Project management research summary. Project management is continually evolving to meet the demands of new technology. For this reason, project managers need to keep up with current trends to meet company goals.
If you’re a project manager who wants to know where the industry currently stands and where it might be heading, you’re in luck. We’ve gathered all of the most interesting trends and statistics about project management, and according to our extensive research:
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77% of high-performing projects use project management software.
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11.4% of resources are wasted due to inferior project management processes.
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70% of global project management projects fail.
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23% of organizations use project management software.
For further analysis, we broke down the data in the following ways:
Project Managers | Benefits of Project Management | Projects | Project Failure
Companies’ relationships with project management
Project management should be a priority for companies, but this isn’t always the case. To find out more about the average company’s relationship with PM, we’ve gathered some of the latest insights:
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46% of organizations make project management a cultural priority.
Despite the many signs that project management benefits companies, many still aren’t prioritizing it. For the less-than-half who do, meeting goals, staying within budget, and finishing projects on time is much easier.
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86% of organizations can’t track KPIs in real-time.
Only 14% of organizations can track KPIs in real-time, with less than 9% of executives choosing to track them.
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89% of organizations have at least one project management office (PMO).
The majority of companies do have at least one PMO, with the three types of PMO including:
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Supportive PMO. This office assists companies needing minimal supervision for project management initiatives.
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Controlling PMO. On top of offering all the features of a supportive PMO, this office also includes additional services.
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Directive PMO. A single authority structure for consistency across many projects.
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2.5% of companies report 100% project success.
With 70% of projects failing, the share of companies with a 100% success rate is incredibly low. In fact, companies are 27x more likely to have a project fail than be in the share that reports 100% success.
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42% of companies don’t value the importance of project management.
While projects are complex, the significant failure rate can also be attributed to the over two-fifths of companies that don’t value PM.
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61% of organizations provide project management training.
Going further, an additional 47% of companies establish a clear path for developing PM careers, putting them ahead of the pack.
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52% of organizations apply at least one Agile methodology for most projects.
And there’s a reason why, as 64% of Agile projects are successful, compared to the 49% of Waterfall projects.
Project manager statistics
Project management software and success wouldn’t be possible without the project managers who toil away. To find out more about what it’s like on the job, here are some key facts and statistics:
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59% of project managers work on 2-5 projects at a time.
This is by far the most common number of projects being run at one time, as only 15% of project managers work on only one project at a time, and only 15% work on 10+ projects at a time.
Average number of running projects at companies
Number of running projects Share of project managers 1 15% 2-5 59% 6-10 11% 10+ 15% -
80% of project managers report that they can’t get by without project portfolio management.
Being able to analyze and collectively manage projects according to a variety of key characteristics is vital for project managers working on many current and potential projects at once.
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PMP certification increases PM salary by 16% on average.
While this is the average, some can expect a salary growth as high as 20% after project managers receive their certification.
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81% of project managers use spreadsheets.
This is despite the risk associated with doing so, as 94% of project management spreadsheets contain errors.
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Only 35% of project managers are at least somewhat happy with the systems they have in place.
The lack of making project management a cultural priority has led many in the field to be unsatisfied with the systems in place. Overall, half of all project managers are not happy with these systems.
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61% of project managers apply defined project management methods to each project.
Lack of organization can cause significant issues for project managers on the job, but the majority don’t apply defined methods.
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There are over 426,000 project managers employed in the US.
Of this large number, 31.1% are women, and 68.9% are men, meaning that male employees outnumber their female counterparts by over 2 to 1.
Benefits of project management
Effective project management comes with many benefits, from cost-saving error reductions to more profitable ideas. To learn more about the benefits of project management, here are some key facts:
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54% of workers who spend up to 5 hours on automatable tasks.
That’s bad enough, but a further 16% waste a shocking 10+ hours on tasks that could be automated.
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73% of organizations that use a formal project management approach meet their goals.
Companies that pursue formal project management methods are more likely to meet their goals, whether completing projects on time or within budget.
Project statistics
Every project is different, with some being more successful than others. Here are some essential project statistics:
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63% of those with formally managed projects completed them within budget.
Formally managed projects are far more likely to be completed successfully, with 59% delivered on time. Conversely, only 48% of non-managed projects are completed within budget, and 43% are delivered on time.
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45% of projects have active sponsors.
It’s essential for projects to have active sponsors, as 62% of successes had actively supportive sponsors.
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Only 40% of projects deliver their full benefits.
Even after a time-consuming process, the majority of projects fail to deliver their full benefits. In fact, only 35% of projects are considered successful when completed.
Project failure statistics
Project failure is unavailable, especially when most projects aren’t successful. However, that doesn’t mean companies can’t learn from their mistakes. Here are some examples of failure and why it occurs in project management:
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50% of projects fail due to a poor requirements definition.
That’s the leading cause of project failure, with others among the top three, including inadequate risk management (17%), and a poor scope definition (15%).
Top reasons why projects fail
Reason for failure Share of projects Poor requirements definition 50% Inadequate risk management 17% Poor scope definition 15% Communication problems 14% Lack of qualified resources 3% Other 1% -
37% of projects fail due to a lack of clear goals.
A lack of clear goals prevents the effective use of project management methods, ultimately making it far more likely for a project to fail.
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55% of projects cite budget overruns as a reason for failure.
Given that only 48% to 59% of projects stay within budget, it’s unsurprising that going over budget is a regular issue for project managers.
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39% of projects fail due to poor planning.
Successful projects require a budget and deadline, but many aren’t planned well. This then causes a cascade of issues that doom the project to failure.
Project Management FAQ
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What is the success rate of projects?
The success rate of projects is 56%. However, many factors go into this rate. For example, project teams with a mature system usually meet 77% of their goals, and formally managed projects are more likely to be completed on budget and on time.
Project success can be surprisingly uncommon, as only 2.5% of companies are 100% successful with all their projects.
On the contrary, many factors cause projects to fail. The truth is that 70% of global project management projects fail due to a lack of goals, timely execution, and poor communication.
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Are project managers going to be replaced by AI?
No, human project managers will not be replaced by AI. While project managers don’t have to worry about their jobs being consumed by AI, new technologies will bring changes.
Rather than focusing on administrative tasks, AI will instead take over more data-driven tasks. This leaves project managers to hone their leadership and team motivation skills. With more time on their hands, project managers can focus on the planning and communication aspects of their role.
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What is the value of a project manager?
Project managers are valuable because they ensure projects are running smoothly and communicate the state of the project with other company members. Project managers assist their teams in fulfilling responsibilities for a project and address any challenging issues that may arise.
Additionally, project managers also play a role in vital planning, establishing goals aligned with client or company needs, and ensuring the team successfully delivers the final product within the specified deadline.
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Is project management a high-value skill?
Yes, project management is a high-value skill. Having project management as a skill shows you’re communicative, well-organized, and capable of critical thinking and resourcefulness.
In fact, project management is regularly listed among the top 10 most important skills for earning a high income.
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Why do 70% of projects fail?
There are many reasons why projects fail. For instance, 44% of projects fail due to unclear goals, and 30% fail due to poor communication. But there are many other reasons as well, including:
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Scope Creep. When a project begins to extend beyond its original purpose, this can be cause for concern. Uncontrolled changes can eventually cause delays and inefficiencies.
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Overallocated Resources. When resources aren’t clearly allocated, it can cause certain projects to receive too many, even if they’re failing. Issues can also arise when too many projects are going on simultaneously, consuming too many resources collectively.
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Bad Stakeholder Management. Poor communication with stakeholders can also cause projects to be delayed, underfunded, or stray from their original goals.
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Unreliable Estimates. Poor estimates can cause projects to fail, as they lead to flawed schedules, unachievable objectives, and increased risk.
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No Risk Management. When risk management isn’t accounted for, projects can take on more than they can handle.
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Lack of Team Planning Sessions. When teams don’t have a chance to meet up and discuss projects, communication can fall off the wayside.
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Conclusion
The project management industry is volatile and ever-changing, but there are steps companies and project managers can take to ensure success. Knowing that 37% of projects fail due to a lack of clear goals and 55% fail from going over budget, for example, is an important step toward avoiding those problems.
Besides the basics like improved communication, time management, and prioritizing culture, there are other vital lessons project management businesses can learn. Companies with proven PM practices waste 28x less money, and those with formally managed projects are more likely to follow budgets and deadlines.
Overall, despite the risks associated with projects, knowing the facts and analyzing current trends is crucial for current project managers.
References
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Vitality – 77% of High-Performing Teams Use Project Management Software
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Geckoboard – US SMBs Who Set and Track Key Metrics Are 2x More Likely to Hit Targets
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Project Managers – Implementing a Project Management Office: 4 Steps to Success
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PMI – Earning Power: Project Management Salary Survey—Twelfth Edition
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Lumeer – Risks of Using a Spreadsheet for Project Management
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
