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TheValueof ProjectManagement

RicardoViana Vargas

Chair,StrategicPlanning&ProgramAlignmentCommittee

PMIBoardof Directors

PMIMadrid

12May2008



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 PricewaterhouseCoopersglobal project management maturity survey



Global Results

“Portfolio management isof significant value.”

2007PricewaterhouseCoopersglobalprojectmanagementmaturitysurvey



PMIgrowth

•260,000+

members

in

171

countries

•250+chaptersin70+countries

•30SIGs,

two

colleges



PMIGlobalMembershipandCertifications

11.4%Membership

9.3%PMPs

4.2%Membership

3.5%PMPs

70%Membership

57.2%PMPs

14.4%Membership

30%PMPs



PMI Family of Credentials

OrganizationalStrategy SuccessfulProjects

• PMIcertification:ISO9001,widelyrecognized

– CertifiedAssociateinProjectManagement(CAPM®)

– ProjectManagementProfessional(PMP®)

– ProgramManagement

Professional

(PgMPSM)

– New:PMISchedulingProfessional(PMISPSM)

• ManyorganizationsencouragePMIcertificationorbasetheirinternaltraining

onPMIstandards



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



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



Demand Industries for

Project Managers

• Information technology

• Computers/software

• Financial services

• Telecommunications

• Business management

services• Engineering



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%



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



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



ProjectManagement ProgramManagement

PortfolioManagement

+

TheMaturityProgression



Why Organizational Project

Management Matters

• Aligns projects with strategic goals

• Focuses on performance• Improves project time and cost

management

• Delivers predictable, repeatableresults



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



Company sponsored training

Indra Sistemas S.A.

• Methodology basedon PMBOK © Guide

• Free training towards

PMP

®

certification for all employees



Outreach

Ericsson Responseprogram

• Assists internationaldisaster efforts

• Supports relief agencies

• Applies projectmanagementstandards



Acceptance in Education

• First Accredited

Masters Program inSpain



Worldwide,organizationswillembrace,valueandutilizeprojectmanagement,andattributetheirsuccesstoit.

PMI’s EnvisionedGoal



Project Management Institute

Makingproject

management

indispensablefor

businessresults®

© 2008ProjectManagementInstitute,Inc.Allrightsreserved.“PMI”,thePMIlogo,"PMP",thePMPlogos,"PMBOK","Project

ManagementJournal","PMNetwork",andthePMITodaylogoareregisteredmarksof ProjectManagementInstitute,Inc.

Foracomprehensivelistof PMImarks,contactthePMILegalDepartment.



For more information

ProjectAuditorsLLC

+19494520578(international)

800545

1340

(US)

[email protected]

ProjectAuditorsLLCisaglobalRegisteredEducationalProvider(R.E.P.)® licensedbyPMI.

Thispresentation

was

made

in

Madrid

Spain

by

the

Chairman

of

the

PMI

Board

of

Directors.

Documents

The Value of Project Management Copy