organizational agility in depth report

7/16/2019 Organizational Agility in Depth Report

http://slidepdf.com/reader/full/organizational-agility-in-depth-report 1/11

PMI’s

Pulse of the Profession in-DePth rePort

OrganizatiOnalagility


http://slidepdf.com/reader/full/organizational-agility-in-depth-report 2/11P P Oaaoal Al2

Study Highlights

Slow economic growth and shiting global market priorities have created a

complex, risk-laden business environment—one that rewards innovation yet

also threatens to derail projects. And there’s little question that global volatil-

ity will continue into the oreseeable uture, causing organizations to cancel

or delay projects.

Such a turbulent environment demands organizational agility, a trend

identied in PMI’s 2012 Pulse of the Profession report , based on an annual

global study o more than 1,000 project, program and portolio managers.

aking a deeper dive into the topic, PMI’s 2012 Pulse of the Profession

In-Depth Report: Organizational Agility ocuses on how organizational agility

impacts success and how to increase that agility.

o orge that agility, successul organizations are aggres-

sively reshaping their culture and business practices on a

three-pronged ront:

n Rigorous change management to better adapt to shiting

market conditions

n More collaborative and robust risk management

n Increased use o standardized project, program and

portfolio practices

Te report reveals a clear payof: Highly agile organizations

are twice as likely to see increased success with their new ini-

tiatives as their counterparts with low agility.

Oaaos o ha lss al oda

2008 2012

12%

54%

34%

23%

61%

15%

n Hh Al

n Moda Al

n Lo Al

Sources: Economist Intelligence Unit, Organisational Agility: How business cansurvive and thrive in turbulent times , sponsored by EMC, 2009.

PMI Pulse o the Proession In-Depth Report: Organizational Agility , 2012.



What Defnes Organizational Agility?

Here’s how respondents described the practices or characteristics o organizational agility:

Change

Q u i c k t o a d a p t

F l e x i b l e

Responsive

Seizeopportunities

Maintainast pace

Identifymarketshifts

Competitiveedge

rapidly

Quck espose osec oppoues

iedscppojec ems

75%

53%

64%

53%

59%

51%

54%

50%

53%

46%

Focus o chememe

Coecp

Shoe decso/poduco/evew cces

Emo o oo sos

ie voceo he cusome

Use o eve pojecmeme pcces

Focus o skmeme

leveechoo



Key Findings

A ComPetitive eDge

Due to the volatile economic environment over the last two to three years, only 45 per-

cent o organizations reported increased success with new initiatives.

45%

n Mo suss

nUhad o lss suss

Tose organizations that are successul report higher levels o organizational

agility—giving them a powerul edge on the competition.

Even beore the economic downturn, the role o organizational agility in providing

a competitive advantage was supported by a McKinsey survey. Nine out o 10 execu-

tives, spanning all regions and industry sectors, ranked organizational agility both as

critical to business success and as growing in importance.

In addition, nearly 90 percent o executives surveyed by the Economist Intelligence

Unit ranked organizational agility as vital or business success. One-hal o all CEOs

and CIOs agreed that rapid decision-making and execution are not only important,

but also essential to a company’s competitive standing.

Agility may also be linked to proitable growth: Research conducted at the

Massachusetts Institute o echnology suggests that agile irms grow revenue 37

percent aster and generate 30 percent higher proits than non-agile companies.

HigH AgiLity LOw AgiLity

iasd Suss 27%60%

55%

SUcceSS witH new initiAtiveS Over tHe pASt 2-3 yeArS



Done right, organizational agility provides rewards on multiple levels. PMI respondents

identied the ollowing benets o increased organizational agility:

The Takeaway: Greater organizational agilityleads to better perormance—providing organizations

with a powerul edge on the competition.

71% 54% 29% 25%55% 38%44% 27% 25%

Faster responseto changing

marketconditions

Organizationalchanges made

more quickly orefciently

Overallimproved

organizationalefciency

Fastercompletion o

projects

Improvedcustomer

satisaction

Improvedemployee

satisaction

More proftablebusiness results

Cost savings Improved riskidentifcation

and mitigation

Tere is, o course, no magic bullet or staying ahead, especially during tumultuous eco-

nomic times. However, organizational agility is proving to be a powerul tool in ensuring suc-

cess now and in the uture.

how to imProve orgAnizAtionAl Agility

Organizations cannot simply declare themselves more agile. Tey must make a concerted efort

to transorm three key areas:

1 Implement change management best practices

2 Implement risk management best practices

3 Standardize portolio, program and project management practices



92% o oos hh eecve che meme epohh o modee .

Moo d c o exe evome

Sdde che meme

Oe o bes evee che meme

BeSt prActiceS

thos oaaos mos ha maam do h hs b ha h

mmall ouas:

n Mos oaaos

n Mmall oaaos

The Takeaway: Organizations

eective at change

management are

more agile.

D ad alua has h xal om

esablsh omal ha maamosss as maam sa

esablsh a omaam of

wok aossoaaoal slos

Ass maas hos masosbl s ha maam

id ad lasfa has

imlm omal ha maamosss boh sd ad ousd o o

52%

88%

71% 67%50%

39%

75%

7%

26%

49% 14% 11%

12%

16%

1. KeeP uP with ChAnge

Whether due to anemic economic growth or the constantly morphing digital landscape, the

business environment is changing at an unprecedented pace. Yet some organizations manage

that volatility better than others through aggressive change management.

Organizations efective at change management are more agile, not only reducing the impact

o external changes, but also capitalizing on the opportunities they may present.

he Pulse of the Profession In-Depth Report: Organizational Agility reveals that 92percent o organizations highly eective at change management report high or moderate

agility. hat’s almost three times more than organizations that report minimally eective

change management.



The Takeaway: Organizations

eective at risk

management

are more agile.

90% o oos eecve sk meme epohh o modee .

Moo d c o exe evome

Sdde sk meme

Oe o bes evee sk meme

BeSt prActiceS

th ds b oaaos o hhl sk maam ad

hos o mmall sk maam ollo a smla a o h ha

maam fds abo.

O aa, hhl oaaos do h hs b ha h mmall

ouas:

n Mos oaaos

n Mmall oaaos

D ad alua sks h xal om

esablsh a omaam of

Ass maas hos masosbl s sk maam

id ad lasfa sks

72%

71% 60%

39%

2%

iao o husom

90%

36%

coduo ask

smlfao

84%

34%

coduo

la

80%

27%

47% 16%

6%

esablsh omal sk maamoss usd h ad

ousd o os

89%

20%

2. mAster risK

When organizations are orced to make rapid-re decisions, they can sometimes lose con-

trol. Efective risk management helps executives and project leaders identiy and mitigate

the actors that could sabotage success.

Te ndings on risk management echo those on change management, with 90 percent

o organizations efective at risk management reporting high or moderate agility. hat’s

more than double the organizations that report minimally eective risk management.



Sdded pcceshouh depmes

Sdded pcceso houh depmes

High Agility 7%

60% 51%

18% 42%

Moderate Agility

Low Agility

22%

Use pooo memews/oe

Use pooo memee/eve

High Agility 6%

57% 46%

25% 48%

Moderate Agility

Low Agility

18%

The Takeaway: Organizations that use

standardized practices

are more agile.

*Us alas o o

26% Al a o maam os o oolo maam

23% ia hqus*

22% po ask smlfao*

22% Al a o maam os o oam maam

18% poolo maam*

18% idsla o ams*

17% ia o o h usom*

17% rsk maam*

17% cha maam*

17% rsou maam*

17% cha oss usd h ad ousd o os

16% poam maam*

15% rsk oss usd h ad ousd o os

14% Fomal sk oss

14% Fomal ha oss

12% Study Average

3. stAnDArDize PrACtiCes

Faced with changing economic conditions, priorities and demands, organizations have to act

ast. But a solid oundation o portolio, program and project management practices is still a

must.

When organizations standard-

ize their project management

practices throughout all depart-

ments, they are three times aslikely to report high agility than

their counterparts that don’t.

Te study also shows that orga-

nizations that always or oten use

portolio management are three

times more likely to report they

are highly agile than those that don’t

use portolio management.

Te report urther highlights

the need to improve agility. Only

12 percent o organizations char-

acterized themselves as highly

agile. But the data also reveals

standardized practices that highly

agile organizations said they use always or oten:



prOject SUcceSS MetricS By LeveL OF AgiLity

73%

44% 47%

75%

59%

83%

40%

71%

O me O bude Mee osd busess

objecves

Mee/exceedrOi

n Hh Al

n Lo Al

the PAyoff

Agile organizations lead the pack. I project leaders and executives work together to build

greater agility, they can solve problems, take smarter risks, and deliver innovative prod-

ucts and solutions to market aster—all leading to greater success.Consider this: Te average percentage o projects completed on time, on budget,

achieving business objectives and orecasted ROI is signicantly greater in organizations

reporting high agility than those reporting low agility.



Greater

Organizational

Agility

45%

40%

15%

to

The End Result

Better

Perormance

Improved

Competitive

Advantage

= =

n S asd suss

nUhad

n S dasd suss

57%

37%

7%Sddedhouh

depmes

65%

31%

4%Eecve che

meme

3%Eecve

skmeme

71%

26%

ConClusions AnD imPliCAtions

PMI’s Pulse of the Profession In-Depth Report: Organizational Agility demon-

strates that organizations are increasing their success rates on new projects, even

in a weak global economy, with high agility. o survive—and indeed thrive—in

today’s competitive marketplace, organizations must build their agility by imple-

menting risk management, change management and standardized practices

across the enterprise.

prActiceS tHAt LeAD tO AgiLity LeAD tO greAter SUcceSS

By investing in the three core practices outlined above, organizations improve

agility—giving them that elusive edge in a ast-paced, dynamic market.



tHe OrgAnizAtiOnS repreSenteD Are LOcAteD in:

SOMe OF tHe inDUStrieS repreSenteD Are:

tHeir AnnUAL revenUe iS:

OF tHOSe SUrveyeD:

OF tHOSe FiLLing A prOject MAnAgeMent rOLe:

nohamec

48%

l amecd he

Cbbe

15%

Euope, he

Mdde Esd ac

22%as-Pcfc

15%

22% a o maas

20% a dos o o maam/

o maam of12% a oam maas

8% a oolo maas

7% a o maam osulas

4% a o maam salss

72% fll a omaamol

18% axus

8% auoalmaas

iomo techoo

6%goveme

6% teecom

6% Cosuco

23%

13% Cosu

11%Fc Sevces

n less h US$50 mo

n Bewee US$50 mo d US$1 bo

n Bewee US$1 bo d US$5 bo

nOve US$5 bon Dd o epo he eveues

32%

28%

13%17%10%

About the stuDy

PMI’s 2012 Pulse of the Profession In-Depth Report: Organizational Agility was con-

ducted in August 2012 among 1,239 practitioners around the world who are involved in

project management.

organizational agility in depth report

Documents