a central approval for every initiated project, regardless of the project size.

It is more common in the Financial Services and in the Manufacturing sectors, that smaller projects are not subject to a central approval (may be approved locally in the initiating division / function) while projects which exceed a certain size limit need to be approved centrally.

Among those respondents who have a central approval process in place, approximately half of them have a threshold for the central approval requirement, the other half has a central approval for every initiated project, regardless of the project size.

It is more common in the Financial Services and in the Manufacturing sectors, that smaller projects are not subject to a central approval (may be approved locally in the initiating division / function) while projects which exceed a certain size limit need to be approved centrally.

PMO / Project ApprovalPMO / Project Approval

The threshold for the central approval requirement is usually based on the

• project budget,

• FTE requirements,

• CAPEX

• in some cases, the number of divisions involved.

The threshold for the central approval requirement is usually based on the

• project budget,

• FTE requirements,

• CAPEX

• in some cases, the number of divisions involved.

The exact size of the threshold (e.g. number of FTE, amount of Project Budget) is very different in the different industries and, of course, heavily depends on the company’s size and project intensity.

The exact size of the threshold (e.g. number of FTE, amount of Project Budget) is very different in the different industries and, of course, heavily depends on the company’s size and project intensity.

44

One respondent commented that the - approval on project content (approval on initiation of the project) and the - approval on the dedicated resources (approval on the resource allocation)

are two separate decisions made by different bodies. This is a typical approach, especially in cases of stage-gate models of project management.

One respondent commented that the - approval on project content (approval on initiation of the project) and the - approval on the dedicated resources (approval on the resource allocation)

are two separate decisions made by different bodies. This is a typical approach, especially in cases of stage-gate models of project management.

PMO / Project ApprovalPMO / Project Approval

Using a stage-gate approach, first (in the initial phase) the project needs to get an approval on the approximate project content (rough project plan, ideas) in order to get resources to the next phase. The next phase (or phases) has to include a feasibility study which delivers a more exact plan on project costs, CAPEX, time, etc. This needs to be approved again before proceeding to the next stages. The two decisions can be made by two different bodies but both decisions can be coordinated by the PMO.

If this feasibility study (or resource allocation) is rejected, then there are two possibilities for the outcome:

- Re-work the project plan to be able to finish the project with less resource requirements (and make a new feasibility study), or

- Reject the whole project.

Using a stage-gate approach, first (in the initial phase) the project needs to get an approval on the approximate project content (rough project plan, ideas) in order to get resources to the next phase. The next phase (or phases) has to include a feasibility study which delivers a more exact plan on project costs, CAPEX, time, etc. This needs to be approved again before proceeding to the next stages. The two decisions can be made by two different bodies but both decisions can be coordinated by the PMO.

If this feasibility study (or resource allocation) is rejected, then there are two possibilities for the outcome:

- Re-work the project plan to be able to finish the project with less resource requirements (and make a new feasibility study), or

- Reject the whole project.

45

PMO / QualitiesPMO / Qualities

There is a very mixed view on the current capabilities of the PMO.There is a very mixed view on the current capabilities of the PMO.

• 35% of respondents say that it needs major improvement; even employees of a PMO selected “to be improved” option. Only 20% of respondents say that their PMO is competent and qualified. This might also be because the task and responsibilities of the PMOs have been changed lately, and in many cases have been growing over the past years.

• Both in the Financial Services and in the Telecommunications & Technology sector, a relatively high share of the respondents said that their PMO needs (major) improvement.

• 35% of respondents say that it needs major improvement; even employees of a PMO selected “to be improved” option. Only 20% of respondents say that their PMO is competent and qualified. This might also be because the task and responsibilities of the PMOs have been changed lately, and in many cases have been growing over the past years.

• Both in the Financial Services and in the Telecommunications & Technology sector, a relatively high share of the respondents said that their PMO needs (major) improvement.

Capabilities of the PMO

20%

30%

15%

35%

0%5%

10%15%20%25%30%35%40%

Competent andqualif ied

Getting better Needsimprovement

Needs majorimprovement

46

Although there is a mixed view on the current capabilities of the PMO, most respondents have a very positive opinion on the usefulness of a capable Project Office.

• 43% of the respondents say that it would be a vital part of the company• Only 7% say that PMO is just another cost centre (without extra benefits)

Although there is a mixed view on the current capabilities of the PMO, most respondents have a very positive opinion on the usefulness of a capable Project Office.

• 43% of the respondents say that it would be a vital part of the company• Only 7% say that PMO is just another cost centre (without extra benefits)

PMO / QualitiesPMO / QualitiesPerceived role of the PMO

7%

14%

25%

11%

43%

Just another cost center

Sometimes beneficial expert center

As a contributive service

Necessary to align projects withCompany's goals

Vital part of the company

47

PMO / Project PerformancePMO / Project PerformanceThe existence of a Project Office has a positive impact on the Project Performance.Companies that have a project office in place - regardless of the tasks and responsibilities of the PMO - show better results in terms of project performance:

The existence of a Project Office has a positive impact on the Project Performance.Companies that have a project office in place - regardless of the tasks and responsibilities of the PMO - show better results in terms of project performance:

The share of projects completed on time and within budget is 56% at companies with a Project office, while this success rate is only 39% at companies without a Project office.The share of projects completed on time and within budget is 56% at companies with a Project office, while this success rate is only 39% at companies without a Project office.

Project performance in companies with a Project Office vs. without a Project Office

45

38

29

18

4 6

0

10

20

30

40

50

Late Over budget Failed / Canceled

Has no project off ice

Has a project off ice

48

PMO / International OutlookPMO / International OutlookSome results about the Project and Programme / Portfolio Management Offices in Hungary are similar to those in other international surveys.

PMO Tasks:The tasks of the PMOs are similar in other international survey results. International studies in general show the emerging need for strategic alignment and for the prioritisation of projects competing for limited resources.

PMO Capabilities: Very mixed views on the current capabilities of the Project Office also exist in other international results. Although in the international results Project Offices are in place for a longer period of time (on average, 5-7 years), most surveys still show that many respondents evaluate the Project Offices as a department that needs improvement.

Project Offices per Industry:The project offices’ frequency per industry is also similar in other international surveys. Financial Services adopted PMOs generally more than other industries. Manufacturing (Industrial) sectors have less PMOs.

Perceived Role of PMO:Other international surveys also confirm the perceived high value and beneficial role of a project office.

Some results about the Project and Programme / Portfolio Management Offices in Hungary are similar to those in other international surveys.

PMO Tasks:The tasks of the PMOs are similar in other international survey results. International studies in general show the emerging need for strategic alignment and for the prioritisation of projects competing for limited resources.

PMO Capabilities: Very mixed views on the current capabilities of the Project Office also exist in other international results. Although in the international results Project Offices are in place for a longer period of time (on average, 5-7 years), most surveys still show that many respondents evaluate the Project Offices as a department that needs improvement.

Project Offices per Industry:The project offices’ frequency per industry is also similar in other international surveys. Financial Services adopted PMOs generally more than other industries. Manufacturing (Industrial) sectors have less PMOs.

Perceived Role of PMO:Other international surveys also confirm the perceived high value and beneficial role of a project office.

49



– Project size






1. Respondents


– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities





7. Project Management Tools7. Project Management Tools

50

Project Management Tools / MethodologiesProject Management Tools / MethodologiesApplied tools

95%95%92%

78%84%89%

70%

51%

68%58%

68%

42%

55%53%43%49%49%49%49%

41%

27%

12%

5% 5% 8%

22%16%11%

30%

49%

32%42%

32%

58%

45%47%57%

51%51%51%51%59%

73%

88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%B

usin

ess

Cas

e

Pro

ject

cha

rter /

con

tract

Writ

ten

“con

tract

” for

Pro

ject

Man

ager

and

team

mem

bers

Pro

ject

sch

edul

e

Pla

nnin

g to

ols

(e.g

. CP

M)

Rec

ourc

e pl

an

Cos

t est

imat

ion

Res

pons

ibilit

y as

sign

men

ts

Com

mun

icat

ion

plan

Ris

k m

anag

emen

t pla

n

Form

al c

hang

e re

ques

ts

Sta

tus

repo

rts

Issu

e lo

g

Acc

epta

nce

proc

edur

es

Less

ons

lear

ned

chec

klis

t

Cha

nge

man

agem

ent p

lan

Pro

ject

clo

se c

heck

list

Pos

t pro

ject

revi

ew

Ent

ry in

Kno

wle

dge

Man

agem

ent

Tool

and

/or p

roje

ct a

rchi

ves

Ben

efits

real

isat

ion

tool

s

Res

ourc

e le

vellin

g /

harm

onis

atio

n at

sim

ulta

neou

sly

Per

form

ance

eva

luat

ion

of p

roje

ct

team

mem

bers

Rarely or NeverAlways or Mostly

51

Project Management ToolsProject Management ToolsBusiness Case, Project Charter/Contract, Resource plans and Written Contract for project managers and team members are wide-spread tools which are regularly used at almost all companies. The least-used tool is the Performance evaluation of project team members.There is a relatively low utilisation of “Project close checklist”, “Mandatory entry in knowledge management system”, “Post project review” and “Lessons learned checklists”.

Business CaseBusiness Case, Project Charter/ContractProject Charter/Contract, Resource plansResource plans and Written ContractWritten Contract for project for project managers and team membersmanagers and team members are wide-spread tools which are regularly used at almost all companies. The least-used tool is the Performance evaluationPerformance evaluation of project team members.There is a relatively low utilisation of “Project close checklistProject close checklist””, “Mandatory entry in knowledge Mandatory entry in knowledge management systemmanagement system””, “Post project reviewPost project review”” and “Lessons learned checklistsessons learned checklists””.

Some surprising results:• Very rare use of Status reports: only 37% of the respondents use

regular status reports • Issue logs are used by only 51% of the respondents.• 51% don’t use Acceptance procedures.• Although a Communication plan is always (or mostly) used by 61% of

the respondents, only 44% use Change Management Plans regularly.These tools are designed to improve the project success rates, and to avoid many of the common failures. Therefore, these figures should be improved in the future.

Some surprising results:• Very rare use of Status reportsStatus reports: only 37% of the respondents use

regular status reports •• Issue logsIssue logs are used by only 51% of the respondents.• 51% don’t use Acceptance proceduresAcceptance procedures.• Although a Communication plan is always (or mostly) used by 61% of

the respondents, only 44% use Change Management PlansChange Management Plans regularly.These tools are designed to improve the project success rates, and to avoid many of the common failures. Therefore, these figures should be improved in the future.

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Business Benefits Management:At the evaluation of project management tools, 37% of the respondents answered that they always or mostly use benefits realisation tools.

9 respondents expressed that their organisation has a formal business benefit management process.

According to KPMG’s Global Programme Mgmt. Survey (in PM Network June 2006): – More than 59% of organizations (globally) have no benefits management

process or only an informal one– Only 18% of those who possess a formal process stringently enforce it.

Business Benefits Management:Business Benefits Management:At the evaluation of project management tools, 37% of the respondents answered that they always or mostly use benefits realisation tools.

9 respondents expressed that their organisation has a formal business benefit management process.

According to KPMG’s Global Programme Mgmt. Survey (in PM Network June 2006): – More than 59% of organizations (globally) have no benefits management

process or only an informal one– Only 18% of those who possess a formal process stringently enforce it.

Project Management ToolsProject Management Tools

But: – According to the explanations and comments, the activities understood

under business benefits management are different at different respondents, and

– at some companies the responsibilities for benefits management are not yet formalised

But: – According to the explanations and comments, the activities understood

under business benefits management are different at different respondents, and

– at some companies the responsibilities for benefits management are not yet formalised

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Project Management ToolsProject Management Tools

Only 27-28% of respondents say that their organisation has a financial or non-financial reward for project successes (or for successful project team contribution). This is a relatively low number; however some international surveys show even lower numbers. According to an international survey, made mainly at US companies (PM Network, July 2006 PMI):

– 58% of project managers and team members say top management only occasionally, rarely or never acknowledges the accomplishment publicly if a project succeeds

– 87% say their organisations only sometimes, rarely or never give financial bonuses for project success.– Nearly 61% cite no link between their annual reviews and their performance on project teams.

This is also confirmed by the previous question which showed that the least used PM tool was the performance evaluation of project team members.

Only 27-28% of respondents say that their organisation has a financial or non-financial reward for project successes (or for successful project team contribution). This is a relatively low number; however some international surveys show even lower numbers. According to an international survey, made mainly at US companies (PM Network, July 2006 PMI):

– 58% of project managers and team members say top management only occasionally, rarely or never acknowledges the accomplishment publicly if a project succeeds

– 87% say their organisations only sometimes, rarely or never give financial bonuses for project success.– Nearly 61% cite no link between their annual reviews and their performance on project teams.

This is also confirmed by the previous question which showed that the least used PM tool was the performance evaluation of project team members.

Motivational methods for Project Team members

28 27

5

0

5

10

15

20

25

30

Financial Rew ards Non-financial Rew ards Other

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• Tools: Other international studies confirm that good quality change management practices correlate with project success. As many international results show, there is an emerging need for strategic alignment and prioritisation of projects. An increasing need and use of benefit realisation tools are also predicted in other studies.

• Staff development: The low attention to professional development of project managers is also confirmed by other international studies.

Most companies only rarely use staff development programmes for project management professionals.

PWC’s international study (Global PM Survey, 2004) shows that it is more common in the Telecommunications and in the Commercial Goods industry to have a planned career development and staff development programme for PM professionals. By contrast, in the Financial Services and in the Public Service sectors, where such activities are less common, they gave the lowest scores for project management staff development.

• Tools: Other international studies confirm that good quality change management practices correlate with project success. As many international results show, there is an emerging need for strategic alignment and prioritisation of projects. An increasing need and use of benefit realisation tools are also predicted in other studies.

• Staff development: The low attention to professional development of project managers is also confirmed by other international studies.

Most companies only rarely use staff development programmes for project management professionals.

PWC’s international study (Global PM Survey, 2004) shows that it is more common in the Telecommunications and in the Commercial Goods industry to have a planned career development and staff development programme for PM professionals. By contrast, in the Financial Services and in the Public Service sectors, where such activities are less common, they gave the lowest scores for project management staff development.

Project Management Tools / International OutlookProject Management Tools / International Outlook

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– Project size






1. Respondents


– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities







56

PM Standards & MethodologiesPM Standards & Methodologies

• 70% of the respondents use their own, standardised project management methodologies. Own methodologies are often harmonised with or based on PMBoK.

• Prince2 and PMBOK (PMI) are the most widespread standards, used at 20-30% of companies.

• Companies also mentioned some other standards in use: MSF, RUP, Summit, ISO10006.2003

• Compliance with standards is perceived as quite high.

• 70% of the respondents use their own, standardised project management methodologies. Own methodologies are often harmonised with or based on PMBoK.

• Prince2 and PMBOK (PMI) are the most widespread standards, used at 20-30% of companies.

• Companies also mentioned some other standards in use: MSF, RUP, Summit, ISO10006.2003

• Compliance with standards is perceived as quite high.

Project Management Standards used at respondent's company

10

41

12

28

0

5

10

15

20

25

30

ProjectManagementInstitute (PMI)

International ProjectManagementAssociationCompetence

Baselines (IPMA)

OrganizationalProject

ManagementMaturity Model

(OPM3)

Projects inControlled

Environments(PRINCE/ PRINCE2)

Ow n(standardised)

projectmanagementmethodology

57



– Project size






1. Respondents


– Project size







Management Office

– Activities


– Qualities






Management Office

– Activities


– Qualities





6. Overall assessment– Project Management Evaluation


6. Overall assessment– Project Management Evaluation


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Overall assessment – PM EvaluationOverall assessment – PM Evaluation

The most valued notion of project management in the organisation is the better coordination of projects and resources, the visibility of concurrent projects and better delivery of project outcomes. Faster delivery on most projects got lower scores, probably because this factor was already considered in the overall better delivery of project outcomes.

The most valued notion of project management in the organisation is the better coordination of projects and resources, the visibility of concurrent projects and better delivery of project outcomes. Faster delivery on most projects got lower scores, probably because this factor was already considered in the overall better delivery of project outcomes.

Perceived value of Project Management

29

23

16 16

23

0

5

10

15

20

25

30

35

Coordination ofProjects and

resourcemanagement

Visibility of all theconcurrent Projects

Standardization ofour Project

managementapproaches

Faster delivery onmost Projects and

Better budgetcontrol and

delivering w ithinbudget

Better delivery ofproject outcomes

59

Overall assessment – PM EvaluationOverall assessment – PM Evaluation

• 44% of respondents see that their project management qualities are average or better than average.

• 34% of respondents see a need for improvement in their PM practices.

• 44% of respondents see that their project management qualities are average or better than average.

• 34% of respondents see a need for improvement in their PM practices.

*comment by a respondent: better than industry average, but still needs improvement5%*Other

5%Does not suit our current needs

24%Needs improvement to satisfy our future needs

10%Sufficient for our purposes

44%On average or better than average in our industry

12%Best in class

How would you characterize the functionality of Project management in your Company?

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According to the overall evaluation of responses, there looks to be a consensus among respondents, that the following topics are high on the company’s agenda:

1. Project planning

2. Project controlling

3. Post-project evaluation and

4. Project portfolio management

More respondents indicated that even when they think that their project management practices are good, they certainly need further improvement to satisfy future needs.

According to the overall evaluation of responses, there looks to be a consensus among respondents, that the following topics are high on the company’s agenda:

1. Project planning

2. Project controlling

3. Post-project evaluation and

4. Project portfolio management

More respondents indicated that even when they think that their project management practices are good, they certainly need further improvement to satisfy future needs.

Overall assessment – SummaryOverall assessment – Summary

survey of project management practices results survey_presentation final.pdf · • identify...

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