Research Summary: With a constant flow of new technology, project management software is always evolving. Where choosing agile or waterfall project management methodologies was the norm just a few years ago, now companies look to hybrid models and other new and interesting alternatives.
To find out more about where project management currently stands and where it might be heading, we’ve gathered all of the most interesting trends and statistics about project management software. According to our extensive research:
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77% of high-performing projects use PM software.
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42% of companies don’t value the importance of project management.
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29% of projects fail due to an inaccurate time estimation.
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70% of global project management projects fail.
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11.4% of all project resources are wasted to inferior project management practices.
For further analysis, we broke down the data in the following ways:
Management | Job | Failure | Success
General Project Management Statistics
Project management is always shifting and changing, which means general information about it is as well. To understand more about the here and now of project management, we’ve gathered some essential facts and statistics:
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93% of organizations have standardized project management practices.
Despite the differences in different projects, research has found that a standardized project management practice (SPM) is the most effective method of conducting projects. Some of the major benefits of SPM include:
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Easier handoffs
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Shorter learning curves
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Cooperative teams
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Continuous improvement
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Better client experiences
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61% of organizations use SaaS project management tools.
SaaS is very popular in the project management industry. In fact, SaaS is almost everywhere, with 80% of businesses already using at least one SaaS application.
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46% of organizations make project management a cultural priority.
Despite the many signs that project management is beneficial for companies, a lot of them are still falling behind in making it a priority. Some of the major benefits associated with an established project management culture are being more likely to meet goals, stay within budget, and finish projects on time.
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The top PM software SaaS company is Atlassian, with a 42.96% market share.
Others among the top five companies include: Microsoft (11.51%), Airtable (6.77%), Smartsheet (5.31%), and Kanban (4.67%).
Company Technology Companies Using Market Share Atlassian Jira 76,693 42.96% Microsoft Mircosoft Project 20,552 11.51% Airtable Airtable 12,090 6.77% Smartsheet Smartsheet 9,480 5.31% Kanban Kanban 8,331 4.67% Asana Asana 5,615 3.15% Notion Software Notion Software 4,711 2.64% Hive Hive 4,153 2.33% Trello Trello 2,893 1.62% Coactiv Clubhouse 2,293 1.28%
Project Manager Job Statistics
Project management software wouldn’t be possible without the project managers who toil away. To find out more about what it’s like on the job, here are some key facts and statistics:
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Only 35% of project managers are at least somewhat happy with the systems they have in place.
The lack of making project management a culture priority has led many in the field to be unsatisfied with the systems in place. Overall, half of all project managers are not happy with the systems in place.
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US project managers with a PMP certificate earn 32% more than project managers without one.
That’s the difference between a project manager making $65,000 per year or over $85,000 per year. And while the numbers in the US are especially stark, this trend is true globally as well. Worldwide, project managers with a PMP certificate earn 16% more than those without.
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59% of project managers work on two to five projects at a time.
This is by far the most common number of projects being run at one time, as only 15% of project managers work on only one project at a time, and only 15% work on over ten projects at a time.
Number of running projects Share of project managers 1 15% 2-5 59% 6-10 11% 10+ 15%
Project Failure Statistics
The truth is that a majority of projects fail, but that doesn’t mean companies can’t learn from their mistakes. Here are some examples of failure and why it occurs in project management:
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70% of companies have had at least one project fail within the past year.
It’s incredibly common for at least one project to fail, which is why many project managers are taking on two to five projects at once. With multiple projects running, it’s more likely that at least some of those projects will succeed.
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38% of workers spend 5+ hours per week on tedious tasks that require no creativity.
On the flip side, 81% of workers say they spend less than 3 hours a day on creative work. Both of these factors combined are a recipe for burnout and can damage the progress and quality of a project.
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Only 14% of organizations have the ability to track KPIs in real time.
Further, less than 9% of executives track KPIs in real-time, meaning that the vast majority of businesses are missing out on this vital tool.
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44% of projects fail due to a lack of clear goals.
Due to the volatile nature of new technology, a lack of goals can quickly cause project stagnation. When projects don’t have goals, they can lose touch with customer demands and become unable to leverage the expected economic growth or mitigate losses.
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30% of projects fail due to poor communication.
Given that 90% of projects require team participation rather than individual responsibility, poor communication can be devastating to the chances of success.
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Only 43% of companies either mostly or always accomplish projects within budget.
Even worse, many companies don’t even track their budgets at all. That doesn’t seem like a good move when the majority of projects fail.
Project Success Statistics
Fortunately, it’s not all doom and gloom in the project management industry. There are key factors and statistics that go into project success, and these include:
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Companies with proven PM practices waste 28x less money.
That’s the difference between spending $10,000 or $280,000 on a project, which is kind of a big deal.
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Companies with a project management system are 37.5% more likely to meet goals.
Companies with a project management system meet 77% of their goals, while the companies that don’t only meet 56% of their goals.
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44% of innovative companies use Agile methodology.
Just under half of all companies have been applying Agile practices for over three years. As a result, this methodology has proven to be an efficient method of change and transformation.
Project Management Statistics FAQ
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What percentage of a project’s cost is project management?
Project management typically accounts for 7%-11% of a project’s total cost. Generally speaking, projects can be divided between small, medium, or large projects.
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Small Projects: Projects that cost $100,000 total or less, project management would cost an average of $7,000-$11,000
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Medium Projects: Projects between $100,000 and $1 million, where the project management costs are typically between $7,000-$110,000
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Large Projects: Projects that cost between $1 million and $10 million, where project management costs typically fall between $70,000-$1,100,000
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What is the success rate of projects?
Most projects have a success rate of 56%. However, there are many factors that go into this rate. For example, project teams with a mature system usually meet 77% of their goals.
On the contrary, there are many factors that cause projects to fail. The truth is that 70% of global project management projects fail due to a lack of goals, timely execution, and poor communication.
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Why do 70% of projects fail?
There are many reasons why projects fail. For instance, 44% of projects fail due to a lack of clear goals, and 30% fail due to poor communication. But there are many other reasons as well, including:
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Scope Creep. When a project begins to extend beyond its original purpose, this can be cause for concern. Uncontrolled changes can eventually cause delays and inefficiencies.
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Overallocated Resources. When resources aren’t clearly allocated, it can cause certain proacts to receive too many, even if they’re failing. Issues can also arise when there are too many projects going on at once, consuming too many resources collectively.
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Bad Stakeholder Management. Poor communication with stakeholders can also cause projects to be delayed, underfunded, or stray from their original goals.
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Unreliable Estimates. Poor estimates can cause projects to fail as it leads to flawed schedules, unachievable objectives, and increased risk.
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No Risk Management. When risk management isn’t accounted for, projects can take on more than they can handle.
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Lack of Team Planning Sessions. When teams don’t have a chance to meet up and discuss projects, communication can fall off the wayside.
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What percentage of projects finish late?
90% of projects finish late. Time management is a real issue in the project management industry. In fact, 29% of projects fail due to an inaccurate time estimation.
To avoid finishing projects late, it’s essential for companies to prioritize a project management culture and communication in the workplace.
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How big is the project management industry?
The project management industry is worth $6 billion in 2021. And the industry is growing quickly at a CAGR of 10.77% between 2020-2030. By 2030, the industry is expected to reach $15.06 billion.
Conclusion
While the Project management industry is volatile and ever-changing, there are steps companies can take to ensure success. Knowing that 44% of projects fail due to a lack of clear goals and 30% fail due to poor communication, for example, is an important step toward avoiding those problems.
Besides the basics like improved communication, time management, and prioritizing culture, there are other important lessons project management businesses can learn. Companies with proven PM practices waste 28x less money, and companies with a project management system are 37.5% more likely to meet goals.
Overall, despite the risks associated with projects, knowing the facts and analyzing current trends is crucial for completing successful projects.
Sources:
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Project Management Works – Project Failure Statistics: The Shocking Truth
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Wedevs – 7 Project Management Strategies to Get Ahead of The Game (Case Studies+Tool)
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Project Management Institute – Ahead of the Curve: Forging a FutureFocused Culture
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Project Management Institute – Project Management Professional (PMP)®
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Mondayblog – A monday.com report: the state of workplace automation
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Proceso.pro – Why Do Projects Fail Because of a Lack of Communication?
Author
Jack Flynn
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
