Whether it is a new car platform, the latest smartphone or a green-conscious office building, it is not enough to create an avant-garde design concept. That design must hit the market on time and on budget before an engineering-driven project can truly be called a success.

The challenge for many organizations is finding engineers who not only know their specialty and their industry, but who also can manage high-stake projects. The price for failing to meet this challenge can be enormous.

A 2015 survey of 2,800 project leaders by the not-for-profit Project Management Institute (PMI) found that organizations still waste an average of $109 million for every $1 billion invested in projects due to poor project performance. In contrast, high-performing organizations—those that complete at least 80% of their projects on time, on budget and on goal—typically adhere to proven project management principles.

What do engineers need to know as they take on project management duties, and what are the key trends driving the project management field? Engineering 360 contributing editor Larry Maloney put those questions to Craig Killough, an engineer, PMI vice president and a former executive vice president of General Physics Corp.

Maloney: How important is project management to the successful launch of engineering-driven projects?

Craig Killough Killough: We estimate that about 22% of the annual global economy is created through fixed capital projects, which typically require a significant amount of engineering. Another 22% involve non-capital projects such as software, intellectual property, information technology and product development—all very heavily dependent on science, technology, engineering and math skills. Project and program management play a significant role in the successful outcome of all of these ventures. Particularly in engineering-driven projects, it’s essential to identify the requirements up front and to understand and manage change; effective project management is the key.

Maloney: To what extent are students being trained in project management skills in engineering schools?

Killough: When I earned my degree from the U.S. Naval Academy in 1972, project management skills were just beginning to be touched on. Over the years, I’ve supported the introduction of more project management education in the engineering schools, and PMI now has an accreditation program for college curricula relating to project management. However, certainly more needs to be done. We estimate that about 80% of young graduate engineers will be working on project teams within 18 months of being hired.

Maloney: What are the chief skills that engineers need as they transition from being team members to actually managing a project?

Killough: Engineers gain some knowledge of project management by virtue of being a part of a team. However, many engineering-driven companies, including more than a third of the organizations on PMI’s Global Executive Council, have set up specific training programs for engineers identified as project manager candidates.

Project management skills fall under three major categories: technical or industry knowledge, leadership and business management. Source: PMI PMI cites three major categories of skills for effective project management. The first is solid experience and knowledge in one’s technology or industry, which is essential for understanding the requirements of a project. The second major category is leadership and people management skills, including conflict resolution, motivational aspects and the ability to work with diverse teams. Finally, there’s business acumen or what we call domain expertise—knowing how a project fits within an organization’s strategic scheme. Included here are financial management, budgeting, scheduling, vendor management and environmental or regulatory compliance issues. PMI refers to these three categories as the “talent triangle” that supports successful project management.

Maloney: How does the growing number of global engineering projects affect project management challenges?

Killough: There’s a big need for these global teams, whose members often speak different languages, to agree on a common lexicon when it comes to defining project requirements, objectives and tasks. For example, when the global engineering firm CH2M Hill won the prime contract for expansion of the Panama Canal, the company had to manage a host of subcontractors and vendors from many different countries. Among the steps CH2M Hill took was to require key subcontractor managers to work onsite in Panama with the prime’s own project managers.

CH2M Hill also relied on PMI’s standards and professional certifications, which provided a common project management lexicon and approach for all the companies working on the project. In addition, participating subs and suppliers used Hill’s project management and scheduling software, a practice that many prime contractors follow.

Project management skills are essential in accomplishing a complex project, such as designing, building and delivering the Airbus A380 aircraft. Image source: Airbus Another good example of global project management challenges is the Airbus A380 program. Airbus itself was founded as a consortium of European aerospace manufacturers, so the ability to manage diverse teams is essential to its very nature. Add to that, the additional challenges of producing a jetliner such as the double-deck, wide-body A380, which is the largest commercial aircraft in the world. It takes tremendous agility in project management, as well as the use of shared processes and practices, to bring together all the components and systems required for assembly.

Maloney: You used the term “agility” in project management. Just how important is this skill in project success?

Killough: “Agile” has its roots in software development. However, over the past few years, the term is being used across the entire project management spectrum.

There are specific agile methodologies, which are especially useful in complex, fast-changing projects. PMI now offers a certification that allows professional project managers to demonstrate their expertise using agile approaches (PMI-ACP). In general, industry is coming to appreciate the importance of agility and flexibility in managing projects today. You need to react quickly to change, whether it be coping with logistics problems or making design changes to adapt to customer tastes. Iterative virtual product models on a CAD system, rather than building a series of hard prototypes, is one example of an agile practice that has become widespread in engineering.

Maloney: What impact is the Web having on project management?

Killough: It is clearly a major tool that companies rely on to help manage virtual teams on projects. The Web greatly accelerates the process of implementing common project standards, requirements, lexicon and procurement practices, such as “just-in-time” delivery solutions, across global teams and suppliers.

In the project planning stages, the Web is very useful in getting all the stakeholders on board to shape requirements and objectives. Finally, the Internet is a great tool for making project changes more rapidly, as well as trouble-shooting the inevitable problems that arise throughout a project’s life.

Maloney: Are companies putting more focus on developing expertise in management?

Killough: Through PMI’s contacts with organizations all across the world, as well as events such as our Global Congress in Orlando this October, we know that organizations face a tough time hiring, training and retaining qualified project managers. A lot of them also realize that they need to develop a corporate culture that values and encourages that competency, with a defined career path. I am referring here not just to companies, but to governments that need to implement important projects. A good example is the UK’s Major Projects Authority, which is responsible for monitoring the government’s top 200 projects.

Maloney: How does PMI support organizations that want to develop project management resources?

Killough: We do not do actual project management training at company sites. Instead, we have an affiliated network of 1,600 registered educational providers who fill that role. However, PMI does provide documentation and assistance support for companies in defining the kinds of competencies a project manager should have. We also offer seven certifications (see this link: http://www.pmi.org/certification.aspx#certification-types) that recognize knowledge and competency in the field. They include the Project Management Professional (PMP) certification, held by over 650,000 practitioners worldwide. Each of these seven certifications has specific requirements for project management work experience, hours of instruction in project management principles and a certification exam.

Maloney: From an individual engineer’s standpoint, is acquiring project management skills a major career plus?

Killough: Moving into project management made a big difference in my own career, and acquiring project management skills increasingly leads to both higher salaries and greater career mobility.

PMI’s latest salary survey shows that PMP certification holders earn 17% more than their non-certified peers. Unlike other certifications that focus on a particular geography or domain, the PMP is truly global. As a PMP, you can work in virtually any industry. While expertise in a given industry is always valuable, companies are now much more willing to hire engineers from other industries if they have a good track record in project management. So project management expertise is absolutely a career plus.

For More Information

The Project Management Institute (PMI): http://www.pmi.org/

PMI professional certification programs: http://www.pmi.org/certification.aspx#certification-types

PMI Pulse of the Profession 2015 report: http://viewer.epaperflip.com/Viewer.aspx?docid=99644181-13fd-43b6-bd8c-a45d00e292dd#?page=0

PMI-affiliated registered educational providers: http://www.pmi.org/learning/professional-development/rep-find-a-registered-education-provider.aspx