Australian Business Leaders Lack Confidence In Project Delivery
Announcement posted by Bench PR 15 Sep 2010
Melbourne, September 15th 2010 IFS and the IPMA release a new study today which reflects a lack of confidence in how business critical projects are being managed in Australia.
The study interviewed 273 CEOs, COOs and Project Managers across the world from the energy/utilities, telecom, oil and gas, construction and manufacturing sectors. In Australia, respondents from 54 companies highlighted that;
Two thirds (67%) identify the ability to manage projects as critical or absolutely critical to the future growth of the business
Despite this, just 13% are very confident of their ability to manage business critical projects in the most efficient way
Just over one quarter (28%) of businesses surveyed have fully integrated IT systems for project management and only 15% are very confident they have full visibility of information to run projects effectively
Rob Stummer, Managing Director for IFS, Australia and New Zealand said; “The research shows that for companies working in project based industries there is a growing demand from customers to deliver these projects faster whilst reducing costs. Business leaders understand how critical these projects are, but very few have access to the information they need to ensure they are implemented quickly and to budget.”
Both the business leaders and project managers questioned agreed that the top three most important factors for consistent and efficient project management were resource planning (56%), integrated enterprise systems (46%) and real-time data (39%). These results mirrored organisational IT and project-based solution investment priorities with 37% stating integration of IT as top priority. Real-time data (35%) was the next priority, followed by personnel/skills (30%). Despite being stated as an investment priority and being crucial to business success, just over a quarter of organisations have fully integrated IT systems in place for project management.
“This new evidence points to the fact that despite project management being a business critical area, organisations are lacking the confidence in their ability to deliver effective projects. This is down to concerns regarding having access to the important information required to run projects efficiently and on time,” said Prof Brane Semolic, IPMA’s Research Management Board Chair. “The results to this survey are in line with anecdotal evidence we receive from our fifty Project Management Associations around the world, and make it clear that effective project management makes a vital contribution to customer delivery, cost control and future business growth.”
“Many of the companies in Australia said they were under increasing pressure to re-negotiate costs and prices in existing contracts and as a result, margins are lower than ever before. Now is the time for companies to re-think how they approach project management and invest in one integrated system, that gives them full visibility and control, from start to finish,” said Rob Stummer, Managing Director, IFS, Australia and New Zealand.
Ends
Notes to Editors
To register for updates on the research and register for the full report visit www.sustainable-efficiency.net
KEY DATA
72% of CEO/COO and Project Managers stated the ability to manage projects is critical or absolutely critical to the future efficiency of their business
67% of CEO/COO and Project Managers stated the ability to manage projects is critical or absolutely critical to the future growth of their business
70% of CEO/COO and Project Managers stated the ability to manage projects is critical or absolutely critical to the success of their organisation today
Only 13% of CEO/COO and Project Managers are very confident of their ability to manage business critical projects in the most efficient way
Only 15% of CEO/COO and Project Managers are very confident that they have the necessary information visibility for project management
Only 11% of CEO/COO and Project Managers are very confident that they have the tools in place to give access to information on projects
About IFS
IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite built on SOA technology. IFS focuses on agile businesses where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and projects. The company has 2,000 customers and is present in more than 50 countries with 2,700 employees in total. Net revenue in 2009 was SKr 2.6 billion.
More information on IFS is available at www.IFSWORLD.com