Most Read Contributor in South Africa, September 2016
The downturn in economic markets has forced organisations to
establish projects that focus on generating revenue to survive the
slump. New insights1 has revealed that 40% of projects
are established for business imperatives and 30% are focused on
revenue generation. The other reasons for establishing projects
represent less than 10% each and are to reduce costs, implement
changes due to regulatory requirements and to replace obsolete
An assessment of the average size of projects reveals that a 31%
are valued under $1million with 36% valued between $1million and
$10million. The largest industry sector was information technology
(22%) followed by consulting (12%) and banking & capital
markets (8%). Two-thirds of the projects were established in the
private sector and a third in the public sector. A quantitative
assessment of the average size of projects reveals that the
majority of projects established in South Africa would be covered
by the smallest two sizes of projects (67%).
A similar study focusing on IT-based business
projects2 found that 68% of projects fail or only
delivered partial success. The assessment of the projects found
that 32% delivered the original project objectives on time and
within budget whereas 44% fell short of expectations in terms of
the scope, budget and time line. The biggest concern is that 24% of
projects failed to deliver the project and were classified as
The top three contributors to the poor performance of projects
revealed that poor estimation, lack of executive sponsorship and
poorly defined goals and objectives account for 53% of the issues.
Changes in scope mid-project, insufficient resources and poor
communication complete the top six contributors and account for 78%
of the issues causing the poor performance of projects. The most
worrying concern is that poor estimation is the single biggest
cause of poor performance and is the largest worsening trend.
Our team of project auditors can help you to overcome the issues
that are hampering the performance of your projects so that they
can meet their objectives on time and within budget. We can help to
redefine the project, improve stakeholder commitment, resolve
problematic issues, improve communication and provide experienced
recovery expertise. We can manage the recovery or provide mentoring
services. We have successfully recovered distressed projects across
a wide variety of industries in the private and public sector and
can do the same for you.
1. PWC, Insights and Trends, Current Portfolio, Programme
and Project Management Practices, 2012 (1,524 respondents from 38
countries and within 34 industries)
2. PWC, On budget, on time, on scope, 2012
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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