A comprehensive global study conducted by the Project Management Institute (PMI) reveals that only half of all projects succeed, highlighting a significant gap between corporate strategy and execution. The study, which gathered insights from over 5,800 project professionals, stakeholders, and knowledge workers, indicates that just 50 percent of projects generate a return that justifies their costs and efforts. Alarmingly, 13 percent fail outright, while an additional 37 percent fail to meet expectations.
As organizations face mounting pressure to adapt quickly, particularly in areas such as digital transformation and artificial intelligence, these findings underscore the difficulties in translating plans into tangible results. A companion survey targeting CEOs and senior leaders reveals that nearly all respondents feel the need to reassess their business models or operational strategies at least every five years, with close to two-thirds doing so every two years or more frequently.
Barriers to Successful Transformation
Despite the urgency for change, the most commonly cited barrier is not a lack of capital or technology, but rather a disconnect between planning and execution. PMI President and Chief Executive Officer Pierre Le Manh emphasized that organizations investing heavily in transformation cannot afford a mere coin-flip success rate on projects meant to facilitate that transformation. According to Le Manh, the research illustrates that this strategy-execution gap manifests in everyday project work.
To address this issue, the study identifies key behaviors associated with high-performing organizations and encapsulates them into a framework known as M.O.R.E. This approach focuses on managing stakeholder perceptions, taking ownership of success beyond conventional time and budget metrics, consistently reassessing plans in response to changing conditions, and broadening perspectives to connect projects with larger organizational and societal goals.
The results of implementing the M.O.R.E. framework are significant. PMI’s Net Project Success Score, which reflects successful projects minus outright failures, increases from 27 when none of the M.O.R.E. elements are utilized, to 94 when all four elements are consistently applied. However, only 7 percent of respondents reported currently using all four components.
The Role of Technology in Project Success
The research also sheds light on the dual role of artificial intelligence as both a driving force and a challenge in project execution. Approximately 75 percent of executives cited AI and automation as pivotal in fostering reinvention. Yet, the study underscores that technology alone does not bridge the execution gap. Professionals who effectively integrated AI tools into their project workflows experienced a notable 17-point increase in success rates, particularly when complemented by human skills such as judgment, communication, and adaptability.
PMI plans to incorporate the M.O.R.E. framework into its standards and training programs, shifting the focus of project success from narrow performance metrics to value delivery. Le Manh noted that project execution has evolved into a critical board-level issue as the need for reinvention becomes a permanent aspect of corporate life. Organizations that redefine how they lead, measure, and govern projects will be better equipped to transform ongoing change into sustainable outcomes.
This research not only highlights the challenges faced by organizations but also provides actionable insights for improving project success rates in an ever-evolving business landscape.
