Survey finds average cost to firms of failed projects exceeds €500k

Pictured (left to right) Raymond Poole, CEO, PM Summit and Vicky Poole, Director, PM Summit. Pic: Simon Walsh

Research from PM Summit has revealed that failed projects cost Irish companies on average €580,000.

PM Summit is a conference for project, programme and portfolio management professionals and is taking place at Dublin Convention Centre on July 17.

The survey of 407 project management professionals in Ireland from a broad range of sectors also found that almost a fifth (19%) of the recent projects that Irish organisations have undertaken have failed.

The study, carried out with the help of Pan Research, cited communication and organisational problems, poorly defined objectives and too many scope changes as the most common causes of failure.

They also found that the most costly reasons for incomplete projects were lack of involvement of all team members in project decisions and poor resource planning.

Their numbers show that two out of every three companies (68%) are planning to spend more on project management training and education with organisations spending on average 16% more in this area this year when compared to 2017.

There are two sectors in which project management is particularly important and which make up almost half (45%) of project managers in Ireland, according to the research.

They are architecture, construction and engineering (27%); and IT and information management (18%).

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.

“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.”

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