Why do companies have an increased interest in project management in recent times?

Why do companies have an increased interest in project management in recent times?

Short version

Digital Transformation + Merger & Acquisition both being at high levels of activity. Project Managers are key to minimising risk, and ensuring works are proceeding at a healthy planned pace cross-functionally.

Longer Version

The driver set 1: Merger & Acquisition Activity

  • Reuters: “So far this year, 35,128 deals have been announced, a 24% jump over last year.”
  • "The M&A momentum points to a fundamentally strong market looking ahead. This pace of dealmaking could continue for the next 18-24 months, with new financing solutions and sectors driving activity," said Andrea Guerzoni, global vice chair at Ernst & Young.
  • This increase in activity automatically drivers higher requirements for personnel that can deploy structured integration approaches

The driver set 2: Digital Transformation across industries

With the number 1 investment by ALL businesses being in digital transformation, with the number 1 cause of concern being wasted costs….I see the role of project management being of key interest across ALL industries that are digitally transforming be it:

  • Logistics and retail
  • Finance
  • Human resources
  • Treasuries
  • Travel
  • Communication
  • Healthcare
  • Gaming
  • Insurance
  • Real estate

If we look at it from the focus of businesses that are engaging in digital (data / software) projects:

  • 7% Transforming to become a technology business
  • 51% to create digital advantage
  • 28% to stay relevant in their industry/keep up with their industry
  • 11% to maintain current infrastructure/capabilities (i.e. keep the lights on)
  • 300% acceleration in digital adoption for core product and business operations between 2018 and 2021
  • 64% citing the need to create new digital capabilities to stay competitive
  • 52% focus on leveraging digital to gain new business as a strategic advantage

Now for some tragic stats

  • 11% of organisations that believe their current business models will be economically viable in 2023
  • 61% of businesses are dissatisfied with their ability to deliver digital projects on time and within budget
  • 70% - 84% of digital transformation projects fail
  • 76% of businesses are concerned by the complexity and risk of projects not being managed well

Primary causes for project failures:

  • Change in organisation priorities
  • Change in project objectives
  • Inaccurate requirements gatherings
  • Poor communication
  • Poorly managed opportunities and risks
  • Inaccurate cost estimates
  • Resource dependency
  • Inaccurate time estimates

Businesses top 3 measures of success are defined against :

  • Tracking whether original goals were met (Project Management)
  • Completing scope within budget (Project Management)
  • Completing on time (Project Management)

Good articles to read:

Global M&A volumes hit new record in 2021, overtaking last year’s haul
Global merger and acquisition (M&A) activity has breached new highs, building on the record-breaking dealmaking streak from the beginning of the year that has been aided by low interest rates and soaring stock prices.
The Role of a Program Manager In Digital Transformation
The role of a program manager in digital transformation is crucial to the success of digitization efforts. What should you expect from one?
85+ Digital Transformation Stats from reputable sources
Explore our list of 90+ digital transformation stats for business leaders & analysts compiled from reputable resources (e.g. Gartner & Mckinsey)
The Evolution of Project Management as Digital Transformation Takes Over
Project management is a flexible discipline and the trick is to always keep learning and adapting to current conditions. As everyday business functions become more agile and we all evolve technologically to embrace more efficient ways of working, project managers have had to adapt to the changing b

Sources:

  • McKinsey Digital
  • Manchester Digital
  • Deloitte Digital
  • Forbes

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