Project management has lots of cogs and wheels which need to run in unison to create maximum value for a project. But, today project management is not about projects anymore, it needs a holistic approach and needs to take into account real-world scenarios. In fact, covering all the aspects of project management is difficult and inefficiencies crop up during the project lifecycle.
In today’s service-based environment, it is very important to recognize problems even before they occur and get to the root of them, and nip them in the bud. So, let us take a look at the impact of ineffective project management techniques.
The Importance of Project Management
- According to PMI’s “Industry Growth Forecast”, between 2010 and 2020, there will be 7 million new project management roles created globally which is spread across seven project-intensive industries with an economic footprint of ~USD 6.61 trillion.
- In fact, project managers’ employment will increase by almost 60% in India, close to 33% in China, and by more than 40% in the UAE.
- China and India also lead in estimated project-oriented job openings in 2010-2020 by 8 million and 4 million jobs respectively.
Countries with Established or Quickly Developing Project Management Industries:
| Country | Projected New Job Demand (By 2020) | Projected New Job Openings (By 2020) | Estimated Economic Impact (2020, in Billions) |
| Australia | 375,757 | 759,900 | 519 |
| Brazil | 1,364,932 | 347,820 | 1,027 |
| Germany | 1,642,058 | 153,230 | 1,290 |
| Canada | 582,366 | 120,070 | 649 |
| UK | 946,648 | 177,120 | 891 |
| Japan | 2,610,663 | 387,560 | 1,974 |
| China | 24,906,557 | 8,153,340 | 4,540 |
| India | 8,857,645 | 3,975,650 | 1,022 |
| UAE | 57,731 | 177,120 | 176 |
| Saudi Arabia | 103,616 | 12,670 | 279 |
| USA | 700,000 | 2,348,830 | 5,813 |
Important Entities of Ineffective Project Management
An employee works an average of 45 hours a week. Out of which, 17 hours in a week is said to be unproductive.
On average in a week employees spend close to 5.6 hours in a meeting. And 69% of employees believe meetings are not productive.
A recent IBM report, states that 68% of project failure was due to poor project management.
In fact, 45% of senior executives in organizations the world over believe employees can be more productive if meetings were banned once a week.
According to the latest time management study, industry experts believe, on average, an employee is disturbed/interrupted at least 7 times in an hour which is close to 56 interruptions on a typical workday. The sad part is that 80% of interruptions are considered trivial issues.
Typical Traits of an Ineffective Project Manager
- He / She is always complaining but does not offer a solutions
- They are not proactive and do not anticipate problems to manage risks
- Inability to manage time properly
- Gets a bad reputation for not having good relationships
- Lacks direction mid-project / closing the project
- Inability to properly delegate work and manage scope
- Lacks skills to improve his / her team’s performance
Why Does a Project Fail?
According to PMI’s “Pulse of the Profession” report, it states that organizations lose close to ~USD 109 million for every billion spent on projects and programs across the globe. Let us take a look at why a project fails in the first place.
- The project scope is not defined properly
- Inability to accurately estimate time and effort for the project
- Inefficient detailing of project plans
- Failure to identify potential risks down the line
- Project managers who lack the necessary experience to carry out the project
- Not using formal project management methodologies and strategies
- Not creating a robust communication channel between team, stakeholders, and customers
- Failure to track new requirements and changes in processes
