The Value of Project Management Ricardo Viana Vargas Chair, Strategic Planning & Program Alignment Committee PMI Board of Directors PMI Madrid 12 May 2008
The Value of Project Management
Ricardo Viana VargasChair, Strategic Planning & Program Alignment
CommitteePMI Board of Directors
PMI Madrid12 May 2008
Global Demand
• More complex projects
• Globalization and heightened competition
• Increased accountability
Global Response
• $10 trillion spent on capital projects
• >20 million project managers
• Explosive PM growth in Asia
Global Results
“80 percent of projects classified as higher-performing use a certified project manager.”
2007 PricewaterhouseCoopers global project management maturity survey
Global Results
“Portfolio management is
of significant value.”
2007 PricewaterhouseCoopers global project management maturity survey
PMI growth
•260,000+ members in 171 countries
•250+ chapters in 70+ countries
•30 SIGs, two colleges
PMI Global Membership and Certifications
11.4% Membership9.3% PMPs
4.2% Membership3.5% PMPs
70% Membership57.2% PMPs
14.4% Membership30% PMPs
PMI Family of Credentials
Organizational Strategy Successful Projects
• PMI certification: ISO 9001, widely recognized– Certified Associate in Project Management (CAPM®)– Project Management Professional (PMP®)– Program Management Professional (PgMPSM)– New: PMI Scheduling Professional (PMI-SPSM)
• Many organizations encourage PMI certification or base their internal training on PMI standards
Career Advancement
• “Glass ceiling” problem: project managers cannot rise to senior executive positions
• PMI Career Framework lets project managers:– Determine where their skill-set and experience place them on
the project management career ladder– Assess their strengths and weaknesses– Learn what they need to do to advance their careers– Determine professional expectations for other project managers
at the same career stage.
• Free to organizations
PMI Project Management Salary Survey, Fifth Edition 2007
Median PMP® salaries
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
Non-PMP PMP <1 yr PMP 1-4 yr PMP 5-9 yr
Demand Industries forProject Managers
• Information technology• Computers/software• Financial services• Telecommunications• Business management
services• Engineering
ChallengedSucceededFailed
Need for Project Management in IT Industry
• 33% of software investments used to repair projects*
• 56% of projects have cost overruns of >50%**
• 84% of projects have time overruns**
• 53% of organizations do not operate PMO**
*Atlantic Systems Guild**Chaos in 2007, Standish Group
Challenged53%Succeeded
29%
Failed18%
0%
20%
40%
60%
80%
100%
Cost 69% 45% 43% 56% 47%
Time 79% 63% 82% 84% 72%
1998 2000 2002 2004 2006
Project Management Impact Reduced Time & Cost Overruns
Chaos Chronicles, The Standish Group 2007
Organizations Recognize Value of Project Management
• Project management improves:– Efficiency – Budget – Timing
• More organizations adopting common methodology
• More organizations hiring credentialed project managers
Companies Requiring Companies Requiring PMI Certification PMI Certification
0
5
10
15
20
25
30
2003 2004 2005 2006
CHAOS Chronicles, The Standish Group 2007
Project Management Program Management
Portfolio Management
+
The Maturity Progression
Why Organizational Project Management Matters
• Aligns projects with strategic goals
• Focuses on performance
• Improves project time and cost management
• Delivers predictable, repeatable results
Ahead of Schedule and Under Budget
Fluor’s clean up of nuclear site
• Completed 12 years ahead of schedule
• Completed $7.8 billion below initial estimates
• Used project management standards and methodology
Company sponsored training
Indra Sistemas S.A.
• Methodology based on PMBOK© Guide
• Free training towards PMP® certification for all employees
Outreach
Ericsson Response program
• Assists international disaster efforts
• Supports relief agencies
• Applies project management standards
Acceptance in Education
• First Accredited Masters Program in Spain
Worldwide, organizations will embrace, value and utilize project management, and attribute their success to it.
PMI’s Envisioned Goal
Project Management Institute
Making project management indispensable for business results®
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