A New Era for Enterprise Agility Report by PMI – Summary & Key Insights

The “A New Era for Enterprise Agility” report from the Project Management Institute (PMI) highlights the growing importance of enterprise agility in a business environment characterized by rapid change. The report defines enterprise agility not as a methodology, but as a core capability that determines an organization’s ability to pivot, adapt and succeed in a constantly evolving environment. This report, based on data from the PMI Annual Global Survey on Project Management from 2021 to 2024, provides a great view of why enterprise agility is a business essential and explores its unique factors across eight key industries. The research also aims to show how companies can cultivate this capability to drive growth, scale and performance. Let’s see some key insights from this report.

Key Insights

• The rate of change across six factors (technology, talent, economic, geopolitical, climate and consumer/social) has risen 183% since 2019.
• 88% of C-suite leaders expected an even faster rate of change in 2024 with nearly half of executives said they are not fully prepared for how quickly technology is changing.
• 44% of project professionals rate their organization’s agility as high or very high, an increase from 35% in 2021.
• High-agility organizations achieve a 76% project performance rate, compared to 67% at companies with low agility.
• High-agility companies have a project failure rate of 9%, compared to 11% for low-agility companies.
• High-agility companies have a project lost budget rate of 25%, compared to 30% for low-agility companies.
• The top challenge in agile adoption is organizational resistance to change, cited by 47% of respondents.
• In high-agility organizations, 71% have a Project Management Office (PMO).
• High-agility organizations use agile approaches 69% of the time, hybrid approaches 62% of the time and predictive approaches 61% of the time.
• Low-agility organizations use agile approaches 11% of the time, hybrid approaches 28% of the time and predictive approaches 73% of the time.
• IT has the highest enterprise agility among all industries, with 50% of organizations reporting high agility.
• The government sector has seen the largest percentage point increase in agile organizations over the last four years.
• In high-agility organizations, 84% prioritize the delivery of value to customers and 80% of high-agility organizations promote teamwork across different departments.
• 79% of high-agility organizations grant autonomy and decision-making power to teams, while 74% of high-agility organizations are constantly seeking and implementing ways to improve.
• 72% of high-agility organizations establish structures for quick decision-making and 76% ensure visibility, clear communication, and reinforcement of strategy.
• 73% of high-agility organizations foster a culture of continuous learning and open knowledge exchange.
• 74% of high-agility organizations use technology to enhance value delivery.
• 71% of high-agility organizations have a PMO, while only 60% of low-agility organizations have a PMO.
• PMOs in high-agility companies are 21% points more likely to manage governance, risk, and compliance issues than low-agility companies.

Conclusion

The report underscores that enterprise agility is a critical capability for organizations to not just survive but thrive in an environment of accelerating change. While the IT industry leads in agility, the data shows that a significant portion of all organizations still struggle to adapt. The key to success lies in a multifaceted approach that goes beyond simply adopting agile methodologies. High-agility organizations are defined by strong leadership support, a culture that promotes continuous improvement and empowers teams. It is also characterized by the strategic use of a mix of project delivery approaches, including agile, hybrid and predictive. Project Management Offices (PMOs) also play a vital role in this transformation by reinforcing agility through training and ensuring that all projects are aligned with the company’s strategic vision. By using these principles, companies can improve project performance and turn challenges into opportunities for growth.

You can read the full report here.