Precise data is hard to come by for other countries, but similar percentages are likely to apply in most other Western economies. In Germany, for example, projects have been rising steadily as a percentage of GDP since at least 2009, and in 2019 they accounted for as much as 41% of the total. Meanwhile, projects (which involve the changing of organizations) are increasingly driving both short-term performance and long-term value creation-through more-frequent organizational transformations, faster development of new products, quicker adoption of new technologies, and so on.
But for most of the current century, productivity growth in Western economies has been almost flat, despite the explosion of the internet, shorter product life cycles, and exponential advances in AI and robotics.
That shift has been a long time coming.ĭuring the 20th century, operations (which involve the running of organizations) created tremendous value, and they did so through advances in efficiency and productivity. Quietly but powerfully, projects have displaced operations as the economic engine of our times. They need to adopt a project-driven organizational structure, ensure that executives have the capabilities to sponsor projects, and train managers in modern project management. As a result, only 35% of the projects undertaken worldwide are successful-which means we’re wasting an extravagant amount of time, money, and opportunity.Ĭompanies need to reinvent their approach to project management. By 2027, some 88 million people around the world are likely to be working in project management, and the value of project-oriented economic activity will have reached $20 trillion.ĭespite this shift, many leaders still undervalue projects and project management. Projects have displaced operations as the economic engine of our times. To take advantage of the new project economy, companies need a new approach to project management: They must adopt a project-driven organizational structure, ensure that executives have the capabilities to effectively sponsor projects, and train managers in modern project management. By 2027, some 88 million people around the world are likely to be working in project management, and the value of project-oriented economic activity will have reached $20 trillion.īut research shows that only 35% of the projects undertaken worldwide are successful-which means we’re wasting an extravagant amount of time, money, and opportunity.