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The Impact of Planning on Project Predictability

How does planning impact the predictability of project delivery?  There is some good data available on this topic and it has been raising eyebrows in the project management world.

One good way to measure project delivery competence is by evaluating capital effectiveness.  Capital effectiveness is an index measurement of how much money it takes to deliver a set dollar amount of capital projects within a one year period.  Companies which have a high level of competency and predictability in project delivery have a low Capital Effectiveness Measurement (CEM).

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The interesting findings come with the next layer of investigation into how the best and worst firms deliver projects.  It turns out that firms with the lowest CEM spend a larger percentage of their overall capital budget on planning.

The least effective organizations invest the least amount of money into the project planning process.  The most effective organizations invest the most amount of money into the project planning process.

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