Failed projects cost Irish companies €580,000, research reveals
10 July 2018
L-R: Raymond Poole, CEO, PM Summit and Vicky Poole, director, PM Summit. Photo: Simon Walsh
Almost a fifth of recent projects have failed at an average cost of €580,000, as research identifies at least 52,000 project managers in Ireland, with almost half working in construction, engineering and IT
PM Summit, Ireland’s conference for project, programme and portfolio management professionals, has announced the results of a survey which reveals that failed projects cost Irish companies on average €580,000.
The research, which involved 407 project management professionals in Ireland from a broad range of sectors and was carried out with the assistance of Pan Research, also found that almost a fifth (19 per cent) of the recent projects that Irish organisations have undertaken have failed.
It seems that more than a fifth of recent projects in the IT industry have failed at an average cost per project of €271,000. While there is a lower failure rate (a little less than a fifth) of recent projects in the architecture, construction and engineering industry, the average cost per project is significantly higher at €651,000.
Too many scope changes, communication and organisational problems, and poorly defined objectives
Too many scope changes, communication and organisational problems, and poorly defined objectives were cited as the most common causes of failure while the most costly reasons were lack of involvement of all team members in project decisions and poor resource planning.
It therefore comes as no surprise that two out of every three companies (68 per cent) are planning to spend more on project management training and education. In fact, organisations are spending on average 16 per cent more in this area this year compared with last year.
There are two trades in which project management is particularly important and which make up almost half (45 per cent) of project managers in Ireland: architecture, construction and engineering (27 per cent); and IT and information management (18 per cent).
‘Causing a great deal of stress to those involved’
Raymond Poole, CEO, 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.
“While it is positive to see that businesses are planning to put more money towards project management training and education this year, events such as the PM Summit are of great value in terms of sharing experiences, ideas and strategies.
“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.”
This year’s PM Summit is taking place at the Dublin Convention Centre on Tuesday, July 17, from 8.45am-17.45pm. Tickets are now available for the PM Summit at €395 for a single ticket or €275 per person for groups of two or more (prices exclude VAT). Tickets guarantee access to three keynote presentations as well as 15 breakout sessions.
Refreshments and lunch will be also provided, and delegates will have the opportunity to interact and network with peers. For more information and to register for the event, visit http://www.pmsummit.global/register/.http://www.engineersjournal.ie/2018/07/10/failed-projects-cost-irish-companies-e580000-research-reveals/http://www.engineersjournal.ie/wp-content/uploads/2018/06/a-apm-1024x684.jpghttp://www.engineersjournal.ie/wp-content/uploads/2018/06/a-apm-300x300.jpgNewsconference,project management,research