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.
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Sources:
- McKinsey Digital
- Manchester Digital
- Deloitte Digital
- Forbes