RGP Study Finds One-Third of Companies Pursuing Mission-Critical Transformation Projects Are Facing Challenges

About this update from Resources Connection, Inc.

IRVINE, Calif.--(BUSINESS WIRE)-- 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 f...

View stock analysis, news, and events for Resources Connection, Inc.