McKinsey & Company – 2012 – IT Projects
Percent of projects with budgets greater than $15 million that experienced:
Software – Avg. Cost Overrun: 66%, Avg. Schedule Overrun: 33%, Avg. Benefits Shortfall: 17%
Nonsoftware – Avg. Cost Overrun: 43%, Avg. Sched. Overrun: 3.6%, Avg. Bene. Shortfall: 133%
45% of IT projects experience cost overruns. Here are a few reasons:
Missing Focus: 13%
Content issues: 9%
Skill Issues: 6%
Execution Issues: 11%
Unexplained Causes: 6%
The IBM Global Making Change Work Study – 2008
15% of projects either missed all goals or were stopped
41% of projects that fully met their objectives
44% of projects did not meet either time, budget or quality goals
Successful Projects:
Average – 41%
Bottom 20% – 8%
Top 20% – 80%
Major Change Challenges Identified:
Changing mindsets and attitudes – 58%
Corporate Culture – 49%
Complexity is underestimated – 35%
Shortage of resources – 33%
Lack of commitment of higher management – 32%
Lack of change know how – 20%
Lack of transparency because of missing or wrong information – 18%
Lack of motivation of involved employees – 16%
Change of process – 15%
Change of IT systems – 12%
Technology barriers – 8%
Project Success Factors Identified:
Top management sponsorship – 92%
Employee involvement – 72%
Honest and timely communication – 70%
Corporate culture that motivates and promotes change – 65%
Change agents (pioneers of change) – 55%
Change supported by culture – 48%
Efficient training programs – 38%
Adjustment of performance measures – 36%
Efficient organization structure – 33%
Monetary and non-monetary incentives – 19%
KPMG New Zealand Project Management Survey – 2012
70% of NZ companies experienced at least one project failure in 12 months
Over 50% of respondents do not consistently achieve stated project deliverables
98% completed less than five projects, but 44% spent more than $15 million on projects
Factors:
Formal Return on Investment Analysis Process:
Yes – 36
No – 59%
Don’t Know – 5%
Projects Aligned with corporate strategy:
Always – 41%
Usually – 52%
Sometimes – 7%
Projects Initiated with fully defined, supporting business case:
Always – 32%
Usually – 52%
Sometimes – 16%
Consistent application of risk management methodology by project managers:
Always – 13%
Usually – 54%
Sometimes – 31%
Never – 2%