What's Happening?
FMI Corporation has published the first installment of its 2025 Project Manager Study, titled 'Why Project Management Still Fails.' The study investigates the persistent issues leading to project underperformance in the construction sector. It draws on data
from surveys and interviews with 243 executives and 84 project managers. Key findings reveal that only 2.5% of firms consistently complete projects on time and within budget. The study highlights the importance of project managers' involvement in estimating, which significantly boosts profit reliability. Additionally, securing field leader buy-in before mobilization is identified as crucial for schedule performance. The report outlines practices that distinguish high-performing contractors, such as early project manager involvement, structured pre-execution planning, and field leadership buy-in.
Why It's Important?
The findings of the FMI study are significant for the construction industry, as they provide actionable insights into improving project management practices. By identifying the factors that contribute to successful project outcomes, the study offers a roadmap for construction firms to enhance their operational efficiency and profitability. The emphasis on project manager involvement and field leader buy-in could lead to more reliable profit margins and better schedule adherence, potentially reducing costly delays and budget overruns. This could benefit construction companies by improving their competitiveness and client satisfaction, ultimately impacting the industry's overall growth and stability.
What's Next?
The study is part of a series, with subsequent installments set to explore disciplined execution and the evolving role of project managers in increasingly complex projects. These future reports may provide further guidance on adapting project management strategies to meet the challenges of modern construction projects. Stakeholders in the industry, including executives and project managers, are likely to use these insights to refine their practices and drive improvements in project outcomes.
Beyond the Headlines
The study's findings may prompt a cultural shift within construction firms, emphasizing the strategic role of project managers in achieving business objectives. By prioritizing project management as a core operational function, companies could foster a more collaborative and proactive work environment, leading to long-term improvements in project delivery and client relationships.
