www.pwc.

com

Insights and Trends:

Current Portfolio,
Programme, and Project
Management Practices
The third global survey on
the current state of project
management
Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Special Thanks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Survey Participants’ Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Project Management Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Project Management Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Contact Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 1
2 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
 Executive Summary

,QWRGD\łVGLIğFXOWHFRQRPLFWLPHV In 2004, PricewaterhouseCoopers LLP

organisations are constantly faced (PwC) invited senior executives and
ZLWKWKHFKDOOHQJHVRIğHUFHO\ SUDFWLWLRQHUVWRSDUWLFLSDWHLQRXUğUVW
competitive and changing environments Global PM survey. The survey’s main
GULYHQE\UHJXODWRU\PRGLğFDWLRQ objective was to investigate whether a
and organisational restructuring. higher maturity level would go hand-in-
Environmental forces - competitive, hand with a higher project performance
economic, technological, political, level. In 2007, PwC conducted a similar
legal, demographic, and cultural - survey to determine the current state of
“CEOs in industries in the create challenges and opportunities for PM maturity in organisations across the
throes of disruptive change organisations. They must, therefore, world. The survey’s main objective was
require radical innovation; if continuously adapt to the environment to identify current trends in PM, and
if they are to survive and prosper. Top pinpoint the characteristics of PM that are
their business cannot quickly management are thus confronted with the applied on higher-performing projects.
create new products or critical task of analysing and improving %HJLQQLQJZLWKWKHğUVWVXUYH\LQ
services that customers will the ability of an organisation to change, 3Z&VRXJKWWRğQGWKHOHDGLQJSUDFWLFHV
survive, and grow in this complex and of successful companies, followed by the
buy, they will not survive. changing global economy and volatile 2007 survey that validated three points:
However, innovation does world. In order to stay competitive, ō There is a link between higher
not just mean end product or today’s organisations have been moving maturity levels and high project
from operations and business as usual,
service changes – it to project management as part of their
performance.
sometimes now includes competitive advantage strategy.
ō Senior management that supports PM-
driven key initiatives achieves stronger
taking costs out of processes The ability to successfully execute projects business results.
or forming strategic is what drives the realisation of intended
ō Effective PM is vital to many
EHQHğWVDQGWKHDFKLHYHPHQWRIEXVLQHVV
alliances to collaborate.” objectives. Organisations that execute
organisations.
- PwC 15th Annual Global CEO Survey 2012: projects successfully employ effective
Delivering Results, Growth,
Project Management (PM) practices as a
and Value in a Volatile World
tool to drive change. Given the strategic
impact that projects have on business,
organisations must follow effective PM
processes that capitalize on innovation;
measure progress, value, and risks;
DQGFRQğUPWKDWWKHULJKWSURMHFWV
can be delivered in alignment with
organisational strategy.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 3
Now, with increased scrutiny over budgets ō Employing an organisation’s ō The adoption of Portfolio Management
DQGŃGRLQJPRUHZLWKOHVVńHIğFLHQF\DQG typical PM approach leads to (PfM) has not increased amongst
effectiveness are key factors of successful accomplishments in achieving project organisations, but its use leads to
organisations. We have reviewed the data VFRSHTXDOLW\DQGEXVLQHVVEHQHğWV LQFUHDVHVLQWKHğYHNH\SHUIRUPDQFH
from the 2012 third edition of the survey however, lower performance levels indicators of quality, scope, budget,
to help identify correlations between PM were noted in meeting schedule and WLPHDQGEXVLQHVVEHQHğWV:KHQ
DQGRUJDQLVDWLRQDOVXFFHVVZLWKLQRXUğYH budget objectives. Survey data showed implementing PfM, we have found
key performance indicators (delivering that organisations employing their that the three largest ways to be
projects on time, within budget, to typical PM approach would meet more successful include aligning
scope, to quality standards, and with or exceed the organisation’s quality the portfolio with the organisation’s
WKHLQWHQGHGEXVLQHVVEHQHğWV,QWKH standards 93% of the time; deliver strategy; using an enterprise Project
2012 survey, we continued our analysis within the project’s scope 92% of 0DQDJHPHQW2IğFH302WRPDQDJH
to determine the current state of PM the time; and result in meeting or the portfolio; and conducting monthly
maturity and the characteristics of higher- exceeding the projected business reviews. Organisations employing
performing projects. The survey also set EHQHğWVRIWKHSURMHFWRIWKHWLPH these approaches should expect to see
RXWWRğQGRXWPRUHDERXWFXUUHQWWUHQGV While these results are encouraging, an increased likelihood of portfolios
and best practices in PM. We evaluated the data also showed lower that meet schedule, scope, quality,
what was working well, and where areas performance levels in the project’s EXGJHWWLPHDQGEXVLQHVVEHQHğWV
for improvement were needed within schedule and budget. In these areas, ō /HYHUDJLQJHIğFLHQWDQGHIIHFWLYH
the PM discipline. We also observed ZHğQG\RXZRXOGPLVV\RXUSURMHFWłV communication methodologies
the following trends and common schedule and budget objectives positively impacted a project’s quality,
practices, based on the survey results and approximately 30% of the time. VFRSHDQGEXVLQHVVEHQHğWVEXW
subsequent detailed analysis: ō Poor estimation during the planning showed a negative correlation with
ō As many as 97% of respondents phase continues to be the largest budget and schedule. This is the same
agreed that PM is critical to business (32%) contributor to project failures. trend noted in the use of employing an
performance and organisational ō The percent of organisations that organisation’s “typical” PM approach.
success, and 94% agreed that PM use established PM methodologies is Data further suggests that Executive
enables business growth. stable, and employees are obtaining Management agrees that the use
ō We found that although PM WKHDSSOLFDEOHFHUWLğFDWLRQV8VLQJ of communication methods have a
maturity levels are on the rise, these methodologies increases success higher positive effect on success of
most organisations desire a higher in the key performance indicators projects than the other respondents
maturity level. Approximately 32.1% of quality, scope, budget, time, and within the survey population. Based
of organisations are continually EXVLQHVVEHQHğWV on their responses, there was a 7%
striving to reach higher maturity levels increase in delivering of scope, 4%
ō Private sector organisations with increase in meeting quality standards,
by seeking to strengthen effective FHUWLğHG$JLOHSUDFWLWLRQHUVDUH
team-building and skill development 4% increase in delivering intended
leading the current adoption and use EXVLQHVVEHQHğWVDQGLQFUHDVH
activities to improve team performance of Agile PM methodologies. However,
and promote high productivity, work LQğQLVKLQJZLWKLQRUDKHDGRI
organisations have not yet achieved a schedule. The largest increase (17%)
quality, and good morale. However, high level of maturity in implementing
most organisations also require in the use of effective communication
Agile values and principles. We PHWKRGRORJLHVZDVIRXQGLQğQLVKLQJ
improvement in organisational found that 34% of respondents
structure, human resource within budget.
use an Agile PM methodology
management, and quality assurance. within their organisations. Most ō A combined total of 65% of our
Nearly 30.7% of respondents organisations which employ an Agile respondents reported international
believe their organisations do not PM methodology contribute the use of and national level involvement in their
have suitable succession plans and Agile toward project success (59%), project which echoes the importance
contingency plans in place for key SURMHFWHIğFLHQF\DQGHQDEOLQJ of organisational inclusion and
project resources. We also found business performance goals (49%). collaboration, spanning departmental
that higher maturity yielded higher and geographical boundaries. More
SHUIRUPDQFHZLWKLQWKHğYHNH\ WKDQRIUHVSRQGHQWVUHSRUWHGWKDW
performance indicators. senior management supports their
respective project; however, lack of
executive sponsorship was the second
largest factor that contributed to poor
project performance. While a majority
of the projects are supported by senior
management, it appears that executive
sponsorship should be improved in
order to help projects achieve success.

4 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
ō 70% of respondents agreed that ō Established PMOs result in projects ō Earned Value Management (EVM) is
suitable project organisational with higher quality and business more heavily relied upon and useful
structures exist on their projects, EHQHğWV5HVSRQGHQWIHHGEDFN LQWKH8QLWHG6WDWHV86EXWKDV
which clearly outlines the project team indicates a positive relationship yet to gain popularity or use due to a
and reporting relationships. For those between the length of time a PMO lack of EVM expertise and experience
who disagreed to the same question, has been established and successful in the remainder of the world. Most
survey data reveals an undeniable project performance. In comparison to organisations that utilize EVM,
positive correlation between organisations which said they do not contribute its use towards project
organisations that do not have a use a PMO, or have had a PMO in place success (62%); as a useful tool to
suitable organisation structure in for less than six years, organisations predict project success (73%); and
place and those without appropriately who establish a PMO for six years or enabling leaders to use EVM metrics to
GHğQHGDQGGRFXPHQWHGUROHVDQG longer reported higher performance assess project status (51%).
responsibilities within the governance in delivering high quality (74%) and We hope that this report provides you, the
structure. Since organisational achieving the intended business global PM community, with a thorough
structure provides the foundation EHQHğWV view of PM trends, including: successful
for roles and positions, hierarchical ō Engaged, experienced, key staff leads SUDFWLFHVWRROVFHUWLğFDWLRQVDQG
levels and spans of responsibility, it is WRSURMHFWVXFFHVV$SSUR[LPDWHO\ training. Additionally, we encourage you
not surprising to see such a positive of respondents agreed that project to share this report with your colleagues
correlation between these elements. managers, business unit managers, to help identify best practices across
Poor organisational design and quality managers, and budget your organisation and to promote PM
structure can result in unnecessary managers have the relevant and DQGLWVSRVLWLYHLQĠXHQFHRQEXVLQHVV
role and responsibility ambiguity and suitable experience to lead a project to performance.
confusion, a lack of accountability, and successful completion.
less coordination among functions.
ō Training and staff development in the
ō There is evidence of alignments ğHOGRI30KDVJURZQGUDVWLFDOO\LQ
between project scope, project a variety of forums. Approximately
portfolio, and organisational business 76% of survey respondents indicated
VWUDWHJ\$SSUR[LPDWHO\RI PM training and development
respondents agreed that there was opportunities were available, up 32%
a strong correlation between their from 2007. Our survey noted 67%
organisation’s strategy and the project of participants believe PM training
portfolio. Approximately 70% of contributes to business performance.
respondents also indicated there was Survey data also showed that a
QRFRQĠLFWEHWZHHQSURMHFWVFRSHDQG majority of projects performed higher
overall business strategy, which may LQWKUHHRIWKHğYHNH\SHUIRUPDQFH
prove to impact the performance and indicators - scope, quality, and
achievement of project goals. With EXVLQHVVEHQHğWV
increased alignment of projects with
ō The use of commercially available
business strategy, organisations can
PfM software drives higher levels of
expect greater project portfolio impact
portfolio performance and greater
on business success.
satisfaction with an organisation’s PM
ō Quality Management Systems may be practices. The majority of the increase
a worthwhile investment for vendors. in performance and satisfaction is
Respondents who strongly agreed that obtained by deploying specialized
their organisation requires all vendors PfM software. Customization of
to have Quality Management Systems Commercial off-the Shelf (COTS)
had more projects (90% or greater), packages actually led to slightly lower
meet their organisations quality levels of performance and satisfaction.
standards versus those organisations
ō The Scrum process is the predominant
that do not have this requirement in
Agile PM methodology in use, with
place.
approximately 43% of respondents
leveraging this methodology. At a
distant second was the Lean and
Test-Driven Development (TDD)
methodology (11%).

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 5
 Special Thanks

PwC would like to thank the PM community, and

the 1,524 respondents from 38 countries and
within 34 industries who shared their insights
with us. The success of the PwC Global PM
Survey is directly attributable to the candid
participation of these individuals around the
world. The demands on their time are many and
varied, and we greatly appreciate their
involvement.
PwC would like to extend special thanks to the
Project Management Institute (PMI) for their
support of our Global PM Survey. PMI conducted
critical reviews of the survey questions and
report. Additionally, PMI shared the survey with
their membership base, providing invaluable
input into the survey.

6 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Introduction

One of the many questions companies

ask us is: Do organisations with a higher
level of PM maturity achieve better project
results?,QZHFRQGXFWHGRXUğUVW
study on this topic, and indeed found
a link between higher maturity levels
Increasingly, successful organisations and high project performance. In this
employ PM to drive change and year’s survey, we continued this analysis
achieve their business objectives. Policy to determine the current state of PM
implementation, along with systems maturity and its linkages to project
development and implementation are success, business performance, and
some of the initiatives being managed as organisational success.
projects in today’s dynamic world. The other main goal of the survey was
As one of the leading professional WRğQGRXWPRUHDERXWFXUUHQWWUHQGV
VHUYLFHVğUPV3Z&KDVZRUNHGZLWK and best practices in PM. We assessed
numerous organisations of various sizes, whether leading projects scored high
LQGXVWULHVDQGVHFWRUVZLWKLQWKHğHOG LQWHUPVRIRXUğYHNH\SHUIRUPDQFH
of PM. Some organisations delivered indicators. By looking at these key
projects consistently better than others performance indicators, we can help
DFURVVZKDWZHKDYHFDOOHGWKHğYHNH\ organisations determine areas for growth
performance indicators (delivering and development, or areas of high
projects on time, within budget, to performance to help drive business and
scope, to quality standards, and with organisational success through the PM
WKHLQWHQGHGEXVLQHVVEHQHğWV2XU discipline. As we evaluated organisations’
observations have been that organisations PM performance, there are four core
that have projects with higher elements that we have taken into account:
performance allow the organisation as a processes, organisational structure,
whole to perform better. people, and systems and tools.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 7
 People
Organisation’s Core 7KHRUHWLFDOO\ğQGLQJDJRRGFDQGLGDWH
Elements Evaluation WRğOODSRVLWLRQVKRXOGQRZEHDYHU\
straightforward exercise. There have
never been as many educated people in
the world, nor has it ever been as simple
for employers to tap this vast pool online.
The reality is far different. High jobless
UDWHVSHUVLVWLQWKH86DQG(XURSH
disproportionately among the young,
even as businesses fret that they cannot
Processes attract the digitally adept ‘Millennial’
generation to pursue careers in their
A systematic and organised set of industries. Too many well-educated
SURFHVVHVEULQJVRUGHUDQGHIğFLHQF\ citizens of the Middle East and elsewhere
to PM. Therefore, the existence of are not in the workforce at all. This is
ZHOOGHğQHGUHSHDWDEOH30SURFHVVHV the talent crunch. It is a complex and
often grouped into a PM methodology frustrating challenge and it is being
- differentiates those companies that are felt worldwide. There are challenges in
able to consistently deliver high project hiring across most industries, as well as in
results from those that do not. retention in some markets and industries,
Aspects considered in this area include: as businesses compete for highly talented
standardisation and institutionalisation people.
of PM processes; prioritisation of Teamwork is an integral component of
projects and application of a standard PM; therefore, the ability to manage
project life cycle; utilisation of project people is an essential skill for project
portfolio techniques; utilisation of managers. When it comes to project
PM methodologies; and leveraging success, project or programme managers
communication management best carry a great deal of the responsibility,
practices. but success is also dependent on the
performance of others who are in
key project roles (e.g., project team
members, project sponsors, customers,
Organisational and stakeholders). Therefore, well
structure developed people management skills are
fundamental to a high PM maturity level.
The way an organisation is structured is
Aspects considered in this area include:
fundamental to the outcome of their PM
project staff skills and experience;
performance. If organisational alignment
development and training programme;
is underestimated or completely ignored
DQGDQHPSKDVLVRQ30FHUWLğFDWLRQV
by management, it can lead to lower
project performance.
Aspects considered in this area include:
UHVRXUFHRZQHUVKLSGHğQLWLRQRIFOHDU Systems and tools
roles and responsibilities; support
Organisations purchase and create
and involvement of senior and top
systems and tools to automate and
management; and usage of a PMO.
support their PM processes. Oftentimes,
a great deal of money is spent on systems
that are subsequently not used.
Aspects considered in this area include:
WKHXVHDQGEHQHğWVRIOHYHUDJLQJ
software (PM, PfM, and Agile); and the
EHQHğWVDQGXVHRIHDUQHG(90

8 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Methodology
We conducted our third survey to identify leading PM practices and trends,
and to determine the correlation between PM, business performance, and
organisational success. The focus of our third survey was to continue analyzing
the use and impact of PM activities in successful organisations.
The survey was organised in three main sections. Section 1.0 of the survey
focused on the background of survey respondents’ organisations. Section 2.0
RIWKHVXUYH\IRFXVHGRQWKHPDQDJHPHQWRIDVSHFLğFSURMHFWDQGLQFOXGHG
the following areas: Project Background, Factors Impacting Project Success,
*RYHUQDQFH6FRSH0DQDJHPHQW5LVN0DQDJHPHQW%HQHğWV5HDOLVDWLRQ
Management, Human Resource Management, Cost Management, Quality
Management, and Change Control Management. Section 3.0 of the survey
focused on the following areas: Project Portfolio Management, PMOs, PM
Training, EVM, and Agile PM.
From December 2011 through January 2012, 1,524 participants responded to
WKHVXUYH\IURPLQGXVWULHVDFURVVFRXQWULHV7KHGDWDZDVJDWKHUHGYLDD
web-based quantitative survey, which consisted of 146 close-end questions. The
survey gives us insights into the collective opinions of these groups of people
on a wide range of topics (project types, success factors, tools, and people
aspects) and ‘best practices’ (organisational structure, maturity level, and project
performance). In addition to group opinions and key trends, we calculated two
essential indices that have been used for the analysis: maturity level and PM
performance. Maturity level has been calculated by combining the answers to
73 of the survey questions within the areas of Governance, Scope Management,
5LVN0DQDJHPHQW%HQHğWV5HDOLVDWLRQ0DQDJHPHQW+XPDQ5HVRXUFH
Management, Cost Management, Quality Management, and Change Control
Management. The PM performance was computed by aggregating elements of
LQGLYLGXDOSHUIRUPDQFHPHDVXUHGDVDSHUFHQWDJHRISURMHFWVWKDWPHHWRXUğYH
key performance indicators - delivered on schedule, within budget, to scope,
PHHWLQJTXDOLW\VWDQGDUGVDQGWKDWGHOLYHUEXVLQHVVEHQHğWV$VZHHYDOXDWHG
organisations’ PM performance, there are four core elements that we have taken
into account: processes, organisational structure, people, and systems and tools.
This year’s survey consisted of similar questions to our prior surveys. However, in
RUGHUWRVWD\FXUUHQWZLWKWKH30GLVFLSOLQHVRPHTXHVWLRQVKDYHEHHQPRGLğHG
and/or added to draw more insight. In those instances where questions were
the same or similar to prior surveys, we drew comparisons in order to show the
trends from prior years.
 Survey Participants’
3URğOHV
7KLUW\HLJKWFRXQWULHVDUHUHSUHVHQWHGLQWKHVXUYH\UHVXOWV

Figure 1: Survey Participants

10 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
The largest participating industry was
Figure 2: Survey Respondents Industries
Information Technology (IT) at 22.4%.
Consulting was the second largest
participating industry at 11.7%. Other*
industries included those sectors where
<1% of the survey respondents were
represented. Please refer to Figure 2 for
the complete breakdown of industry
representation. We also noted that 67%
of participants reported working in the
private sector and 33% in the public
sector.

Figure 3: Survey Respondents Positions

Survey results showed relatively balanced representation from all organisation levels.
The majority of the participants were Project Managers, Programme Managers, or
Executive Managers. Refer to Figure 3 for the complete breakdown of participant
positions.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 11
 Project Management
Maturity
2QHRIWKHNH\ğQGLQJVIURPWKH are mainly due to the fact that the used the PwC maturity model used in
survey was the correlation between organisational structure neither is suited our 2004 survey to maintain consistency
strong PM performance and maturity to, nor supports the capacity of projects with our previous survey. We chose 2004
of PM practices in an organisation. required by the company’s business. DVWKHEDVH\HDUWRUHĠHFWRQRXUğUVW
Generally, a higher maturity level was And, therefore, the organisation is not comprehensive study linking PM maturity
linked to sustainable project delivery. DOLJQHGDQGGRHVQRWIXOğOLWVSURMHFW and performance. It consists of the
The 2004 survey also found that: “Those requirements, and hence is unable to IROORZLQJğYHOHYHOV
few cases where a higher maturity level maximise its performance.” To determine
does not represent high performance the current level of PM practices, we

Figure 4: PwC’s PM Maturity Model

Key Finding: PM Maturity gain a comprehensive perspective on majority of organisations were operating
Levels are on the Rise. the assessment, we also considered our projects within Level 1, 2, or 3. In 2012,
previous research on PM theories and the majority (62%) of organisations are
The PM Maturity Level has been
economic studies, complemented by our operating projects within the Level 4 or
calculated by analysing the answers
Firm’s extensive experience in project and RIPDWXULW\7KLVLQGLFDWHVDVLJQLğFDQW
to survey questions within the areas
programme management activities. rise in PM maturity over the last eight
RIJRYHUQDQFHVFRSHULVNEHQHğWV
We continued the research in our 2012 years. Figure 5 shows a comparative study
realisation, human resources, cost,
survey and found that 19.5 % of the of the PM maturity between 2004 and
quality, and change control management.
respondent organisations are at the 2012 respondents. As previously stated,
We compared this information against
Level 5-Optimize, and 42.5% are at the current survey showed a greater
organisations that report varying levels
Level 4-Monitor, compared to 12.7% and percentage of organisations at a higher
RISURMHFWVXFFHVVZLWKLQRXUğYHNH\
9.2% respectively in 2004. In 2004, the level of PM maturity from previous
performance indicators. In order to
surveys.

12 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
 Key Finding: Most
organisations desire a higher
maturity level, but require
Figure 5: Survey Respondents PM Maturity Model
improvement in organisational
structure, human resource
management, and quality
assurance.
The targeted maturity level is the level
WKDWWKHUHVSRQGHQWVDJUHHEHVWğWV
their organisation according to the PM
requirements of their business. Almost
50% of the respondents in the current
survey indicated that their organisations
are striving for continuous improvement
in PM practices. Survey data indicated
that organisations are seeking to
standardize and enhance processes and
tools, and thereby trying to achieve
higher levels of PM maturity. However,
the survey shows that more than half
More organisations are implementing order to stay competitive in the turbulent
RIWKHFRPSDQLHVDUHQRWVDWLVğHGZLWK
PM tools in the four core elements of business environment, but PM standards
their current maturity level. As discussed,
processes, organisational structure, KDYHDOVRVLJQLğFDQWO\LQFUHDVHG
organisations must seek to grow in line
people, and systems and tools. In Processes, organisational structure, with enhancements in PM methodology
the current economic times, growth systems and tools have all been enhanced as external factors create an increasing
and process improvements are key to better meet business objectives. GHPDQGIRUHIğFLHQF\DQGHIIHFWLYHQHVV
factors contributing to the success PM takes costs out of processes and
of organisations, and PM enables In an ever-changing competitive
allows organisations to focus on
this growth. As these elements are environment, a surprising 25% of the
performance. PM practitioners look
incorporated into an organisation’s PM respondents were neutral to establishing
WRSHUIRUPDQFHLQGLFDWRUVWRGHğQH
resources, they are adapted to meet the sustainable PM improvements. However,
areas where PM methodologies can be
particular needs of an organisation. the survey data shows 32.1% of
maximized. Approximately 76% of survey
Organisations have found that they organisations are continually striving to
respondents reported PM training and
still require the greatest need for reach higher maturity levels by seeking
development opportunities available
improvement in organisational structure, to strengthen effective team-building and
within their organisation, and more
human resource management, and skill development activities to improve
SUDFWLWLRQHUVDUHEHFRPLQJFHUWLğHGLQ30
quality assurance. team performance, and stimulate high
with an increased adaptation of Agile PM
productivity, work quality, and good
and EVM. Organisations are enhancing
Key Finding: Advancements in their portfolio management systems as
morale. Approximately 70% of survey
PM methodologies leading to organisations grow and mature, and are
respondents agree that a suitable
project organisation structure exists
greater organisational maturity VHHLQJLQFUHDVHGVXFFHVVZLWKLQWKHğYH
that clearly outlines the project team
have raised the bar for standards key performance indicators.
structure and reporting relationships.
in project maturity. Effective PM tools create strategic Effective communication methodologies
alliances with vendors as well as other enable project teams and organisations
As maturity levels indicate, there businesses as more tools are utilized and to increase quality, scope, and business
KDYHEHHQVLJQLğFDQWLQFUHDVHVLQ tasks can be outsourced. With the use of EHQHğWVVXFFHVV
organisational maturity since our 2004 external tools, resources, and channels,
report. In this competitive business While seeking to enhance organisational
organisations not only look internally to
environment, businesses focus on PM maturity, it is important to create
see where PM and process improvement
an alignment between the project
PD[LPL]LQJUHVRXUFHVHIğFLHQF\DQG can be adapted, but also look externally to
effectiveness through PM. Effective tools, scope, portfolio, and the organisation
their vendors to utilize PM methodology.
along with innovation, aid organisations business strategy. If properly aligned,
Organisations that require vendors to
to measure progress, increase value, the organisational structure is suited to
have Quality Management Systems
minimize risks, reduce costs, and promote support the capacity of projects required
report 90% or more of their projects meet
the on-time delivery of projects. Not by the company’s business. Therefore, the
quality standards.
only have organisations raised the bar in RUJDQLVDWLRQFDQIXOğOLWVUHTXLUHPHQWV
and maximize performance.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 13
Organisations additionally seek best practices for the implementation of ō Cost Management - As budget
improvements in human resource organisational strategy through successful DVVXPSWLRQVDQGğQDQFLDO
management. Human resource projects. Our analysis showed that as performance are leading indicators
management and succession planning respondents are demonstrating higher of project success, organisations seek
remains an area to be developed as 30.7% PM maturity, the three main areas where to establish formalized processes to
of respondents believe their organisations organisations have formalized processes manage project costs.
do not have suitable succession plans and in place to manage performance are the – 54.9% of respondents agree that
contingency plans in place for key project following: the underlying budget assumptions
resources. Less than half of respondents ō Scope Management - The largest have been clearly documented and
agreed that the approach to quality percentage of survey respondents assessed, and these are considered
assurance is risk-based, and is consistent indicated formal processes in place to be reasonable.
with organisational standards. for Scope Management. This statistic – 57.5% of respondents agree that
“Poor estimates during project planning” is a clear indicator of high maturity as funds are appropriately allocated
is the largest contributor to project organisations have grown to anticipate to the project, consistent with the
failure. Furthermore, less than half needed changes throughout the project stage, and are only released
(46.5%) of survey respondents agree project lifecycle, supporting changes when board approval has been
that an effective, formal process is in within a project, and promoting given.
place to manage changes to baseline traceability. As projects anticipate
plans. This statistic indicates that changes within the project lifecycle, Organisations are focusing on quality
organisations may underestimate they are better prepared to deliver on and cost while managing the scope of
SURMHFWUHTXLUHPHQWVDQGKDYHGLIğFXOW\ time, within scope, and within budget the engagement in order to reach higher
HIğFLHQWO\DQGHIIHFWLYHO\DGDSWLQJWR without hindrance. levels of performance. Internal controls
changes throughout the project lifecycle. and processes allow organisations to
– 66.6% of participants agree that better respond to changing project
&KDQJHVLQVFRSHPD\KDYHUDPLğFDWLRQV additional change control processes
in each performance indicator and PM demands, decreasing the time spent
and deliverable controls are in place adapting to change, and increasing
processes, organisational structure, throughout the project lifecycle to
people, and systems and tools must be in project success.
assure quality of project delivery.
place in order to adapt to these changes.
ō Quality Management - Survey Key Finding: Organisation
Without the implementation of these
core elements, projects run the risk of not
responses indicate that organisations maturity is directly correlated
have established organisational with organisational success.
meeting schedule, scope, budget, quality,
enablers for developing capabilities to
DQGEXVLQHVVEHQHğWV
aggregate best practices, and methods Organisations that operate at higher
Performance indicators allow for evaluating best practices and levels of maturity are on average more
organisations to track and record project capabilities. These practices monitor, successful than those operating at lower
success. As PM tools are adapted, track, and record quality throughout maturity levels. Organisations that are
organisations can better track these core the project lifecycle to indicate able to implement and optimize effective
elements. where the project is successful, and 30WRROVZLOOUHFHLYHJUHDWHUEHQHğWV
where the project seeks to improve. realisation. When an organisation, which
Key Finding: Higher maturity
This measurement allows the has a methodology in place to improve
yields higher performance. organisation to pinpoint areas to focus project performance and management
on, encouraging a higher quality of and focuses on continuous improvement,
Over 62% of organisations are in the
performance. it will have a competitive advantage
Level 4 or 5 of PM maturity and have
increased standards for PM. We analyzed – 62% of participants agree that strategy in place to remain successful in
the data to determine if organisations adoption of quality assurance the marketplace. Successful organisations
and their leadership are putting emphasis strategy effectively addresses scope identify the four core elements
on sustainable project and programme of testing, timing, responsibility, (processes, organisational structure,
management processes, and aiming for approach, pass/fail criteria, people, systems and tools) needed to
higher levels of maturity to realise higher corrective action processes, and DFKLHYHEHQHğWVUHDOLVDWLRQ(OHPHQWVDUH
SHUIRUPDQFHDQGRWKHUEHQHğWV sign-off. in place to adapt to performance needs
in the areas of schedule, scope, budget,
As project maturity strives to produce – 62.9% agree that document control
TXDOLW\DQGEXVLQHVVEHQHğWV7KHVH
sustained outcomes in a predictable, processes are in place, including
organisations will be better suited to
controllable, and reliable manner, it DSSURSULDWHLGHQWLğHUVQDPLQJ
meet changing environmental factors and
is essential for most organisations to conventions), version control,
business needs, as well as to cut costs and
establish formal, effective processes to audit trails, reviews, approvals,
PD[LPL]HHIğFLHQF\DQGHIIHFWLYHQHVV
promote high performance through the UHIHUHQFLQJDQGFRQğGHQWLDOLW\
SURMHFWOLIHF\FOH+LJKPDWXULW\LGHQWLğHV labels/controls.

14 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
 Project Management
Performance Survey respondents were asked a series
of questions related to the projects in
their organisational portfolio. Over 67%
of the projects within the organisation’s
Figure 6: Average Size of Projects in U.S. $ SRUWIROLRZHUHYDOXHGDWOHVVWKDQ86
$10M. The majority (42%) of portfolios
were comprised of greater than 100
projects, whilst 25% of the users have
less than 20 projects within their
organisations’ portfolios. Time spent on
projects and the amount of staff appears
to not be affected if an organisation has
few or many projects. The majority of
projects were less than three years in
duration (90%) and required fewer than
VWDII2QO\RIUHVSRQGHQWV
have an average project team size of more
the 200 staff.
We also asked respondents to provide the
primary reason why a project is initiated.
Figure 7: Number of Projects in the Respondent Organisations’ Portfolio
Of the organisations that responded, the
main drivers for establishing a project
is for business imperatives (40.2%)
and to generate revenue (30.1%).
Due to current economic climate, it is
reasonable that an organisation would
have a sizeable amount of their projects
focused on generating revenue. The
remaining three reasons to establish
a project, each representing less than
10% of the population polled, included
reducing costs, implement changes due to
regulatory requirements, and refreshing
obsolete technology.
Now that we have established that
Figure 8: Drivers for Establishing Projects within Respondents’ Organisations projects are being managed at a higher
level of maturity, we wanted to evaluate
how project management performance
VFRUHGKLJKLQWHUPVRIRXUğYHNH\
performance indicators. Organisational
project management performance
includes four core elements: processes,
organisational structure, people,
and systems and tools. Therefore, we
FDWHJRUL]HGRXUğQGLQJVZLWKLQWKHVHIRXU
core elements.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 15
Processes
As previously noted, a systematic and area include the following: standardisation and institutionalisation of
organised set of processes brings order project management processes; prioritisation of projects and application
DQGHIğFLHQF\WRSURMHFWPDQDJHPHQW of a standard project life cycle; utilisation of project portfolio techniques;
7KHUHIRUHWKHH[LVWHQFHRIZHOOGHğQHG utilisation of methodologies in project management, portfolio management
project management processes - often and Agile project management; leveraging communication management best
grouped into a project management SUDFWLFHVDQGHPSKDVLVRQSURMHFWPDQDJHPHQWFHUWLğFDWLRQV
methodology - differentiates those
companies that are able to consistently
deliver high project results from those
WKDWGRQRW2XUNH\ğQGLQJVLQWKLV
Figure 9: Key Performance Indicators for a Project Implementing the Typical Organisations
Approach to PM

Key Finding: Employing an organisation’s typical PM

approach leads to accomplishments in achieving project scope,
TXDOLW\DQGEXVLQHVVEHQHğWVKRZHYHUORZHUSHUIRUPDQFH
levels were noted in meeting schedule and budget objectives.
While not all organisations approach project management in the same way, they
do apply certain principles of project management when managing their projects.
The global project management survey provides insight into the state of today’s
organisational approach to PM. Not surprisingly, an organisation’s approach to
project management directly affects the outcome of project’s key performance
indicators.
Survey respondents were asked to rate a project that best represents their
organisation’s approach to project management. Of the projects that met the
ğYHNH\SHUIRUPDQFHLQGLFDWRUVLIDQRUJDQLVDWLRQZDVWRHPSOR\WKHLUŃW\SLFDOń
approach to a project, it would meet or exceed the organisation’s quality
standards 93% of the time; deliver within the project’s scope 92% of the time;
DQGUHVXOWLQPHHWLQJRUH[FHHGLQJWKHSURMHFWHGEXVLQHVVEHQHğWVRIWKHSURMHFW
RIWKHWLPH:KLOHWKHVHUHVXOWVDUHHQFRXUDJLQJWKHGDWDDOVRVKRZHGORZHU
SHUIRUPDQFHOHYHOVLQWKHSURMHFWłVVFKHGXOHDQGEXGJHW,QWKHVHDUHDVZHğQG
you would meet your project’s schedule and budget objectives approximately
70% of the time.

16 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Key Finding: Poor estimation during the planning phase
continues to be the largest contributor to project failures.
In order to determine what is contributing to poor project performance, we examined
the reasons organisations were failing to meet their desired outcomes. Figure 10
provides some insight into the current contributors to lower performance levels when
implementing an organisation’s approach to project management. Poor estimates, lack
RIH[HFXWLYHVSRQVRUVKLSDQGSRRUO\GHğQHGJRDOVDQGREMHFWLYHVPDNHXSWKHWRS
three contributors to a project’s underperformance. These three factors account for
RISRRUSURMHFWSHUIRUPDQFH7KHWRSVL[FRQWULEXWHGWRRISRRUSHUIRUPDQFH
when implementing an organisation’s approach to project management.
Poor estimates in the planning phase continue to be the single largest cause for poor
performance in projects and the single largest worsening trend. For instance, in our
2004 survey, participants contributed project underperformance 17% of the time to
poor estimates and missed deadlines, whereas today that number has increased to
32%. Improvements in any of the key factors found in Figure 10 will lead toward better
implementation of an organisation’s approach to project management and, in turn,
LPSURYHSURMHFWVFRSHVFKHGXOHEXGJHWTXDOLW\DQGEXVLQHVVEHQHğWVSHUIRUPDQFH
The remainder of this report provides insight into both positive and negative factors
LQĠXHQFLQJSURMHFWSHUIRUPDQFHDVDQRUJDQLVDWLRQLPSOHPHQWVLWVDSSURDFKWRSURMHFW
management.

Figure 10: Factors contributing to poor project performance when implementing an organisation’s
approach to PM

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 17
 Key Finding: Reported use of established PM methodologies is
VWDEOHDQGHPSOR\HHVDUHREWDLQLQJDSSOLFDEOHFHUWLğFDWLRQV
Respondents reported using a wide variety of methodologies, as illustrated in Figure
11. The most prevalent methodology was Project Management Institutes (PMI) Project
Management Body of Knowledge (PMBOK)®RUPRGLğFDWLRQVWKHUHRIZLWKRI
responses. A variety of Information Technology (IT) methodologies were reported,
with Agile and waterfall being the most prevalent. Many other methodologies were
OLVWHGDOWKRXJKVRPHZRXOGQRWVWULFWO\EHFRQVLGHUHG30PHWKRGRORJLHV$VLJQLğFDQW
number of respondents reported using combinations of multiple methodologies;
the most common methodologies included in these combinations were PMBOK®,
PRINCE2®, and IT methodologies.
The data related to use of established methodologies is predominantly consistent
with PwC’s 2007 PM survey. Of note, adoption of industry-standard PMBOK ® and
PRINCE2®PHWKRGRORJLHVKDVLQFUHDVHGVOLJKWO\LQYVFXUUHQWO\
Focusing on these two methodologies, the regions with the highest reported use of
PRINCE2® relative to PMBOK ® are Australia, Europe, and South Africa, as shown in
Figure 12.
(PSOR\HHFHUWLğFDWLRQLVDFRPPRQWKHPHDPRQJFRPSDQLHVWKDWUHSRUWHGXVLQJD
PM methodology. 90% of respondents from organisations reporting the use of project
PDQDJHPHQWPHWKRGRORJLHVLQGLFDWHGWKHLURUJDQLVDWLRQVKDYHLQGLYLGXDOVFHUWLğHG
in the preferred methodology. This indicates general acceptance that individuals must
EHWUDLQHGLQ30PHWKRGRORJLHVLQRUGHUWRFDSWXUHWKHLUEHQHğWV&RVWSHUIRUPDQFHLV
DQH[DPSOHRIWKHSRVLWLYHLPSDFWRILQGLYLGXDOFHUWLğFDWLRQVHVSHFLDOO\LQOLJKWRIWKH
EXGJHWSHUIRUPDQFHFKDOOHQJHVGRFXPHQWHGWKURXJKWKLVVXUYH\RIRUJDQLVDWLRQV
ZLWKLQGLYLGXDOVFHUWLğHGLQWKHLUSUHIHUUHG30PHWKRGRORJ\UHSRUWHGVXFFHVVIXO
EXGJHWSHUIRUPDQFHKLJKHUWKDQIRURUJDQLVDWLRQVZLWKRXWFHUWLğHGLQGLYLGXDOV

Figure 11: Reported use of PM methodologies

Figure 12: Comparison of reported use of PMBOK® and Prince2® methodologies

in different regions

18 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Key Finding:8VLQJ Figure 13: Percent of Respondents that Reported their Organisations are Successful in the Five
Established PM Methodologies Performance Indicators, for Organisations that do and do not Use PM Methodologies

increases success in the key

performance indicators of
quality, scope, budget, schedule,
DQGEXVLQHVVEHQHğWV
)RUHDFKRIWKHğYHSHUIRUPDQFH
indicators, survey data indicate that
using a preferred PM methodology
increases the chance of organisations
meeting project objectives. As shown in
Figure 13, the percent of organisations
that are successful in each dimension
is higher for organisations that use
methodologies than those that do not.
The increase in performance is between
5% and 9%, with scope performance Key Finding: 3ULYDWHVHFWRURUJDQLVDWLRQVZLWKFHUWLğHG$JLOH
being the most improved. Similarly,
practitioners are leading the current adoption and use of Agile PM
organisations that meet objectives for
a key performance dimension less that methodologies. However, organisations have not yet achieved a
25% of the time are more likely to not high level of maturity in implementing Agile values and principles.
use project management methodologies,
A growing project management area is the adoption of an Agile PM methodology. Agile
with performance spreads between 3%
methods emphasize incremental delivery of working products, focused on maximizing
and 9% between those that do and do
customer value. Through establishing a cycle for intermittent product delivery, Agile
not use methodologies. Response data
PM assumes that changes and improvements will be incorporated throughout the
indicate that organisations with the
product development life cycle. Change is viewed as a welcome opportunity to improve
highest project success rates use in-
WKHSURGXFWDQGPDNHLWDEHWWHUğWWRWKHEXVLQHVV:HIRXQGWKDWRIUHVSRQGHQWV
house methodologies or combinations
use an Agile PM methodology within their organisations. A majority of these are in the
of methodologies. This result indicates
LQIRUPDWLRQWHFKQRORJ\LQGXVWU\DQGKDYHFHUWLğHG$JLOHSUDFWLWLRQHUV
these organisations may have a greater
investment in PM methodologies that Most organisations which employ an Agile PM methodology contribute the use
meet their unique situations. RIDJLOHWRZDUGVSURMHFWVXFFHVVSURMHFWHIğFLHQF\DQGHQDEOLQJ
business performance goals (49%). Approximately 17% of projects using an Agile
30PHWKRGRORJ\PHHWWKHğYHNH\SHUIRUPDQFHLQGLFDWRUV:KLOVWWKLVLVORZHUWKDQ
WKHRYHUDOONH\SHUIRUPDQFHLQGLFDWRUVLWLVUHĠHFWLYHRIRUJDQLVDWLRQVFRQWLQXLQJWR
XQGHUVWDQGDQGUHğQHWKHXVHDQGDSSOLFDWLRQRI$JLOH30PHWKRGRORJLHVZLWKLQWKH
context of their organisational culture and projects.
As shown in Figure 14, the project manager currently serves as a traditional phase-
based project manager on the majority
Figure 14: Project Manager Role on
(67%) of agile projects. In this scenario, Agile Projects
the project manager and other team
PHPEHUVKDYHVSHFLğHGDQGGLVWLQFW
functions, which often leads to
independent efforts within the project
team. As organisations continue to
mature their understanding of Agile
PM methodologies, the role of the
project manager should also evolve
and align with key agile concepts of
integrated, self-directing teams in which
team members take responsibility for
managing their tasks and commitments.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 19
 Key Finding: The adoption of PfM has not increased amongst
organisations, but its use leads to increases in the key performance
LQGLFDWRUVRITXDOLW\VFRSHEXGJHWVFKHGXOHDQGEXVLQHVVEHQHğWV
The 2004 survey report addressed portfolio performance as a secondary effect of
enhanced PM capabilities. One of the primary conclusions drawn from the survey was
that maturity levels did matter and that they improved not just project performance,
EXWWKDWRIWKHSRUWIROLRRIDOOSURMHFWV7KHVXUYH\UHVXOWVSRLQWHGO\GHğQHGWKH
emerging practice and stressed that its purpose was to promote the achievement of
strategic business objectives. The report highlighted the increase in organisational
adoption of PfM (53%, a 7% increase from 2004), and drew attention to the degree
to which respondents leveraged various PfM capabilities, with Project Selection being
the most common. In 2012, the survey results do not show an increase in adoption
(remained at 53%), but they do provide a much more robust look at the effects of PfM
and the tools that are available to support it. Since the adoption rate has not increased,
we wanted to show where PfM is being used by depicting which industries and sectors
are using PfM in Figure 15 below.

Figure 15: Adoption of Portfolio Management by Industry

7KHGDWDDQDO\VHGPDNHDFRPSHOOLQJFDVHIRUWKHEHQHğWVWKDWFDQEHDFKLHYHGZLWK
an effective deployment of PfM processes and dedicated software.

20 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
 %HQHğWVRI$GRSWLQJ3I0
ō Adoption of PfM has positive effects on both project performance and
performance of the overall portfolio at all portfolio scales (portfolios with
SURMHFWLQYHVWPHQWVYDOXHGDW860WRWKRVHRI!86%
ō Combining portfolio scale with the dimensions of average project duration
(ranging from < 1 year up to 6-10 years), the number of projects managed
in the portfolio (<20 to 100+) and the number of people involved in the
average project (teams of 10 or less to 200 or more), we investigated the
effect of PfM at varying levels of portfolio complexity; the gains of adopting
PfM hold at all levels of complexity.
ō 8VHUVRI3I0DJUHHGWKDWWKHLURUJDQLVDWLRQłVSURMHFWPDQDJHPHQW
FDSDELOLWLHVZHUHHIIHFWLYHDQGHIğFLHQWDWPXFKKLJKHUOHYHOVWKDQWKRVHWKDW
did not use PfM.
ō 7KHEHQHğWVRIGHSOR\LQJ3I0DUHFRPSHOOLQJIRURUJDQLVDWLRQVDWWKH
margins of performance. Nearly two thirds of respondents that employ PfM
reported that more than 90% of their organisation’s projects perform to
H[SHFWDWLRQVRQWKHğYHNH\SHUIRUPDQFHLQGLFDWRUV,QFRQWUDVWVHYHQRXW
of ten organisations that do not employ PfM reported that less than 10% of
their projects met the key performance indicators. This phenomenon was
even starker for highly complex portfolios.

Key Finding: When implementing PfM, we have found that the three largest ways to be more
successful include aligning the portfolio with the organisation’s strategy; using an enterprise PMO to
manage the portfolio; and conducting monthly reviews.

The most important factor in the success budget targets, and 40% as likely to Globally, nearly 70% of respondents who
of PfM is alignment of managing the report that less than 25% of their projects reported using PfM also reported that
portfolio with the organisation strategy. did. Respondents were also asked “Are their Enterprise PMO was responsible
The positive effects of strategic alignment portfolio priorities aligned with the for the effort. Results varied by sector
lead to higher levels of portfolio organisation’s overall strategy?” Those and region with private enterprises
performance, and increases stakeholder who gave a positive response also were deploying PfM through their Enterprise
satisfaction with their organisation’s more likely to report high rates of projects PMO at a slightly higher rate than their
project management practices at all meeting the key performance indicators. public sector counterparts, and Europe
levels of portfolio scale and complexity. ,QDOOğYHLQGLFDWRUVUHVSRQGHQWVZLWK having the lowest level of Enterprise
Respondents were asked to judge the a positive perception of alignment PMO involvement among the regions
statement “There is a strong correlation were twice as likely to report more of the world. With the exception of the
between my organisation’s strategy and than 75% of their projects meeting the smallest scale portfolios, the portfolio
our project portfolio.” Respondents who performance targets and less than half performance levels of respondents
gave a positive response reported higher as likely to report less than 25% meeting whose PfM programs are managed by
rates of portfolio performance on the targets. Organisations that align their an Enterprise PMO are consistently
ğYHNH\SHUIRUPDQFHLQGLFDWRUV7KH organisation’s overall strategies with their higher than those whose portfolios are
effect was particularly strong for within project portfolios and prioritise their managed by other groups or individuals,
budget, where organisations with a high portfolios’ priorities with the strategy are resulting in an increased likelihood of
correlation between the portfolio and more likely to have portfolios that meet portfolios that meet schedule, scope,
strategy were twice as likely to report schedule, scope, quality, budget, and TXDOLW\EXGJHWDQGEXVLQHVVEHQHğWV
more than 75% of their projects met EXVLQHVVEHQHğWVUHTXLUHPHQWV requirements.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 21
More than half of all respondents reported that they reviewed their portfolio on a Key Finding: Leveraging
monthly basis. 20% reported more frequent reviews. Only 4% reported reviewing
HIğFLHQWDQGHIIHFWLYH
their portfolio less than quarterly. Respondents with monthly review cycles reported
VLJQLğFDQWO\KLJKHUUDWHVRISHUIRUPDQFHRQVFRSHTXDOLW\DQGEXVLQHVVEHQHğWV communication methodologies
Satisfaction with budget and schedule performance did not vary as much with positively affected projects’
changes in review frequency. Quarterly portfolio reviews and reviews less frequent quality, scope, and business
WKDQTXDUWHUO\DUHDVVRFLDWHGZLWKDGHFOLQHLQWKHEHQHğWVRI3I07KHULVNRIUHGXFHG EHQHğWVSHUIRUPDQFHOHYHOV
SHUIRUPDQFHLQFUHDVHGLQDOOğYHSHUIRUPDQFHLQGLFDWRUVIRURUJDQLVDWLRQVZLWKDORZ
review frequency.
however, lower performance
levels were noted in meeting
schedule and budget objectives.
We looked at survey questions related
Figure 16: Distribution of portfolio management responsibility.
to the use of communication in a
project to understand its effect on
organisational success through the
ğYHNH\SHUIRUPDQFHDUHDVRIEXGJHW
VFRSHTXDOLW\EXVLQHVVEHQHğWV
and schedule. In the review of three
uses of communication management
methodologies, (transparency in projects,
status reporting at all project levels, and
visibility of governance and leadership
to the project team and stakeholders),
a majority of respondents agreed
communication management is in use
in their organisation. Sixty-two percent
(62%) of respondents agreed there was
transparency and clear communication
around key decisions and actions; 66% of
respondents agreed that status reporting
at all levels is effective and includes
UHOHYDQWWLPHO\YHULğHGDQGUHOLDEOH
information in the appropriate format,
and 59% of respondents agreed that
governance and leadership are clearly
visible to the project and stakeholders.

22 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
We further examined the respondents that agreed that these types of communication
were evident on their projects, and found that projects that employed effective and
HIğFLHQWFRPPXQLFDWLRQPHWKRGVZHUHSHUIRUPLQJEHWWHULQWKHDUHDVRIGHOLYHULQJ
SURMHFWVFRSHPHHWLQJTXDOLW\VWDQGDUGVDQGGHOLYHULQJLQWHQGHG
EXVLQHVVEHQHğWV:KLOHWKHVHUHVXOWVDUHHQFRXUDJLQJWKHGDWDDOVRVKRZHG
WKDWSURMHFWVHPSOR\LQJHIIHFWLYHFRPPXQLFDWLRQPHFKDQLVPVDUHRQO\ğQLVKLQJ
ZLWKLQEXGJHWRIWKHWLPHDQGğQLVKLQJRQVFKHGXOHRQO\RIWKHWLPH7KLV
is the same trend noted in the use of employing an organisation’s “typical” project
management approach. As mentioned earlier, respondents indicated that the number
one reason for project failure is poor estimates in the planning phase. Effective
communication may not alleviate project failures due to budget and scope estimating.

Figure 17: Use of Effective Communication and its Impact on Key Performance Indicators
(All Respondents)

To provide a deeper understanding of the use of communication methods, the

Executive Management level responses to the questions related to employing effective
DQGHIğFLHQWFRPPXQLFDWLRQPHWKRGVZHUHH[DPLQHG%DVHGRQWKHLUUHVSRQVHVWKH
ğYHNH\SHUIRUPDQFHLQGLFDWRUVLPSURYHG7KHUHZDVDLQFUHDVHLQGHOLYHULQJRI
scope, 4% increase in meeting quality standards, 4% increase in delivering intended
EXVLQHVVEHQHğWVDQGLQFUHDVHLQğQLVKLQJZLWKLQRUDKHDGRIVFKHGXOH7KHODUJHVW
LQFUHDVHLQWKHXVHRIHIIHFWLYHFRPPXQLFDWLRQPHWKRGRORJLHVZDVIRXQGLQğQLVKLQJ
within budget, which increased by 17%. This suggests that Executive Management
agrees that the use of communication methods have a higher positive effect on success
and failure of projects than the others groups within the survey population.

Figure 18: Use of Effective Communication and its Impact on Five Key Performance Indicators
(Executive Management Responses)

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 23
Organisational Structure
As noted previously, the way an organisation is structured is fundamental to the
outcome of their project management performance. If organisational alignment is
underestimated or completely ignored by management, it can lead to lower project
SHUIRUPDQFH2XUNH\ğQGLQJVLQWKLVDUHDLQFOXGHWKHIROORZLQJDVSHFWVUHVRXUFH
RZQHUVKLSGHğQLWLRQRIFOHDUUROHVDQGUHVSRQVLELOLWLHVVXSSRUWDQGLQYROYHPHQWRI
senior and top management; and usage of a PMO.

Key Finding: PM was reported to be critical to business

performance and organisational success and enables business
growth.
For this year’s survey, we asked participants if project management is critical to
business performance and organisational success. As many as 97% of respondents
agreed that project management is critical to business performance and organisational
success and 94% agreed that project management enables business growth. In close
association, revenue generation was determined to be one of the top scoring drivers for
establishing a project which further demonstrates the critical role that effective project
management and execution plays in achieving intended results for the project and the
broader organisation. We further probed this area and asked respondents to estimate
the percentage of their projects that deliver required business results. Results further
YDOLGDWHWKHGHFOLQLQJUDWHRISURMHFWIDLOXUHVZKHUHE\QHDUO\RIWKHUHVSRQGHQWV
UHSRUWHGWKDWWKHLUSURMHFWVGHOLYHUUHTXLUHGSURMHFWHGEXVLQHVVEHQHğWVJUHDWHUWKDQ
76% of the time.

Key Finding: The majority of organisations are involved at the

national and international levels and the majority of respondents
agree that projects are supported by senior management.
Globalisation and the economic crisis have forced many organisations to rethink
their strategies and change the way they do business in order to thrive in uncertain
HFRQRPLFWLPHV30LVQRGLIIHUHQWDQGLVHYLGHQFHGLQRXUğQGLQJZKLFKVXJJHVWVWKDW
organisations are expanding their sphere of involvement from an internally focused
and driven project to a much broader and global approach to accomplishing project
and programme goals. For example, as noted in Figure 19, a combined total of 64%
of our respondents reported international and national level involvement in their
project which echoes the importance of organisational inclusion and collaboration thus
spanning departmental and geographical boundaries. Furthermore, approximately
RIUHVSRQGHQWVUHSRUWHGWKDWVHQLRUPDQDJHPHQWVXSSRUWVWKHLUUHVSHFWLYHSURMHFW
which may be a contributing factor to project success especially for projects that are
expanding from departmental to national and international levels. The appropriate
level of organisational involvement and stakeholder buy-in and support are important
elements of any programme and should not be underestimated and/or overlooked
especially given the unique complexities of global and multi-national faceted programs.

Figure 19: Levels of Organisational Involvement

24 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Key Finding: Projects with Key Finding: There is evidence Key Finding: Quality
suitable project organisational of alignment between both Management Systems may be a
structures were also found to project scope and portfolio and worthwhile investment for
KDYHDSSURSULDWHO\GHğQHGDQG organisational business strategy. vendors.
documented roles and
Organisational business strategy is Quality Management Systems establish
responsibilities within the intended to drive all decisions within a framework for how organisations
governance structure. an organisation. It provides a direction, manage key processes and are creating
a rallying point, and basis for decision the next wave of thinking about the
All too often, organisations under making. Hence, it only stands to reason management of projects and potential
estimate the impact poorly designed that organisational business strategy EHQHğWVWKDWFDQEHUHDOLVHG7KH\FDQ
organisational structures can have on should form the basis and drive project also help new projects start off on the
programme effectiveness. In our 2007 portfolio and scope. Effective portfolio right foot by ensuring processes meet
Global PM survey, we explored the management should map well to recognised standards, clarify business and
LPSRUWDQFHDQGLQĠXHQFHRIRUJDQLVDWLRQ organisational strategy and business project objectives and avoiding expensive
structure and overall project performance JRDOV0LVDOLJQPHQWVDQGFRQĠLFWVLQ implementation mistakes which can put
which revealed the higher the alignment these areas can threaten the success of project and business outcomes at risk.
between organisational and business a programme with the most effective
needs, the higher overall project Within the 2012 survey, we examined
project manager and staff - this can the extent to which organisations are
performance. We revisited the premise in make or break a programme. We
our 2012 survey. We asked respondents if requiring vendors to have Quality
asked respondents two questions. Management Systems and its impact on
suitable project organisational structures First, to respond to the statement:
exist on their project(s) that clearly the achievement of quality objectives in
There is a strong correlation between projects. There appears to be a positive
outlines the project team and reporting my organisation’s strategy and our
relationships. It was interesting to see correlation between organisations
SURMHFWSRUWIROLR$SSUR[LPDWHO\ that require vendors to have a Quality
such favourable responses where more of respondents provided a favourable
than 70% of respondents reported the Management System and their projects’
response. Similarly, we asked respondents ability to meet the organisation’s quality
presence of a suitable organisation to respond to the statement: There is no
structure. standards. While only 35% of our
FRQĠLFWEHWZHHQWKHSURMHFWVFRSHDQGP\ respondents reported a requirement
For those who responded unfavourably organisation’s overall business strategy. to have all vendors to have a Quality
to the same question, we conducted cross Results suggest that approximately 70% Management System, respondents who
comparisons to assess the relationship of respondents perceived there was strongly agreed that their organisation
between organisational structure and QRFRQĠLFWEHWZHHQSURMHFWVFRSHDQG requires all vendors to have Quality
DSSURSULDWHO\GHğQHGDQGGRFXPHQWHG overall business strategy, which may Management Systems had more
roles and responsibilities within the prove to be impacting the performance projects (90% or greater) meet their
governance structure. Survey data and achievement of project goals. With organisations quality standards versus
reveals an undeniable positive correlation increased alignment of projects with those organisations that do not have this
between organisations that do not have business strategy, organisations can requirement in place.
a suitable organisation structure in expect greater project portfolio impact on
place and those without appropriately business success.
GHğQHGDQGGRFXPHQWHGUROHVDQG
responsibilities within the governance
structure. Since organisational structure
provides the foundation for roles and
positions, hierarchical levels and spans
of responsibility, it is not surprising to see
such a positive correlation between these
elements. Poor organisational design
and structure can result in unnecessary
role and responsibility ambiguity and
confusion, a lack of accountability and
less coordination among functions.
Insights and Trends: Current Portfolio, Programme, and Project Management Practices 25
Key Finding: Established
SURMHFWPDQDJHPHQWRIğFHV
result in projects with higher
TXDOLW\DQGEXVLQHVVEHQHğWV
Respondent feedback indicates a positive
Figure 20: Comparison of Project Success Rates Based on Length of Time Using a PMO
relationship between the length of time a
PMO has been established and successful
project performance. In comparison to
organisations which said they do not use
a PMO, or have had a PMO in place for
less than six years, organisations who
establish a PMO for six years or longer
reported higher performance in two of
the performance indicators, as shown
in Figure 20. Survey data indicates that
using an established PMO will result in
projects delivering high quality (74%)
and achieving the intended business
EHQHğWV
Employing a PMO is one of many
methods to institute standardized project
management processes and project Key Finding: A majority of organisations do not conduct regular
controls in an organisation. Although the evaluations of their PMO and also do not consistently measure
majority of organisations (66%) currently EHQHğWVRUUHWXUQVIURPWKH302
use a PMO, this is a decline from 2007,
ZKHQRIRUJDQLVDWLRQVUHSRUWHG As noted in earlier, using a PMO contributes to improved project performance;
having a PMO. However, organisations however, organisations currently do not consistently evaluate and measure the
which do not use a PMO reported similar success or returns on investment (ROI) of the PMO. As shown in Figure 21, 29% of
success rates in the key performance organisations never evaluate their PMO and 30% conduct evaluations on an annual
indicators with organisations than had basis. However, the 14% of organisations which evaluate their PMO on a monthly
a PMO for six years or longer, indicating basis also measure their PMO for ROI (65% of the time). Those organisations that
that other types of project organisational never evaluate their PMO measure their ROI only 9% of the time. Organisations can
structures or methodologies are being EHQHğWIURPğQGLQJVLPLODUSRVLWLYHFRUUHODWLRQVEHWZHHQXVLQJD302DQGSURMHFW
employed. This is evidenced by the data, performance, through conducting more regular evaluations of their PMO, as well as,
which reports that 23% of organisations measuring for ROI.
not using a PMO structure use an agile
methodology.
Organisations which continue the use of Figure 21: Rate of Measuring for PMO ROI Based on Frequency of Evaluating
D302IRUORQJHUWLPHIUDPHVEHQHğWIURP PMO Success Factors
greater familiarity and adoption of project
processes throughout the organisation,
translating into better project
performance. Organisations with a PMO
implemented for six years or longer
have successfully communicated PMO
standards across the organisation at a
VLJQLğFDQWO\KLJKHUUDWHWKDQWKRVH
with a shorter term project management
RIğFH

26 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
 People
Despite the challenges facing organisations in hiring highly talented people, it is vital to
project success to have a project management team that has the right skill sets,
H[SHULHQFHDQGWUDLQLQJWRHQDEOHSURMHFWVXFFHVV2XUNH\ğQGLQJVLQWKLVDUHDFRQVLGHU
the following: project staff skills and experience; and development and training
programmes.

Key Finding: Engaged, experienced key staff leads to project

success.
“Talent shortages and
mismatches are impacting The project manager is a critical component of meeting the key performance
LQGLFDWRUVRIUHVSRQGHQWVUHSRUWHGVXFFHVVIXOSURMHFWEXGJHWPDQDJHPHQWZLWKLQ
SURğWDELOLW\QRZ2QHLQ their organisation also reported that their project managers have the relevant and
four CEOs said they were suitable experience managing projects similar in industry, project size, and business
unable to pursue a market area. In contrast, only 15% of respondents who reported their organisations did not
have project managers with relevant and suitable experience reported that their
opportunity, or have had organisations have successful business unit managers. The data suggests that trained
to cancel or delay a project and business unit managers increases project budget success.
strategic initiative because Survey data also indicated that engaged business unit managers have the highest
of talent. One in three is correlation with project success. Other key staff types that contribute to project success
include dedicated and skilled quality managers, and trained and skilled quality review
concerned that skills VWDII$SSUR[LPDWHO\RIUHVSRQVHVWRTXHVWLRQVUHJDUGLQJWKHVHIRXUVWDIISURğOHV
shortages impacted their (See Figure 22DJUHHGWKDWVWDIIIURPWKHLURUJDQLVDWLRQPHHWWKHVHVXFFHVVSURğOHV
company’s ability to With these skilled professionals in place, the data suggests that an organisation may
avoid poor project performance.
innovate effectively.”
- PwC 15th Annual Global CEO Survey 2012:
Delivering Results, Growth,
and Value in a Volatile World

Figure 22: Percentage of Respondents that Agree Staff Meets the Success Profiles

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 27
Key Finding: 7UDLQLQJDQGVWDIIGHYHORSPHQWLQWKHğHOGRI
project management has grown drastically, in a variety of forums.
We asked survey participants whether
their organisation utilize some form of
project management staff development.
Approximately 76% indicated
opportunities were available to obtain
training, up 32% from 2007. Respondents Figure 23: The Breakdown of Training Options Organisations are Using
were then asked the question: “Which
medium does your company utilize
to have project management training
delivered?” As shown in Figure 23,
classroom settings and online self-
studies were the top two training options
being used in organisations today.
The breakdown of training options
organisations are using is depicted in
Figure 23.
Over half the participants agreed that
ample time and adequate technology
was provided for PM training and
development. Survey data also showed
that 55% of respondents felt training was
continuously improving from lessons
learned and new information. Since
these numbers are just slightly over half,
RUJDQLVDWLRQVPD\EHQHğWIURPLPSURYLQJ
in these areas. The survey also showed
that 67% of participants agreed that
project management training contributes
to business performance.
As noted in Figure 24, of the respondents Figure 24: Trainings Impact on Business Performance
that indicated training was available,
survey data showed that a majority
of their projects performed higher
LQWKUHHRIWKHğYHNH\SHUIRUPDQFH
indicators - scope (70%), quality (69%)
DQGEXVLQHVVEHQHğWV+RZHYHU
respondents that indicated training was
available also reported lower project
performance within the budget (39%)
and schedule (29%) key performance
areas. This statistic isn’t surprising since
respondents indicated that the number
one reason for project failure is poor
estimates in the planning phase. Current
training programs may not include
budget and schedule estimating in the
planning phase. Survey data suggests
WKDWRUJDQLVDWLRQVPD\EHQHğWIURP
developing robust training programs
around the area of estimating.

28 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Systems and Tools
As noted previously, organisations purchase and create systems and tools to automate and support their project management
SURFHVVHV%XWRIWHQWLPHVDJUHDWGHDORIPRQH\LVVSHQWRQV\VWHPVWKDWDUHVXEVHTXHQWO\QRWXVHG7KHNH\ğQGLQJVLQWKLVDUHD
FRQVLGHUWKHIROORZLQJWKHXVHDQGEHQHğWVRIOHYHUDJLQJVRIWZDUHSURMHFWPDQDJHPHQWSRUWIROLRPDQDJHPHQWDQG$JLOHDQG
WKHEHQHğWVDQGXVHRIHDUQHGYDOXHPDQDJHPHQW

Key Finding: The use of commercially available PfM software

drives higher levels of portfolio performance and greater
Figure 25: Types of PfM Software in Use satisfaction with an organisation’s project management practices.
Commercial off-the Shelf packaged software has grown in sophistication since the last
VXUYH\DQGLQWKLVHGLWLRQZHDVNHGDERXW3I0VRIWZDUHDGRSWLRQIRUWKHğUVWWLPH
56% percent of respondents who reported using PfM also reported using software,
with 21% using Commercial off-the Shelf packages, 19% using Commercial off-the
Shelf packages with customization, and 17% reporting use of internally developed
software.
The majority of the increase in performance and satisfaction is obtained by deploying
specialized PfM software. Customization of Commercial off-the Shelf packages
actually led to slightly lower levels of performance and satisfaction. Internal
development of tailored applications offered mixed results with portfolios at the
smaller end of the scale seeing improvements in performance but less consistent gains
for mid to large scale portfolios.

Key Finding: The Scrum process is the predominant Agile PM

methodology in use.
Most organisations which are using an Agile PM methodology employ the Scrum
process, as shown in Figure 26, and the second most common is Lean and Test-driven
Development (TDD). Data indicates that Scrum practices are the most well-known
and/or most frequently used Agile PM methodology.

Figure 26: Projects Using Agile Tools/Processes

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 29
 Key Finding: Earned Value Management (EVM) is more heavily
UHOLHGXSRQLQWKH8QLWHG6WDWHVDQGLVIRXQGDVDXVHIXOWRROEXW
has yet to gain popularity or use due to a lack of EVM expertise and
experience.
In the 2007 Global PM Survey, the top under EVM. EVM is a management
WKUHHUHDVRQVLGHQWLğHGE\UHVSRQGHQWV methodology through the integration
for project failure were bad estimates/ of scope, schedule and costs used to
missed deadlines (schedule), scope objectively measure project performance.
FKDQJHVVFRSHDQGLQVXIğFLHQW The third survey takes a closer look at the
resources (costs) which are all internal use of Earned Value Management and its
project factors. These factors, commonly correlation to the success of projects in
referred to as the ‘triple constraint’ in organisations.
the project management framework, The survey showed that 40% of
are combined and measured under participants use EVM in their
RUJDQLVDWLRQVZLWKWKH8QLWHG6WDWHV
having the most respondents that always
use the methodology, followed by
Figure 27: Reasons for Not Using EVM in Organisations
Australia and Canada. The main reason
respondents cited for rarely or never using
EVM in their organisation is due to a lack
of EVM expertise and experience. This
is consistent with the organisations that
GRQRWKDYHFHUWLğHG(90SURIHVVLRQDOV
ZKLFKZHUHRIWKHUHVSRQGHQWV
The survey results indicated that project
management training contributes to high
performance across the key indicators;
therefore more training on EVM may
be needed within organisations. Other
UHDVRQVLGHQWLğHGIRUUDUHO\RUQRWXVLQJ
EVM are listed in Figure 27 where the high
cost/time commitment, and tedious data
collection and reporting procedure were
the next main areas.

As shown in Figure 28, the main Figure 28: Main Practitioners of EVM by Organisational Role
practitioners of EVM within organisations
are project managers who are primarily
responsible for the project’s scope,
schedule and resources, followed by
programme managers that manage a
portfolio of projects.

30 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
The top three industries that reported their organisations always or usually use EVM EVM has been used by half of the survey
in their organisations were Information Technology (42%), Consulting (26%) and UHVSRQGHQWVIRURYHUğYH\HDUVWRWUDFN
Telecommunications (21%) as shown in Figure 29. projects, with the Defense, Energy and
Information Technology industries
using the methodology for over ten
Figure 29: Main Practitioners of EVM by Industry (10) years. The survey data showed
that EVM is a requirement for 32% of
RUJDQLVDWLRQVZLWKSURMHFWVZLWKLQ86
PLOOLRQWR86PLOOLRQDQGIRU
RQHVWKDWDUHPRUHWKDQ86PLOOLRQ
In the Information Technology industry,
it is a requirement for projects (21%)
LQH[FHVVRI86PLOOLRQWRXVH(90
The majority (54%) of the Public Sector
required EVM for projects valued at less
WKDQ8607KH3XEOLF6HFWRUDOVR
required EVM (23%) for projects valued
DW860RUPRUH
Most organisations that utilize EVM
attribute the use of EVM towards
project success (62%); as a useful
tool to predict project success (73%);
and enabling leaders to use EVM
metrics to assess project status (51%).
Organisations that are using EVM have
projects that successfully met three
of the key performance indicators: to
VFRSHPHHWLQJTXDOLW\VWDQGDUGV
DQGGHOLYHULQJEXVLQHVVEHQHğWV
+RZHYHUWKHGDWDVKRZHGWKDW
organisations using EVM did not show a
majority of projects being complete on
time (35%) or within budget (45%). This
LVFRQVLVWHQWZLWKWKHVXUYH\ğQGLQJVRQ
project management training, where the
results indicated more robust training
programs are required in the areas of
budget and schedule. While EVM is a
preferred methodology for organisations
to manage their projects’ scope, cost and
VFKHGXOHTXDOLğHGRUNQRZOHGJHDEOH
staff is needed to validate and interpret
the data; while proactive project
management and risk mitigation is
needed to effectively use the information
to execute corrective actions to get the
project back on track. Having experienced
and engaged EVM staff leads to project
success.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 31
 $SSHQGL[
Portfolio Management and Software – The European Perspective
The purpose of the European Appendix is to see if there was a greater adoption rate and any further insights into Portfolio
Management and Software in Europe.
Summary
133 respondents within Europe provided information about their PfM practices. Adoption in Europe is 54% which is in line with
the global benchmark of previous years and is slightly higher than the 53% adoption rate from this year’s global survey. Themes
which emerged in Europe echoed the Global picture. What was striking amongst European respondents was how critical the role of
prioritisation criteria played.

Key Finding: Organisations

that adopt portfolio
management can experience
greater satisfaction in their
project performance.
Figure 30: Adoption of Portfolio Management by Industry
The positive effects of PfM can be seen
LQXVHUVDWLVIDFWLRQZLWKHDFKRIğYH
key indicators of performance and on
additional characteristics of project
management (Governance, Risk
Management, Resource Management,
and Change Control). Overall portfolio
management leads to overall higher
satisfaction with project performance;
however, the European data showed
different aspects of improved satisfaction
in project performance in portfolios of
different sizes of value:
ō Less than $1M: projects performed
better on delivering project quality
when using PfM. However, for smaller
portfolios (less than 20 projects) the
results were more marked where, the
use of PfM can improve satisfaction
with project performance to deliver
on schedule and realizing business
EHQHğWV
ō Between $1M and $10M: (or
portfolios of between 20 and 100
projects) PfM can improve satisfaction
on project performance on schedule,
and on budget.
ō Greater than $10M: there was
improved performance on budget, on
delivery of scope and quality when
using PfM.

32 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Key Finding: Align your portfolio with the organisation strategy
to improve satisfaction of project performance around budget,
VFRSHDQGTXDOLW\DQGEHQHğWVUHDOLVDWLRQ
Responses in Europe strongly echoed the global picture in that the most important
factor in the success of PfM is alignment of the means of managing the portfolio with
the organisation strategy. The positive effects of strategic alignment lead to the higher
levels of stakeholder satisfaction with project performance around budget, scope,
TXDOLW\DQGEHQHğWV

Key Finding:$SSO\3ULRULWL]DWLRQ&ULWHULDWRLPSURYHEHQHğWV
realization, quality and budget management.
Agreed criteria from which to prioritise the portfolio of projects has been a critical
factor to be considered within portfolio management. Agreeing criteria improves
satisfaction on project performance indicators. In particular it improves satisfaction in
WKHGHOLYHU\RIVFRSHTXDOLW\DQGEHQHğWVUHDOL]DWLRQ

Key Finding: Conduct Monthly Portfolio Reviews to improve

satisfaction with project performance to meet quality standards,
GHOLYHUWRVFRSHDQGEHQHğWV
Performance of the portfolio should be reviewed by all stakeholders to ensure it meets
their needs. For respondents who say the performance of their portfolio is reviewed
by all stakeholders monthly, there was a positive correlation in regards to the number
RISURMHFWVPHHWLQJTXDOLW\VWDQGDUGVGHOLYHULQJZLWKLQVFRSHDQGUHDOLVLQJEHQHğWV
:KHUHWKHSRUWIROLRLVUHYLHZHGPRUHIUHTXHQWO\WKDQMXVWPRQWKO\HDFKRIWKHğYHNH\
performance indicators has a positive correlation. This remains consistent with this
year’s global survey data.

Key Finding:8VH3RUWIROLR0DQDJHPHQW6RIWZDUHDQGDQ
Enterprise PMO to manage your Portfolio to improve your
satisfaction with project performance.
Within Europe the use of PfM Software is regarded as a key enabler of Project Portfolio
Management. The research concluded that software makes a positive impact on
satisfaction regarding project performance, in particular around: budget, scope,
TXDOLW\DQGEHQHğWVUHDOLVDWLRQ
Globally, nearly 70% of respondents who reported using PfM also reported that their
Enterprise PMO was responsible for the effort. Results varied by region and sector with
private enterprises deploying PfM through their Enterprise PMO at a slightly higher
rate and Europe having the lowest level of Enterprise PMO involvement. The portfolio
performance levels of respondents whose PfM programs are managed by an Enterprise
PMO are consistently twice as high as those whose portfolios are managed by other
groups or individuals. This holds true for all indicators of performance.

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 33
34 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
$FNQRZOHGJHPHQWV
PwC would also like to thank the Matthew Liberty
following individuals for their Public Sector Marketing Director

contribution in preparing this Randy Loyer

Director
year’s report.
Shobha Mahabir
Senior Associate
Douglas McNaught
Senior Consultant
Peggy Sue McNulty
Senior Associate
John R Merrick
Experienced Associate
Gavin Mitchell
Senior Associate
Jeffrey Anthony -DVRQ'ROğ
Benchmarking & Survey Manager of Organisation Products Nannette L Mitchell
Services Manager Project Management Institute (PMI) Senior Associate
Melanie Avery Kimberly Easterling Robin L Myers
Senior Associate Manager Senior Associate
Kaushiki M Bagchi Shannon Espersen Eliza Nagle
Manager Manager Director
Kenneth Barr Scott G Fass Mary Beth Papadakis
Manager Managing Director Senior Associate
Laura Beet Steve Genn Jonathan Pollock
Associate Director Associate
Rob Blumor Christian Germain John Ready
Partner Director Director
Alexandra K Bono Sandie Grimshaw Sae Ro
Experienced Associate Partner Senior Associate
Scott Bryce Michael Hall Carly Rockstroh
Senior Manager Senior Associate Senior Associate
Hannah Chung Joigie S Hayes Anoop Shroof
Manager Manager Director
Heather Collins Lauren M Hernandez Myrna Snider
Manager Senior Associate Manager
Stephen Crane Ime Husken Roland Springer
Consultant Strategy and Operations Analyst Manager
Daniel Cusimano Sun H. Hwang Harry Stefanou
Director Experienced Associate Project Management Institute (PMI)
Angela D’Agostino Irene John Carol Tansley
Graphic Design Manager Experienced Associate Director
Lauren D’Amato Adil Khan Christina Vanecek
Senior Graphic Designer Manager Public Sector Marketing Manager
Kathryn Dame Anh-Tuan Le Martijn van Zomeren
Senior Associate Senior Associate Assistant Manager
Amanda Dick Stephen Leftwich Kim Wolkins
Experienced Associate Senior Associate Joint Business Relationship Coordinator

Insights and Trends: Current Portfolio, Programme, and Project Management Practices 35
 Contact Details

Amanda Clack
8QLWHG.LQJGRP
[email protected]

Scott Fass
8QLWHG6WDWHV
[email protected]

Marla Graeber
8QLWHG6WDWHV
[email protected]
+1 (267) 330 2517
Darren Honan
Australia
[email protected]

John Ready
8QLWHG6WDWHV
[email protected]


36 Insights and Trends: Current Portfolio, Programme, and Project Management Practices
www.pwc.com

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GHOLYHULQJTXDOLW\LQDVVXUDQFHWD[DQGDGYLVRU\VHUYLFHV7HOOXVZKDWPDWWHUVWR\RXDQG¿QGRXWPRUHE\YLVLWLQJXVDWZZZSZFFRP

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ZZZSZFFRPVWUXFWXUHIRUIXUWKHUGHWDLOV7KLVFRQWHQWLVIRUJHQHUDOLQIRUPDWLRQSXUSRVHVRQO\DQGVKRXOGQRWEHXVHGDVDVXEVWLWXWHIRUFRQVXOWDWLRQZLWKSURIHVVLRQDODGYLVRUV