#USA #consulting services #project management #Raleigh, North Carolina #FMI Corporation

Introduction

In an important announcement from FMI Corporation, a powerhouse in consulting and investment banking focused on the built environment, the first part of their much-anticipated 2025 Project Management Study has been released. Titled "Why Project Management Still Fails," this initial installment delves deep into persistent problems that plague the industry and offers actionable insights aimed at executives and project managers alike.

Key Findings

The study, drawing from the experiences of 243 executives and 84 project managers, reveals shocking insights about project performance. For instance, only 2.5% of firms claim that their projects consistently adhere to deadlines and budgets. This statistic calls into question the effectiveness of current project management strategies across the board.

Another startling finding is related to the involvement of project managers in estimating. When project managers take an active role in this stage, the reliability of profits sees a significant increase. Data indicates that the probability of reaching targeted profit margins rises from 55% to 78% when project managers are moderately involved in the estimating process. This underlines the vital importance of early engagement from project leaders.

Additionally, the report mentions the inadequacy of executive buy-in. A mere one in four executives expressed strong agreement that project managers obtain necessary support from field leaders prior to project mobilization—an essential step that has been linked to successful project scheduling and performance.

Leadership Insights

In the words of Tyler Paré, head of FMI Consulting's operations practice, “Our research confirms that the gap between good and great is measurable and begins well before the first shovel breaks ground.” He emphasizes that this report serves as a guide for identifying the essential indicators that leaders need to act on for improved results.

The report specifies three practices that consistently elevate high-performing contractors above the rest:
1. Early involvement of project managers in estimating.
2. Structured pre-execution planning.
3. Field leadership buy-in before mobilization.

When these strategies are put in place, they have the potential to standardize profit reliability and enhance schedule predictability significantly.

Changing Dynamics in Project Management

Gregg Schoppman, a partner at FMI, voiced concerns about the typical expectations placed on project managers. According to him, often they are tasked with delivering results without being endowed with the necessary influence or resources. However, successful firms are reshaping this narrative by placing project management at the core of their operational strategy.

Looking Ahead

FMI plans to release further parts of the study, with part two focusing on how high-performing firms manage disciplined execution, while part three will explore the evolving role of the project manager as project complexities increase. This forward-looking approach is vital as the landscape of project management continues to evolve.

Conclusion

The findings from FMI Corporation's 2025 Project Management Study offer critical insights that can transform how projects are handled across the construction sector. By identifying the root causes of underperformance and proposing effective strategies, FMI provides a blueprint for excellence that leaders in the industry would be wise to consider.

For those interested, part one of the study can be downloaded here.