To examine if work location really drives project performance Project Management Institute (PMI), published its 15th annual Pulse of the Profession report, The Future of Project Work: Moving Past Office-Centric Models. The survey results of 2,246 project professionals and 342 senior leaders around the world provide compelling evidence that organisations can provide work location flexibility, agility, and empowerment without affecting project execution and performance.
Since COVID-19 transformed the world of work nearly four years ago, there has been much debate about the most effective work arrangement, and many studies have attempted to argue the negatives of remote work outweigh the positives. However, data from the report suggests organisations that bring employees back into the office will likely not see a significant improvement in project performance, especially considering the negative impact this could have on employee morale and retention, as well as operational costs. 44 per cent of Indian organisations reported that they had adopted a hybrid work environment while 10 per cent reported that their organization was working remotely. This clearly shows the change in perception of remote working.
Rather, organisations should focus on empowering flexibility that optimises team collaboration, innovation, agility and efficiency. And they can do so without worrying about negative impacts on project performance. For many teams, that is a fit-for-purpose, hybrid management approach – one that blends both agile and predictive tools and methods. Organisations need to create an environment of continuous learning and support that makes this possible.
“This report underscores the importance of organizations not only reevaluating their work location policies and optimizing how they operate, but also prioritizing the development of essential skills within project teams to enhance their adaptability," stated Pierre Le Manh, President & Chief Executive Officer of PMI. "Empowering project professionals and teams with the autonomy to determine and implement the most appropriate ways of working —irrespective of their physical location—positions them for greater success in navigating uncertainties, evolving business landscapes, emerging challenges, and project demands."
Enabling Teams Drives Project Performance
The research found that enablers – specific supportive programming that helps individuals and teams learn new skills and competencies – play a much larger role in driving project performance than work location. In fact, providing teams with enablers is crucial in today’s dynamic business environment to navigate the demands for flexibility and agility.
The three most common enablers organisations provide are coaching and mentoring, training on new ways of working, and communities of practice to share knowledge and expertise. Organisations that offer employees at least three enablers reported significantly higher project performance rates. However, those that do not offer any enablers were more likely to experience scope creep challenges and increase budget losses on failed projects.
In India, the survey found that, 54 per cent of organisations support changing ways of working using coaching and mentoring. 58 per cent of organisations support changes to ways of working through training. This is above the global percentage of 48 per cent and 47 per cent respectively. And 45 per cent of organisations support changing ways of working through the creation of communities of practice that enable employees to share knowledge and expertise.
Choosing the Right Project Management Approach is Table Stakes
Another theme the research identified is the rise in hybrid management frameworks, and how they have gained more ground across all sectors and types of projects. Since 2020, there has been a 57.5 per cent increase of survey respondents reportedly using hybrid approaches. Overall, these growth trends toward using hybrid project management approaches are expected to continue, with 76 per cent and 73 per cent of our respondents expecting an increase in their organisation’s usage of agile and hybrid approaches, respectively, over the next five years. In India, 87 per cent of organisations anticipate an increase in hybrid project management approaches over the next 5 years which is even higher than the global percentage.
Its growing popularity demonstrates that organisations see the advantages of using different approaches and of combining practices, tools, and techniques to get the job done. And since average project performance remains relatively uniform regardless of the adopted approach, this validates that organisations should branch out when considering what skills development opportunities to offer individuals and teams.