A comprehensive global study conducted by the Project Management Institute (PMI) has revealed that only half of all projects achieve success, highlighting a growing gap between corporate strategy and execution. The research, which involved responses from over 5,800 project professionals, stakeholders, and knowledge workers, indicates that merely 50 percent of projects deliver value that exceeds their costs and efforts. Alarmingly, 13 percent of projects fail outright, while 37 percent fall short of expectations.
As companies face increasing pressure to adapt and innovate, especially with regards to digital and artificial intelligence initiatives, the findings underscore a critical challenge in translating plans into measurable outcomes. A related survey of CEOs and senior leaders found that nearly all respondents recognize the necessity to rethink their business models or operating approaches at least every five years. Furthermore, close to two-thirds of these leaders are re-evaluating their strategies every two years or more frequently.
Identifying Barriers to Success
Despite a significant push towards digital transformation, the most commonly cited barrier is not the lack of capital or technology, but rather a disconnect between planning and execution. Pierre Le Manh, PMI President and Chief Executive Officer, emphasized that organizations investing heavily in transformation efforts cannot sustain a mere coin-flip success rate on their projects.
To better understand what differentiates high-performing organizations, the study examined behaviors linked to successful outcomes, culminating in a framework referred to as M.O.R.E.. This approach focuses on four key elements: managing stakeholder perceptions, taking ownership of success beyond traditional metrics of time and budget, continually reassessing plans as conditions evolve, and broadening perspectives to connect projects with wider organizational and societal goals.
The impact of adopting the M.O.R.E. framework is significant. PMI’s Net Project Success Score—a metric that measures successful projects minus outright failures—jumps from 27 when none of the M.O.R.E. elements are employed to 94 when all four are consistently implemented. Despite this, only 7 percent of respondents currently utilize all four elements.
The Role of Artificial Intelligence
The research also sheds light on the role of artificial intelligence (AI) as both a catalyst for change and a challenge. Nearly three-quarters of executives identified AI and automation as primary drivers of reinvention. However, PMI’s findings illustrate that technology alone cannot bridge the execution gap.
Professionals who integrated AI tools into their project workflows experienced a 17-point increase in project success, particularly when these tools were paired with human skills such as judgment, communication, and adaptability.
PMI plans to incorporate the M.O.R.E. framework into its standards, training programs, and professional recognition efforts, shifting the focus of project success from narrow performance metrics to value delivery. Le Manh pointed out that project execution has escalated to the level of boardroom discussions, as the need for continuous reinvention becomes a permanent fixture in business environments. He concluded that organizations that redefine how they lead, measure, and govern projects will be better positioned to convert constant change into lasting results.
The insights from this study provide a roadmap for organizations aiming to enhance their project success rates and navigate the complexities of transformation in an ever-evolving landscape.
