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WHY PROJECTS FAIL: THE MOST IMPORTANT KEYS TO SUCCESS
Danielle Hernandez
Applications Analyst
ADNET Technologies, LLC
Follow me @Apps_Analyst
Connect with me on LinkedIn (Danielle Hernandez)
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AUDIENCE POLL
• Project Managers• Upper Management• Experience managing projects• Participated on project teams
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WHAT IS A PROJECT?
Project Management Book of Knowledge• A project is a temporary endeavor undertaken to
create a unique product, service or result.
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Is project failure a bad thing?
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ACKNOWLEDGE DIFFERENT PERSPECTIVES
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DEFINE “FAIL”
Merrium-Webster Dictionary Definition
http://www.merriam-webster.com/dictionary/fail
to fall short
to be unsuccessful
to disappoint the expectations or trust of
to miss performing an expected service or function
to leave undone : neglect
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DEFINE “FAIL”
Project Management Definition
The project never starts or is late Over budget
With less than the required
features/functions
One of the primary objectives of cost,
time or quality were not met
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DEFINE “FAIL”
Business Definition• Client expectations were not met
• Scope• Schedule• Budget• Risk• Resources• Quality
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DEFINE “SUCCESS”
Merrium-Webster Dictionary Definition• Favorable or desired outcome/result
http://www.merriam-webster.com/dictionary/success
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DEFINE “SUCCESS”
Project Management Definition
On time
Within budget
With all required features/functions
All three primary objectives of cost, time and quality were met
Project objectives are met and benefits realized
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DEFINE “SUCCESS”
Business Definition• Met/exceeded client expectations
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AUDIENCE DISCUSSION
• What does project failure mean to you?• Who decides if a project fails?
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RESEARCH & STATISTICS
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US AIR FORCE
• ERP software project• 1.03 billion in costs from 2005 to 2008• Will need 1.1 billion to continue• Has not yielded any military capability• Will not be completed on time in 2017, instead most
likely in 2020 • Restructured 3 times in 3 years (2005-2008)• Project cancelled in 2012• Will use its "existing and modified logistics systems
for 2017 audit compliance"
http://www.cio.com/article/721628/Air_Force_scraps_massive_ERP_project_after_racking_up_1_billion_in_costs
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BIG DIG• Boston’s central artery tunnel project• Initial cost = $2.6 Billion ended up at $14.8 Billion• 9 years behind schedule• Eventually completed in 2007
http://www.nasa.gov/offices/oce/appel/ask/issues/39/39s_big_dig.html
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STATE OF CALIFORNIA
• Payroll & benefits system - MyCalPAYS• Began in 2004• Ended in Feb 2013 with a stop to the project• $254 Million spent
http://www.sco.ca.gov/21century.html, http://www.computerworld.com/s/article/9236662/California_ends_contract_with_SAP_over_troubled_IT_project
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BEOING 787 DREAMLINER
• Scheduled to end in 2008, actually ended in 2011• Scheduled to cost $5 billion, actually cost 12-18 b.• More complex than they had anticipated
http://calleam.com/WTPF/?p=4617
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GENECA (2010 – 2011)• 75% of respondents admit that their projects are either
always or usually “doomed right from the start.”
• 80% admit they spend at least half their time on rework.
• 78% feel the business is usually or always out of sync with project requirements
• Only 55% feel that the business objectives of their projects are clear to them.
• Less than 20% describe the requirements process as the articulation of business need.
• Only 23% state they are always in agreement when a project is truly done
http://www.geneca.com/75-business-executives-anticipate-software-projects-fail/
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“All things are created twice; first mentally; then physically. The key to creativity is to
begin with the end in mind, with a vision and a blue print of the desired result.” —
Stephen Covey
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AUDIENCE POLL
What is the main reason that projects fail?• Scope creep• Unrealistic/unclear objectives• Lack of commitment by PM, Stakeholders or
project team• Poor methodology• Poor communication
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LINKEDIN POLL
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POOR COMMUNICATION
• Lack of communication (frequency)• Bad quality (lacks details)• Wrong choice of method• Wrong audience is included• Negative, non-constructive feedback• Poor listening
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COMMENTS WORTH NOTING
• Too many projects at once• Underestimate importance of requirements
gathering• Different agendas for project sponsor and
participants• “When Project Managers get too confident things
tend to go wrong”• Agreeing to “happy dates”• Inability for management to make decisions• Making assumptions• Blame game
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“No matter how good the team or how efficient the methodology, if we’re not
solving the right problem, the project fails.” –- Woody Williams
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AUDIENCE DISCUSSION
• What experience do you have with project failure?• Any common threads in reasons why projects have
failed from your experience?• Is it ok to walk away from a project?
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WHERE DO WE GO FROM HERE?
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SIGNS YOUR PROJECT IS FAILING
• A lot of changes are being requested• Team members become confused• Lack of communication• Resources work in the wrong direction• Tasks are not completed on time• Teams are working overtime or on unscheduled days• Resources diverted to other projects/activities• There is a lack of buy-in• More issues added than resolved• Few interim deliverables and milestones• Client is dissatisfied (internal or external)
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IS THERE A CURE FOR PROJECT FAILURE?
First step is to diagnose the
cause
Determine if the project benefits are worth the time, cost and
energy to continue
Identify the best way to get the
project back on track
Create and communicate
the restructured plan to the
project team
Implement a structured
change management
system
Learn from your mistakes
Identify ways to prevent it from
happening again
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TIPS FOR SUCCESS
• Contributor to Success/Failure• Adjust methodology for best fit• Detailed Communication Plan• Change Management System• Keep an eye on the scope• Assign right resources• User Involvement• Time Management
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“Planning without action is futile, action without planning is fatal.”
— Cornelius Fitchner
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CLOSING SUMMARY
• Identify what project success and failure mean to you and your organization
• Determine how you will operate within those guidelines
• Accept failure & learn from your mistakes• Determine how your organization will approach
failure• Celebrate success
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@ADNETTech #WorkSmart
@ADNETTechnologiesLLC
@ADNETTechnologiesInc