Reason Why Projects Fail

7/28/2019 Reason Why Projects Fail

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Project Management - Reasons Why Projects Fail

There are many reasons why projects fail. They run over time and over budget and

often don't deliver the business benefits promised. Good project management

techniques build in regular assessments of strategic viability as part of the project

plan. Halting a project that is no longer strategically viable due to changing

external factors is not a project failure. Allowing the project to run in these

circumstances is a failure. Project failures are almost entirely due to internal factors

that can be controlled by the business.

Failing to plan properly

Projects are often started to solve a problem. Someone has a great idea and rather

than analyzing the problem and finding the appropriate solution they jump straight

into implementing the first solution that comes to mind. There is always more than

one solution to a problem and the first is not necessarily the right solution for the

business. Lots of activity in and of itself will not necessarily mean that the problem



Failing to do anything

This is the opposite of failing to plan. Analysis can create a momentum all its own.

Investigation needs to be done but only enough to have confidence in the next step.

This hesitation can appear not only at the project kick off but also as each gate is

approached. Stakeholders who are not fully committed to the project can cause

delays by insisting on more analysis before decisions are made. To overcome this

specific deliverables for each gate should be established and agreed during the

planning stage.

Ignoring the risks

In projects that fail risks are often identified but not monitored or managed. Risks

do not disappear by themselves. All assumptions that are made when setting the

project plan are risks and they should be tested and mitigation plans put in place to

minimise the impact if the assumption turns out to be incorrect.



Functional thinking

When projects cross functional lines cooperation is required to keep the project on

track. Individual and team rewards and bonuses are often based on functional

objectives being met and project involvement can be seen as inhibiting action on

these base objectives. As a result cooperation with the project team takes a low

priority in functional activities. The solution to this problem is to directly link

performance objectives, rewards and bonuses to project outcomes.

Changing sponsors

The sponsor is the power behind the project. If sponsors keep changing there must

be some doubt whether the project is really required. Different sponsors will have

their own personal focus. Even minor differences can cause the project to waiver

on its course. Without a sponsor willing to take accountability for the strategic

benefits to be delivered there should be no project. When the project manager

spends as much time bringing new sponsors up to date and adjusting the plan for

new direction as they do running the project it is time to propose killing the

project. If the project is considered to be important enough someone at the

executive level will step forward and take responsibility. Many common reasons



deliver the promised benefits a post implementation review can provide

information that can be used to improve project performance in the future.





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Reason Why Projects Fail