Companies Concede Many Projects Mismanaged

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<p><strong>Boston &mdash; May 10</strong><br />One in four organizations frequently suffers delays and cost overruns with its projects, according to a study by Novations Group, a global consulting and training firm based in Boston.&nbsp; </p><p>An additional 41 percent experience such problems occasionally, the findings indicated.<br /><br />&ldquo;The amateurish management of high-priced undertakings is a problem organizations fail to acknowledge,&rdquo; said John Rahiya, Novations executive consultant.&nbsp; &ldquo;Companies continue to waste shareholder equity, and there&rsquo;s seldom accountability. Overruns and missed target dates seem to be taken for granted. On the other hand, there&rsquo;s great opportunity for improvement.&rdquo;<br /><br />Novations surveyed 2,000 senior HR and training and development executives nationwide on their organizations&rsquo; experience with major projects.<br /><br />They were asked, &quot;Thinking of projects undertaken by your organization, what has been your observation about how well they are executed?&quot;<br /><br />The answers are as follows:</p><ul><li>Our organization usually executes projects effectively: <strong>35 percent</strong> </li><li>Our organization sometimes experiences delays and cost overruns with projects: <strong>41 percent</strong></li><li>Our organization frequently experiences delays and cost overruns with projects: <strong>24 percent</strong></li></ul><p>The Novations&rsquo; study identified the primary causes for missed deadlines and overruns: inadequate time and resources, as well as lack of any project management discipline, reported by 68 percent and 48 percent of respondents respectively.&nbsp; </p><p>Others cited were inexperience, too little oversight by senior management and too much pressure from senior management.&nbsp; </p><p>&ldquo;But these factors are inevitably found in combination,&rdquo; Rahiya said. &ldquo;They go hand in hand with ineffective project management and poor project outcomes.&rdquo;<br /><br />Half the organizations using principles of project management reported success, and half have had mixed results.&nbsp; </p><p>Ten percent do not rely on project management but plan to do so, and 16 percent have no such plans.<br /><br />Project management is often the domain of information technology, the study found, and is used by 80 percent of IT departments.&nbsp; </p><p>Among other functions using project management are human resources (56 percent), marketing (48 percent), finance (41 percent) and manufacturing (32 percent).<br /><br />Rahiya said failed and delayed corporate projects should be recognized as a training issue.&nbsp;&nbsp; </p><p>&ldquo;Wise organizations make project management capabilities a priority and take pains to be certain the training and methodology are in place,&quot; he said. &quot;But many companies have to learn the hard way, and that&rsquo;s no longer excusable now that the stakes have gotten so high.&rdquo;<br /><br />The Novations Group Internet survey of 2,046 senior human resources and training and development executives was conducted by Equation Research.</p>

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