You are probably as familiar with the statistics of failing projects as I am. A study by The Economist and the PMI shows that only 56% of strategic initiatives are successful whereas according to other studies the success rate is far lower depending on sector. The House of Commons in the UK for instance have reported that only one third of major government projects are delivered to time and budget.
Projects fail because of unclear scope and success criteria, lack of strategic alignment, lack of change management skills, underestimation, inadequate risk management, and lack of buy-in and engagement from project sponsors. Shockingly, PMI’s Pulse report shows that despite it being a top driver of project success, fewer than two in three projects have actively engaged sponsors. That's alarming! I wonder how the situation might be improved if project managers had better relationship-building and influencing skills.
Projects fail because of unclear scope and success criteria, lack of strategic alignment, lack of change management skills, underestimation, inadequate risk management, and lack of buy-in and engagement from project sponsors. Shockingly, PMI’s Pulse report shows that despite it being a top driver of project success, fewer than two in three projects have actively engaged sponsors. That's alarming! I wonder how the situation might be improved if project managers had better relationship-building and influencing skills.
The report also shows that organizations are losing an average of $109 million for every $1billion spent on projects due to lack of focus on people, processes and outcomes. And that is in spite of more tools and techniques being available that help us keep track of the many moving parts of a project.
The role of complexity
But why don’t we seem to get better in light of all the knowledge we have? Why do failure statistics continue to be so high? One of the answers relate to the increased complexity of projects and the environments in which they are undertaken. The ICCPM explains that there are many factors that contribute to this growing complexity, for example, social and technological change, growing global interdependency, increasing numbers of stakeholders and the need to communicate and co-ordinate cross-culturally. In their report “Hitting a Moving Target,” they write that ‘It is clear that the situation has to be addressed radically and comprehensively. If we do what we’ve always done, we’ll get what we’ve always got – and there are too many examples that prove what we’ve always got isn’t good enough.’
We don’t need more managers; we need leaders
Over 80% of high performing organisations now report that the most important acquired skills for project managers to successfully manage complex projects are leadership skills. Traditional dimensions of project management such as cost, schedule, and performance are necessary but insufficient.
The role of complexity
But why don’t we seem to get better in light of all the knowledge we have? Why do failure statistics continue to be so high? One of the answers relate to the increased complexity of projects and the environments in which they are undertaken. The ICCPM explains that there are many factors that contribute to this growing complexity, for example, social and technological change, growing global interdependency, increasing numbers of stakeholders and the need to communicate and co-ordinate cross-culturally. In their report “Hitting a Moving Target,” they write that ‘It is clear that the situation has to be addressed radically and comprehensively. If we do what we’ve always done, we’ll get what we’ve always got – and there are too many examples that prove what we’ve always got isn’t good enough.’
We don’t need more managers; we need leaders
Over 80% of high performing organisations now report that the most important acquired skills for project managers to successfully manage complex projects are leadership skills. Traditional dimensions of project management such as cost, schedule, and performance are necessary but insufficient.
The world is changing at a rapid pace and the need for effective leadership is greater than ever before. We need leaders who can deal with ambiguity and complexity, take ownership of the vision, foster collaboration at all levels, gain buy-in from project sponsors and motivate the team to achieve the expected outcomes. Thinking and behaving with a traditional project management mindset of control and compliance is not serving us. It is limiting our opportunities and it is contributing to project failure. If we want to generate lasting results for our clients, we must become great leaders and ambassadors for better ways of doing projects. But it will only happen if we take the lead and have the vision and insight to show the way.
My new book, The Power of Project Leadership, provides insight into how you can step up and transform into a leader. It shows you how to lead with vision, continuously improve and innovate, work with intent, get closer to your stakeholders, empower the team, be authentic and establish a solid foundation for your projects. These are the 7 keys (encompassing capabilities, attitudes and behaviours) that you need in order to become a leader.
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