Maximizing Project Success Report by PMI – Summary & Insights

The report on project success discusses the Project Management Institute’s (PMI) purpose to maximize project success in order to elevate the business world. It explains the changing views of project success and the importance of having a consensus definition that includes not only project management success but also accountability for outcomes and value delivery among project professionals. The research emphasizes the need for project professionals to expand their perspective, manage stakeholder perceptions and reassess project parameters to ensure the delivery of value that is worth the effort and expense. Let’s look at some key insights from this report

Key Insights

• The study involved more than 10,000 project professionals across multiple geographies and industries.  
• The new consensus view of project success is defined as delivering value that is worth the effort and expense.  
• The research emphasizes that for a project to be considered successful, stakeholders must perceive that the project’s outputs provide sufficient value relative to the investment of resources.  
• Project professionals need to take ownership of the entire breadth of a project and be accountable for delivering tangible and perceived value.  
• The report introduces the Net Project Success Score (NPSS) as a new portfolio measurement approach. The perception of value can be measured and quantified using tools like the Net Project Success Score (NPSS).  
• It revealed that project success is measured by execution-focused metrics (time, scope, budget) and outcome-focused metrics (customer satisfaction, commercial success, impact on productivity).  
• The Global Net Project Success Score (NPSS) was calculated to be 36. 
• 74% of projects were considered successful when they delivered on time and on budget and at the same time, also provided a valuable/useful outcome.
• 69% of projects delivered a valuable/useful outcome while 64% of projects delivered on time and on budget. 
• 48% of projects were rated successful (9-10 on a 0-10 scale), 12% of projects were rated as failures (0-6 on a 0-10 scale) and 40% of projects were rated as producing a mixed result (7-8 on a 0-10 scale).  
• In the Net Project Success Score, 48% of projects rated successful minus 12% of projects rated failures equals the global NPSS of 36.  
• Only 22% of projects are aligned with social impact.  
• Projects in the industrial, construction, healthcare, and finance industries achieved an average NPSS above the global baseline of 36.  
• Government projects often face significant challenges, with only 64% of strategic initiatives meeting their goals and business intent.  
• Government projects result in a substantial waste of funds, estimated at US$101 million for every US$1 billion spent.
• McKinsey found that 70% of transformation programs (often led by consultants) fail to achieve their goals.  
• Physical infrastructure, IT implementation and upgrade, and software product development projects achieved above-average NPSS scores.  
• Projects funded externally tend to have higher NPSS.

Conclusion

The report’s findings indicate a need for the project management profession to adopt a broader definition of success that encompasses value delivery and stakeholder perception. The Net Project Success Score (NPSS) provides a valuable tool for measuring project success beyond traditional metrics. Data shows that factors like incorporating social impact, focusing on customer satisfaction, and considering industry-specific nuances can significantly influence project outcomes. You can learn more such project management concepts by joining a  PMP certification training to become a certified project professional by PMI. Ultimately, with the help of continuous learning and improvement, project professionals can enhance project success rates and increase the positive impact of projects.

You can check out the full report by PMI here.