Project management, PM, is an essential part of every project across industries. It’s needed more today than ever before.
Without project management, things in the workplace are apt to go awry. That’s why we gathered this list of statistics for your consideration.
It doesn’t matter where you fall within the chain of project management when reading these statistics. It can, however, open your eyes to the impact it has all over the globe and in all industries.
New and innovative technologies are quickly emerging in the project management sector. This has caused the Project Management Institute, PMI, to regularly revise and update their certification exams and standards.
Currently, Scrum is the most used project management approach available.
The Scrum project management technique is a subgroup of the Agile Practice Guide that provides the tools, guidelines, and understanding of project management approaches to create an agile flow. It uses boxed iterations that they refer to as ‘sprints’.
These ‘sprints’ are ideal for organizing an incremental flow for project management managers and team members.
Within each sprint, there is an actual working product they call the increment.
It’s common for organizations to utilize PM tools and software to manage their array of projects where they are placed into a central location for documents.
This is how the project flow is shared across team members, and how it is tracked to see how the project is progressing.
In other words, the right tools and resources are perfect for team collaboration and for creating the ideal workflow for effective and efficient project management.
The following information will deliver top information on project management statistics to expedite your knowledge of the industry, how it’s developed, and where it’s going.
- Companies without solid project management delivery systems are more likely to miss deadlines and spend more money.
- According to 73% of today’s business leaders, there are three vital requirements of project management software.
- The percentage of companies that make project management a priority is only 46%.
- 67% of projects fail due to the undervaluation of project management.
- 52% of survey respondents claimed to be somewhat or very dissatisfied with their existing level of PM maturity in their companies.
- Only 23% of companies utilize software programs specifically designed for project management.
- 80% of project managers say that having access to the appropriate PM portfolio management is crucial to persuading primary decision-makers.
- About 44% of all managers do not believe in the importance of PM software.
- Project managers make over $66,000 annually from January 2021 data.
- 6% more companies hired project managers as employees between 2019 and 2020.
Detailed Project Management Statistics 2023
How productive are companies with solid project management planning and resources? Let’s see how this part of the industry holds up in the data.
1. Companies without Solid Project Management Delivery Systems Are More Likely to Miss Deadlines and Spend More Money.
Companies that do have a complete value-driven project management process are more apt to meet project goals compared to companies that do not have a solid PM process.
Statistics show it’s a difference of 77% in productivity and 56% productivity, which is significant in PM.
Also, project failure is less likely by 10% for using a good program, and less apt to suffer from scope creep by 17%.
2. According to 73% of Today’s Business Leaders, There Are Three Vital Requirements of Project Management Software.
These business leaders say that the three top requirements for PM software are ease of use, ease of integration, and reliability.
They also feel that the existing available software options don’t have these important elements.
It’s surprising in this world of sophisticated technology and advanced software programming that there is not yet a project management program that meets the top needs in this industry.
3. Poor PM Planning Results in 11.4% of An Organization’s Resources Being Wasted.
One of the goals of project management is to strive to plan for all kinds of problems and outcomes to produce a solid and viable PM plan that will reduce expenses and properly use valuable resources.
It’s not good enough for a PM manager to slack on project management. There is so much more to this industry that is vital to the success of a business. Obviously, there is a lot of opportunities for growth.
Prioritizing Project Management
This section of PM statistics will discuss how companies prioritize PM and its resources.
4. The Percentage of Companies that Make Project Management a Priority Is only 46%.
A company culture that prioritizes PM, is more likely to stay within its budget compared to those who don’t. That is a difference of 67% and 46% for staying within the budget.
Moreover, using project management software and tools promotes on-time delivery compared to companies that don’t use this kind of software.
The difference? With PM as a priority, software on-time delivery is 63% but without it, it’s 39%.
5. 67% of Projects Fail Due to The Undervaluation of Project Management.
Due to the lack of attention to the importance of project management software and solutions, companies have experienced project failures up to 67%.
Imagine that organizations that fail to implement a viable PM planning resource, also fail on more than half of their projects.
Even though PM software may not yet meet all the demands of project management, it’s still a valuable resource.
It’s likely that this kind of software will improve in a short time as more feedback is given.
6. Only 23% of Companies Utilize Software Programs Specifically Designed for Project Management.
We think it’s a sobering thought that so few organizations are using software that is designed specifically for project management.
This statistic is a bit startling since the need to prioritize PM is so crucial.
If you’re involved in making decisions for your organization, and it’s not using project-management-specific software, consider looking into that. It will be the coming thing to do.
Statistics for the Urgency of Project Management 2023
Why is PM in such demand today more than ever?
Let’s check the statistics for this area.
7. 52% of Survey Respondents Claimed to Be Somewhat or Very Dissatisfied with Their Existing Level of PM Maturity in Their Companies.
This number has increased from 45% in 2016. Survey respondents consisted of employees working for a variety of companies.
Those who are involved with the everyday management of software projects each face various difficulties.
Most company employees understand the advantages of implementing viable project management approaches. However, their hands are tied due to the roadblocks that are often set before them.
9. 80% of Project Managers Say that Having Access to The Appropriate PM Portfolio Management Is Crucial to Persuading Primary Decision-Makers.
Project management portfolios are considered the most vital element in persuading the key decision-makers of an organization.
The portfolio shows the work done by project management professionals in a way for all to understand.
It is within this element of project management that helps the upper management staff of a company to make informed decisions. PM portfolios can make or break getting a project approved.
10. Around 33% of PM Managers Didn’t Get Full Permission from The Company to Purchase Project Management Software.
The problem with project management software is that some companies don’t realize its value to the overall success of the company’s projects and success.
As a result, PM professionals frequently get pushback from upper executive management and corporate stakeholders.
If only everyone in an organization could agree on project management best practices, this wouldn’t be a problem.
It’s challenging enough for PM managers to do their jobs without the necessary tools and resources needed to maximize productivity and delivery.
Project Management Market Statistics
What does the current project management market look like in the data?
11. About 44% of All Managers Do Not Believe in The Importance of PM Software.
Unfortunately, not everyone in management or in a company believes that PM software is expedient.
The lack of confidence in PM software could potentially prevent a company from implementing this innovative solution. As a result, they will be preventing themselves from enjoying the benefits.
If a software program is specifically designed for project management, it exists to make life easier for project management professionals.
Also, how can these companies provide feedback to improve this kind of software in the future?
12. Microsoft Excel Is Still Used by 35% of Project Managers for PM.
Even though there are better and more efficient PM software resources, 35% of project managers seem to stay in their comfort zones with Microsoft Excel as a tool.
We aren’t saying that Excel is a bad option, but it’s not exactly designed for project management like more specific programs are.
Excel certainly has its place in many industries for a variety of purposes, but for PM, it’s simply not dynamic or powerful enough to be effective or efficient.
If anything it will likely cost them time, resulting in losing revenue from being less efficient with PM.
A Career In Project Management
Are you considering a career in project management? If so, you will want to read this.
13. Project Managers Make Over $66,000 Annually from January 2021 Data.
While the average salary for project managers is about $66,000 per year as reported in January 2021, it’s not the lowest paying career one can enter.
Some people think this annual salary is too high, some think it’s too low, and others feel it’s just right.
One of the reasons for the controversy surrounding this salary is that this role doesn’t always require a bachelor’s degree.
Instead of thinking of it at the educational level, perhaps we should be considering the skill and abilities level for the role. One can be trained specifically for PM and get certified.
14. In The US, There Are Around 1,279,290 Project Managers.
Over 1 million people work as project managers. What this should tell you is that this career is in high demand.
If you’re on the fence about becoming a project manager, this statistic should lift your spirits about it.
There are many project management opportunities across the globe. The pay and job description may vary depending on the location and company.
You should dig into this and find out more before you decide.
15. 6% More Companies Hired Project Managers as Employees Between 2019 and 2020.
Project managers, as an employee, rose by 6% between 2019 and 2020.
It seems more companies realized the value of having someone to head up their project management process.
These project managemebt statistics show that more organizations are beginning to realize the value of project managers in their staff.
That is likely to increase in the coming years, if the trend holds fast, which means there will be more career opportunities in this sector.
16. Of The Companies that Employ Project Managers, 61% Offer a Progressive Career Roadmap for Upwards Growth.
One of the elements that job seekers look for in a company today is the ability to move up the ladder. No one really wants to be stuck in a dead-end job.
Knowing that over half of the companies that employ project managers do offer a path to progression in this career should be enough to encourage you.
Another 47% of the 61% offer clearly defined and precise options for job progression. This certainly shows a lot of potential in this career.
If you’re already getting your education in PM, this statistic is good to know.
17. Earnings of 22% More Are Available to Professionals Who Obtain Their PM Certifications Over Those Who Don’t.
Becoming a project management professional, PMP is imperative if you plan to enjoy success in this career.
The Project Management Institute shows that professionals who obtain their certifications can earn 22% more than their counterparts without these qualifications.
Certifications in certain career fields can carry more weight than a college degree.
Depending on where you live and the companies hiring project managers, you may be able to improve your earnings with a certification.
What Is Project Management?
As you might guess, this job is about managing projects. That’s the simple definition. Here’s the detailed definition. PMI defined project management this way:
“Project management is the use of specific knowledge, skills, tools, and techniques to deliver something of value to people.”
Examples of project management can be found in the construction industry, sales expansion in new locations, and natural disaster relief projects.
Essentially, projects are categorized as temporary efforts to create value via a service or product. Projects in PM have a beginning and an end.
Project management includes budgeting, scheduling, and project-specific expectations.
What Is the Role of The Project Manager?
There are duties to be carried out by a project manager, which include the following:
Ensuring the Project Doesn’t Fall Apart During Its Implementation
Project managers are responsible for planning and managing a distinct phase or project.
They must make sure that the team has what they need to perform their duties, make adjustments as needed, and resolve team member issues accordingly.
Project managers also ensure the organization’s values are maintained during implementation. The tools they can use help to ensure that their projects run well.
Ensuring that The Team Members Function as An Organized Unit
Project managers must be able to ensure that clear communication is part of the project for all team members.
Since performance relies on real-time communication between the project manager, team members, stakeholders, and clients, the project manager has their work cut out for them.
Lack of communication can result in project failure. As a matter of fact, it’s one of the leading causes of failed projects.
A good project manager, PM can ensure failure is not an option.
Part of ensuring viable communication also means handling conflicts between team members, employees, and anyone involved in the project.
What do you think of the average salary of $66,000 per year now?
Making Sure Quality Standards for The Project Are Met
Quality is an important factor of PM. Poor project management results in low-quality standards that are likely to adversely impact the final product.
Project managers must be able to make sure that everyone involved in the project management team sticks to the necessary quality control standards.
Also, if quality standards are infringed, the PM must be ready to address the issue with proper steps for unacceptable behavior.
Removal of a team member should be a last resort unless the infraction is egregious.
Advanced Project Planning
Project management is akin to project planning, so project managers should be able to plan projects in advance.
They do so using the client’s list of requirements, which should include quality standards, completion deadlines, and other client expectations.
Training for project management is focused on planning as an essential element of the overarching process. PM training also prioritizes planning as a key component of success in the end.
Project plans include the necessary steps for task completion, or whatever phase the manager is managing. Documentation that is clear and concise is crucial at this phase.
Some documents that may be required include quality control records, team member resumes, timetables for the various phases of the project, and cost analysis reports.
Tracking Project Resources
The PM is responsible for ensuring that the necessary resources are available for the project from start to finish.
Tracking these resources while also keeping the team members updated is all part of the process.
Deadline adherence is another important part of project management. Today, PM software is a functional tool to help keep project managers and team members on track.
The goal is to meet specific project goals for each phase and the final outcome.
This requires a great deal of skill in time and organizational management.
Meetings for Projects
Project managers must attend all the relevant project meetings. Some of these meetings will be scheduled by the PM, while others will be scheduled by the client or upper management.
Everyone needs to be kept in the loop of every project. These meetings will update everyone on the progress of projects.
They are also necessary for getting feedback and for making sure all parties are satisfied with the process made at a given time.
Yes. Project managers are also risk management professionals. Training in PM is helpful for this aspect of project management. This part of PM is more complicated than most others.
It requires a lot of attention to detail since you’re trying to prevent problems during the project.
Since things happen that are out of your control, you need risk management planning to resolve them quickly.
You can see why this element of PM is complex and challenging. Everyone has to put in 100% for risk management.
It involves 100% effort and more time than some other aspects. It helps to have risk management features in your PM software that can help during every phase.
What are Project Methodologies?
Methodologies are simply different ways of doing things. For project management purposes, methodologies need to be efficient and effective.
Here are some popular PM methodologies you may or may not be aware of.
• Kanban Methodology
• Waterfall Methodology
• Scrum Methodology
• Agile Methodology
Let’s have a brief overview of these methodologies.
This PM approach uses visualizing of tasks to encourage smooth operations throughout the project.
This can be revised as needed to accommodate project changes. The Kanban methodology takes less advanced planning since it’s designed to be adaptive.
Therefore, it will change according to how a phase or element of a project progresses.
One of the original OM types is the waterfall methodology, which is still used today.
This method ensures that the team is coordinated and is working towards the common goal of said project.
One step at a time is completed before beginning another phase in this method.
Often used alongside the Agile methodology, scrum is a popular method. Its name comes from the game of rugby, the very sport that inspired the methodology.
This solution is focused on doing things correctly through prioritizing quality products that are created over a period of time.
The idea is to maximize productivity by promoting a team environment that is suited for the open exchange of ideas and discussions.
As the name implies, the agile methodology is a flexible approach to PM. This method lets team members work together in making changes to enhance the phases of a project.
It makes use of incremental development in project creation. It was initially designed to replace the waterfall methodology.
This methodology is a collaboration and self-organization ideal to encourage the completion of tasks and the meeting of goals in efficient and effective ways.
What Are Project Management Certifications?
There are several PM certifications designed to help people improve their resumes.
The most common of PM certifications is the PMP or the Project Management Professional certification.
The Project Management Institute offers this certification, which can be obtained either through training or experience.
What Is the Status of Project Management Over the World?
The growth of project management has shown that it’s quickly becoming an essential part of most businesses.
Since project managers are in such high demand nowadays, the opportunities are abundant and will likely increase.
For people with PM certifications and technical skills, there is a wide range of possibilities in the project management sector.
You will find that some companies use PM every day, while others only use it as needed for specific projects.
Artificial Intelligence, AI is starting to play a major role in PM to help businesses be as efficient as possible for their project management initiatives.
However, this won’t make a huge impact in this career field just yet.
Are There Any Drawbacks to Project Management?
When projects fail, it can adversely and significantly cause damage to a company.
First, it reflects badly on the project manager, which can result in job loss.
Just like most aspects of doing business, PM has its standards in successes and failures they deem acceptable.
Costs, delays, and other failures can cause project failure.
Project management is one of these careers that doesn’t always require a degree. A person with project management certifications, experience, and skills can jump into this career field.
These project management statistics for 2023 reflect project failure statistics, as well as success, but that ultimately comes down to the organization making good hiring and recruiting decisions.
If you’re a company considering employing a project manager, it’s important to find a qualified person to take on the role.
The success of your project depends on how good a PM is at their job. This may result in hiring someone with a proven track record.
Experienced and skilled project managers are in high demand. This demand is expected to increase in the coming years.
This is an amazing time to be a well-trained and experienced PM who can take the reins and follow through on a project to success.
Whether you’re a job seeker looking for project management jobs, or a business on the fence about hiring a project manager, the above statistics for 2023 should provide invaluable data for you.