A.T. Kearney: London number two most elite global city

11 June 2015 Consultancy.uk

London is the second most global city, with only New York outranking the city in A.T. Kearney’s Global Cities 2015 ranking, which ranks the cities based on their ‘global engagement’. Looking forward and ranking the cities for their potential, London is again found on second place, just behind San Francisco and above Boston and New York.

The Global Cities 2015
Since 2008, consulting firm A.T. Kearney has been measuring the ‘global engagement’ of cities across all continents and regions. The Global Cities 2015 ranking represents the fifth edition of the ranking and consists of the Global Cities Index (GCI) and the Global Cities Outlook (GCO). The GCI ranks the cities based on 27 metrics across business activity, human capital, information exchange, cultural experience, and political engagement. The GCO ranks the cities on 13 indicators across personal well-being, economics, innovation, and governance. The GCO ranking is based on the cities’ measured change across each metric in the past five years which is then used to project forecasts out to 2024.

For the 2015-edition of the ranking, for which A.T. Kearney ranked 125 countries, shows the same top ten of the GCI as the 2014-edition, with only Singapore moving up one spot to eight place, kicking Beijing to ninth place. New York remains the most global city, followed by London and Paris*.

Global Cities 2015 rankings

Looking forward and ranking the cities for their potential, shows a completely different top 25, with only London able to retain its second place in the GCO. New York, the #1 most global city, drops to fourth place and San Francisco, currently #22 in the GCI, climbs 21 places and claims the #1 spot in the outlook. According to the researchers, the differences in the GCI and GCO show that while the European cities prevail today, US cities are expected to outperform them in the future, based on their potential, especially in innovation.

Elite Global Cities
Cities that made both the GCI and the GCO are labelled ‘Elite Global Cities’ by A.T. Kearney, a list that is led by New York and London, which are the only cities ranked in the top 10 of both lists. “We have identified 16 cities that are ranked in the top 25 of the GCI, indicating superior current performance, and in the top 25 of the GCO, indicating future potential. We call these cities the ‘Global Elite’,” explains Mike Hales, A.T. Kearney Partner and study co-leader.

Andres Mendoza-Pena, A.T. Kearney Principal and study co-author, adds: “In reviewing the 16 cities that make up the Global Elite, all of these cities are from advanced economies. Cities in advanced economies enjoy a significant lead on innovation, which may become tomorrow’s key differentiator for global cities.”

* A few months ago, the Boston Consulting Group researched the best working cities, which highlights the same top three as A.T. Kearney’s most global cities list, albeit in a slightly different order.

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Project management industry adds £156 billion of value to UK economy

15 April 2019 Consultancy.uk

Project management has grown into one of UK’s largest areas of business over the past decade, amid the increasing ‘projectification’ of work. With the gross value added to the UK economy by project management estimated to be £156 billion, this trend is likely to continue in the coming era.

Despite the huge success of project management in recent years, until now there has been relatively little data available on the size of project activity. As a result, there has been a great deal of debate on things like the number of people involved in the sector, the number of projects, and how it contributes to economic output. Due to this need for clarity, APM, the UK’s professional body for project management (the largest organisation of its kind in Europe, with 28,000 individual members) commissioned economists from PwC to shed light on the industry's economic impact.

The research concluded that the profession makes a more significant contribution to the UK economy than the financial services sector. 2.13 million full-time equivalent workers (FTEs) were employed in the UK project management sector, generating £156.5 billion of annual gross value added (GVA). In comparison, the financial services sector contributes £115 billion, and the construction industry adds £113 billion.

Gross value added to UK economy

Commenting on the discovery, Debbie Dore, Chief Executive of APM said, “Project management runs as a ‘golden thread’ through businesses, helping to develop new services, driving strategic change and sector-wide reform.”

Who is a ‘project manager’?

To reach these estimates, PwC’s researchers used detailed models to map out the value of project management activity. They ultimately defined relevant ‘projects’ as “temporary, non-routine endeavours or rolling programmes of change designed to produce a distinct product, service or end result… [with] a defined beginning and end, a specific scope, a ring-fenced budget, [and] an identified and potentially dedicated team with a project manager in charge.”

Building on this, they then went on to define what the act of project management actually is. The job consists of applying “processes, methods, knowledge, skills and experience” so that clients can meet their objectives and bring about planned outputs or outcomes. The analysts added that this includes “initiating the project, planning, executing, controlling, quality assuring and closing the work of an identified and dedicated team according to a specified budget and timeframe.”

Importantly, it should be noted that the profession is not exclusive to only roles explicitly labelled as ‘project manager’, but to any role where specialist project management skills are used. This means that across sectors these roles can have very different titles, from the self-explanatory contract managers of procurement, or the campaign managers of advertising, to the likes of festival co-ordinators in the events sector, and many more. The roles in question also span all strategic levels of the profession, from strategic to tactical and operational positions.

Gross value added of project management profession

From a sector perspective, the financial and professional services, construction and healthcare industries make up almost two-thirds of the total project management GVA. At the same time, understandably, the UK Government has a huge project portfolio, which further drives the size of the GVA the sector contributes, thanks to megaprojects like HS2 and Crossrail.

Commenting on this to the report’s authors, Oliver Dowden, Minister for Implementation remarked, “Project delivery is at the heart of all Government activity, whether it’s building roads and rail, strengthening our armed forces, modernising IT or transforming the way government provides public services to citizens. Getting these projects right is essential if we are to ensure that we build a country that works for everyone.”

Throughout 2019, 26 major government projects were delivered, representing a fifth of the overall Government Major Projects Portfolio (GMPP) of 133 projects. According to the IPA annual report 2017-18, these represented a whole life cost of £423 billion. In addition to this were a plethora of smaller scale projects, and those in early development.

Elsewhere, with the increasing digitalisation of the economy impacting entities of all shapes and sizes, IT and digital transformations tended to dominate the projects of the UK scene alongside new product development projects, with a respective 55% and 46% of organisations in the research sample having undertaken these types of project in the past year. At the same time, this varied across sectors, and unsurprisingly, in the construction and local government sectors, fixed capital projects were the main project type undertaken.

Outlook

Looking to the future, 40% of business leaders expect project management will grow in the coming years due to the increased use of projects – or the ‘projectification’ of the UK. In a trend that has been witnessed elsewhere, organisations have to rapidly and continuously change in the digital age of business, driving the need for project management.

Outlook for project management services

An increased focus on value over cost – especially in the construction sector – and a forecast increase in the number of international projects are predicted to be key drivers of growth, according to the expert contributors. However, this will not happen in the absence of challenges; more than half of organisations expressed concern over the perceived impact of political uncertainty in the UK. Skills and capability shortages were also cited as a potential barrier by a third of organisations.

With regard to budgets, meanwhile, a third of those surveyed by PwC said they expect the size of project budgets will increase in the coming three years, while 40% anticipate a growth in project size. As the profession continues to mature, and as the recognition of the importance of good project management grows, it is expected that a greater proportion of project work will gain more distinct attribution to the profession itself, giving more recognition and appreciation to the role of the project manager.

Speaking on the findings of the study, Sandie Grimshaw, a Partner at PwC, concluded, “The project management profession is relatively new compared to some other professions, such as lawyers, teachers and doctors. However, as project management is a core competence vital to organisations in the UK, the profession is critical and will continue to grow in stature.”