In the modern workplace, project management tools have become an indispensable roadmap.
Without them, teams miss details about tasks and workflow. Project management software tools help pinpoint problems and organize business responsibilities.
And the numbers speak for themselves.
“For the first time in five years, more projects are meeting original goals and business intent and being completed within budget,” according to a survey from PMI’s Pulse of the Profession.
However, not everyone has gotten the memo. It is common to see companies that don’t prioritize project management initiatives have more projects fail.
If you’re not yet convinced of the benefits, check out some of the findings about effective project management, how it impacts business performance and how companies are prioritizing it.
|TIP: Those in need of a solution on a budget should research one of the many free project management software tools available in 2019, or read up on project tracking software.|
Project management statistics in 2019
For more information regarding each of these statistics, check the linked source.
Project budget statistics
- On average, projects go over budget by 27 percent of their intended cost. (Harvard Business Review)
- On average, one in six projects saw a budget overrun of 200 percent. (Harvard Business Review)
- 55 percent of project managers cited budget overrun as a reason for project failure. (IT-Cortex)
- 31 percent of project managers cite meeting their budget as a criterion for project success. (IT-Cortex)
- IT failure rates are estimated to be between 5–15 percent, accounting for a loss of $50–$150 billion per year in the United States alone. (Harvard Business Review)
- Projects with budgets over $1 million have a 50 percent higher failure rate than projects with budgets under $350,000. (Gartner)
- Organizations with 80 percent or more of projects being completed on time and on budget waste significantly less money due to poor project performance. (PMI, 2017)
- Project management initiatives save companies 28 times more money since their output is more reliable (PMI, 2017).
Project planning and goal statistics
- Most organizations have a 70 percent project failure rate. (4PM)
- Only 28 percent of companies use project performance techniques. (PMI, 2017)
- Only 2.5 percent of companies complete 100 percent of their projects successfully. (Gallup)
- Only 64 percent of projects meet their goals. (Wrike)
- 17 percent of IT projects fail so badly they can threaten the existence of a company. (Calleam)
- 49 percent of 840 federally funded projects were found to be poorly planned, poorly performing, or both. (Calleam)
- 78 percent of a group of IT and business professionals reported that their business was not aligned with project goals. (Geneca)
- 75 percent of respondents in the same study previous state they believe their projects are always or usually slated to fail from the beginning. (Geneca)
|TIP: Learn to set your projects up for success with a project scope statement.|
Project success statistics
- 68 percent of projects don’t have an effective project sponsor to provide direction or address problems. (Wrike)
- 80 percent of high-performing projects are led by a certified project manager. (Wrike)
- 77 percent of high-performing projects use project management software. (Hive)
- 87 percent of high-performing companies use project management software. (Wrike)
- Organizations using any type of project management methodology are better at meeting budget, staying on schedule and meeting scope, quality standards and expected benefits. (PMI, 2015)
Stats on continued project management improvement
- In the past year, only 14 percent of projects were deemed failures by their teams. (PMI, 2017)
- In 2015, companies lost $109 million for every $1 billion invested in projects. (Wrike)
- Now, companies lose $97 million for every $1 billion invested, a 20 percent decline. (PMI, 2017)
- The project management industry is projected to grow by $6.61 trillion. (PMI, 2013)
- 60 percent of organizations manage their projects in a portfolio structure, a 4 percent increase from previous years. (KPMG)
- 71 percent of organizations report using agile methodologies for project management. (CIO)
- 62 percent of completed projects included project sponsors who were actively supportive. (PMI, 2017)
|Tip: Improve your project management skills by finding the right project management methodology for you|
Project Management as the Solution
While project management can’t solve all the problems that can potentially arise, using accredited project management practices or even continuing your education with the right project management certifications can help things go as smoothly as possible.
Project managers provide teams with direction over the course of a project and are dedicated to solving problems. Project management software helps teams understand their role and how each part connects.
No matter their approach, companies that emphasize good project management practices are reaping the benefits. Don’t get left behind.
Additional resources on project management include: