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TheValueof ProjectManagement
RicardoViana Vargas
Chair,StrategicPlanning&ProgramAlignmentCommittee
PMIBoardof Directors
PMIMadrid
12May2008
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Global Demand
• More complex projects
• Globalization and heightened competition
• Increased accountability
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Global Response
• $10 trillion spent on capital projects
• >20 million project managers
• Explosive PM growth in Asia
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Global Results
“80 percent of projects classified as
higher-performing use a certified
project manager.”
2007 PricewaterhouseCoopersglobal project management maturity survey
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Global Results
“Portfolio management isof significant value.”
2007PricewaterhouseCoopersglobalprojectmanagementmaturitysurvey
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PMIgrowth
•260,000+
members
in
171
countries
•250+chaptersin70+countries
•30SIGs,
two
colleges
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PMIGlobalMembershipandCertifications
11.4%Membership
9.3%PMPs
4.2%Membership
3.5%PMPs
70%Membership
57.2%PMPs
14.4%Membership
30%PMPs
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PMI Family of Credentials
OrganizationalStrategy SuccessfulProjects
• PMIcertification:ISO9001,widelyrecognized
– CertifiedAssociateinProjectManagement(CAPM®)
– ProjectManagementProfessional(PMP®)
– ProgramManagement
Professional
(PgMPSM)
– New:PMISchedulingProfessional(PMISPSM)
• ManyorganizationsencouragePMIcertificationorbasetheirinternaltraining
onPMIstandards
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Career Advancement
• “Glass ceiling” problem: project managers cannot rise tosenior executive positions
• PMI Career Framework lets project managers: – Determine where their skill-set and experience place them on
the project management career ladder – Assess their strengths and weaknesses
– Learn what they need to do to advance their careers
– Determine professional expectations for other project managersat the same career stage.
• Free to organizations
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PMIProject Management Salary Survey,FifthEdition2007
MedianPMP® salaries
0
2 0 . 0 0 0
4 0 . 0 0 0
6 0 . 0 0 0
8 0 . 0 0 0
1 0 0 . 0 0 0
1 2 0 . 0 0 0
1 4 0 . 0 0 0
1 6 0 . 0 0 0
N o n - P M P P M P <1 y r P M P 1 - 4 y r P M P 5 - 9 y r
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Demand Industries for
Project Managers
• Information technology
• Computers/software
• Financial services
• Telecommunications
• Business management
services• Engineering
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Challenged
Succeeded
Failed
Need for Project Management
in IT Industry
• 33% of software
investments used torepair projects*
• 56% of projects have
cost overruns of >50%**
• 84% of projects have
time overruns**
• 53% of organizations do
not operate PMO**
*AtlanticSystemsGuild **Chaosin2007,StandishGroup
Challenged
53%Succeeded
29%
Failed
18%
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0%
20%
40%
60%
80%
100%
Cost 69% 45% 43% 56% 47%
Time 79% 63% 82% 84% 72%
1998 2000 2002 2004 2006
ProjectManagementImpactReduced
Time
&
Cost
Overruns
ChaosChronicles, TheStandishGroup 2007
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Organizations Recognize
Value of Project Management
• Project managementimproves:
– Efficiency – Budget
– Timing
• More organizationsadopting commonmethodology
• More organizationshiring credentialedproject managers
Companies RequiringCompanies Requiring
PMI CertificationPMI Certification
0
5
10
15
20
25
30
2003 2004 2005 2006
CHAOSChronicles,TheStandishGroup2007
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ProjectManagement ProgramManagement
PortfolioManagement
+
TheMaturityProgression
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Why Organizational Project
Management Matters
• Aligns projects with strategic goals
• Focuses on performance• Improves project time and cost
management
• Delivers predictable, repeatableresults
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Ahead of Schedule
and Under Budget
Fluor’s clean up of nuclear site
• Completed 12 yearsahead of schedule
• Completed $7.8billion below initialestimates
• Used projectmanagementstandards andmethodology
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Company sponsored training
Indra Sistemas S.A.
• Methodology basedon PMBOK © Guide
• Free training towards
PMP
®
certification for all employees
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Outreach
Ericsson Responseprogram
• Assists internationaldisaster efforts
• Supports relief agencies
• Applies projectmanagementstandards
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Acceptance in Education
• First Accredited
Masters Program inSpain
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Worldwide,organizationswillembrace,valueandutilizeprojectmanagement,andattributetheirsuccesstoit.
PMI’s EnvisionedGoal
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Project Management Institute
Makingproject
management
indispensablefor
businessresults®
© 2008ProjectManagementInstitute,Inc.Allrightsreserved.“PMI”,thePMIlogo,"PMP",thePMPlogos,"PMBOK","Project
ManagementJournal","PMNetwork",andthePMITodaylogoareregisteredmarksof ProjectManagementInstitute,Inc.
Foracomprehensivelistof PMImarks,contactthePMILegalDepartment.
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For more information
ProjectAuditorsLLC
+19494520578(international)
800545
1340
(US)
ProjectAuditorsLLCisaglobalRegisteredEducationalProvider(R.E.P.)® licensedbyPMI.
Thispresentation
was
made
in
Madrid
Spain
by
the
Chairman
of
the
PMI
Board
of
Directors.