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By Paul Bender,
Director of Public Administration Strategy, Oracle Primavera
It goes without saying that communication between project team
members is a core competency that connects every member of a project team to a
common set of strategies, goals and actions. If these components are not
effectively shared by project leads and understood by stakeholders, project
outcomes can be jeopardized and budgets may incur unnecessary risk.
As reported by PMI’s 2013 Pulse of the Profession, an
organization’s ability to meet project timelines, budgets and especially goals
significantly impacts its ability to survive—and even thrive. The Pulse study
revealed that the most crucial success factor in project management is effective
communication to all stakeholders—a critical core competency for public
agencies. PMI’s 2013 Pulse of the Profession report revealed that US$135
million is at risk for every US$1 billion spent on a project. Further research on the importance of
effective project team communication uncovers that a startling 56 percent
(US$75 million of that US$135 million) is at risk due to ineffective
communication. Simply stated: public agencies cannot execute strategic
initiatives unless they can effectively communicate their strategic alignment
and business benefits.
Executives and project managers around the world agree that poor
communication between project team members contributes to project failure. A Forbes Insights 2010 Strategic Initiatives Study
“Adapting Corporate Strategy to the Changing Economy,” found that nine out of
ten CEOs believe that communication is critical to the success of their
strategic initiatives, and nearly half of respondents cite communication as an
integral and active component of their strategic planning and execution
process. Project managers see it similarly from their side as well. According
to PMI’s Pulse research, 55 percent of project managers agree that
effective communication to all stakeholders is the most critical success
factor in project management.
As we all know, not all projects succeed. On average, two in five
projects do not meet their original goals and business intent, and one-half of
those unsuccessful projects are related to ineffective communication. Results
reveal that while all aspects of project communication can be challenging to public
agencies, the biggest problem areas are:
A gap in understanding the business benefits.
Challenges surrounding the language used to deliver
project-related information, which is often unclear and peppered with project
management jargon.
Public agencies -- federal, state, and local -- have difficulty
communicating with the appropriate levels with clarity and detail. This
difficulty is likely exacerbated by the divide between each key audience and
its understanding of project-specific, technical language. For those involved in public sector project
and portfolio management, I would be interested to hear your thoughts and
please visit Primavera EPPM solutions for public sector.
