Project Managers Key to Sparking Needed Innovation in Current Business Climate

As companies emerge from the coronavirus pandemic in the coming year, they face unprecedented challenges that will require a commitment to innovative thinking. A new report from the Project Management Institute (PMI) indicates many organizations have stepped up support for innovation, but there is ample room for improvement.

Research for the report, called the Innovation Imperative, revealed that seven of 10 project professionals say their companies invest in and reward innovation. This is especially important, PMI writes, because we currently are living through “an era of nonstop disruption” that will require out-of-the-box ideas to successfully navigate.

However, the picture is not entirely rosy. “As much as companies have tried to spur innovation, it’s clear many still have a long way to go,” the report states. “More than half of project leaders rate their organizations as below average when it comes to facilitating innovation and motivating project professionals to pursue new ideas.”

The Project Economy and Innovation

PMI wrote about innovation in the context of The Project Economy, a term that refers to the concept that most organizations now achieve change and innovate through projects. That makes those who have earned a Certificate in Applied Project Management extremely valuable for businesses.

With the current political, social and health upheavals happening across the nation and around the world, organizations face a situation different than just a year ago. “Real innovation is delivered through projects. That takes more than dabbling at the edges,” according to PMI. “Companies need to reimagine and reinvent. And forget failing fast—it’s about succeeding quickly.”

That means development of technologies, systems, products, services and customer experiences that “change the game,” according to the report. 

Where Companies Currently Stand

McKinsey reports that 90% of executives believe the coronavirus pandemic will change the way companies do business over the next five years, with 70% saying it will create significant new opportunities for growth. However, only 21% said they have the expertise, resources and commitment needed to pursue that growth successfully.

Much of this innovation will happen in digital environments as more companies close or reduce services at brick and mortar businesses, according to McKinsey. 

Whatever form it takes, three out of four project managers told PMI they expect their organizations to increase support for project innovation. Specifically, they noted increased support already for expanding their roles as project managers (76%) as well as increased investment in innovation (73%) and rewarding innovation (70%).

Project Leaders As Innovators

The current situation has put more emphasis on the need for innovation in project management, but it’s something that has been a topic for many years at PMI.

The Project Manager of the Future report found that collaboration and innovation are soft skills that employers desire in project managers. A 2015 PMI report addressed the challenges project managers face, including a risk-adverse environment and a lack of the needed tools and time.

Many of those challenges may dissolve in the current environment as businesses look to right the ship in the wake of the pandemic.

One of the issues that is driving needed changes are the changing needs of customers. Unfortunately, many businesses do not have a great track record in this area. The 2020 Innovation Imperative PMI report pointed out that only one in four organizations are focused on changes in reaction to market trends.

They called this “a big miss” and warned that organizations should approach changes not from an emotional standpoint, but with data-driven decision making.

Clearly, once the pandemic is brought under control, project managers will be well-prepared to lead innovation through project teams. Those with the training, skills and knowledge they pick up through project management education should enjoy an edge over the competition in earning these important leadership positions.