Aberdeen Group survey: Project execution is key to recovery

London – A recent study by the Aberdeen Group shows that efficient project execution is one of the key drivers behind the success of the best businesses This found that best-in-class professional services companies deliver 91% of their projects early or on time and 96% of their projects within budget.

The study also revealed that these best-in-class companies are 57% more likely to have deployed an integrated solution based on best practices for their project management, project scheduling and project costing than their lower-performing industry peers.

This suggests that best practices must be deeply rooted in an organisation to consistently deliver projects on time and within budget. Research from Aberdeen Group indicates that the investment in a project execution solution, such as resource management software and ERP software packages, pays immediate dividends. Best-in-class companies achieved a year-on-year improvement in project profitability of no less than 37% against the industry benchmark of 14%.

Leading professional service organisations are adopting integrated project management solutions at a rapid pace and there is nothing dubious about the timing of this surge. Asked by Aberdeen Group to identify their top two business drivers, professional Services companies  cite increased competition – 50% of surveyed businesses – and declining business volumes – 37% – as their main drivers.

The surveyed businesses consider the consequences of these challenges to be dire. The overriding issue is lower profit margins caused by price cuts, cited by 48% of the surveyed businesses as one of their top two project-specific pressures. Second on the list is the increased need to optimise time-to-market on projects, cited by 35% as an urgent pressure.

“Businesses need to look at the current economic environment as an opportunity to build a long-term competitive advantage,” comments Neil Davidson, MD of ERP company Maconomy UK Ltd. “The most innovative and far-sighted companies will be able to consistently deliver their projects on time and under budget, keeping their clients happy and their bottom line healthy.”