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Maturity in Project Management Series: HOW TO INCREASE PROJECT PROFITABILITY – AN APPROACH USING MATURITY CONCEPTS

SERIES ARTICLE

By Russell D. Archibald

San Miguel de Allende, Mexico

Darci Prado

Minas Gerais, Brazil

Manuel Carvalho da Silva Neto

Minas Gerais, Brazil
________________________________________________________________________

ABSTRACT

The objective of this paper is to present an approach to increase project profitability using maturity concepts. The basis for the paper is the data obtained in recent maturity researches held in Brazil using the Prado PM Maturity Model. This research quantitatively proved that:

  • There is a direct positive relationship between total project success and the organization’s level of project management maturity.
  • There is an inverse relationship between project failure and PM maturity.
  • There is an inverse relationship between project delay and PM maturity; the higher the maturity, the lesser the delay.
  • There is an inverse relationship between cost overrun and PM Maturity; the higher the maturity, the lower the cost overrun.

Then, the paper shows how an organization can use such data to increase the profitability of their projects by:

  • Identifying your current maturity and your project/business performance indicators (profitability, delays, cost overrun, etc.).
  • Using the survey data in order to have a forecast of how much it could improve its performance by increasing the maturity;
  • Identifying the success factors offenders and where they are located;
  • Establishing a plan of attack for offenders to success in order to increase the maturity and increase performance indicators.

The importance of this approach is that it shows that there is a route to increase performance by means of the conclusions obtained from the maturity surveys.

This approach has been used successfully in Brazil by several Brazilian organizations.

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Editor’s note: The Project Management Maturity series of articles by Russell Archibald & Prof Darci Prado is based on their extensive research on this topic in Brazil, the United States and other countries. Russ is one of the pioneers in the project management field and the originator of the Archibald Project Categorization Model. Darci is the developer of the Prado Project Management Maturity Model which has been successfully implemented by many organizations in Brazil. More about this model and related research can be found at http://www.maturityresearch.com/. 

About the Authors

russell d archibaldRussell D. Archibaldflag-usa-mexico

San Miguel de Allende, Mexico

Russell D. Archibald: PhD (Hon) ESC-Lille (Fr), MSc (U of Texas) & BS (U of Missouri) Mechanical Engineering, PMP, Fellow PMI and Honorary Fellow APM/IPMA (member of the Board of IPMA/INTERNET 1974-83), held engineering and executive positions in aerospace, petroleum, telecommunications, and automotive industries in the USA, France, Mexico and Venezuela (1948-1982). Russ also had 9 years of active duty as a pilot officer with the U.S. Army Air Corps (1943-46) and as a Senior Pilot and Project Engineer with the U. S. Air Force (1951-58.) Since 1982 he has consulted to companies, agencies and development banks in 16 countries on 4 continents, and has taught project management principles and practices to thousands of managers and specialists around the world. He is co-author (with Shane Archibald) of Leading and Managing Innovation: What Every Executive Team Must Know About Project, Program, and Portfolio Management (2013); author of Managing High-Technology Programs and Projects (3rd Edition 2003), also published in Russian, Italian, and Chinese; other books (in English, Italian, Japanese, and Hungarian); and many papers on project management. Web-site: http://russarchibald.com E-mail: [email protected]   

To see other works by Russ Archibald, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/russell-d-archibald/

pmwj18-jan2014-archibald-PHOTO PRADODarci Prado, PhDflag-brazil

Minas Gerais, Brazil

Darci Prado is a consultant and partner of INDG in Brazil. He is an engineer, with graduate studies in Economical Engineering at UCMG and PhD in Project Management from UNICAMP, Brazil. He has worked for IBM for 25 years and with UFMG Engineering School for 32 years. He holds the IPMA Level B Certification. He was one of the founders of Minas Gerais State and Parana State PMI chapters, and he was member of Board Directors of Minas Gerais State PMI chapter during 1998-2002 and member of the Consulting Board during 2003-2009. He was also the president of IPMA Minas Gerais State chapter during 2006-2008. He is conducting a Project Management maturity research in Brazil, Italy, Spain and Portugal together with Russell Archibald. He is author of nine books on project management and is also author of a methodology, a software application, and a maturity model for project management. Darci can be contacted at [email protected].

To see other works by Darcy Prado, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/darci-prado-phd/ 

Manuel-Carvalho-da-Silva-NetoManuel Carvalho da Silva Netoflag-brazil

Minas Gerais, Brazil 

Manuel Carvalho da Silva Neto, MSc, Mech. Engineer and PMP is Fundação Dom Cabral Invited Professor and also Consultant. He is a seasoned professional with over 39 years of experience in Project Management, Process Management and Strategy. Manuel has managed or participated in more than a hundred projects across different fields including Steel, Mining, IT, Telecom, Food Processing, Government and Construction to mention a few. He worked also in projects of PMO (Project Management Office) and Methodology of Project Management. He has also strong skills in Leading People and Finance. He served as Minas Gerais State Undersecretary for Planning and Budget, from 2007 to 2008. Manuel can be contacted at [email protected].

To view other works by Manuel da Silva Neto, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/manuel-carvalho-da-silva-neto/.