The indispensable role of project management in business success
In a new report ‘The Golden Thread’ by the Association for Project Management (APM) and PwC Research, the project management profession is shown to contribute £186bn of gross value added (GVA) to the UK economy in 2024. This represents £30bn growth since 2019. The project profession also employs an estimated 2.32 million full-time equivalent workers (FTEs), which means that 8.5% of total UK FTEs are employed in project-related roles and the profession delivers over 9% of total UK GVA – a key measure of economic output and productivity.
The report follows a survey of over 500 UK businesses and rubberstamps the significance of project management as a fast-growing profession that is indispensable to modern day business.
Scale and impact of projects and programme management:
In terms of GVA, the professional and business services sector is the largest contributor, standing at £47.9bn, a rise of 22% from 2019. Traditional project management sectors have also grown, with construction GVA rising to £33bn (up from £27bn in 2019). Project management within the financial services sector contributes £13.1bn of GVA and IT/technology provides £14.4bn, a rise of 92% from 2019.
In terms of gross value added (GVA), the professional and business services sector is the largest contributor, standing at £47.9bn, a rise of 22% from 2019.
Chris Anstead, a Director in the Global Programme Advisory Team at Turner & Townsend, a leading global programme management and construction consultancy and APM Corporate Partner, said: “Once upon a time projects were focused on digging holes and building things. But now projects and programmes are being used for all sorts of transformations with our clients applying our skillsets into much broader applications.
“We are starting to see greater application of programme management within organisations. In the past, they might have relied on operational departments to deliver individual projects. Now they are thinking more about driving step-change, improvements and ultimately transformation.”
The role of project management in executing business strategy:
Business is beginning to see the value of project management, highlighted in The Golden Thread report which shows that 68% of businesses think more organisations and sectors realising the economic and social value of projects will act as a positive enabler of growth. In a separate APM study, the majority of business leaders surveyed think project management brings value to their organisation.
The role of project management in executing business strategy cannot be overstated. From strategic alignment to risk management, communication, resource optimisation, and performance management, project management serves as the linchpin that translates strategic visions into tangible outcomes. In today’s volatile and competitive business landscape, effective project management is not just a desirable skill but a strategic imperative for organisational success.
It’s not just about delivering projects on time and within budget, but also about aligning these projects with organisational goals to drive strategic success and innovation. Whether it’s launching a new product line, expanding into new markets, or enhancing operational efficiency, strategic aspirations are realised through projects. Project leaders should be working closely with organisational leaders to ensure that every project initiative contributes directly to the fulfilment of strategic objectives.
Opportunity for future growth:
The role of the project professional continues to evolve, with the most impactful professionals leveraging new technology, building strong relationships and aligning project outcomes with the strategic goals of their organisations.
Focusing on developing these traits alongside technical skills, not only will organisations ensure their project managers have the necessary skills needed for effective delivery, but will increase the attractiveness of this role across business in the UK and around the world.
The Golden Thread shows a growing ecosystem of project professionals spread across all sectors, who are driving strategic change for their organisations and helping to tackle some of the most important problems facing society today.
And there is growing optimism, both for the number of projects that organisations expect they will undertake and their average project budgets – 52% of the 567 businesses surveyed predict growth in project-based activity and nearly half predict increased project budgets, a rise from a third of businesses in 2019. This growth is mainly attributed to a wider recognition of project management value. However, the risk of talent shortage emphasises the need for a robust talent pipeline to ensure the profession can sustain this growth.
To download APM’s Golden Thread 2024 report visit https://www.apm.org.uk/resources/research/the-golden-thread/