subject: Why do Projects fail? [print this page] Why do Projects fail? Why do Projects fail?
Humm seems like very simple, one liner but is it? Well Projects don't fail overnight. Don't take my second sentence literally but projects usually don't fail overnight. Failure of a project can be very tricky and there is no "single fixed" outcome for all projects to announce the failure of it. In a perfect world every project would be "on time and within budget." But reality (especially the proven statistics) tells a very different story. It's not uncommon for projects to fail. Even if the budget and schedule are met, one must ask "did the project deliver the results and quality we expected?" In past few lines I talked about key terms like time, budget, benefits, quality etc. There are few more things which would define success or failure of a project but the key here is how measurable each of it is. In short to be able to successfully execute a project, one needs to be able to quantify various characteristics of a Project. If they are not quantifiable then they need to be measurable at least.
Before discussing why Projects fail let us answer few basic questions:
What are Projects?
A Project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.
What are characteristics of a Project?
There are a number of characteristics of a project work that distinguish it from business as usual:
Change: Projects are the means by which we introduce change.
Temporary: Projects are temporary in nature.Cross-functional: Projects involve a team of people with different skills working together to introduce a change that will impact others outside the team.
Unique: Every Project is unique. You may undertake many similar projects and establish a familiar, proven pattern of project activity, but each one will be unique in some way: a different team, a different customer or a different location.
Uncertainty: Clearly, the characteristics already mentioned will introduce threats and opportunities over and above those we typically encounter in the course of business as usual. Projects are more risky.
What needs to be controlled?
There are six variables involved in any project, and therefore six aspects of project performance to be managed.
Costs: The project has to be affordable and, though we may start out with a particular budget in mind, there will be many factors which can lead to overspending and, perhaps, some opportunities to cut costs.
Timescales: Allied to this, and probably the next most-frequent question asked of a Project Manager, is: 'When will it be finished?'
Quality: Finishing on time and within budget is not much consolation if the result of the project doesn't work.
Scope: Exactly what will the project deliver? Without knowing it, the various parties involved in a project can very often be talking at cross-purposes about this. The customer may assume that, for instance, a fitted kitchen and/or bathroom is included in the price of the house, whereas the supplier views these as 'extras'. On large-scale projects, scope definition is much more subtle and complex. There must be agreement on the project's scope and the project Manager needs to have a detailed understanding of what is and what is not within the scope. The Project Manager should take care not to deliver beyond the scope as this is a common source of delays, overspends and uncontrolled change ('scope creep')
Risk: Risk all projects entail risks but exactly how much risk are we prepared to accept? Should we build the house near the site of a disused mine, which may be prone to subsidence? If we decide to go ahead, is there something we can do about the risk? Maybe insure against it or have thorough surveys carried out?
Benefits: Perhaps most often overlooked is the question, 'Why are we doing this?' It's not enough to build the house successfully on time, within budget and to quality specifications if, in the end, we can't sell or rent it at a profit or live in it happily. The Project Manager has to have a clear understanding of the purpose of the project as an investment and make sure that what the project delivers is consistent with achieving the desired return.
I guess now even a school can kid would be in a position to answer why projects fail? He would say one or more variables stated above go out of control. Ummm well yes he is right but only partially. There will be reasons why these variables go out of control. There will be many infinite reasons for failure of a project but they will all have a thing in common. They will eventually lead to a stage where one or more or all of the variables mentioned above will be out of control attributing to failure of a project.
Have you ever seen a situation where projects begin to show signs of disorganisation, appear out of control, and have a sense of doom and failure? Have you witnessed settings where everyone works in a silo and no one seems to know what the other team member is doing? What about team members who live by the creed "I'll do my part (as I see fit) and after that, it's their problem." Even worse is when team members resort to finger-pointing. Situations similar to these scenarios point to a sign that reads "danger." And if you read the fine print under the word "danger" it reads, "your project needs to be brought under control or else it could fail."
When projects begin to show signs of stress and failure, everyone looks to the project manager for answers. It may seem unfair that the burden of doom falls upon a single individual. But this is the reason why you chose to manage projects for a living! You've been trained to recognise and deal with these types of situations.
Most common reasons for failure of a project can be:
Poor business case
Lack of Planning or Poor planning
Lack of Communication or Communication strategy
Poor assumptions
Lack of Management commitment
Unrealistic timelines
Insufficient resources
Erroneous Data
Poor or no change control process
Business and Peer politics
Poor document management
Stakeholder conflict
Cost and time overruns
Team weaknesses
Poor research
Even with the best of intentions or solid plans, project can go awry if they are not managed properly. All too often, mishaps can occur (and usually do). This is when the project manager must recognise a warning sign and take action. If you understand the difference between symptoms and problems and can spot warning signs of project failure, your training will help you take steps to right the ship before it keels over. As a Project Manager, it is our responsibility to Plan, Delegate, Monitor and Control the project in a way that above reasons to lead to a stage where Project Variables (cited above) go out of control.
Project Managers are in position to take care of almost all the reasons resulting to failure of a project, but there are some which are not in his control, like Politics or stakeholder conflicts. This does not mean Projects or the manager himself is doomed. This is where Best-Practices, Standards, Frameworks or Processes come into place. There are many well know standards and frameworks that cater to these aspects of a Project and make life easier for the Project Organization. On such framework would be PRINCE2 (That is my personal choice :D).
During the course of managing a project, the project manager must monitor activities (and distractions) from many sources and directions. Complacency can easily set in. When this happens, the process of "monitoring" breaks down. This is why the project manager must remain in control of a project and be aware of any activity which presents a risk of project failure. Yes, this is why "you are paid the big bucks."
