The cross industry challenge

/The cross industry challenge
The cross industry challenge2018-01-30T09:31:19+00:00

Organizations are integrating technology to achieve strategic goals and objectives through large complex projects called programs.  If these programs are not managed well, organizational risk can occur.

McKinsey & Company – Oxford Research

McKinsey & Company in collaboration with the BTTT Centre for Major Programme management at the University of Oxford conducted a research study on more than 5,400 IT projects.  The research compared “budgets, schedules and predicted performance benefits with actual costs and results”.

The findings were “on average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted. Software projects run the highest risk of cost and schedule overruns (Exhibit 1)”.


The total cost overrun for the 5,400 IT projects studied was $66 Billion.

According to the research study, the “IT executives indicated the key to success lies in mastering four broad dimension:

  • Focusing on managing strategy and stakeholders instead of exclusively concentrating on budget and scheduling
  • Mastering technology and project content by securing critical internal and external talent
  • Building effective teams by aligning their incentives with the overall goals of projects
  • Excelling at core project-management practices, such as short delivery cycles and rigorous quality checks

According to survey responses, an inability to master the first two dimensions typically causes about half of all cost overruns, while poor performance on the second two dimensions accounts for an additional 40 percent of overspending (Exhibit 2).”


PMI Dinner meeting speaker feedback

In addition to research studies, the cross industry challenge has been shared through PMI dinner meeting presentations.  During a recent Chicagoland Chapter presentation, a senior executive stated “one of their key frustrations implementing strategic initiatives is they do not find out about issues until it is too late to fix”.  This particular speaker emphasized the need for open and honest communications about project and program status.  Her guidance…”I would like to know early about an issue so I have time to take corrective action.”

To learn about Hendon Group, Inc. and how we can help organizations with these cross industry challenges…Learn more.


McKinsey & Company, Michael Bloch, Sven Blumberg, and Jürgen Laartz, Delivering large-scale IT projects on time, on budget, and on value”,

PMI Chicagoland Chapter, Chapter Dinner Meeting speakers.

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