Project Manager Skills Benchmark SPONSORED BY

Transcription

1 e et pl m a co dat s de vey clu ur In s Project Manager Skills Benchmark 2015 SPONSORED BY

2 2 Project Manager Skills Benchmark 2015 INTRODUCTION PM Solutions Research has been surveying organizations about their project management practices for more than 15 years. This Project Manager Skills Benchmark was designed to help you understand the current skill levels of project managers what skills project managers have and how these skills impact project and organizational success. The goal is to help you understand where to focus your project manager improvement efforts and thereby improve your project results. ORGANIZATIONS PARTICIPATING 314 RESPONDENTS BY INDUSTRY RESPONDENTS BY GEOGRAPHY 22 % Professional & Technical Services 14 % Finance & Insurance 12 % Information 73 % %14 % EUROPE NORTH AMERICA 11 % 10 % Manufacturing Healthcare MIDDLE EAST & AFRICA %3 % ASIA & PACIFIC %7 % 7 % Public Admin %3 % CENTRAL & SOUTH AMERICA 6 % Energy 19 % Other incl. Pharma, Retail, & Education RESPONDENTS BY SIZE OF FIRM RESPONDENTS BY TITLE %42 % Project/Program Manager - 34% Large Revenue > US$1B %34 % Head of the PMO - 26% %24 % Small Revenue < US$100M VP/Director Project Portfolio Management - 16% Mid-size PMO Staff Member - 8% Revenue US$100M $1B VP/Director Business Management - 5% Consultant/Trainer - 5% Other - 7%

3 Project Manager PM Skills Benchmark Project Manager Skills WHAT DRIVES PROJECT SUCCESS? Research has consistently shown that it s having an effective project manager. That said, what competencies does a project manager need to be effective? In this survey of project manager skills, participants have identified the skills that project managers have actually exhibited in managing projects, the skills that organizations think are most important, the skills that need the most improvement, and the skills that lead to desired project results. We ve focused on three types of skills leadership, technical project management, and general business skills. Although project managers generally rate above average in most of the skills surveyed, and project managers in high-performing organizations have been quite effective, the research shows clearly that project managers in all organizations need to improve their skills in leadership, in project management, and in business. Project managers might be demonstrating good skills, on average, but they aren t meeting expectations (the level of skill that the organization would like to see). The survey results also reveal the key reason why you want to make sure you have highly skilled project managers: Organizations with highly skilled project managers get significantly better project results. SKILL LEVELS OF PROJECT MANAGERS Average level of skill on a scale of 1 (Inadequate) to 5 (Excellent) LEADERSHIP SKILLS PROJECT MANAGEMENT SKILLS BUSINESS SKILLS LOW PERFORMERS ALL FIRMS HIGH PERFORMERS Project managers in high-performing organizations demonstrate a higher level of skill in all skill areas than PMs in low-performing organizations. SUMMARY FINDINGS» Organizations with highly skilled project managers get significantly better project results. 45 %» PM skills are good to excellent in 15% of organizations but only fair to inadequate in 30%. 27 %» Leadership skills are rated more important than all other skills. $ 101k» Project managers in highperforming organizations exhibit a far higher level of skill than those in lowperforming organizations» The top skills exhibited by project managers in highperforming organizations were displaying integrity and honesty, building relationships, and building trust and respect.» Project managers need improvement in almost every skill (for most skills from 10%-20% improvement).» Leaders are far more likely than project managers to see not aligning projects with strategy and poor communication as challenges.» High-performing organizations rate communicating/listening the most important project manager skill.

4 4 Project Manager Skills Benchmark 2015 Project Manager Skill Levels OVERALL AVERAGE SKILL LEVEL HIGHER LEVEL OF SKILL = STRONGER PERFORMANCE 15 % 54 % 23 % 7 % Good-Excellent Adequate Fair Inadequate Percentage of firms with project managers averaging this level of skill Average rating of project performance Skill level based on average rating from 1 (Inadequate) to 5 (Excellent) PROJECT PERFORMANCE RATING» Project managers in high-performing organizations exhibit a far higher level of skill than those in low-performing organizations.» Project managers in high-performing organizations exhibited the highest level of skill in displaying integrity and honesty (4.48) followed by building trust and respect (4.25) and building relationships (4.25).» Project managers in low-performing organizations exhibited the highest level of skill in technical/computer skills (3.81) and industry/functional skills (3.70) far higher than any project management, leadership, or business skills.» Project managers in small organizations exhibited a slightly higher level of project management skills (3.39) than those in mid-size (3.18) and large organizations (3.26)» Project managers in small, mid-size, and large organizations all exhibited the highest level of skill in displaying integrity and honesty. The second highest, for all size organizations, was technical/computer skills.» More than three times as many professional services organizations and twice as many information organizations rated their project managers as highly skilled (ranking in the top quartile) as other organizations.» Project managers in information organizations exhibited a higher level of skill (3.60) than those in professional services organizations (3.50) and a significantly higher level of skill than those in healthcare (3.20), finance (3.19), and manufacturing (3.17) organizations.» Project managers in finance, information, manufacturing, professional services, and healthcare organizations all exhibited the highest level of skill in displaying integrity and honesty. The second highest was being results-oriented (finance), technical/computer skills (information, manufacturing, and professional services), and building relationships (healthcare).» Project managers spanning enterprises exhibited a higher level of skill (3.35) than those in IT divisions (3.29) and business units (3.14).» Project managers spanning enterprises, business units, and IT divisions all exhibited the highest level of skill in displaying integrity and honesty. LEVEL OF PROJECT MANAGER SKILL, BY INDUSTRY Average level of project manager skill in five highest represented industries based on a scale of 1 (Inadequate) to 5 (Excellent) INFORMATION PROF. SERVICES HEALTHCARE FINANCE MANUFACTURING

5 Project Manager PM Skills Benchmark Importance of PM Skills» Leadership skills are rated more important (4.01) than technical/ computer skills (3.88), industry skills (3.88), and project management skills (3.85), and significantly more important than business skills (3.52).» Small, mid-size, and large organizations all rated displaying integrity and honesty and building trust and respect the most important project manager skills. They all rated exhibiting knowledge of marketing and sales the least important project manager skill.» Finance, manufacturing, professional services, and healthcare organizations all rated displaying integrity and honesty the most important project manager skill. Information organizations rated project communications most important. Finance, manufacturing, and healthcare organizations rated exhibiting knowledge of marketing and sales the least important project manager skill. Information organizations rated exhibiting knowledge of finance and accounting least important, and manufacturing companies rated fostering diversity least important.» Enterprise, business unit, and IT organizations all rated displaying integrity and honesty the most important project manager skill. They all rated exhibiting knowledge of marketing and sales the lease important skill.» Project managers and leaders (C-level, VPs, PMO heads) both rated displaying integrity and honesty the most important project manager skill. Project managers rated communicating/listening second most important while leaders rated building trust and respect second most important. MOST IMPORTANT PM SKILLS In High-Performing Organizations» Communicating/listening» Displaying integrity and honesty» Building trust and respect» Building relationships» Managing project scope» Managing project risks» Being results-oriented» Leading by example» Setting goals and expectations» Having confidence» High-performing organizations rate communicating/listening the most important project manager skill followed by displaying integrity and honesty and building trust and respect.» Project managers and leaders differed in their rating of business skills. Leaders rated business skills more important than project managers, particularly acting entrepreneurial (18% difference), exhibiting knowledge of finance and accounting (16%), and nourishing a quality mindset. SKILL LEVEL VS. PERFORMANCE Organizations with project managers at high skill levels, on average, outperform those with project managers at low skill levels. Average rating of performance on a scale of 1 to 5 based on eight measures of project performance LOW SKILL LEVEL HIGH SKILL LEVEL PERFORMANCE DEFINED High-performing organizations are defined by the extent they realise their organizational goals. Respondents rated their companies on a score from 1 to 5, where 1=to no extent and 5=to a very great extent on how well they met eight measures of organizational performance: strategy execution, shareholder satisfaction, financial success, schedule/budget performance, customer satisfaction, resource allocation, strategic alignment, project prioritization. High performers rank in the top 25% in overall performance. Low performers rank in the bottom 25%.

6 6 Project Manager Skills Benchmark 2015 Project Manager Challenges TOP 5 PROJECT MANAGER CHALLENGES Resource management issues Unrealistic deadlines Dealing with scope changes Lack of clarity in scope Unclear roles, responsibilities» The biggest challenge facing project managers in high-performing organizations was dealing with scope changes (38%) followed by resource management issues (34%). The biggest challenge facing project managers in low-performing organizations was unrealistic deadlines (57%) followed by resource management issues (56%). Low-performing organizations faced far more challenges than highperforming organizations.» The biggest challenge facing project managers in small organizations was lack of clarity in project scope (44%); in mid-size organizations it was dealing with scope changing (46%) and unrealistic deadlines (46%); and in large organizations it was resource management issues (48%).» The biggest challenge facing project managers in finance (60%) and manufacturing (56%) organizations was resource management issues; for information organizations it was dealing with scope changes (57%); for professional services organizations it was unclear roles, responsibilities, authorities (41%); and for healthcare organizations it was lack of clarity in project scope (68%).» The biggest challenge facing project managers in enterprise organizations was lack of clarity in project scope (45%); in business units (49%) and in IT divisions (49%) it was dealing with scope changes.» Project managers and leaders differed significantly in their rating of several challenges. Leaders rated projects not aligned with strategy a challenge 113% more often than project managers and they rated poor communication a challenge 63% more often. Project Results» Project results were better than average in most measures of project success. The best results realized on average, by far, were in satisfying project customers (3.47) and aligning projects to the organization s business strategy (3.40). The worst result realized on average, by far, was in allocating project resources optimally (2.80).» Small organizations realized better overall project results on average (3.25) than large organizations (3.14) and mid-size organizations (3.04).» Information organizations realized better overall project results on average (3.37) than professional services (3.25), manufacturing (3.16), finance (3.13), and healthcare (3.02) organizations.» Enterprise organizations realized much better overall project results on average (3.23) than business units (3.09) and IT divisions (3.04).» Leaders (3.20) rated project results higher, on average, than project managers (3.07).» Project results in organizations whose project managers ranked in the top quartile, the high skill level, were significantly better (3.70) in all measures than the results of those whose project managers ranked in the bottom quartile, the low skill level (2.48).

7 Project Manager PM Skills Benchmark Skills Needing Improvement» Project managers need improvement in almost every skill (for most skills from 10%-20% improvement).» Leaders and project practitioners differ on what skills they think need improvement (see graph below).» Project managers in high-performing organizations have far less need for improvement (6% need for improvement) than those in low-performing organizations (24% need for improvement). Project managers in low-performing organizations need the most improvement in planning strategically, managing benefits realization, and managing project risks. Project managers in high-performing organizations need the most improvement in managing project risks, communicating/ listening, and managing project stakeholders. 1» Project managers in small, mid-size, and large organizations need the 2most improvement in managing project risks followed by communicating/listening (for small organizations), planning strategically (for 3mid-size organizations), and managing benefits realization (for large organizations). 4» Project managers in finance, information, and healthcare firms need the 5most improvement in managing benefits realization. Those in manufacturing need improvement in communicating/listening, and those in professional services firms need improvement in managing project risks. The second skills most in need of improvement are in planning strategically (finance), managing project stakeholders (information), managing project integration (manufacturing) communicating/listening (professional services), and managing project risks (healthcare).» Project managers in enterprise organizations and business units need the most improvement in managing project risks. Those in IT divisions need the most improvement in championing and managing change. The second skills most in need of improvement are managing benefits realization (enterprises), planning strategically (business units), and managing project scope (IT divisions). PM SKILLS NEEDING MOST IMPROVEMENT (including percentage of improvement needed)» Managing project risks (23%)» Managing benefits realization (21%)» Planning strategically (21%)» Championing and managing change (20%)» Communicating/listening (19%)» Managing project schedules (19%)» Managing project stakeholders (19%)» Managing project quality (19%)» Managing project cost (19%)» Managing project scope (18%) LEADERS AND PMs DIFFER ON SKILLS THEY THINK NEED IMPROVING MANAGING BENEFITS REALIZATION SETTING GOALS AND EXPECTATIONS POSSESSING BUSINESS ACUMEN HAVING CONFIDENCE KNOWLEDGE OF FINANCE & ACCOUNTING The percentage of improvement needed by project managers differs significantly depending on whether Leaders or Project/ Program Managers are asked. 0% 5% 10% 15% 20% 25%

8 PM COLLEGE S FIVE-STEP PROCESS FOR DEVELOPING PROJECT MANAGER COMPETENCY ASSESS DEVELOP Months 1-3 Define Roles and Competencies PERFORM Months 4-9 Assess Competency Establish Professional Development Plan Months Execute Training Measure About PM Solutions About PM College PM Solutions is a project management services firm helping organizations apply project management and PMO practices to improve business performance. We are the leader in applying project and portfolio management processes and practices to drive operational efficiency for our clients. Founded in 1996 by J. Kent Crawford, PMP, the former president and chair of the Project Management Institute (PMI ), PM Solutions delivers expert project management solutions and services to help organizations and their people perform to maximum potential. Comprehensive offerings include: PM College provides corporate project management training and competency development programs for clients around the world. We partner with you to identify your organizational learning objectives, deliver relevant training content, and achieve measurable behavior changes that lead to improved performance. Course offerings cover all learning needs from basic to advanced including both technical project management skills and relationship-driven soft skills. PM College s unparalleled customer service, top-rated instructors, modular course content, and robust learning management system (LMS) make us the provider of choice for many global companies in the finance and insurance, manufacturing, consumer goods, technology services, and government sectors. As a division of a project management consultancy PM Solutions, PM College is recognized as a Charter Global Registered Education Provider (REP ) by the Project Management Institute (PMI).» PMO transformation» Project portfolio management process improvement» Program and project management resources» Corporate training and competency development delivered through our training division, PM College SPONSORED BY FOR MORE INFORMATION PM Solutions 1788 Wilmington Pike Glen Mills, PA USA Phone: PMI, PMP, and PMBOK are registered marks of the Project Management Institute, Inc.

9 Project Manager Skills Benchmark Summary Results Respondent Profile Percentage of respondents with the following role» Project/Program Manager 34%» Head of the PMO (Director, Manager, etc.) 26%» VP or Director-Level Project Portfolio Management 16%» PMO Staff Member 8%» VP or Director-Level Business Management 5%» Consultant/Trainer 5%» Chief Project Officer, CIO, or other C-Level 4%» Other 3% Percentage of respondents whose organizations have the following annual sales (US$)» Less than $100 million 34%» $100 million to $1 billion 24%» Greater than $1 billion 42% Percentage of respondents in the following industries» Professional & Technical Services 22%» Finance & Insurance 14%» Information 12%» Manufacturing 11%» Healthcare & Social Services 10%» Public Administration 7%» Energy 6%» Pharmaceutical & Biotechnology 5%» Education 4%» Retail 2%» Other 8% Geographic region company s headquarters is located» North America 73%» Europe 14%» Asia/Pacific 7%» Middle East/Africa 3%» Central/South America 3%

10 10 Project Manager Skills Benchmark 2015 SUMMARY RESULTS Service span of the responses» Enterprise 45%» IT 28%» Business unit (LOB) 24%» Other 2% PROJECT MANAGER SKILL LEVELS Level of skills project managers exhibited on the organization s last three projects. Average rating of levels from 1 to 5, where 1=inadequate, 5=excellent and percentage of organizations rating 1-2 (Poor) and 4-5 (Very Good). Also shown is the percentage of organizations whose project managers rated poor or very good. TECHNICAL PROJECT MANAGEMENT SKILLS Rating Poor Very Good» Managing multiple individual projects % 55%» Managing project communications % 55%» Keeping project aligned with business objectives % 56%» Managing project scope % 55%» Managing project stakeholders % 51%» Managing project schedules % 49%» Managing project quality % 48%» Managing virtual project teams % 48%» Managing project integration % 46%» Managing project cost % 45%» Managing programs of related projects % 44%» Managing project human resources % 40%» Managing project procurement % 41%» Managing project risks % 41%» Setting/re-evaluating project priorities frequently % 42%» Managing project portfolios % 38% Overall 3.29

11 Project Manager Skills Benchmark SUMMARY RESULTS LEADERSHIP SKILLS Rating Poor Very Good» Displaying integrity and honesty % 80%» Building trust and respect % 68%» Being results-oriented % 67%» Building relationships % 62%» Having confidence % 60%» Communicating/listening % 58%» Leading by example % 56%» Setting goals and expectations % 55%» Displaying emotional intelligence/empathy % 51%» Influencing/persuading % 47%» Being decisive % 48%» Inspiring and motivating others % 47%» Delegating authority % 40%» Coaching/mentoring % 37%» Conveying vision % 33% Overall 3.46 BUSINESS & STRATEGIC MANAGEMENT SKILLS Rating Poor Very Good» Building consensus % 54%» Fostering diversity % 45%» Exhibiting a customer/growth focus % 46%» Analyzing data % 47%» Possessing business acumen % 41%» Aligning strategy % 40%» Championing and managing change % 41%» Taking intelligent risks % 37%» Planning strategically % 36%» Developing others/managing talent % 30%» Exhibiting knowledge of finance and accounting % 29%» Managing benefits realization % 30%» Acting entrepreneurial % 31%» Exhibiting knowledge of marketing and sales % 25%» Nourishing a quality mindset, e.g., Six Sigma % 28% Overall 3.06

12 12 Project Manager Skills Benchmark 2015 SUMMARY RESULTS OTHER SKILLS Rating Poor Very Good» Technical/computer skills/expertise % 72%» Industry/functional skills/expertise % 67% IMPORTANCE OF PROJECT MANAGER SKILLS Importance of the following project manager skills to organizations Average rating of importance from 1 to 5, where 1=unimportant, 5=very important and percentage of organizations rating 1-2 (Not Very Important) and 4-5 (Very Important). Also shown is the percentage of organizations that rated the skills not very important or very important. TECHNICAL PROJECT MANAGEMENT SKILLS Rating Not Very Very Important Important» Managing project scope % 84%» Managing project stakeholders % 81%» Managing project communications % 83%» Managing project schedules % 83%» Managing project risks % 79%» Managing project quality % 80%» Keeping project aligned with business objectives % 74%» Managing project cost % 76%» Managing project integration % 70%» Managing multiple individual projects % 70%» Setting/re-evaluating project priorities frequently % 65%» Managing project human resources % 61%» Managing programs of related projects % 52%» Managing virtual project teams % 50%» Managing project portfolios % 52%» Managing project procurement % 50% Overall 3.85

13 Project Manager Skills Benchmark SUMMARY RESULTS LEADERSHIP SKILLS Rating Not Very Very Important Important» Displaying integrity and honesty % 90%» Communicating/listening % 87%» Building trust and respect % 88%» Being results-oriented % 89%» Building relationships % 86%» Setting goals and expectations % 78%» Leading by example % 80%» Having confidence % 79%» Influencing/persuading % 72%» Being decisive % 76%» Inspiring and motivating others % 69%» Conveying vision % 63%» Displaying emotional intelligence/empathy % 65%» Delegating authority % 56%» Coaching/mentoring % 53% Overall 4.01 BUSINESS & STRATEGIC MANAGEMENT SKILLS Rating Not Very Very Important Important» Championing and managing change % 75%» Building consensus % 70%» Exhibiting a customer/growth focus % 68%» Planning strategically % 65%» Possessing business acumen % 65%» Aligning strategy % 63%» Taking intelligent risks % 61%» Analyzing data % 61%» Managing benefits realization % 57%» Nourishing a Six Sigma mindset % 51%» Developing others/managing talent % 46%» Fostering diversity % 46%» Exhibiting knowledge of finance and accounting % 41%» Acting entrepreneurial % 40%» Exhibiting knowledge of marketing and sales % 32% Overall 3.52

14 14 Project Manager Skills Benchmark 2015 SUMMARY RESULTS OTHER SKILLS Rating Not Very Very Important Important» Technical/computer skills/expertise % 68%» Industry/functional skills/expertise % 72% PROJECT MANAGER SKILLS EXHIBITED VS. IMPORTANCE Comparing the skills actually exhibited by project managers (see pages 10-12) vs. the importance of those those skills to the organization (pages 12-14) and showing the difference. The bigger the difference the more the need for improvement in those skills. TECHNICAL PROJECT MANAGEMENT SKILLS Exhibited Importance Difference Rating Rating» Managing project risks %» Managing project schedules %» Managing project stakeholders %» Managing project quality %» Managing project cost %» Managing project scope %» Managing project communications %» Setting/re-evaluating project priorities frequently %» Managing project integration %» Keeping project aligned with business objectives %» Managing project human resources %» Managing project portfolios %» Managing multiple individual projects %» Managing programs of related projects %» Managing project procurement %» Managing virtual project teams % Overall %

15 Project Manager Skills Benchmark SUMMARY RESULTS LEADERSHIP SKILLS Exhibited Importance Difference Rating Rating» Communicating/listening %» Conveying vision %» Influencing/persuading %» Being decisive %» Inspiring and motivating others %» Setting goals and expectations %» Building trust and respect %» Building relationships %» Leading by example %» Being results-oriented %» Having confidence %» Coaching/mentoring %» Delegating authority %» Displaying emotional intelligence/empathy %» Displaying integrity and honesty % Overall % BUSINESS & STRATEGIC MANAGEMENT SKILLS Exhibited Importance Difference Rating Rating» Managing benefits realization %» Planning strategically %» Championing and managing change %» Nourishing a quality mindset, e.g., Six Sigma %» Aligning strategy %» Taking intelligent risks %» Possessing business acumen %» Exhibiting a customer/growth focus %» Developing others/managing talent %» Exhibiting knowledge of finance and accounting %» Building consensus %» Analyzing data %» Acting entrepreneurial %» Exhibiting knowledge of marketing and sales %» Fostering diversity % Overall %

16 16 Project Manager Skills Benchmark 2015 SUMMARY RESULTS OTHER SKILLS Exhibited Importance Difference Rating Rating» Technical/computer skills/expertise %» Industry/functional skills/expertise % OTHER PROJECT MANAGER SKILLS SUGGESTED» Ability to collaborate across business unit portfolios to integrate project plans.» Ability to deal with ambiguity.» Ability to support operational managers with implementing and sustaining changes in technology, process, and people s roles created by delivering the project.» Application of Agile.» As a subset of communication, we highly value PMs who can competently communicate vital project information to the most senior executive levels of the organization.» Asking the right questions.» Be able to drive and manage people, cost, tools, and the project in the same time.» Being aware of changing political climate and the impact of global issues on our country s priorities» Building and using standard methods and tools.» Business environment, outside the company, trends on markets.» Business technology savvy.» Certifications PMP, ITIL, CBAP, etc.» Change management.» Client service understanding what our clients need versus what they say they want, and guiding them in the direction that will provide the greatest benefit.» Collaboration.» Consulting.» Cultural sensitivity, since most of our customers are global businesses.» Dealing with uncertainty.» Depending on lack of availability of resources, subject matter expertise and business analyst skills.» Domain expertise.» Earned value management expertise.» Enterprise architecture knowledge.» External client engagement, courage, process improvement.» External stakeholder management.» Formal change management strategies.» Good fit with the company culture extremely important.» Fostering company culture extremely important.» Group facilitation.

17 Project Manager Skills Benchmark SUMMARY RESULTS» Meeting planning.» Having a decent sense of humor is very important.» Initiative is a big skill that we emphasize.» Lateral thinking, being able to accept and deliver change within challenging diverse multicultural situations.» Managing conflict.» Managing under Prince2.» Marketing and relationships with the clients.» Mostly communication, exuding confidence, running meetings with executives and building their confidence in the PPMO and IT.» Moving from waterfall to agile mindset, even if not Agile officially.» Organization prefers contract resources that will work 40+ hours but only charge for 40. This is a huge concern for the PMO.» Personal expertise in our technology and industry.» Personal organization and presentation skills.» PMs are expected to take full ownership of projects assigned and resolve issues before involving project owners.» PMs should strike a right balance between emotional intelligence and project goal setting. This will help ensure success in both the key aspects of project.» Politically smart. Technical knowledge of the applications on which I work.» Presenting accurate status.» Procurement, IT security.» Project management is concerned with a multitude of skills and expertise, above all is people skills. Negotiating, communicating, listening, building relationships and managing stakeholders, be they internal or external, customers or suppliers, without these skills projects stall and fail.» Push toward cloud and collaboration use to cut , print, documents, and other inefficiencies.» Reading people and acting/taking the appropriate role accordingly.» Regularly getting client feedback on our project performance.» Safety of company personal and contractors in whatever projects we do.» Safety, compliance, worker welfare.» Soft skills.» Team building.» The ability to bring a team along from concept through delivery.» The project managers must have a demonstrable knowledge of the theory of project management and the hands on ability to implement and manage.» To ensure delivery our project managers must exhibit a fine balance of both hard and soft skills; technically competent and highly proficient in communication.» Understanding the regulations and policies within healthcare and how they affect project management.

18 18 Project Manager Skills Benchmark 2015 PROJECT MANAGER CHALLENGES Biggest challenges facing an organization s project managers on their last three projects (percentage of organizations facing the challenge)» Resource management issues 44%» Unrealistic deadlines 42%» Dealing with scope changes 41%» Lack of clarity in the scope of the project 39%» Unclear roles, responsibilities, authorities 38%» Shifting organizational priorities 36%» Having enough time to accomplish work effectively 33%» Inadequate support from project sponsors 32%» Organizational resistance to change 31%» Stakeholder engagement 28%» Poor communication 25%» Vision and goals not well-defined 23%» Unforeseen risks 21%» Projects not aligned with strategy 14%» Conflicts among team members 12% PROJECT RESULTS Extent that organizations realized the following results on their last three projects (average rating of extent realized from 1 to 5, where 1=to no extent, 5=to a very great extent)» Project customers were satisfied 3.47» Projects were aligned to the organization s business strategy 3.40» Project scope was managed optimally 3.19» Project quality was managed optimally 3.16» Project team members were satisfied 3.14» Benefits outlined in projects business cases were/are expected to be achieved 3.14» Project budgets were managed optimally 3.11» Project schedules were managed optimally 3.08» Projects were prioritized optimally 3.06» Project resources were allocated optimally 2.80

19 Project Manager Skills Benchmark CROSS TABULATION By Company Size SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B Respondent Profile Percentage of respondents with the following role» Chief Project Officer, CIO, or other C-Level 11% 0% 0%» VP or Director-Level Business Management 6% 4% 4%» VP or Director-Level Project Portfolio Management 11% 17% 19%» Head of the PMO (Director, Manager, etc.) 16% 36% 27%» PMO Staff Member 5% 8% 11%» Project/Program Manager 39% 29% 33%» Consultant/Trainer 8% 4% 4%» Other 5% 1% 2% Percentage of respondents in the following industries» Finance & Insurance 11% 19% 15%» Information 15% 14% 9%» Manufacturing 5% 13% 15%» Professional & Technical Services 36% 14% 15%» Pharmaceutical & Biotechnology 0% 3% 10%» Public Administration 9% 8% 5%» Healthcare & Social Services 8% 14% 9%» Education 7% 1% 3%» Energy 3% 8% 8%» Retail 1% 1% 2%» Other 7% 6% 10% Geographic region company s headquarters is located» North America 64% 71% 81%» Europe 14% 15% 13%» Asia/Pacific 9% 8% 4%» Middle East/Africa 6% 4% 1%» Central/South America 7% 1% 2%

20 20 Project Manager Skills Benchmark 2015 CROSS TABULATION: BY COMPANY SIZE Service span of the responses SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Enterprise 58% 45% 36%» IT 18% 30% 35%» Business unit (LOB) 23% 25% 25%» Other 1% 0% 4% PROJECT MANAGER SKILL LEVELS Level of skills project managers exhibited on the organization s last three projects. (average rating of levels from 1 to 5, where 1=inadequate, 5=excellent) TECHNICAL PROJECT MANAGEMENT SKILLS» Keeping project aligned with business objectives » Managing multiple individual projects » Managing programs of related projects » Managing project communications » Managing project cost » Managing project human resources » Managing project integration » Managing project portfolios » Managing project procurement » Managing project quality » Managing project risks » Managing project schedules » Managing project scope » Managing project stakeholders » Managing virtual project teams » Setting/re-evaluating project priorities frequently Overall

21 Project Manager Skills Benchmark CROSS TABULATION: BY COMPANY SIZE LEADERSHIP SKILLS SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Being results-oriented » Building trust and respect » Coaching/mentoring » Communicating/listening » Having confidence » Conveying vision » Being decisive » Delegating authority » Displaying emotional intelligence/empathy » Displaying integrity and honesty » Influencing/persuading » Inspiring and motivating others » Leading by example » Building relationships » Setting goals and expectations Overall BUSINESS & STRATEGIC MANAGEMENT SKILLS» Analyzing data » Managing benefits realization » Possessing business acumen » Championing and managing change » Building consensus » Exhibiting a customer/growth focus » Developing others/managing talent » Acting entrepreneurial » Exhibiting knowledge of finance and accounting » Fostering diversity » Taking intelligent risks » Exhibiting knowledge of marketing and sales » Nourishing a quality mindset, e.g., Six Sigma » Planning strategically » Aligning strategy Overall

22 22 Project Manager Skills Benchmark 2015 CROSS TABULATION: BY COMPANY SIZE OTHER SKILLS SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Technical/computer skills/expertise » Industry/functional skills/expertise IMPORTANCE OF PROJECT MANAGER SKILLS Importance of the following project manager skills to organizations (average rating of importance from 1 to 5, where 1=unimportant, 5=very important) TECHNICAL PROJECT MANAGEMENT SKILLS» Keeping project aligned with business objectives » Managing multiple individual projects » Managing programs of related projects » Managing project communications » Managing project cost » Managing project human resources » Managing project integration » Managing project portfolios » Managing project procurement » Managing project quality » Managing project risks » Managing project schedules » Managing project scope » Managing project stakeholders » Managing virtual project teams » Setting/re-evaluating project priorities frequently Overall

23 Project Manager Skills Benchmark CROSS TABULATION: BY COMPANY SIZE LEADERSHIP SKILLS SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Being results-oriented » Building trust and respect » Coaching/mentoring » Communicating/listening » Having confidence » Conveying vision » Being decisive » Delegating authority » Displaying emotional intelligence/empathy » Displaying integrity and honesty » Influencing/persuading » Inspiring and motivating others » Leading by example » Building relationships » Setting goals and expectations Overall BUSINESS & STRATEGIC MANAGEMENT SKILLS» Analyzing data » Managing benefits realization » Possessing business acumen » Championing and managing change » Building consensus » Exhibiting a customer/growth focus » Developing others/managing talent » Acting entrepreneurial » Exhibiting knowledge of finance and accounting » Fostering diversity » Taking intelligent risks » Exhibiting knowledge of marketing and sales » Nourishing a quality mindset, e.g., Six Sigma » Planning strategically » Aligning strategy Overall

24 24 Project Manager Skills Benchmark 2015 CROSS TABULATION: BY COMPANY SIZE OTHER SKILLS SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Technical/computer skills/expertise » Industry/functional skills/expertise PROJECT MANAGER SKILLS EXHIBITED VS. IMPORTANCE Comparing the skills actually exhibited by project managers (see pages 10-12) vs. the importance of those those skills to the organization (pages 12-14) and showing the difference. TECHNICAL PROJECT MANAGEMENT SKILLS» Keeping project aligned with business objectives -10% -18% -14%» Managing multiple individual projects -7% -10% -12%» Managing programs of related projects -5% -9% -9%» Managing project communications -17% -19% -17%» Managing project cost -16% -22% -18%» Managing project human resources -13% -16% -11%» Managing project integration -11% -17% -17%» Managing project portfolios -7% -12% -14%» Managing project procurement -6% -8% -4%» Managing project quality -16% -22% -18%» Managing project risks -18% -29% -24%» Managing project schedules -14% -24% -20%» Managing project scope -15% -17% -21%» Managing project stakeholders -15% -23% -20%» Managing virtual project teams -2% -6% -3%» Setting/re-evaluating project priorities frequently -15% -19% -16% Overall -12% -17% -15%

25 Project Manager Skills Benchmark CROSS TABULATION: BY COMPANY SIZE LEADERSHIP SKILLS SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Being results-oriented -12% -16% -14%» Building trust and respect -11% -17% -16%» Coaching/mentoring -9% -12% -10%» Communicating/listening -18% -20% -20%» Having confidence -10% -12% -13%» Conveying vision -17% -17% -17%» Being decisive -15% -19% -13%» Delegating authority -9% -8% -8%» Displaying emotional intelligence/empathy -7% -10% -12%» Displaying integrity and honesty -9% -7% -10%» Influencing/persuading -15% -15% -15%» Inspiring and motivating others -15% -14% -15%» Leading by example -14% -11% -15%» Building relationships -13% -15% -14%» Setting goals and expectations -14% -16% -16% Overall -13% -14% -14% BUSINESS & STRATEGIC MANAGEMENT SKILLS» Analyzing data -7% -18% -7%» Managing benefits realization -15% -24% -23%» Possessing business acumen -11% -13% -16%» Championing and managing change -16% -25% -20%» Building consensus -8% -9% -11%» Exhibiting a customer/growth focus -8% -14% -17%» Developing others/managing talent -12% -11% -12%» Acting entrepreneurial -4% -9% -13%» Exhibiting knowledge of finance and accounting -9% -8% -13%» Fostering diversity 4% -2% 2%» Taking intelligent risks -14% -15% -14%» Exhibiting knowledge of marketing and sales -1% -6% -3%» Nourishing a quality mindset, e.g., Six Sigma -17% -17% -18%» Planning strategically -15% -25% -22%» Aligning strategy -13% -17% -19% Overall -10% -15% -14%

26 26 Project Manager Skills Benchmark 2015 CROSS TABULATION: BY COMPANY SIZE OTHER SKILLS SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B» Technical/computer skills/expertise -2% -1% 0%» Industry/functional skills/expertise -6% -3% -2% PROJECT MANAGER CHALLENGES Biggest challenges facing an organization s project managers on their last three projects (percentage of organizations facing the challenge)» Conflicts among team members 11% 7% 15%» Dealing with scope changes 40% 46% 39%» Having enough time to accomplish work effectively 29% 22% 41%» Inadequate support from project sponsors 43% 26% 26%» Lack of clarity in the scope of the project 44% 36% 38%» Organizational resistance to change 35% 22% 32%» Poor communication 27% 28% 31%» Projects not aligned with strategy 12% 18% 12%» Resource management issues 40% 44% 48%» Shifting organizational priorities 43% 31% 34%» Stakeholder engagement 30% 31% 25%» Unclear roles, responsibilities, authorities 31% 44% 39%» Unforeseen risks 25% 15% 21%» Unrealistic deadlines 41% 46% 42%» Vision and goals not well-defined 26% 19% 22%

27 Project Manager Skills Benchmark CROSS TABULATION: BY COMPANY SIZE SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B PROJECT RESULTS Extent that organizations realized the following results on their last three projects (average rating of extent realized from 1 to 5, where 1=to no extent, 5=to a very great extent)» Project customers were satisfied » Project team members were satisfied » Project schedules were managed optimally » Project budgets were managed optimally » Project scope was managed optimally » Project resources were allocated optimally » Project quality was managed optimally » Projects were aligned to the organization s business strategy » Projects were prioritized optimally » Benefits outlined in projects business cases were/are expected to be achieved Overall

28 28 Project Manager Skills Benchmark 2015

29 Project Manager Skills Benchmark CROSS TABULATION By Industry Respondent Profile FINANCE INFO. MFG. PRO. SVCS HEALTH Percentage of respondents with the following role» Chief Project Officer, CIO, or other C-Level 0% 9% 4% 8% 3%» VP or Director-Level Business Management 4% 0% 12% 6% 0%» VP or Director-Level Project Portfolio Management 11% 17% 24% 19% 7%» Head of the PMO (Director, Manager, etc.) 27% 37% 20% 19% 50%» PMO Staff Member 11% 3% 12% 8% 7%» Project/Program Manager 40% 29% 28% 26% 33%» Consultant/Trainer 4% 3% 0% 14% 0%» Other 2% 3% 0% 2% 0% Percentage of respondents whose organizations have the following annual sales (US$)» Less than $100 million 24% 44% 21% 60% 27%» $100 million to $1 billion 31% 27% 25% 14% 33%» Greater than $1 billion 44% 30% 54% 27% 40% Geographic region company s headquarters is located» North America 82% 62% 67% 71% 98%» Europe 11% 18% 30% 14% 0%» Asia/Pacific 2% 9% 4% 8% 3%» Middle East/Africa 2% 6% 0% 3% 0%» Central/South America 2% 6% 0% 5% 0% Service span of the responses» Enterprise 58% 35% 21% 55% 60%» IT 31% 21% 46% 20% 7%» Business unit (LOB) 9% 41% 33% 23% 30%» Other 2% 3% 0% 2% 3%

30 30 Project Manager Skills Benchmark 2015 CROSS TABULATION: BY INDUSTRY FINANCE INFO. MFG. PRO. SVCS HEALTH PROJECT MANAGER SKILL LEVELS Level of skills project managers exhibited on the organization s last three projects. (average rating of levels from 1 to 5, where 1=inadequate, 5=excellent) TECHNICAL PROJECT MANAGEMENT SKILLS» Keeping project aligned with business objectives » Managing multiple individual projects » Managing programs of related projects » Managing project communications » Managing project cost » Managing project human resources » Managing project integration » Managing project portfolios » Managing project procurement » Managing project quality » Managing project risks » Managing project schedules » Managing project scope » Managing project stakeholders » Managing virtual project teams » Setting/re-evaluating project priorities frequently Overall

31 Project Manager Skills Benchmark CROSS TABULATION: BY INDUSTRY FINANCE INFO. MFG. PRO. SVCS HEALTH LEADERSHIP SKILLS» Being results-oriented » Building trust and respect » Coaching/mentoring » Communicating/listening » Having confidence » Conveying vision » Being decisive » Delegating authority » Displaying emotional intelligence/empathy » Displaying integrity and honesty » Influencing/persuading » Inspiring and motivating others » Leading by example » Building relationships » Setting goals and expectations Overall BUSINESS & STRATEGIC MANAGEMENT SKILLS» Analyzing data » Managing benefits realization » Possessing business acumen » Championing and managing change » Building consensus » Exhibiting a customer/growth focus » Developing others/managing talent » Acting entrepreneurial » Exhibiting knowledge of finance and accounting » Fostering diversity » Taking intelligent risks » Exhibiting knowledge of marketing and sales » Nourishing a quality mindset, e.g., Six Sigma » Planning strategically » Aligning strategy Overall

32 32 Project Manager Skills Benchmark 2015 CROSS TABULATION: BY INDUSTRY FINANCE INFO. MFG. PRO. SVCS HEALTH OTHER SKILLS» Technical/computer skills/expertise » Industry/functional skills/expertise IMPORTANCE OF PROJECT MANAGER SKILLS Importance of the following project manager skills to organizations (average rating of importance from 1 to 5, where 1=unimportant, 5=very important) TECHNICAL PROJECT MANAGEMENT SKILLS» Keeping project aligned with business objectives » Managing multiple individual projects » Managing programs of related projects » Managing project communications » Managing project cost » Managing project human resources » Managing project integration » Managing project portfolios » Managing project procurement » Managing project quality » Managing project risks » Managing project schedules » Managing project scope » Managing project stakeholders » Managing virtual project teams » Setting/re-evaluating project priorities frequently Overall