A new law will prevent the government from wasting millions of dollars every year

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Taxpayers could save millions of dollars every year if government-funded projects - such as infrastructure development and hospital construction - were managed more effectively.

It's no surprise that the complexity of these organizations and bureaucracy can lead to unnecessary delays and rising costs.

According to a 2016 survey from the Project Management Institute (PMI), only 64% of federal initiatives met their goals, and government entities lost a staggering $101 million for every $1 billion spent on projects and programs.

Fortunately, a new law could transform how the government manages projects - and ultimately bring back funds to taxpayers.

On December 14, 2016, President Obama signed into a law the Program Management Improvement and Accountability Act of 2015 (PMIAA), designed to enhance accountability and promote best practices in program management throughout the federal government. The PMIAA passed with overwhelming bipartisan support.

Specifically, the new law will recruit and retain qualified project and program managers by creating a formal career path for them. It will also develop a standards-based model for program management, designate a senior executive in each agency to be in charge of program management strategy, and improve the dialogue around best practices through an interagency council. Equally important, the legislation will help bridge the public and private sectors, providing industry and government with a common language of project planning, execution, and delivery.

"We are thrilled that this significant piece of legislation has been signed into law by President Barack Obama," says Mark Langley, PMI's president and CEO. "PMIAA will help maximize efficiency within the US federal government, thereby generating more successful program outcomes and increasing the value that Americans receive for their tax dollars."

The law's reforms are consistent with PMI's research, which supports the belief that federal agencies and businesses can benefit from investing more in program management talent and standards. It's not just a government issue: Globally, organizations as a whole waste an average of $122 million for every $1 billion spent on projects.

The PMIAA provides a roadmap for organizations everywhere - in the US and around the world - for how to revamp their project management approach to increase collaboration, improve decision-making, and reduce risk.

Learn more about the PMIAA and how it will improve project management.

This post is sponsored by Project Management Institute.

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