Poor project management sees businesses haemorrhaging money

28 Jun 2018

Project management failures are costing companies thousands. Image: RomanR/Shutterstock

A recent survey showed that failed projects cost Irish companies €580,000 on average.

Project management conference PM Summit has released details of a new survey carried out with the assistance of Pan Research, involving 407 project management professionals in Ireland.

The survey was conducted ahead of the PM Summit event on 17 July of this year at the Convention Centre in Dublin.

The research found that there is a major need for better leadership and increased training when it comes to project management, as 19pc of recent projects undertaken by companies surveyed have failed. These projects cost Irish companies €580,000 on average.

Changes in scope, communication issues and poorly defined objectives were the most commonly cited causes of failure, while the most expensive reasons included poor resource planning and a lack of involvement of all team members in overall decision-making.

More companies are spending on training

It comes as no shock then to know that 68pc of firms have more money set aside to spend on training and education services. Compared to last year, organisations are spending 16pc more on average in the project management training space.

In terms of the industries where project management is of particular importance, there are two trades that make up a massive 45pc of project managers in the country: architecture, construction and engineering involve 27pc of project managers; while the IT and information management industry sees 18pc of project managers on board.

Effective project management is crucial

Raymond Poole, CEO of PM Summit, said: “Inadequate or ill-prepared project management is costing Irish organisations millions and causing a great deal of stress to those involved. This research highlights that more investment, in terms of both time and money, is required to increase the success rate and reduce the huge expense of failed projects.

“Effective project management is pivotal within all industries and, with approximately 52,000 project managers in Ireland alone, there is a wealth of expertise on our doorstep that can be utilised to help ensure the fulfilment of objectives and completion of projects.”

Ellen Tannam was a journalist with Silicon Republic, covering all manner of business and tech subjects