5 Industry Trends For Project Performance Management Adoption

March 12th, 2020

Enterprise Project Performance (EPP) software helps project-driven organizations maximize returns and margins. In today’s fast-changing landscape of engineering & construction projects, EPP adoption is sorely needed. Through better project performance management across an organization, EPP ensures ALL projects support business goals.

 

What is Project Performance Management?

 

According to the Project Management Institute, performance management aligns the objectives of the projects and programs to organizational goals. To successfully manage performance, you must also consider individual and departmental goals.

Concluding a project within the initial estimated budget schedule does not necessarily mean the project was a success. Nowadays, the success of a project also encompasses elements such as client acceptance, reputation of the company, alignment to the business strategy, ethical behavior, team cohesiveness, and so on.

Project Performance Management is continuous during the project, encompassing all project phases and project management processes (PMI).

 Project Performance Management Spans All Project Stages

Why Do I Need Project Performance Management?

 

The construction industry is changing. It’s growing in size, shifting its workforce, and entering an era of unprecedented technological advancement. Because of this uncertainty, the only way to thrive in this environment is to be proactive about managing all aspects of projects.

Using an EPP system to manage project performance will help you mitigate risks and overcome every challenge that exists when delivering capital projects.

 

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Top industry challenges include:

 

    1. Most projects are over budget and behind schedule: Almost all capital projects overrun by 30% or more. Complex mega-projects are especially vulnerable to this problem, but smaller projects also regularly experience higher-than-expected costs and schedule delays. Even small overruns can have a huge impact when multiplied across all projects in an organization.  Mega Projects Are in Need of Performance Management
    2. Increasing governance and compliance needs: The construction industry is fragmented and complex. Because this complexity is on track to deepen in the months and years to come, new solutions that drive governance and compliance are needed. To get an idea of how complex the construction technology landscape is, look at this map from McKinsey & Company:McKinsey & Company Mapped the Construction Technology Ecosystem
    3. Expected industry growth: To keep up with world growth and development, more construction projects will be called for each year. In fact, the world will need to spend an estimated $94 trillion on Infrastructure by 2040 to keep pace with demand.      Global Forecasted Infrastructure Investment by G20
    4. Skilled labor shortage: 10,000 baby boomers are retiring from the construction industry¬†every day in the United States alone. This is causing significant declines in construction productivity. A treasure trove of experience is simply walking out the door. Organization often don’t have a defined plan or mechanism to retain and institutionalize that knowledge. ¬† ¬† Increasing Talent Gap in the Construction Industry - Jobsite
    5. Construction industry is facing digital disruption: The construction industry has historically been slow to adopt new technologies. But game-changing advancements are now being embraced to improve efficiency, accuracy and productivity. And this is only the tip of the iceberg. To keep pace, organizations need to adopt the latest advancements or face the possibility of being less competitive. 
      The Construction Industry is Among the Least Digitized - McKinsey

Conclusion: Seize Your Opportunity for Significant Competitive Advantages

 

Even with all the changes and uncertainty to come, many companies will gain a competitive edge in the midst of the chaos. How? By using an EPP system to gain an effective mix of new project performance measurement tools and KPIs.

Using good project performance management practices helps you initiate, conduct, or complete many projects simultaneously. By creating a dynamic and balanced flow, you can ensure the development and survival of your organization. (Happy Projects!, Roland Gareis)

Hexagon, a world innovator and provider of EPP technologies like EcoSys, enables firms to execute all stages of a capital projects with confidence. Drive efficiency, keep control, increase predictability, and deliver successful projects.

Ready to learn more? Read the free new eBook, The Business Case for Enterprise Project Performance, to learn why EPP is so crucial in today’s evolving capital-projects environment. You’ll also learn how effective project performance management helps firms stay profitable and competitive while delivering capital projects.


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