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The Value of Project Management

Ricardo Viana Vargas Chair, Strategic Planning & Program Alignment Committee PMI Board of Directors

PMI Madrid 12 May 2008

Global Demand

More complex projects Globalization and heightened competition Increased accountability

Global Response

$10 trillion spent on capital projects >20 million project managers Explosive PM growth in Asia

Global Results

80 percent of projects classified as higher-performing use a certified project manager.

2007 PricewaterhouseCoopers global project management maturity survey

Global Results

Portfolio management is of significant value.

2007 PricewaterhouseCoopers global project management maturity survey

PMI growth

260,000+ members in 171 countries 250+ chapters in 70+ countries 30 SIGs, two colleges

PMI Global Membership and Certifications

70% Membership 57.2% PMPs

11.4% Membership 9.3% PMPs

14.4% Membership 30% PMPs

4.2% Membership 3.5% PMPs

PMI Family of Credentials

PMI certification: ISO 9001, widely recognized

Certified Associate in Project Management (CAPM) Project Management Professional (PMP) Program Management Professional (PgMPSM) New: PMI Scheduling Professional (PMI SPSM)

Many organizations encourage PMI certification or base their internal training on PMI standards Organizational Strategy Successful Projects

Career Advancement
Glass ceiling problem: project managers cannot rise to senior 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 managers at the same career stage.

Free to organizations

Median PMP salaries

1 6 0 .0 0 0 1 4 0 .0 0 0 1 2 0 .0 0 0 1 0 0 .0 0 0 8 0 .0 0 0 6 0 .0 0 0 4 0 .0 0 0 2 0 .0 0 0 0 No n - PMP PMP <1 y r PMP 1 - 4 y r PMP 5 - 9 y r

PMI Project Management Salary Survey, Fifth Edition 2007

Demand Industries for Project Managers

Information technology Computers/software Financial services Telecommunications Business management services Engineering

Need for Project Management in IT Industry

33% of software investments used to Failed repair projects* 18% 56% of projects have cost overruns of >50%** Succeeded 29% 84% of projects have time overruns** 53% of organizations do not operate PMO**

Challenged 53%

Challenged Succeeded Failed

*Atlantic Systems Guild **Chaos in 2007, Standish Group

Project Management Impact Reduced Time & Cost Overruns

100% 80% 60% 40% 20% 0% Cost Time 1998 69% 79% 2000 45% 63% 2002 43% 82% 2004 56% 84% 2006 47% 72%

Chaos Chronicles, The Standish Group 2007

Organizations Recognize Value of Project Management

Project management improves: Efficiency Budget Timing More organizations adopting common methodology More organizations hiring credentialed project managers
Companies Requiring PMI Certification
30 25 20 15 10 5 0 2003 2004 2005 2006

CHAOS Chronicles, The Standish Group 2007

The Maturity Progression

Project Management

Program Management

Portfolio Management

Why Organizational Project Management Matters

Aligns projects with strategic goals Focuses on performance Improves project time and cost management Delivers predictable, repeatable results

Ahead of Schedule and Under Budget

Fluors clean up of nuclear site Completed 12 years ahead of schedule Completed $7.8 billion below initial estimates Used project management standards and methodology

Company sponsored training

Indra Sistemas S.A. Methodology based on PMBOK Guide Free training towards PMP certification for all employees

Ericsson Response program Assists international disaster efforts Supports relief agencies Applies project management standards

Acceptance in Education
First Accredited Masters Program in Spain

PMIs Envisioned Goal

Worldwide, organizations will embrace, value and utilize project management, and attribute their success to it.

Project Management Institute

Making project management indispensable for business results

2008 Project Management Institute, Inc. All rights reserved. PMI, the PMI logo, "PMP", the PMP logos, "PMBOK", "Project Management Journal", "PM Network", and the PMI Today logo are registered marks of Project Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department.

For more information

Project Auditors LLC +1 949 452 0578 (international) 800 545 1340 (US)
Project Auditors LLC is a global Registered Educational Provider (R.E.P.) licensed by PMI. This presentation was made in Madrid Spain by the Chairman of the PMI Board of Directors.