Future of Project Management Evolving Project Economy
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The document discusses how project management and work are evolving due to factors like digital disruption, AI, climate change, economic shifts, and more. It notes that organizations need new ways of working like networks of teams rather than roles, and skills like complex problem solving, agility, transformation readiness, and getting things done. People must rapidly learn skills to deliver outcomes, and upskilling is important. Projects are how work gets done, so organizations must empower people to make ideas a reality through collaboration, teaming, resilience, knowledge, risk management, and learning.
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Future of Project Management Evolving Project Economy
- 1. The Future of Project Management and the Evolving Project Economy PMI Budapest, Hungarian Chapter – 3 November 2022 Tony Appleby PMI Board of Directors Chair Emeritus
- 3. Digital disruption, which transformed the pace and scale of digitalization.
- 5. How AI Will Transform Project Management 6 https://www.pwc.ch/en/insights/risk/ai-will-transform-project-management-are-you-ready.html Are you ready? “In the future of work, a paradox is becoming increasingly apparent: the more advanced and pervasive technology becomes, the more important humans are to the equation…” Deloitte Insights: Human Inside: How capabilities can unleash business performance” Automation Integration Chatbots Predictive Autonomous
- 6. To help turn the tide in the climate crisis, businesses must take on more responsibility. One-fifth of the world’s largest companies have set net-zero targets. Many more need to do the same and they’ll need to join forces with governments, academia and other organizations.
- 8. Economic shifts The stresses created by the pandemic have led to supply chain disorder and the rethinking of globalization.
- 10. Demographic shifts With declining fertility rates and an increasing percentage of workers aging out of the workforce, organizations will need to find new ways to alleviate worker shortages and close the talent gap.
- 15. Labor shortages There is an exodus of employees and a loss of institutional knowledge happening at organizations around the globe — and it’s shaking up the workplace in ways we haven’t seen before or adequately prepared.
- 17. Civil, civic and equality movements Despite ongoing restrictions due to the pandemic, social protests continued to spill into the streets in 2021 and are showing no signs of slowing down.
- 18. A new work ecosystem is emerging. The pandemic has accelerated new ways of working and delivering value.
- 20. Presentation Title “By enabling their people to become changemakers, enterprises are better able to sense and respond to shocks, drive change, and face the future…” PMI 2021 Pulse of the Profession
- 22. People need skills that rapidly evolve to help them deliver outcomes for their organizations YESTERDAY TODAY Career Paths Networks of Teams ”Accenture research finds that 79 percent of executives agree that work is shifting from roles to projects— challenging both the function and makeup of the workforce as we know it.”
- 23. Every professional now must be capable of: 1. Complex problem solving Organizations and teams must be able to unlock synergies through collaborative problem solving 4. Agility Agility is required at the team, function, and business level to unlock value faster 3. Transformation readiness Awareness about the process of conducting organizational transformation help professionals lead and drive meaningful change 2. Getting things done Knowledge of project management and necessary skills and competencies are necessary to realize project benefits
- 24. Leadership for the Future of Work COLLABORATION TEAMING RESILIENCE KNOWLEDGE RISK LEARNING
- 25. 9 NOVEMBER 2022 Presentation Title 25
- 26. 9 NOVEMBER 2022 Presentation Title 26 • Upskilling is an imperative for individuals – prioritize Power Skills. • Use the approach that fits best for your context. • Projects are how work gets done. Take-Aways
- 27. Empowering people to make ideas a reality.
Editor's Notes
- Hello everyone! Thank you so much for asking me to be here with you today. It’s my honor to join you virtually and to represent the PMI Board of Directors. I’m pleased to be here today to share some of PMI’s perspectives on the ways that work is changing - and how project professionals can prepare themselves. My intention is that you gain an understanding and an appreciation of how project professionals can successfully manage the impact of these disruptive times – and not just cope with change, but really embrace it.
- I’ll be covering two interrelated topics today, based on research that the Project Management Institute has published. PMI does a lot of research, because we believe it’s important that you have every opportunity to understand the entire world of project management beyond certifications and standards. What’s happening on the horizon should be important for you to understand, as it has a direct impact on what you may need to know in order to be prepared for the future. And it’s important for organizations and institutions, too, as they also need to prepare for unprecedented change that is happening now as well as what’s coming down the road. Now, what’s showing on the screen are only two of PMI’s more recent research publications and all of PMI’s research is published free on our web site. I encourage you to download and read as many of those items that you think are relevant to you. Now, PMI conducts our own assessment of the most urgent, long-term trends around the globe – everything from climate change to shifting demographics to the latest breakthroughs in technology like artificial intelligence. We call this summary our annual Megatrends report. And, to build that: We synthesized findings from research and news reports… we spoke with industry leaders from around the globe… and we analyzed information from a range of databases… all to gain a greater understanding of where the world is headed and how project professionals can prepare for that world. And since 2006, we have also published our annual Pulse of the Profession report, which examines trends and drivers in how companies, institutions, and organizational entities across the world are adjusting their project practices, talent development, PMOs, project maturity, and much more. As the past two years have made clear, change is inevitable. But by understanding the drivers behind the volatility we are witnessing, organizations and their leaders can actually thrive in The Project Economy, delivering positive outcomes at a time when it is needed most. I’ll talk more about the Project Economy and how ways of work are evolving later in this presentation, but first let’s talk about the megatrends. The 2022 Megatrends Report notes six major themes.
- The first of these, not surprisingly, is DIGITAL DISRUPTION. We all know about the rise of artificial intelligence, machine learning, the Internet of Things, blockchain technology, and so forth. And there is more on the horizon. No aspect of the global economy, of how organizations operate, and how industries perform their work is unaffected by this. The disruption factor is one aspect. We’re all learning that the world is fast-changing and we need to pivot and adapt regularly as a result. But here’s another important aspect to consider: Digitalization is led by experienced and knowledgeable project managers. There is almost no field of work that is free from the constant drive of technological change. Even before we get used to the latest collaboration tool or smart home appliance, newer technology arrives with more features. While these solutions can save time, improve productivity, and support innovation, they can also present risks, such as cybersecurity and data ethics. Project managers navigate all this, creating solutions to problems and, working with their teams, exploring new way of employing technology.
- So, in light of all this constant disruption, the objective is for you is to develop a strong understanding of relevant digital era concepts; digital tools and systems; and the features, platforms, and critical personal competencies associated with technology. Our research has identified six primary digital skillsets that project managers should consider to set yourself apart by becoming a more proficient “Digital Practitioner.” And these are shown here on the screen. [Pause for questions here? There’s likely going to be one about if AI will replace project managers. The answer is, of course, absolutely not. Explain how AI will enable PMs to do their work more efficiently and how new skill sets to manage PM AI will need to be learned. See supplemental slide at end of deck.] [PMI E-Learning Asset: https://www.pmi.org/shop/p-/elearning/digital-intelligence-series/16179%C2%A0%C2%A0]
- THIS SLIDE HAS ANIMATION: THE FIVE ITEMS ON THE LEFT APPEAR ONE BY ONE AS THE PRESENTER CLICKS THROUGH THE CONVERSATION. [Free-form conversation based on ability to respond or leverage the below.] [Reference: https://www.pwc.ch/en/insights/risk/ai-will-transform-project-management-are-you-ready.html] The article essentially details the path of AI in project management, including positive messaging around how AI will never be able to replace the value that a human brings to project delivery. To date, a lot of the focus has been on the automation – requiring a certain degree of standardization – of tasks that are already carried out. The trend towards integration and automation will continue in the next couple of years, mainly focusing on more effective project management processes. AI chatbots serving as project assistants are considered to be the second phase in the evolution of AI in project management. Bots will take a role in human-computer interaction, mainly based on speech or text recognition. The third phase of AI in project management introduces machine learning into project management practice. Machine learning enables predictive analytics and can provide advice to the project manager, for example on how to set up and steer the project given certain parameters, and/or how to react to certain issues and risks to reach the best possible outcome based on what worked in past projects. Autonomous project management. Similar to self-driving cars, autonomous project management would only need limited input and intervention from a human project manager.
- The second megatrend is THE CLIMATE CRISIS, which is exacerbating inequalities but is also a call for creative new ways of making life on this planet work. Projects to address this have been innovative and driven by project leaders who can envision the benefits of their efforts. Tackling such a complex challenge will involve all sectors of society—government, business, civil society, and – especially – project professionals, who are going to need to prioritize incorporating sustainability into all of their project processes. [PMI is helping to get project managers more engaged with this by a recent strategic alliance with Green Project Management Global, a not-for-profit helping drive sustainable and regenerative development practices.]
- But there are significant implications for the project management profession associated with the climate crisis. The need for infrastructure to address changing weather patterns and rising sea levels is already here and many governments around the world – as well as corporations – are investing heavily in creative mechanisms that keep ports viable, mitigate the impacts of stronger hurricanes, and address drought management issues. This graphic illustrates just one of the implications of the changing climate – and ties into the next two megatrends, too – that of where water has historically been available, how that is changing, and shifting population centers. As climate change forces communities to move and be built in more favorable locations, or as established cities fight to meet the needs of their existing citizens, water reclamation and distribution projects will be increasing needed. And new communities need all sorts of new infrastructure: roads, schools, housing, hospitals, bridges, and on and on and on. Project managers well versed in the building and construction disciplines will be needed for all this work. Along these lines, world leaders have made bold commitments to achieving carbon neutrality by mid-century; the challenge now will be in implementing the complex project plans to get us there and quickly scale up deployment of innovative clean energy technologies.
- The third megatrend is ECONOMIC SHIFTS. The COVID-19 pandemic has exposed long-standing supply chain vulnerabilities, particularly overreliance on single-source vendors and suppliers. And these vulnerabilities — combined with demand spikes, labor shortages, weather events, and other factors — have decimated port and shipping capacity, pushed transport costs to new highs, created massive shortages of goods and components, raised consumer prices, and increased inflation. As a result, some countries are looking to restart core manufacturing industries and diversify single-source supply chains. For project professionals, these disruptions could lead to project waste and delayed timelines. In the meantime, businesses are working feverishly to develop short-term strategies to mitigate supply chain risks and facilitate greater cross-border collaborations. Project professionals will be key to these efforts. We are seeing significant investments in infrastructure and education in emerging and developing markets, which has profound implications on our profession’s need to be present in those markets to help these regions be successful. So, it’s vital that project managers help find ways to facilitate cross-border efforts through remote collaboration and knowledge sharing.
- Now, if I haven’t mentioned it already, I’ll be sharing this slide deck with you, so you don’t have to furiously take notes. Facilitating remote collaboration and knowledge sharing is an easy enough phrase for me to say. But what does that really mean? How can I translate that into discrete, actionable steps. So, what’s on the screen are a few of them from the research report. I don’t think we have the time to step through these one by one, but I hope that most of them make a certain amount of sense upon reflection. I would encourage each of you, as project leaders, to work collaboratively with your management and project teams to sort through creative and meaningful ways to help make each of these items happen. Because – in doing so – you are helping reduce project risk and working to ensure your project delivers on its goals and objectives.
- The fourth megatrend is DEMOGRAPHIC SHIFTS. Demographic shifts are significantly impacting how organizations attract and retain talent. I like this graph. It’s a very simple but exceptionally telling narrative: the world has just recently witnessed – for the first time since this type of data has been gathered – that the percentage of aging persons has exceeded the number of very young persons. And that trend is going to continue. Let’s look at this shift through another lens.
- The world’s population is not growing as rapidly as it once did. And people are living longer across much of the globe than their parents and grandparents. When examined through other data available, there is an increasing need for workers across every discipline. More and more of the workforce available is going to be younger and younger. But some older workers may continue to remain longer in the workforce, retiring later in life. I’ll talk more about labor shortage issues shortly, but there are some things we as a profession can do to address what is going to happen in the very near future. For example, project teams can tap into the unique benefits of a multi-generational workforce, with professionals collaborating across multiple generations.
- The United States is no exception. Here you can see that in the U.S., that 0.6 percent growth rate was hit a decade ago.
- But first, I thought you should see that this is not a world-only issue, but is impacting almost every country on the planet. Some more than others. And Hungary is no exception, as you are all likely aware. The country’s declining population has been a concern and issue for over 40 years. So, one of PMI’s other seminal research reports, the Talent Gap Report, points to five actions to help avert a talent crisis: Companies need to embrace and invest in technology: automation and AI can reduce the burden on project managers. Companies need to get creative about finding and retaining talent, both younger and older, accommodating for the unique needs of both populations. Companies need to look for talent abroad: Africa, SE Asia, and LatAm offer pools of young talent and that can foster healthy DE&I. Companies need to harness the power of all project-related practitioners across the board. Low code and no-code platforms can leverage existing employees in a more efficient and cost-effective manner. And companies need to preserve knowledge from departing workers. PMI’s research shows that less than one half of organizations have a formal knowledge transfer process.
- The fifth megatrend is LABOR SHORTAGES. Over the last year, many companies have faced a reckoning as large numbers of employees quit their jobs, launching a movement of sorts that Anthony Klotz, professor at Texas A&M University, Texas, USA, named the Great Resignation. This is affecting different countries and industries, well, differently. Some are more stable than others with their staffing, but that is expected to change pretty much across the entire globe in the next few years. How organizations react now will determine whether this is a long-term trend or just a reset which has its roots based in the massive layoffs that occurred at the start of the pandemic. With 25 million new project professionals needed by 2030, according to PMI’s most recent Talent Gap report, these labor shortages will only intensify the challenges of delivering projects that are on time, on budget and that meet customer expectations. In the near-term at least, many organizations may experience significant turnover and schedule delays as team members and stakeholders alike leave for new opportunities. If not closely monitored and controlled, quality could decline as the burden put upon remaining team members grows. [Mention – for San Diego – the recent bill Gavin Newsom signed into law earlier this week on pay transparency, which may likely exacerbate job switching in the near term.]
- The global economy needs 25 million new project professionals by 2030. To close the talent gap, 2.3 million people will need to enter PMOE every year just to keep up with demand—this includes project managers and all project management-oriented employees such as project analysts, project risk professionals, schedulers, estimators, and the like. While COVID-19 has caused a contraction in available project-related labor, better-than-average growth relative to many job categories is expected in the near term, even with inflationary and potentially recessionary pressures in the marketplace. The urgent need for workers with project management skills was further reinforced by another recent PMI study that cited project management as one of the top-five areas business leaders would like to prioritize. So, on one side of the equation there are challenges ahead for governments and companies around the world. On the other side of the equation, all of you will very likely have excellent opportunities in the market, so long as you are always continuing to invest in your ongoing professional development. Learning does not end with your university graduation, achieving your PMP credential, or your first promotion!
- The sixth and last megatrend is CIVIL, CIVIC, AND EQUITY MOVEMENTS. We expect social protests to endure as the economic effects and rising inequalities that were intensified by the pandemic continue to contribute to the drivers for social unrest. But increasingly, we will also see boardrooms, office sites, and project teams become the settings for real change and collaboration in response to civil, civic and equality movements. We know that a culture that embraces different perspectives enables creative thinking and adaptability and results in improved business outcomes. We see this when we have diverse project teams: they inevitably have better outcomes because of their ability to look at project delivery activities through multiple lenses before determining the best path forward. And on a related note, these social movements are opening up extensive new opportunities for projects in the social good sector. So, even more opportunities for the profession.
- Okay. That does it for the six megatrends. But that being said, we are only just beginning to see now how the pandemic has shifted long-term trends in terms of how teams organize and deliver work….accelerating the shift that PMI calls The Project Economy, and that’s where work and value is increasingly delivered in the form of projects. Our annual “Pulse of the Profession” research shows how organizations thrived amidst these types of changes this past year… That means a fundamental shift in how organizations and their teams plan and perform their work. [Take a break for questions in the room?] Let’s take a couple minutes to watch a short video that talks to some perspectives on how the world of project work is changing and evolving.
- Video on project skills
- So, let’s unpack some of what we just heard there. The world is changing, technologies are disrupting how we do business, businesses are changing, and the need for project managers to get their heads – and their hearts – wrapped around all of this change is critical to success. And that is going to require practitioners to become leaders … and to be effective as leaders, we need to hone several of our soft skills, or what we at PMI are calling our Power Skills. As an example, the virtual environment has allowed us to be perhaps closer to our employees and colleagues than ever before, with the ability to jump on a video call at any time. But that video call requires additional focus on empathy and emotional intelligence to pick up on cues over our computer screens. Those cues are harder to decipher virtually and developing the skills to effectively lead with these challenges is critical to our success as project practitioners. We need to reflect on how we can adapt our thinking and our behaviors and our ways of working to better connect with, support, and lead our project teams. Because – and this is really important – in the future, it will be the professionals that develop and refine these skill sets who are best equipped to act as transformative leaders in their organizations.
- We should also accept that we are likely never going back to a period of predictability. In the words of futurist and author Peter Hinssen, we should think of this new environment that we are in as "The Never Normal." We have moved way past concepts like “what is the new normal going to look like?” There will likely never be a “new normal.” Instead, we will face a continual cycle of change that organizations and professionals must either embrace or risk falling behind.
- A clear take-away of these trends is that the world is moving so quickly that teams must form and pivot quickly in response, driving a greater shift toward projectization. And we call this the Project Economy. So, another aspect of the Project Economy – aside from Never Normal – is where we are seeing a future where more people than ever benefit from cultivating project skills, especially as people around the world increasingly shift their focus more on projects than on life-long employment at a single organization. Indeed, the very structure of career paths is changing to a much more non-linear format, as talent moves from project to project, sometimes within the same employer company but, increasingly, across multiple employers over time. Individuals will need to tackle diverse global challenges and must have a broad skillset with foundations in project management alongside additional skills tailored to the needs of these challenges.
- Here are just a few examples of capabilities that practitioners increasingly must cultivate – for each of these areas, PMI continues to develop offerings designed to meet these needs. Complex problem solving, for example, is a competency that helps enable design thinking in teams. And design thinking is a critical skill for anyone struggling to minimize the uncertainty and risk of innovation. I won’t go through each element here in detail; we simply do not have the time in this session. But do download the Pulse of the Profession report and explore these for yourselves so you are fully, properly equipped for the new ways of working that are happening right now. For example, “gymnastic” enterprises are leading the way in the Project Economy. Gymnastic enterprises? What does that even mean? So, read it and find out. There’s a new Pulse report coming out in the next couple of months, too, as well a steady stream of helpful research that I really do encourage you to explore on an ongoing basis.
- Let me start closing out by saying that a world of digital transformation creates new demands for leaders. All companies, including all those with which you are or will be working, will be doing project work with multiple countries. There is no longer one simple culture that defines how we work. Political issues need more attention and understanding. Demands for agile are all about pressures for speed and faster decision making. There are today many more business issues that must be considered by project leaders. Projects are much more unpredictable and uncertain, placing greater importance on understanding risks, assessing business models, and evaluating likely outcomes. And digital technologies also create greater intelligence possibilities for people, teams, and organizations. Intelligence and knowledge that you must find and retrieve quickly to maximize the benefits of your project delivery efforts.
- Okay, let me leave you today with a few general take-aways from across the Project Economy.... First, UPSKILLING your "power skills" has a huge return on investment. Specifically, that includes : Collaborative leadership, Adaptability, An innovative mindset, and Empathy. Secondly, now more than ever it’s critical to tailor your approach your project delivery efforts that best fits the context of your work. Agile and traditional are needed for different settings where project delivery requires different attributes. And a hybrid approach, with elements of both, is often seen as the preferred method for success. But recognizing that no single way of working is appropriate for all project – or for any single industry or organization – is important to understand. And lastly, projects are how work gets done. And that’s going to be the case more and more as we continue to see the Project Economy become entrenched and as we feel the impacts and implications of those megatrends. More people than ever are going to need project skills in places across our organizations and our communities than ever before.
- Let me close with this: The world faces big challenges. If the past couple of years has taught us anything – it’s that everything is possible when we connect a vision for the future with an understanding of how to turn that vision into a reality. The world is changing. But we aren’t just reacting to change – orgs need people who can drive it. And PMI stands ready to empower everyone to do just that, including all of you. Thank you very much. Now, let’s take some time for questions.