Low Project Management Maturity Is Costing Your Company

Companies and organizations, no matter how big or small, can vary in project management and IT service management maturity. Even large, well-established companies can find themselves suffering from immature processes and workflows. In fact, a market study by ProjectManagement.com found that 42.6 percent of companies surveyed were worried that their organizations were operating at a low maturity level.

The study asked participants to use a scale of 1-5 to rank their perceived maturity level. The levels are as follows:

  • Level 1 – Low maturity with no formal process
  • Level 2 – Some governance/intake control
  • Level 3 – Full intake and project tracking
  • Level 4 – Intake, project tracking and budgeting
  • Level 5 – Formal framework, dedicated project managers, intake, tracking, budgeting, capacity planning, etc.

If you had to rank your business or organization today, where would you fall?

Impact of Immaturity on Business

Organizations on the top end of the scale – those ranking themselves a four or five – are likely consistent when it comes to delivering projects successfully. While those ranking themselves on the lower end of the scale – the ones and twos – are probably struggling to deliver projects both on time and within scope.

When asked what percentage of projects achieved business goals, organizations that ranked themselves at levels one and two on the maturity scale were six-and-a-half times more likely (14.3%) to have more than half of their projects fail versus a mere 2.2% of level five organizations. Those failed projects add up.

Project Management Maturity Levels - TeamDynamix Project Management

Impact of Immaturity on Budgets

It’s no surprise that organizations at level one or level two also say they struggle to keep projects on schedule and on budget. On average, those surveyed reported more success with keeping projects on a budget (52.7%) than on schedule (41.9%), but when looking at the high and low ends of the scale, level five organizations were at least twice as likely to achieve these project outcomes when compared to level one and level two organizations.

The data shows that project governance (or lack thereof) seems to be the main predictor of projects’ success or failure. In addition, areas with the widest gaps between the two ends of the scales were resource capacity planning, formal project intake/governance review, and the existence of a formal project management office (PMO).

Not every organization needs to be a level five – in fact, the focus for most businesses and organizations with low maturity should be on improvement.

 

The Benefits of the One Platform Approach for Projects and ITSM

By bringing IT service management (ITSM) and project portfolio management (PPM) together on a single platform, you can better understand your resource capabilities and engage in true resource capacity planning.

With resource capacity planning you get a big-picture view of your entire IT organization, allowing you to balance workloads across projects and support; and to see the different types of work that need to be done at any given time.

For example, if you have three IT technicians that need to cover three functional areas of business – like service, projects and operations – you can engage in resource capacity planning and optimize each technician’s workload based on their skill set and their availability. As a result, the work can be completed more effectively and efficiently as each technician is focused on work that plays to their strengths. And because you have a full view of the work and the time it will take, you can avoid overcommitting or underutilizing your resources.

This approach is especially useful when you have limited resources, but an increase in demand for the support of remote learning and remote workforces. By having that single view of all projects and resources, companies are better equipped to face these challenges head-on.

To learn more about the heavy cost of low project management maturity, check out the TeamDynamix whitepaper with ProjectManagement.com.

To hear more about the importance of IT and project management maturity, watch this video about Boston College’s experience driving their maturity with TeamDynamix.

This post was originally published in December 2020 and has been updated with additional information.

You might also like:

This website uses cookies to ensure you get the best experience on our website. By closing this notice you agree to the use of cookies.