Successful IT project management takes serious commitment from upper management, both internal and external to IT. IT needs an environment where middle management is assured that accurate reporting of project status will not be a career killer. Adherence to project management policies can be tied to quarterly and yearly performance evaluations.

It is a well published fact that 72% of all IT projects fail in terms of either on-time delivery, being within budget, missing scoped requirements and functionality, and delivering with minimal quality or a combination of these factors (“1998 CHAOS Report” by The Standish Group). The Wall Street Journal (April 30, 1998) estimates that 42% of IT projects were abandoned before completion and roughly 50% of all technology projects fail to meet chief executives’ expectations.

In order for any company to compete in the marketplace, they need to develop an understanding of where they are in relation to their competitors in the area of project management. By using project management techniques, they can more efficiently choose and execute projects based on business need, ROI, and risk while building a knowledge base of “lessons learned” to assist future projects.

According to The Value of Project Management in IT Organizations (2001), “The implementation of project management initiatives showed, on average, more than 21% improvement in the 20 project management metrics surveyed. The greatest improvements were shown in schedule estimating (38.6%), customer satisfaction (37.6%), and alignment to strategic business goals (37.0%).” cost performance increased 23.8%.

 

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