RGP (Nasdaq: RGP), a global consulting firm focused on project execution, released a new report today on how organizations are executing critical projects to keep up with rising demands, with one-third of executives saying it’s become more challenging since 2020.
The number of mission-critical projects has increased dramatically since the start of the pandemic as organizations race to keep up with technological advances. From September to October 2022, RGP surveyed 404 senior executives across North America, Europe, and Asia Pacific to examine the challenges large companies face in executing projects amid global disruptions and market volatility. Only 15% of companies are achieving or exceeding their goals for these mission-critical projects, while 24% reported less than half their projects are meeting goals.
“Faced with growing competition and a fast pace of change, organizations have taken on more mission-critical projects to keep up with rising customer and competitive demands,” said RGP CEO Kate Duchene. “Businesses are pursuing an unprecedented level of critical initiatives, from finance and digital transformation to enterprise-wide operational changes and reimagined supply chains. Yet a tight labor market, a changing and distributed workforce, and a shortage of in-demand skill sets have made it more difficult to balance and execute these organizational priorities.”
The management of hybrid teams and project teams from multiple organizations were cited as the biggest factors increasing the difficulty of critical project execution. Outside talent – professionals from consulting and staffing companies and independent contractors – makes up 45% of critical project teams today, up from 38% in 2020 and expected to grow to 48% by 2024. Meanwhile, the average makeup of project team members working from home has increased more than 200% since the start of the pandemic.
RGP further broke down its findings by companies that said all their critical projects since early 2020 met key goals (“Project Execution Leaders”) and those that said less than half their projects since early 2020 met key goals (“Project Execution Laggards”).
The 15% who are achieving their goals have had significantly higher increases in market capitalization over the last five years. An analysis of publicly traded companies that participated in the report found that the average market capitalization for “Leaders” increased 63% from 2017 to October 2022, while the market capitalization for “Laggards” declined an average of 24%. “Leaders” also said they staff their projects with a higher percentage of people from consulting and staffing firms (31%) compared to “Laggards” (21%).
To find more of RGP’s latest insights, download the full study “Overcoming the Execution Challenges of Mission-Critical Projects” by visiting rgp.com/project-execution-research-report.
RGP is a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, experienced and diverse talent. As a next-generation human capital partner for our clients, we specialize in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. Our engagements are designed to leverage human connection and collaboration to deliver practical solutions and more impactful results that power the success of our clients, consultants and partners.
Our unique approach to workforce strategy strongly positions us to help our clients transform their businesses and workplaces, especially at a time when high-quality talent is increasingly scarce and the usage of a flexible workforce to execute transformational projects has become the dominant operating model. Our mission as an employer is to connect our team members to meaningful opportunities that further their career ambitions within the context of a supportive talent community of dedicated professionals.
With approximately 4,200 professionals collectively engaged with over 2,100 clients around the world from nearly 40 physical practice offices and multiple virtual offices, we are their partner in delivering on the “now of work.” Headquartered in Irvine, California, RGP is proud to have served over 87% of the Fortune 100.
The Company is listed on the Nasdaq Global Select Market, the exchange’s highest tier by listing standards. To learn more about RGP, visit: rgp.com. (RGP-F)
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