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  • Predictive Analytics for Improved Cost Management  

Study Finds Correlation Between High Performing Organizations and Strong Project Cost Management Practices

MT. LAUREL, NJ / June 17, 2008 / The Center for Business Practices (cbp) (www.cbponline.com) and PRICE Systems, co-sponsored an extensive research study on IT project portfolio cost management. IT Executives from a broad spectrum of industries such as Financial Services, Manufacturing, as well as Government where selected. The study concluded that the ability to manage costs of an IT project portfolio is a critical function. Yet it was determined that, without this ability, organizations are at risk of experiencing cost overruns, missed deadlines, and performance shortfalls. Cost increases often mean that the organization cannot fund as many programs as intended or deliver them when promised.

Significant Key Findings:

Organizations show improved performance as they mature in cost management.

  • The study found a strong correlation between organizational performance and the maturity of an organization’s cost management practices.

Tying requirements to business goals and results is a best practice.

  • A large majority of organizations tie requirements to business goals and results, and there is a significant difference between high-performers and low-performers.

Using formal methods and tools in evaluating project size and technical complexity are best practices.

  • High-performing organizations are far more likely than low-performers to use formal methods and tools in evaluating both project size and technical complexity.

Monitoring project progress against business goals is a best practice.

  • Fewer than half of organizations monitor project progress against business goals, but high-performing organizations are more than twice as likely to do so.

The IT project portfolio cost management study provides 117 pages of essential data on the key findings.  It offers findings on cost management maturity, cost estimating practices, cost estimating challenges, project portfolio decision making, cost management and business performance, and the respondents. 

Additionally, it provides information on the survey questions, references, and on cross tabulations on industry, size of organization, level of cost management maturity and on high-performers verses low-performers. The market report will be available in English, and exclusively from PRICE Systems.

About the Center for Business Practices®
The Center for Business Practices is the research and publishing arm of the management consulting and training organization PM Solutions. The CBP promotes effective strategy execution through sound portfolio, program, project, and performance management by capturing best practice knowledge and integrating it into actionable, fact-based information available through research reports, books, and benchmarking events. For more information, visit www.cbponline.com.