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Project Offices and Governance Practices Minimize Project Redundancy — Reducing Company Costs
January 24, 2005, Alexandria, VA-A study released today found that organizations
with established governance practices, processes, and accountability activities in place
showed a lower level of redundant projects and initiatives in their organizations. Additionally,
those organizations with both a project management infrastructure–such as a project management
office (PMO)—and governance and accountability practices were even less likely to have redundant
initiatives. This finding is the result of a survey conducted by Robbins-Gioia, the leading
program management consulting firm, with approximately 350 senior-level IT and project
professionals at the Project World conference in Washington, D.C., September 27–30, 2004, and
the Project Management Institute’s annual symposium in Anaheim, California, October 26, 2004.
The survey revealed that the majority of organizations committed to governance practices,
processes, and accountability activities had little project redundancy. Of those organizations
with less than 10 percent redundancy in projects and initiatives, nearly 75 percent indicated a
commitment to governance practices, processes, and accountability activities. Additionally, those
organizations that have an infrastructure in place to manage and oversee major initiatives also
had notably fewer redundant projects across their businesses. Of those organizations with less
than 10 percent redundancy, more than half (56 percent) had a PMO infrastructure in place to
manage and oversee major initiatives.
Consequently, organizations with both governance practices and PMOs experienced even lower
project redundancy. Seventy-eight percent of those with both governance and PMOs in place reported
less then 25 percent project redundancy in their organizations.
Jon Love, Robbins-Gioia executive vice president, noted that the trend toward oversight entities
like project offices and sound business practices emphasizing accountability indicates the growing
importance of governance across the board. Companies can reduce spending and better utilize resources
if they can reduce duplicative efforts. "These findings confirm that greater oversight, attention,
and accountability—in other words, governance and project management—are driving improved efficiency,"
said Love.
The study provides insight into recent trends toward the increased importance of governance practices.
According to "Recipe for Good Governance" (CIO, June 15, 2004), companies with better than
average IT governance earn at least a 20 percent higher return on assets than organizations with weaker
governance and project management practices. The article notes that MIT research findings suggest that
good IT governance makes companies more successful by establishing coordinated mechanisms that link
objectives to measurable goals.
About Robbins-Gioia
Robbins-Gioia has been dedicated to delivering management consulting solutions to
government agencies and Fortune 500 companies for more than 20 years. Robbins-Gioia
combines thought leadership, disciplined processes, industry-based knowledge, and
integrated tools to help global customers optimize their business processes, accelerate
change, and establish time, cost, and quality improvements to transform their businesses.
For more information, please call Robbins-Gioia, LLC at 800-663-7138, or visit the
web site at www.robbinsgioia.com.
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