FMI Corporation Releases Study on Project Management Failures and Success Factors

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 reasons behind project underperformance and provides insights for construction executives and project managers. Based on survey responses and interviews with 243 executives and 84 project managers, the study highlights that only 2.5% of firms consistently complete projects on time and within budget. It emphasizes the importance of project managers' involvement in estimating, which significantly boosts profit reliability. The study also notes that only 25% of executives strongly agree that project managers secure field leader buy-in before mobilization, a factor crucial for schedule performance. The report identifies three practices that distinguish high-performing contractors: early project manager involvement in estimating, structured pre-execution planning, and field leadership buy-in prior to mobilization.

Why It's Important?

The findings of the FMI study are significant for the construction industry, as they highlight critical areas where project management can be improved to enhance performance and profitability. By identifying key practices that lead to successful project outcomes, the study provides actionable insights for firms looking to improve their project management processes. The emphasis on early involvement of project managers and securing field leader buy-in can lead to more reliable profit margins and better schedule adherence, which are crucial for maintaining competitiveness in the industry. Firms that adopt these practices may see improved project outcomes, leading to increased client satisfaction and business growth.

What's Next?

The study is part of a series, with future installments set to explore disciplined execution and the evolving role of project managers as projects become more complex. These upcoming reports will likely provide further guidance on how firms can adapt to changing industry demands and improve their project management strategies. Stakeholders in the construction industry, including executives and project managers, may use these insights to refine their approaches and drive better project outcomes. The continued research by FMI could influence industry standards and practices, encouraging firms to prioritize effective project management as a key component of their operations.

Beyond the Headlines

The study's findings may have broader implications for the construction industry, particularly in terms of organizational culture and leadership. By highlighting the importance of project manager involvement and field leader buy-in, the study suggests a shift towards more collaborative and inclusive project management practices. This could lead to changes in how firms structure their teams and allocate resources, potentially fostering a more supportive environment for project managers. Additionally, the focus on measurable indicators of success may encourage firms to adopt data-driven approaches to project management, enhancing transparency and accountability.