The state of service execution in 2022

**A year of uncertainty in which almost all KPIs suffered.**

PSOs in 2023 need to use the below statistics to understand what faces them in the future and what they should do to improve

On-time project delivery decreased from 80.2% in 2021 to 76.2% in 2022.
Average project margin decreased from 36.5% in 2021 to 35% in 2022. Leading PSOs strive to achieve project margins over 40% – only nearly 36% of the surveyed PSOs consistently achieved this.
Project overrun: increased from 8.1% in 2021 to 9.9% in 2022.
However, project duration increased in 2022 which offers stability for PSOs, as well as revenue per project.

And amidst all of these fluctuations, there are still challenges to overcome:

Over 25% of PSOs reported delivering less than 70% of their projects on-time. This suggests firms often don’t have the resource visibility necessary to correctly staff projects (and thus miss out on their margin targets, billable utilization targets and client references.)

Poor communication, miss-set expectations, lack of change orders, scope creep, and ineffective knowledge management and sharing are also cited as barriers to further service execution improvement.