Increase Your Project Success Rate
Short Takes...on Analytics
|Posted by Neil White, Principal, Deloitte & Touche LLP|
Organizations are increasing the success rate of complex projects by better predicting project performance. How? Predictive Project Analytics (PPA). Although they are a strategic imperative, major capital investments bring new risk and costs to the business. Complex projects – like building a new facility, re-engineering a business process, or implementing new technology – rarely run as planned. In its "Chaos Report”, the Standish Group International showed that 63 percent of companies have experienced a recent project failure. The larger the project, the more likely problems are. In fact, only 7 percent of projects $10+ million succeed.1 While project management techniques can go a long way to streamlining processes, with procedures, tools, templates, and applications, newer strategic approaches have emerged that focus on value.
PPA is a project risk assessment methodology that provides foresight on potential risks. It also identifies potential risks where immediate fixes at any stage of the project lifecycle can be made to reduce risk. Using sophisticated analytics, PPA leverages 28 common attributes to predict the likelihood of project success and identify floundering projects early on. The following characteristics make PPA different from traditional project management methodologies:
- Research-centric: Several years in the making, PPA is built upon cutting-edge research, databases, and experience.
- Project agnostic: PPA covers the full range of project types.
- High value/Low cost: By helping to avoid project cost overruns and other risks, PPA lowers project costs.
- Early value focus: Early-stage projects benefit from complexity analysis and controls.
- Prioritized results: PPA identifies which characteristics, if improved, would increase the likelihood of success so those can be addressed first.
- Cost-efficient: Reducing or eliminating unnecessary project controls in areas that are not at risk can result in efficiency gains.
Productivity, financial success, and reputation are on the line with every large-scale project your business tackles. PPA is one approach to project payoff. What is your business doing to manage large-scale projects more effectively?
1 "Chaos Report," Standish Group International, 2010.
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