In a recent Gallup Management Journal study, the resulting cost from bad project management is reaching astronomical levels.

Why?

Apparently, "when it comes to project management, most organizations put their practices before their people. They place more emphasis on rational factors -- the process itself -- and less on emotional drivers that could lead to project excellence -- like their employees' engagement with the project and company."

Consider these statistics:

• A study by PricewaterhouseCoopers, which reviewed 10,640 projects from 200 companies in 30 countries and across various industries, found that only 2.5% of the companies successfully completed 100% of their projects.
•  A study published in the Harvard Business Review, which analyzed 1,471 IT projects, found that the average overrun was 27%, but one in six projects had a cost overrun of 200% on average and a schedule overrun of almost 70%.

What's more, it seems that this trend is here to stay. With an ever-growing need for accessible and integrated data, organizations require larger platforms to manage supply chains, customer relationships, and dozens of other crucial systems. Mega-software projects are now common in private and governmental organizations. Development is not slowing down, especially in emerging economies.

Tough times require tough decisions.

During times of economic uncertainty, strategy refinement and execution need to become a top priority for business leaders.

SWOT Analyses are one of the top-rated core services offered by Six Disciplines.  

SWOT is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in your business.

The aim of any SWOT exercise is to identify the key internal and external factors that are important to achieving your strategy. SWOT analysis groups key pieces of information into two main categories:

Internal factors: These are the strengths and weaknesses internal to the organization. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. The factors may include all of the 4Ps (product, price, place, promotion) as well as personnel, finance, manufacturing capabilities, and so on.

External factors - The opportunities and threats presented by the external environment. The external factors may include the economy, technological change, legislation, and socio-cultural changes, as well as changes in your marketplace or competitive position.

BOTTOMLINE: While it's important to regularly conduct a SWOT analysis on your business, it's critical to revisit SWOT during times of economic uncertainty. In particular, it's essential that you focus on the internal factors that you can control; not the external factors you can't control. By focusing on internal factors, you'll be better able to unearth new opportunities for innovation.

Speaking of SWOT - here's links to some VERY useful SWOT worksheets. 

• Company A (Mfg)- 110% achievement of Revenue and Profit, 79% achievement of all 2011 Goals
• Company B (Mfg) - 110%+ achievement of Revenue and Profit
• Company C (NFP) - 87 % achievement of all 2011 Goals
• Company D (Service) -100 % achievement of all 2011 Goals
• Company E Mfg) - from 2007 to 2011 - increased Revenue for $35M to $56.5M and  Profit from 4.5 % to 8.8%
• Company F (Mfg) - from 2007 to 2011 - increased Return on Assets of 5.6% to 15.4% and Profits from 4.8% to 11.4%

If these results from Six Disciplines clients don't tell a compelling enough story, try this one.  

According to a study conducted by Quality Progress Magazine, the results reveal that those organizations that followed a defined process, (in this case TQM) Total Quality Management made a marked improvement in their quality but also their financial performance.  The article makes a direct correlation between a solid process implementation and their significant success in numerous areas - Operating Income, Sales, Total Assets, Return on Sales, Return on Assets.  These improvements are a result of following a systematic performance excellence approach.  

The study points out that this systematic approach (a method) to planning and execution (a holistic, total approach to performance excellence ) works. In the study, they examined over 600 company's results over 10 years.  

• What the results showed was that it doesn't depend as much on what system they have, but that they HAVE a system.   
• It doesn't depend on the industry.  This study covered over forty 2-digit SIC codes.  
• It doesn't depend on size, as both large and small companies were examined in the study. 
• And it doesn't depend on capital intensive or non-capital intensive  businesses.  

BOTTOMLINE:  Following a systematic approach to performance excellence results in  huge differences in performance. Let's begin to have the conversation with your organization -today.

According to a newly released study from NIST,  the benefit-to-cost ratio of a performance excellence program (like Baldrige) is 820-to-1.

In their research, economists Albert N. Link, and John T. Scott (University of North Carolina, and Dartmouth College, respectively) used their economic tools to measure the net social value of the Baldrige Performance Excellence Program.

Their key findings: 

IndustryWeek recently reported on a survey it conducted with TBM Consulting about the impact of continuous-improvement programs on three financial metrics: anticipated revenue growth, operating income growth, and cash flow over the past year.