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New Report: Organizations Can Reduce Risk By Improving Requirements Management CapabilitiesNEWTOWN SQUARE, Pa. --(Business Wire)-- According to the 2014 Pulse (News - Alert) of the Profession® In-Depth Report: Requirements Management - A Core Competency for Project and Program Success, recently released by Project Management Institute (PMI), organizations waste US$51 million for every US$1 billion spent on projects and programs due to poor requirements management. The report details the findings of a May 2014 research study, which set out to better understand requirements management in organizations and how these competencies can be improved to boost project success rates while reducing budget risk. The Pulse study found that, while many organizations lack maturity in requirements management (only 20 percent reported a high level of maturity), some are already taking steps to make improvements in these areas. More than one-half of respondents report focusing on more defined practices and processes (58 percent) and revisions to current processes (53 percent). Additionally, organizations are recognizing the need to create and maintain a higher standard of requirements management capabilities in their workforce, with 48 percent of study respondents reporting a renewed focus on employee training. The difference in maturity levels is dramatic: high-performing organizations waste almost 10 times less money on projects and programs due to poor requirements management than their lower-performing counterparts - about 1 percent of every dollar spent compared to 10 percent. PMI defines requirements management as the discipline of planning, monitoring, analyzing, communicating and controlling requirements. Within an organization, requirements management is most commonly handled by project managers or business analysts. It is critical for organizations to maintain a high level of competency in these interrelated functions. Effective project management depends on high quality requirement management and business analysis, which together ensure alignment to strategy before the project is initiated; deliver against scope, schedule and budget throughout the project lifecycle; and track benefits realization after the project closes. "In any project-oriented organization, requirements management maturity reflects that organization's ability to accurately interpret the voice of the customer," said PMI President and CEO Mark A. Langley. "Whether that voice is reflected by the business needs of internal stakeholders or the product demands of an external market, the message is clear: accurate and high quality requirements management -- within a sound project management framework -- is essential to the successful delivery of an organization's strategic initiatives." To enable more successful projects and business outcomes, the report suggests that organizations focus much more attention on three critical areas that can greatly improve the effectiveness of their requirements management and ultimately improve project and program success:
About this Report Research for PMI's Pulse of the Profession® In-Depth Report: Requirements Management - A Core Competency for Project and Program Success was conducted in May 2014 with responses from 2,066 project and program managers and business analysts. Additional in-depth telephone interviews were conducted with manager-level practitioners for the purpose of obtaining deeper insights into opinions and examples of situations, illustrating how effective requirements management contributes to project and program success. To download the full report, visit www.PMI.org/Pulse About the Pulse of the Profession/Methodology Conducted since 2006, PMI's Pulse of the Profession® is the annual global survey of project management professionals. The Pulse of the Profession charts the major trends for project management now and in the future. It features original market research that reports feedback and insights from project, program and portfolio managers, along with an analysis of third-party data. The newest edition of the Pulse features feedback and insights from over 2500 project management leaders and practitioners across North America, Asia Pacific, Europe, the Middle East, Africa (EMEA) and Latin America and Caribbean regions. To access PMI's Pulse of the Profession® please visit www.PMI.org/pulse. About Project Management Institute (PMI) Project Management Institute is the world's leading not-for-profit professional membership association for the project, program and portfolio management profession. Founded in 1969, PMI delivers value for more than 2.9 million professionals working in nearly every country in the world through global advocacy, collaboration, education and research. PMI advances careers, improves organizational success and further matures the profession of project management through its globally recognized standards, certifications, resources, tools academic research, publications, professional development courses, and networking opportunities. As part of the PMI family, Human Systems International (HSI) provides organizational assessment and benchmarking services to leading businesses and government, while ProjectManagement.com and ProjectsAtWork.com create online global communities that deliver more resources, better tools, larger networks and broader perspectives. Visit us at www.PMI.org, www.facebook.com/PMInstitute and on Twitter (News - Alert) @PMInstitute.
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