The High Cost of Poor Project Performance

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The High Cost of Poor Project Performance

This is scary. These sobering facts from a recent PMI Report on the High Cost of Low Performers1 should be a big wake-up call:

  • Only 9 % of organisations rate themselves as excellent on successfully executing initiatives to deliver strategic results.
  • Only 56% of strategic initiatives meet their original goals and business intent. This results organisational loss of $109 million for every $1 billion invested in projects and programs.
  • High-performing organisations successfully complete 89% of their projects, whereas low performers complete only 36% successfully.
  • Low performing organisation waste nearly 12 times more than high-performing organisations.

Imagine an Industry were only 9% of players’ rate themselves as excellent and where 10% of budget is blown and, where, at the low end of the scale, only 36% of players complete successfully. Thank your lucky stars it’s not the airplane industry!

It is said that every picture tells a tale and this one certainly does.2

Process Maturity Leads to Success

If you’re one of the 9% who rate themselves as excellent in project management practice then congratulations however, if you’re not then where are you failing?

This diagram clearly shows the value of processes in best practice project management and that’s exactly what CALearning focuses on in organisational development: An agreed PM framework with shared and mandated project strategies, processes, tools, and templates.

Check out our model at


  1. PMI’s Pulse of the Profession: The High Cost of Low Performance (2014) Project Management Institute,(PMI) Accessed May 4th 2015 []
  2. Ibid. Figure 12: Process maturity leads to more successful strategic initiatives. PMI Feb 2014 p16. []
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