We have recently been working with some A&E executives to develop a process and tools to assess the competencies of their Project Managers (PMs). The challenges that drove these efforts revolve around their inability to assess whether employees are ready to be promoted to a PM as evaluating why some PMs perform better than others, and how to fix this. Most of our clients expect PMs to deliver profitable projects, strong client relationships, and high-performing teams. Yet most firms continue to manage, promote, and develop PMs as if they all have the same skills, strengths, and developmental needs.

When A&E firms treat all PMs the same, they rely on generic training programs, subjective performance reviews, and uniform expectations. High performers are constrained by irrelevant oversight while underperformers continue to struggle with critical capability gaps that affect project success.  

Over the past ten years, my experience assessing and training thousands of project managers has shown a consistent pattern. When PMs lack essential business skills and core competencies, the results are avoidable problems, costly mistakes, growing frustration, and disappointing profit margins. 

What Goes Wrong When PM Capabilities Are Not Assessed 

When firms fail to assess PM competency, the consequences are predictable and costly: 

• Projects exceed budgets because financial risks are not identified early. 

• Scope creep goes unmanaged because PMs lack the skills or confidence to identify and negotiate change. 

• Write-offs increase because budgets and labor are not actively managed. 

• Client relationships are in danger due to reactive communication and inconsistent service. 

• Teams become disengaged because expectations and accountability are unclear. 

• Strong PMs become overburdened while weaker ones are promoted and compensated beyond their capabilities. 

• Leadership pipelines are in jeopardy, creating succession risk. 

• Training investments fail to deliver measurable returns. 

• Accountability is not practiced because firms lack a framework for measuring expectations. 

Most firms respond to these symptoms with more training, more reporting, or more process. Yet without understanding the specific capabilities of each PM, these efforts rarely address the root causes of performance shortfalls. 

Why Competency Assessment Must Be Multi-Dimensional 

Effective PM assessment cannot be based on a single score, personality profile, or traditional performance review. High performing PMs excel across multiple dimensions that influence financial results, project execution, leadership effectiveness, and client outcomes. 

A robust assessment approach should evaluate PMs across a comprehensive set of categories and competencies, measured through both self-evaluation, objective testing, and supervisor input. It should move beyond subjective opinions and focus on observable behaviors, decision-making patterns, and business impact. 

While these competencies can be grouped into broad domains such as financial acumen, project execution, leadership and people management, and client and stakeholder management, the true value lies in the depth of analysis. Firms need granular insight into where each PM excels, where gaps exist, and which capabilities most directly influence project outcomes. 

Without this level of rigor, firms are left with incomplete data and ineffective development strategies. 

The Strategic Benefits of Assessing PM Competencies 

A structured approach to assessing PM capabilities changes the equation. Instead of guessing, firms gain clarity. Detailed data replaces guessing and better decisions can be made. 

When firms assess competencies intentionally, they can: 

• Improve hiring decisions and reduce the risk of costly mis-hires. 

• Identify high potential talent earlier. 

• Create targeted development plans instead of generic training programs. 

• Establish clear career paths and promotion criteria. 

• Strengthen performance management and accountability. 

• Improve project staffing and risk management. 

• Increase consistency across offices and teams. 

• Align talent development with business strategy. 

• Build a stronger pipeline of future leaders. 

• Improve profitability through better project execution. 

• Increase employee morale and motivation.  

Assessment transforms PM development from a reactive exercise into a strategic system. 

What High Performing Firms Do Differently 

High performing A&E firms define excellence in project management in measurable terms. They assess PMs against clear competency criteria. They use assessment results to tailor development plans, coaching, and accountability expectations. 

Instead of treating all PMs the same, they target and differentiate. High performers are challenged and retained. Emerging leaders are developed intentionally. Underperformers receive targeted support before their projects and clients are at risk. 

Over time, the results are transformative: 

• More predictable project outcomes 

• Stronger financial performance 

• More consistent client experiences 

• Clearer leadership pipelines 

• Higher engagement among PMs 

A New Standard for PM Performance 

The future success of A&E firms will depend on their ability to develop PMs who think and act like business leaders, not just technical experts. Assessing competencies is not about labeling people, it is about creating clarity. When firms understand the specific capabilities that drive project success, and develop PMs accordingly, they gain the ability to improve performance systematically rather than reactively. 

Treating all PMs the same is no longer viable. The firms that will outperform their peers are those that assess, develop, and deploy PMs based on real competencies rather than assumptions. 

What a Structured Assessment Makes Possible 

When firms adopt a structured approach to assessing PM competencies, the impact extends far beyond individual performance. A well-designed assessment becomes a foundation for firm wide improvement. 

It enables firms to: 

• Hire and evaluate PMs with greater confidence and objectivity. 

• Design targeted development strategies and training programs that deliver measurable impact. 

• Strengthen performance management practices with clear expectations and data driven feedback. 

• Create transparent career paths and succession pipelines. 

• Improve project staffing and risk management. 

• Align talent development with strategic business goals. 

• Build a culture of accountability and continuous improvement. 

• Achieve more consistent project outcomes and sustainable profitability. 

Ultimately, assessing PM competencies is not just a talent initiative, it’s a business strategy. Without multi-faceted, objective assessment, firms are left guessing, and guessing is expensive. 

A New Standard for PM Performance 

The future of A&E firms will be shaped by their ability to develop PMs who think like business leaders, not just technical experts. This requires a fundamental shift in how firms evaluate and develop talent. 

Assessing competencies is not about labeling strengths and weaknesses. It is an objective approach that creates visibility into what truly drives performance. When firms replace assumptions with assessment data, they unlock the potential to transform project outcomes, strengthen leadership pipelines, and achieve sustainable profitability. 

For firms seeking to improve margins, enhance accountability, and build a stronger generation of project leaders, the path forward is clear – stop guessing and start assessing. What benefits would you see if every one of your PMs performed even 10 percent better?