Project Failure a Common Business Problem
Common Factors for Failed Projects are People Process and Technology
Dec 18, 2008
There is a significant body of research and anecdotal evidence that confirms project failure is very common and this is a business problem. Whether it is considered an IT project failure or a business project failure it is bad for the business if the result is too late, too expensive or doesn’t do what is expected.
Project Failure
IT Cortex summarises project failure rate research from five different sources and concludes that “about 1 out of 5 IT projects is likely to bring full satisfaction” and “the larger the project the more likely the failure”. In a separate report, the UK Office of Government Commerce identifies the following Common Causes of Project Failure:
- Lack of clear links between the project and the organisation's key strategic priorities, including agreed measures of success.
- Lack of clear senior management and Ministerial ownership and leadership.
- Lack of effective engagement with stakeholders.
- Lack of skills and proven approach to project management and risk management.
- Too little attention to breaking development and implementation into manageable steps.
- Evaluation of proposals driven by initial price rather than long-term value for money (especially securing delivery of business benefits).
- Lack of understanding of, and contact with the supply industry at senior levels in the organisation.
- Lack of effective project team integration between clients, the supplier team and the supply chain.
Common Factors of Failure: People, Process and Technology
Whilst any project report will often use a long checklist of reasons for a project failure they can generally be categorised and summarised as one or more of:
- People – engagement, managing business and project change, clear communication and understanding between stakeholders, clear leadership and drive for change
- Process – project management methods used for project implementation including project structure, governance and managing third party relationships
- Technology – introduction of new and unstable technology or with compatibility problems with the existing environment
The single greatest area of project risk and the one that is mentioned time and time again in various forms is with people so look for common problems:
- Actively engaging people so that everyone is committed and everyone is contributing. Poor attendance at meetings and being unable to obtain resource for tasks are sure signs that people are not engaged
- Overcoming resistance by frequent and meaningful communication, followed up by action to address questions and concerns. Delays to getting things done or additional barriers emerging are signs of resistance to the project
- Gaining active support is where the people positively drive to make things happen and are enthusiastic about the project. This is a world of difference away from those that are being dragged along for the ride or have to be pushed every step of the way
Avoid Project Failure
To avoid project failure, or at least to reduce the chance of it happening, requires careful project planning and a dedicated project risk management plan. Doing this will not guarantee a successful project but it will help.
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