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Arras People Survey 2008 – Current Outlook

We have been able to take an extract from the current respondents to the Arras People 2008 Survey to see what happened with remuneration in 2007 and more importantly the outlook as Project Management Professionals head into 2008.
2007 Movements in Salaries and rates saw rates for 48% of contractors remain fixed as against just 25% of the employees who have responded so far. Employees appear to have fared much better in the increases, with 52% of them having achieved a raise between 1 to 10% (35% between 1 to 5%) compared with just 27% of the contractors. At the top end the number achieving a greater than 10% increase is pretty consistent across both areas at 13% and 14%.
2007 Projections from our previous survey when compared to actual movements show a remarkably stable picture where actual changes appear to have been significantly in line with our respondents’ expectations. Contractors amazingly have a 100% match on actual outcome versus what they projected at the beginning of the year 2007. Employees on the other hand seemed to enter the year a little more bullish and did not quite achieve what the levels they had expected.
2008 Projections from our current survey would appear to show that the market as a whole is expecting 2008 to be a tighter year in terms of increases. 54% of our contractors see a tight market where rates will once again remain fixed, an increased number 9% are anticipating that they will reduce. Contractors anticipating a rise in rates are down from 47% going into 2007 to 37% going into the current year. Meanwhile 66% of employees are again anticipating increases in salary (down from 70%) with the delta being consumed by those anticipating their salary to remain fixed. Those anticipating a reduction in salary are down from 6% in 2007 to just 4%.
This document with graphical representations can be downloaded from Outlook 2008
The Survey is still open at Project Management 2008 should you wish to take part.
Predictions for 2008
John Zachar, Principal Consultant, CITI Limited
Often today there is a plethora of people and organisations forecasting the future.
“Petrol prices are set to exceed . . . .”
“More people finishing university with larger debts this year!”
and of course many more.
My prediction for 2008, based on watching the community that I call the project management community, is that there will be a slowly dawning realisation that the investments made to date concerning acquisition of project management credentials for staff has been an investment with little or no return for the organisation.
There is a return on investment for the individual. Whether a PMP is earned from the PMI, or an APMP or APMPQ from the APM for Prince2 qualifications, all will make the individual more marketable. However, none of the above ensures that the individual involved is better equipped to manage projects through to success.
Gaining a certificate is like passing a driving test. Now that you have your license, you can really begin to learn how to drive. Well, I look upon gaining a PM certification as passing the driving test. Now the (potential) project manager has the opportunity to gain the experience needed to successfully deliver time after time.
CITI does offer courses to help acquire the certificates mentioned above; however the real strengths of CITI education programmes lie in the arena of advanced experience acquisition. Now that I do have a ‘certification’, how do I really learn to be successful as a PM? How do I get "beyond the method"?
For the answer to this question and many others about achieving repeatable success managing projects, call CITI today to discuss how we can support you as an individual or as an organisation wishing to professionalise your project management community, on 01908 283600. Further information on our services can be found at www.citi.co.uk.
Peter O’Neill, Senior Instructor, ESI International
My first prediction for 2008 is that there will be increased uncertainty in the project arena! Falling consumer spending, rising import prices, continuing fallout from the financial sector credit problems – all of these will increase caution on many company and government project spending plans.
On the plus side, UK companies selling projects and project support into infrastructure and consumer growth areas such as Eastern Europe, the Middle East and China should gain increased competitiveness from current and future falls in the value of Sterling.
The PMI’s new PM career framework is likely to attract attention from organisations keen to reduce the turnover rate of experienced project managers and technical project staff. Ironically, for many the process of assessing the value of their competence and experience may be the catalyst which prompts them to join the numbers who will go independent (or at least agency-based) in 2008. This number will still be high but may plateau in the UK due to economic pressures.
The simplest prediction for project management in 2008? The official cost estimate for the 2012 Olympics will increase again and significantly. Depressingly, the media will probably continue to imply that this is due to poor UK project management – when in fact nearly all of the contractors and suppliers involved will regard their own contributions as well managed and profitable projects!
Peter O’Neill is a Senior instructor with ESI International, the world leader in project management and business analysis training. For more information please visit:
www.esi-intl.co.uk
Joanna Burigo, Maven Training
Maven Training’s prediction for 2008 is that there will be a sharp rise in the adoption of PRINCE2™ around the world. Helped by the imminent release of PRINCE2™ translations into German, French and Polish, more international organisations will adopt PRINCE2™ than ever before.
Coupled with the growing interest in PRINCE2™’s compatibility with PMI and increased opportunities to be trained in one’s own geographical region and language, PRINCE2™’s popularity will continue to rise.
To support this international growth Maven Training is expanding into Europe, the Middle East and the USA. The company has started 2008 with the announcement of new schemes operating in Poland, the Middle East and America.
Denmark is another key territory and Maven Training is working with Peak Consulting to meet the demand for PRINCE2™ training. Patrick Sorrentino of Peak Consulting says: “In Denmark, the interest of PRINCE2™ is growing like crazy as the Danish government has introduced PRINCE2™ and is supporting its use in both the public and private sectors. The numbers of exams are increasing by three hundred to four hundred percent per year. It is a very exciting time for us.”
PRINCE2™ is a Trade Mark of the Office of Government Commerce
Maven Training specialises in Project Management Training
Helen Moore , PMLifeline - The PM Portal
As the new Editor of www.pmlifeline.com, I’ve been struck by how multi-talented you all are. You have to be structured and organized, but also flexible. You seem to be strong negotiators (with even stronger opinions!), yet you still have to take orders from ‘the boss’. Your decisiveness is legendary and getting things done is the order of the day. Sadly, the mainstream press only seem interested when things go wrong.
My prediction is that Project Management will become a higher profile item on the board agenda as the perceived failures of some high visibility public sector contracts are compared with the successes of private sector projects.
Companies that promote a strong 'Project Management mentality' and don't just pay lip-service to cumbersome process and method will prove the value of a well-run and intelligent Project Management function.
I predict that the view that ‘all PRINCE2 accredited PMs are by association competent’ will decline in popularity, and that PMs will be hired for their proven delivery and experience. I think that Six Sigma will increase in popularity and more companies will look at the benefits of adopting an approach founded on this.
Good PMs will be in high demand in 2008 and those reliant on accreditations alone will be ‘outed’.
Controversial - maybe - but www.PMLifeline.com IS independent!
We have a free-thinking editorial policy, and we welcome contributions from all. So if you have an article that you’d like to be considered for publication, or an event that you’d like to talk about, or something that you’d like to discuss with your peers in the Forum, then take a look at the site or drop me a line at editor@pmlifeline.com
Mick Hides, Consultant, Arras People
The Third Sector is a term which is gaining increased prominence within society and is central to my prediction for the coming year.
The Third Sector has an important role in terms of the social and economic well being of the country. The establishment of an Office of the Third Sector (complete with Minister) within the Cabinet Office reinforces the importance that Government places upon it. With an annual income estimated to be somewhere between £30–50 billions, the Third Sector is making a significant contribution to the GDP; complementing this is a formal volunteer resource exceeding £38 billion.
The Government recognises the value of the Third Sector and has invested more than £350m purely to develop the capacity, whilst public funding of the sector has doubled to £10bilion in less than a decade. The Third Sector has a primary role in transforming the delivery of Public Services and this is reflected in measures contained within the current HM Treasury spending plans.
So far I have painted a picture of a thriving sector working closely with communities, local and central government to deliver services. But why is this of importance to project management professionals?
The Third Sector is characterised by people who are passionate about their communities are driven by a desire to add social value. I believe that many of the resources within the Third Sector are ineffectively used; not through any fraudulent means but purely a lack of management competence. Rarely does someone join the Third Sector to become an effective manager. This is not to say that there are no effective managers within the sector but they primarily are drawn to work within the sector for more personal and altruistic reasons.
Given the project nature of many deliveries, I strongly believe that a market is coming into existence for professional project managers within the Third Sector. Organisations that are now bidding for £multi-million contracts need to demonstrate a level of project management expertise that was unprecedented only a few years ago. In the last month alone I have handled a number of roles ranging from a 2 week bid writing assignment through to permanent positions within National charities and NGOs. One thing I have noticed are that the organisations themselves are beginning to recognise the value of paying market rates; the days of sacrificing salary for social giving appear to be dwindling.
Candidates are not put off by the label of working within the Third Sector. I am sure some are looking at the opportunities we have as stepping stones into the Public Sector but many are looking for a work life balance which gives them a rewarding role that meets a social need.
My predictions for the coming year can therefore be summarised as such:
- Increased delivery of public services by Third Sector organisations
- Increased use of professional Project Managers to deliver outcomes and use resources more effectively
- Third Sector organisations prepared to pay market rate to get the right people
- The Third Sector will be seen as a legitimate career path rather than a sabbatical or early/post-retirement alternative
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