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Acando White Paper

Project Success
Insight

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Acando White Paper


Project Success
Insight

This research paper looks at


what the key contributing
factors to a successful
project are and whether
there are lessons we can
learn from this to make our
projects more successful.

successful projects and trends that are exhibited more


commonly across successful projects.

The number one measure of project success is that the project


delivers the expected benefits.

Without any further ado lets dive straight in.

The number two measure of project success is that the project


achieves all of the objectives.

What is a successful project?


Before we can understand what contributes to a successful
project, its first interesting to see what definitions there are of
successful projects. The survey presented a list of 10 criteria that
are often seen as definitions of a successful project. These criteria
were taken from other existing surveys on project success (The
Standish Group, IT Toolkit, Project Smart, The Chaos Group and
Modern Analyst). Respondents were asked to rank the 10 criteria
1 through to 10 where 1 is, in their view, the most important
definition of a successful project, 2 the next, and so on.

The research was in the form of a questionnaire sent out to


over 43,000 people involved in delivering projects. There
were 4,451 respondents and it is these responses that make
up the material presented in this paper. There are two
appendices to this paper which explain in some more detail:
1. The demographics of questionnaire respondents.
2. Statistical significance testing and how it was applied to the
questionnaire results.
For those who are just interested in the survey results one
important piece of advice before we dive straight in. A survey is
an inexact science to understand exactly what is contributing to
project success. It can give trends rather than absolute definition
and is comparative in its nature not absolute. This piece of
research does not purport to have the answers to what creates a
successful project. But it does highlight common factors amongst

The graph below shows the aggregated number one choices


from all respondents. There are several interesting observations
in this analysis.

These are also interesting when one considers how little time is
spent on projects measuring benefits and ensuring the project
delivers objectives. Perhaps we should take a long hard look at
whether the objectives are ones stated in order to ensure the
funding for the project, or whether the objectives are actually
delivered. Almost 60% of respondents had benefits or objectives
in their number one definition of a successful project.

18% of respondents thought the number one measure of a


successful project was that the project sponsor thought the
project was successful.
I question whether this is people not wanting to confront the
reality of whether their projects did deliver, or whether the
benefits are not measured (or not capable of being measured) in
which case a benefit-based analysis of success just isnt possible.
It is interesting that such a subjective measure is the third
most popular number one definition of a successful project.

What defines Project Success?


...Wouldnt have had a better outcome if we did the project again
...Was enjoyed by everyone who was on the project

Only 5% of respondents thought a successful project was one


which delivers in the agreed timescales.

...Delivers more benefit than cost

Only 5% of respondents thought a successful project was one


which delivers within the agreed budget.

...The project sponsor thought it was a success

...Delivers the expected benefits


...Delivers all of the objectives

Together these are interesting. The amount of effort we put in


to measuring time and cost on projects is huge. But they are
perceived to be poor measures of project success.

What defines Project Success?

...Delivers within agreed timescales


...Delivers within budget
...Delivers most of the objectives
0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Percentage of respondents

When we expand the data (chart above) to look at each


respondents top two factors that define project success, little
changes. Benefits are still the run-away leaders, the subjective
view of the project sponsor is still in third place and time and
budget are still poor cousins to any of the top three.

...Wouldnt have had a better outcome if we did the project again


...Was enjoyed by everyone who was on the project
...Delivers more benefit than cost
...Delivers the expected benefits
...Delivers all of the objectives

We should carefully consider how we measure our projects.


The analysis is suggesting that benefits and project objectives
should be carefully measured and reported on as these are the
most significant definitions of a successful project.

...The project sponsor thought it was a success


...Delivers within agreed timescales
...Delivers within budget
...Delivers most of the objectives
0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Percentage of respondents

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Acando White Paper


Project Success
Insight

There are some other interesting demographic variations, of which


the data below is one. The chart shows the number one definition
of a successful project from those respondents who have
delivered projects for 15 years or more. In this group of people
and only in this group of people, this phenomenon is not seen
in any other group the project sponsors view of the project
is the most important definition of whether the project was
successful or not. When tested, this result is statistically significant.

Delivers the Expected Benefits


Support
Deliver
Manage
Pay For
0%

10%

20%

30%

40%

50%

60%

70%

80%

Percentage of respondents

The chart above shows the percentage of respondents that


marked delivers the expected benefits as their number
one definition of a successful project and compares that
data to the different level the respondent has in the project
hierarchy. It is statistically significant that the higher you are
up the project hierarchy, the more convinced you are that
the definition of whether a project was successful or not
is whether or not it delivered the expected benefits.
Interestingly, for those tasked with delivering our projects,
less than 40% of them have the same number one definition
of a successful project.

We can draw some interesting inferences from this.


The more experienced project managers take care of the
project sponsors view more so than others.



The only way to survive in project management for 15 years or


more is to make project sponsors happy and therefore its not
unexpected that those with significant experience have this
bias to their definition of a successful project. Politics is at play.

Those who have been managing projects for a long time have
come to the realisation that benefits are rarely measured and
therefore have elected for a definition that they can measure in
preference to what they know is the better measure but too
infrequently applied.

We cant be sure which of these inferences is


true. The data doesnt show us that.

There are two hypotheses here.


1. We are poor at communicating that the most important
thing to focus on in delivering any project, is that it delivers the
benefits that are expected. This poor communication creates
a different focus as you move down the project hierarchy
which is going to contribute to projects missing the mark
as the mark that is being focused on is different from the
mark that those are paying for the project are focusing on.
2. As you move down the project hierarchy, you become more
task focused and less benefits focused and this is expected
and acceptable. As you move down the hierarchy, you are
tasked with delivering a set of actions, not a set of benefits and
therefore you are going to have more task and less benefit
focus. This is natural and its the responsibility of the top of the
project hierarchy to ensure the tasks deliver the benefits.

What is project success 15+ years of experience


Other (please add any other success criteria in to this box)
...Wouldnt have had a better outcome if we did the project...
...Was enjoyed by everyone who was on the project
...Delivers more benefit than cost
...Delivers the expected benefits
...Delivers all of the objectives
...The project sponsor thought it was a success
...Delivers within agreed timescales
...Delivers within budget
...Delivers most of the objectives
0%

5%

10%

15%

20%

25%

30%

35%

Percentage of respondents

Personally, I prefer the first hypothesis. The second one


sounds too much like an excuse for me. And the second
one breaks down still further when you consider that less
than 50% of those managing our project delivery functions
have benefits as their number one definition of success.
In order to have more successful projects, everyone
has to focus more on whether the project is delivering
the benefits that it was expected to deliver.

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Acando White Paper


Project Success
Insight

The final demographic difference is shown in the graph below.


This data shows the top two responses from respondents
managing large projects. In this group, and only in this group,
there is more of a focus on delivering all the objectives rather
than delivering expected benefits. Again, we can only guess
as to the reasons why but candidates such as; its almost
impossible to measure benefits on large projects; Im too
far removed from benefits realisation to be able to judge
whether this project has been a success; the project is too
complicated to evaluate benefits objectively so objectives
is a better measure of success; are all likely explanations.

universal. This focus dissipates the further we go down the


project hierarchy. There are also some demographic groups
who have a preferential focus on the project sponsor (those
delivering projects for 15 years or more) or a significant objectives
bias as opposed to benefits bias (those delivering our largest
projects). We could all have a chance of delivering more successful
projects if we kept a constant eye on making sure what we were
doing was delivering the expected benefits and measured the
benefits frequently and fairly throughout our project lifecycles.

Top 10 Technical competences crucial to ensuring a successful project


Definition
Handover and closeout
Issue management
Change control
Scope management
Requirements management
Business case
Risk management
Project planning

In summary, delivering benefits/objectives are the runaway


winners in the definition of a successful project, but this is not

Stakeholder management
0%

10%

20%

30%

40%

50%

60%

Percentage of respondents

What is project success - respondents from large projects


Other (please add any other success criteria in to this box)

Technical Factors

...Wouldnt have had a better outcome if we did the project...


...Was enjoyed by everyone who was on the project
...Delivers more benefit than cost
...Delivers the expected benefits
...Delivers all of the objectives
...The project sponsor thought it was a success
...Delivers within agreed timescales
...Delivers within budget
...Delivers most of the objectives
0%

5%

10%

15%

20%

25%

30%

Percentage of respondents

Acando - White Paper

We now move on from a definition of project success to


a view of the technical factors that have a positive impact
on creating a successful project. For this part of the survey,
respondents were presented with a list of technical factors
and asked to rate how important they were in contributing
to a successful project. They could rate them as crucial,
very important, important, has little influence, somewhat
unimportant or irrelevant. The factors available were the
technical factors listed in the APM competence framework.
In the chart above we show the top ten factors
(out of 24 examined) that were rated as crucial
to ensuring a successful project.

Stakeholder management is the runaway winner and is


according to our survey the most important factor to ensure
the delivery of a successful project. Interestingly project
planning is second in the list and this is despite the prevalence
to action rather than thought that typifies many projects
in these austere times. But this is a view of what people
thought the success contributors were, not how prevalent
these were used on their projects that comes later!
Its as interesting as to what doesnt appear in the top ten list as
to what does appear. Budgeting and cost management isnt in
the top ten list which goes hand in hand with its low showing
in the definition of a successful project as well. But is counter to
the import it plays in the actual delivery of many projects. Its also
interesting to see the omission of benefits management. This
was universally recognised as the most important definition of a
successful project, but does not appear in the top ten technical
activities that should be carried out to ensure a successful
project. This further supports the hypothesis we made earlier
that although benefits management is recognised as a good
definition of a successful project, the majority of us pay lip
service to it when it comes to actually delivering our projects.

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Project Success
Insight

Behavioural Factors
Support

Deliver

Manage

Pay for

Project Planning

Project Planning

Change Control

Project Planning

Business Case

Risk Management

Project Planning

Stakeholder Mngt

Risk Management

Scope Management

Stakeholder Mngt

Scope Management

Stakeholder Mngt

Stakeholder Mngt

Requirements Mngt

Definition

Requirements Mngt

Requirements Mngt

Scope Management

Benefits Management

This raises an interesting question for those tasked with managing


project functions in their companies how many of your project
managers have been on a formal conflict management training
course versus those that have been on a formal technical
training course (e.g. PRINCE2)? Im guessing most people have a
prevalence to training on the technical despite our respondent
group being massively in agreement that behavioural factors
contribute to project success significantly more so than technical.
When we amalgamate technical and behavioural factors, the top
three factors are all from the behavioural stable communication,
teamwork and leadership.

We repeated the technical factors exercise with behavioural


factors. Respondents were given the same 6 options and had
to rate how important these behavioural competences were in
contributing to a successful project. The factors available were the
behavioural factors listed in the APM competence framework.
The chart below shows the top ten factors rated as crucial
by the survey respondents. The top ten behavioural factors
are universally rated as higher than all of the top ten
technical factors demonstrating an appreciation that the
behavioural aspects of project management are more likely
to contribute to a successful project than the technical.

They were no statistically significant variations across any


of the demographic groups on behavioural factors.

Project Success Criteria - Behavioural Competences


Again there are some interesting variations across
some of the demographics that we measured.
The table above has columns representing a respondents
position in the project hierarchy (see Appendix B for
further definition). The cells in the table show the top five
technical tasks that each of these groups consider as the
most important to delivering a successful project.
Every one of the groups had project planning and
stakeholder management in their top five (marked
dark green). The only demographic group who did not
have stakeholder management in their top five were
those involved in managing the smallest projects.
Three out of four of the groups had scope management
and/or requirements management in their top five (marked
light green). This reinforces the importance of these
activities in ensuring the successful delivery of a project.
But it is the differences again that give us cause
for most commentary.





Those lower down the project hierarchy have risk management


in their top five technical factors but they do not appear in the
top five of those higher up the hierarchy. Are we delegating risk
management too low down? Or is this a consequence of those
lower in the hierarchy being task focused and therefore risk
management is naturally appearing higher on their agendas?

Those responsible for managing project teams have change

control in their top five which is not repeated anywhere else. It


is however closely allied to definition which is in the top
5 of those paying for the projects. But it does seem like
those paying for the projects think we should spend more
effort accurately defining what were doing and those
responsible for managing interpret that, or implement that,
by having strict change control requirements. It seems
those managing have a cure (change control) rather than a
prevention (better project definition).
And then we come back to benefits. Not only was this
recognised as the most prevalent definition of a successful
project (and more prevalent the higher up the hierarchy one
goes), but its reinforced by those who pay for projects marking
it as one of the five most important technical tasks to ensure a
successful project. But it doesnt appear in any of the other
groups top five at all. This is only adding weight to the premise
that benefits management is important and we just dont do it.

The other important trend across the hierarchy demographic


is the percentage of dispersion amongst the top five technical
factors that contribute to project success. At the project
support level, 65% of respondents have the same top five
criteria. At the pay for level 93% of respondents have the
same top five criteria. This statistically significant observation
shows that as you move up the hierarchy, one is more certain
of what contributes to project success but as you move down
the hierarchy there is less agreement on what contributes
to project success. It seems again that communication
is not all it could be in our project environments.

Acando - White Paper

Organisational structure
Organisational roles
Professionalism and ethics
Negotiation
Conflict management
Project governanace
Project sponsorship
Leadership
Teamwork
Communication
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of respondents

Whats missing?
Its interesting whats missing from any of these analyses. In
none of the top ten have we seen project methodology or
standardised tools and systems. A lot of organisations invest
heavily in these two areas but they are not seen in our survey as
important or contributing factors to a successful project. Why?
One hypothesis is that there is observational bias creeping in to
the results here. And we built additional questions in to the survey
to highlight obvious areas where we thought the bias may be.

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Project Success
Insight

All my projects will be successful


because I will make sure they are

60%
50%
40%

Yes

30%
20%

Percentage of respondents rating benefits


management as crucial to project success

No

10%

Percentage of respondents

There was a very specific question asked later about


whether tools, methodologies and governance were
contributing to making projects more successful,
where two thirds of respondents agreed they did.

90%

Percentage of respondents

80%
70%
60%
50%
40%

No

30%
20%
10%

60%

50%
40%
30%

No

Yes

20%
10%

50%
40%
30%
20%
10%
0%

New

Experienced

Professional

50%
40%
30%

Crucial and
very important

20%
10%

Crucial

0%

My projects use strong project tools


and methodologies

60%

0%

60%

0%

My projects will be successful


because I will make sure they are
Percentage of respondents

To finish off the analysis, here is a collection of other


interesting observations that didnt nicely fit into any
of the categories at which weve looked so far.

70%

Percentage of respondents

Parting Thoughts
Percentage of respondents

Tools, Methodologies and Governance


contribute to making projects more successful

Weve focused a lot throughout on benefits management. Its


crucial to the number one and number two definitions as to
what a successful project is. Its more accepted as important the
higher up the project hierarchy we go. And its in the top five
technical competences for those paying for the projects. But
as a whole it rated crucial with only 20% of respondents and
was 17th out of all 24 attributes examined. There seems to be
a big mismatch between what we know defines a successful
project and what were actually doing on our projects.

Yes

There is little confidence in the individuals own ability


to influence the project to a successful outcome. Most
respondents thought they were not able to influence the
project in this way. Thankfully, the more experienced you
are in projects, the less you agree with this statement.

Even so, there is a distinct lack of either personal


responsibility or a distinct lack of confidence in ability
to influence a project to a successful outcome.

My successful projects had the following


Effective communication

Well defined requirements

Realism around objectives and timescales

A strong executive sponsor

0%

There is too much emphasis placed


on whether a project is successful

Another hypothesis is that tools and methodologies are


considered a prerequisite today and therefore the survey results
focus on less obvious aspects. Unfortunately the data doesnt
validate this hypothesis (only 25% of respondents projects had
good methodologies and tools) so its more likely to be the
former hypothesis. The survey doesnt give us a definitive answer
one way or the other, but it does raise the interesting question.

70%

Percentage of respondents

But only one quarter of respondents actually recognised that


their projects used strong tools and methodologies. One
hypothesis for why tools and methodologies were not rated
higher as a contributing factor to success when presented
with a long list is that people recognise their own projects
dont have them so they tend to automatically rate them lower
(were very bad at admitting what we know were bad at).

A project team with authority to make decisions


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60%

Percentage of respondents

50%
40%

Yes

30%
20%

No

10%
0%

Over 60% of respondents thought there was too much


emphasis placed on whether a project is successful or not.
I found this result shocking and disturbing. It may be an
acknowledgement that we dont do benefits management well
so we cant easily answer the question whether a project was
successful or not. Or it may simply be that those of us tasked
with managing change in our organisations have lost our way
and our raison dtre. This for me is an area that is worthy of
further analysis but our study didnt go further in to this topic.

Acando - White Paper

Respondents were asked to rate what their successful projects


had which they thought had contributed to them being
successful. The top five reasons are shown in the chart above.
Communication is number one and this is also the number
one behavioural competence believed to contribute to project
success. A good level of alignment there. But interestingly a strong
executive sponsor, realism around objectives and timescales and
a project team with authority to make decisions didnt appear in
any of the other top ten lists weve looked at but are numbers 3,
4 and 5 in projects that have been successful. This too is worthy
of further analysis but beyond the scope of the current study.

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Project Success
Insight

60%

Yes

40%
20%

1. The industry into which the project is delivered.


The hypothesis being that different industries have different
success rates and different criteria that contribute to success.

No

0%

And finally, in a nod to the wise (I couldnt bring myself


to write older), we recognise that as we gain more and
more experience in delivering projects, they become
easier to manage through to a successful conclusion.
Projects are becoming easier
as I gain more experience
Percentage of respondents

95%

2. Respondents position in the project hierarchy.


The hypothesis being that people at different levels in
the hierarchy have different definitions of project success
and different thresholds for a successful project.

To Summarise
Im not sure if the survey has produced more questions than
answers, but there are some interesting observations:

90%
85%
80%
75%
70%

New

Experienced

Professional

And this is supported across the experience demographic


with those who have more experience being even
more in agreement with this statement. This is either
self-gratification, or a reality that experience truly does
lend itself to improved chances of project success.

The number one definition of a successful project is one which


delivers the expected benefits / objectives. But too few of us
measure benefits or objectives. There is a dissipation of this
belief the further down the project hierarchy you transcend.

Of all the factors that contribute to a successful project, the


behavioural factors are significantly more important than the
technical factors.
Delivering a project on time and to budget were not seen as
key to defining project success.

3. The number of years the respondent has been a


project manager. The hypothesis being that experience
is an important contributor to project success.
4. The size of projects managed. The hypothesis
being that larger projects are less successful than smaller
projects as a project grows in size (and assumed
growth in complexity), it becomes less successful.
For each of these demographics, the responses were
grouped to create 3 or 4 demographic groups that
made analysis more manageable. The full demographic
data and groupings are presented below.

Industry

Project practitioners are not confident of their ability to


influence a project to a successful outcome.
Experience counts for a lot.



There were no significant variations across industries in our


respondent data. All industries showed the same trends as the
aggregated trends presented in this paper (or where those
trends were different, they were not significantly different).

Acando - White Paper

Industry into which respondents deliver projects


14%

Industries respondents deliver projects in to


Percentage of respondents

We looked for 4 different demographic groupings in the


respondents and have analysed the data by these groupings
searching for hypotheses that responses are somehow different
across different groupings. The groupings we looked for were:

80%

Percentage of respondents

Percentage of respondents

100%

There were respondents in every industry we measured. 40% of


respondents were in the top four industries of Public Sector (1st),
Software and Computer Services (2nd), Financial Services (3rd)
and Telecommunications (4th). These industries where then
grouped in to service industries, production industries,
sales industries, third sector and others.

30%
25%
20%
15%
10%
5%
0%

s
ice
rv
Se

les
Sa

n
tio
uc
od
Pr

r
he
Ot

t
ofi
Pr
or
tf
No

The distribution across these 5 groupings shows no one


grouping being over-represented in our respondents.

Hierarchy
Respondents position in project hierarchy
Percentage of respondents

Appendix A
Respondent Demographics

Projects are getting easier to deliver the


more experience I get of managing projects

30%
25%
20%
15%
10%
5%
0%

r
...
...
...
er
er
er
ce
be
s
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ag
ag
ag
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Offi
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/
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Pr
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sin
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Pr
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12%
10%
8%
6%
4%
2%
0%

r
r
r
s
s
s
s
s
s rs
il
e ts
n
g n ia ing ate ter co re er
ls
u
h
c
ice ta Ga ce to to nc ar ge ca io tie on e pe in io d
rv Re il & cien Sec Sec efe & P era emi ruct Utili cati duc Pa eer rtat Me Min l Est mpu oba Leis Ot
Se
a o
T l&
O e S blic ird & D ile Bev Ch nst & uni Pro ry & gin spo
l
a
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o rgy m od est l En an
ci
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a
m
Tr
ea
F st
sp to
En leco
Fin
ar
ro Au
u
Te
Ae
ftw
Ind
So

The majority of our respondents were Project


Managers. There were very few respondents who were
responsible for commissioning projects (budget holding
business executives or Board Members) but there
were some people in both of these categories.

www.acando.co.uk

Acando White Paper


Project Success
Insight

Respondents position in project hierarchy


45%

Those new to managing projects have less than five years


experience. The experienced grouping includes everyone
between five and twenty years experience and the professional
grouping includes those with more than twenty years experience.
Again the peak in the experienced column is expected.
Number of years experience managing projects

35%
30%

Percentage of respondents

Percentage of respondents

40%

25%
20%
15%
10%
5%
0%

Support

Deliver

Manage

Pay for

The only group under-represented in our responses were


those who pay for projects. It would be interesting to
conduct further research in this demographic group to
validate the responses we have received so far but as always,
getting data from this group is harder and more costly.

Experience

60%
50%
40%
30%

20%
15%
10%
5%
0%

rs
rs
rs
rs
rs
rs
ea
ea
ea
ea
ea
ea
3y
5y
5y
0y
0y
0y
an
d1
d1
d2
d3
nd
h
a
n
n
n
n
t
a
0a
5a
0a
ss
n3
n5
Le
ee
n1
n1
n2
ee
ee
ee
ee
tw
tw
tw
tw
tw
Be
Be
Be
Be
Be

rs
ea
0y
r3
e
Ov

45%
40%
35%
30%
25%
20%
15%
10%

10%

5%
0%

0%

New

Experienced

Professional

Size
Size was defined as budget, team size and project duration
in recognition that a low budget project can have 1000s of
team members and therefore be bigger than the budget
itself shows. There is an expected tailing off of responses
as project sizes grow and an unexpected peak at the end.
The data has a large number of very large projects.
Typical size of project managed
Percentage of respondents

Percentage of respondents

25%

Number of years experience managing projects


50%

20%

Number of years experience managing projects


30%

This data was further categorised as below.

Percentage of respondents

These were further grouped in to 4 distinct


hierarchy levels shown below.

Small

Medium

Large

Appendix B
Statistical Significance Testing

t-tests. In laymans terms, it is testing whether the differences


shown in the same data are statistically significant or not.
Because of the distribution of responses data can appear to have
valid differences, but when compared to the whole sample,
those differences can prove to be not statistically significant.
This is what we have tested for in the data presented here.
We compared all significance testing at the 99%, 95%
and 90% confidence levels and anything that proved to
be statistically significant at the 95% confidence level has
been marked as statistically significant in our research
body. Test results not passing the 95% confidence test
have not been marked as statistically significant.
Again for the layman, if we have marked a result as statistically
significant in our research body, what were saying is
that we have tested the differences in responses and the
difference is not down to subtle differences in the entire
population, the differences are statistically significant.

The results from the data have been analysed to identify


whether they are statistically significant. This appendix does
not intend to give a thorough treatment of statistical testing
and the interested reader is encouraged to research further.
All conclusions that have been marked as statistically significant
in the body of the research report have been tested using

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About the Author


Phil Jacklin is the Managing Director of Acando UK, a global consultancy providing project management services. He has managed
consultancy firms for over 15 years, all providing project management services to blue chip clients across the globe. In this capacity
Phil has provided governance across numerous projects, employed and recruited hundreds of project managers and advised many
of his clients on how to improve their project management capabilities.

The data had good representation across the full length of


experiences and approximately follows a normal distribution
curve which is as expected. This data was further grouped
as shown above.

For more insight, comments


and opinion visit our website
www.acando.co.uk
Acando - White Paper

www.acando.co.uk

www.acando.co.uk

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