PHOENIX--(BUSINESS WIRE)--Alignment of talent management to organizational strategy is a key performance driver for successful organizations, According to the 2013 Pulse of the Profession™ In-Depth Report: Talent Management, released by Project Management Institute (PMI). High performing organizations put 50 percent fewer dollars at risk on their projects — demonstrating the clear competitive advantage realized by investing in talent. Project success is also impacted by alignment to organizational strategy — those reporting significant or good alignment have project success rates of 72 percent compared to 58 percent for those with moderate or weak alignment.
Yet the study found that half of organizations have scaled back their training programs due to economic conditions. Of those that do have talent management development programs in place, only 10 percent report that these programs are significantly aligned with the organization’s strategy.
PMI President and CEO Mark A. Langley announced the findings of the Talent study at the Mayo Clinic in Phoenix during a meeting of PMI’s Global Executive Council. "Aligning an organization’s strategic vision with the professional and personal development of its project management workforce is critical for creating project success and minimizing dollars at risk," he said. "Yet many organizations miss the opportunity delivered by initiating and maintaining an effective, robust talent management program that reflects their core values and organizational goals."
Kevin McDevitt, Program Manager, Siemens USA and a member of the Council, spoke at the meeting about the impact of effective talent management on the profitability of the organization’s portfolio:
Siemens has a project management career path with job profiles aligned to the A, B & C project categories. An internal certification process is used to ensure project managers have the right competencies against job profiles. Projects are categorized from A to F based on their complexity; the businesses assign project managers to projects based on certification level and the project category. This approach to Project Management Talent Management is one of the levers used to reduce risks and improve profitability across the portfolio of projects.
Talent Management Overlooked, Not Overseen
In the 2013 Pulse of the Profession™ report, less than half of respondents indicated that their organization currently has a formal process for developing project manager competency or a defined career path for those engaged in project or program management. More than one third of companies do not measure the relationship between talent management intervention and actual performance, whereas 26 percent reported not having any talent management strategy whatsoever.
Human Capital: The Elusive Asset
As more specialized project roles emerge, CEOs are recognizing the value of skilled workers to an organization. According to a recent report from The Conference Board, CEOs agree that human capital is the number one challenge globally; 71 percent of CEOs see human capital as a key source of sustained economic value, and 77 percent anticipate making changes to their talent management strategies.
Shortage of Project Management Talent
Despite the growing awareness of the value of human capital, a talent gap is emerging. As reported by PMI’s Project Management Talent Gap Report, 15.7 million new project management roles will be created globally across seven project-intensive industries between 2010 and 2020, creating growth in the profession of US$6.61 trillion. Companies worldwide will risk up to US$344.08 billion in GDP if these positions can't be filled with qualified candidates. Many organizations have already begun to experience the adverse effects of this shortage in available talent.
The Path to High Performance
Strategic development of in-house talent can play a significant part in boosting overall organizational efficiency:
- High performers are more than twice likely than low performers to have their talent management program aligned to the organization’s strategies and values (69 percent of high performers vs. 31 percent of low performers).
- High-performing organizations provide consistent, continuous training and development for project managers to enhance organizational success. They are significantly more likely than low performers to provide a defined career path for project managers, a process to develop project management competency and training on the use of project management tools.
The Way Forward
While updating talent management programs and increasing training for practitioners is a necessary step toward high performance, it’s not enough. The ultimate goal for organizations should be a fundamental alignment of these programs with a company’s strategic goals at a portfolio level. Efficient and comprehensive talent management programs need to be developed concurrently with an organization’s business model and vision, rather than incrementally rolled out or tacked on as an afterthought.
The 2013 Pulse of the Profession™ In-Depth Report: Talent Management is the first follow-up study to PMI’s benchmark 2013 Pulse of the Profession™ report, which charts the major trends for project management now and in the future. The 2013 Pulse report identified talent management as a key contributor to high organizational performance. To access PMI's Pulse of the Profession™ please visit www.pmi.org/pulse. To view PMI’s 2013 Pulse of the Profession™ In-Depth Report: Talent Management and other talent-related resources, visit www.PMI.org/Talent.
About the Pulse of the ProfessionTM/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 nearly 800 project management leaders and practitioners across North America, Asia Pacific, Europe, the Middle East, Africa (EMEA) and Latin America and Caribbean regions.
About Project Management Institute (PMI)
PMI is one of the world’s largest not-for-profit membership associations for the project management profession. Our professional resources and research empower more than 700,000 members, credential holders and volunteers in nearly every country in the world to enhance their careers, improve their organizations’ success and further mature the profession.
PMI’s worldwide advocacy for project management is reinforced by our globally recognized standards and certification program, extensive academic and market research programs, chapters and communities of practice, and professional development opportunities.