5 Reasons Projects Fail Webinar Recap

There is a lot of research that identifies how poorly projects are managed. I’ve read that $99M is wasted for every $1B invested in project management.

One-third of all projects don’t meet their initial goal. So, what are some of the reasons for project failure?

In this article, I talk about five of the reasons that projects fail.

#1: Visibility

A common reason why projects fail is related to poor project visibility but what is project visibility? It is simply a clear picture of the projects status, forecast, schedule, risks, opportunities, resources, at any point in time.  

All three tiers of the project team, executive management, project managers, and team members, need access to the right level of information at the right time. Lack of visibility is driving the need for enterprise project management solutions and the establishment of enterprise Project management organizations, or EPMOs. The PMO provides a standard organizational methodology for planning, executing, staffing, prioritizing, and learning from all the projects that comprise today's organization. By establishing a formal PMO, your organization increases the level of visibility for all project stakeholders.

How else can you improve project visibility? Create a communication plan that details how and when project updates will be shared and with whom. Use the project kick-off meeting to explain goals, objectives, timelines, roles and responsibilities. Meet with the project stakeholders on a regular cadence based on their role. Maybe weekly with the project execution team, bi-weekly with the customer, or monthly with executive management.

Finally, invest in software that will facilitate real-time status, communication, delivery of KPIs. Consider dashboards based on the role of the stakeholder.

#2: Lack of Risk Management

Every project is unique and hence, has uncertainty. When we try to qualify and quantify that uncertainty, we call it risk. It is incumbent upon the project manager and risk manager to proactively anticipate things that might go wrong. Once risks, and opportunities, are identified, then the team can decide on how to respond to those specific risks should they occur.

Many organizations address risk issues reactively, but you should consider approaching them proactively. Proactive risk management identifies the risks associated with the scope, schedule and cost of the project and integrates the entire project management team in the process. The establishment of a risk register is a great way to manage all project, or portfolio, risks in one system. But don’t stop there. Look at the potential opportunities, ways that could positively impact your project. What if you found a new supplier with a superior product and at a lower cost?

#3: Scope Creep

Due to scope creep, more than 75% of IT managers think that their projects are doomed from the start. It is one of the most recurring themes in project failures and if you look at any recent research, changing requirements – or scope creep – is cited as a common reason for derailing a project.

So how do we reign in scope creep? The first thing I would suggest, other than never begin work without a contract, is to have a project kick-off meeting with all stakeholders. During this meeting, you want to ensure that everyone knows their roles and responsibilities, who is accountable, project milestones. What is the process for providing status and forecasts?

#4: Lack of Communication

All too often, communications between project managers and project drivers and stakeholders break down once teams get into the thick of the work. It’s also common for the failure to be recognized at the most inconvenient stage when the impact on costs, schedules and scope is at its highest and resolving issues disrupts project workflow.

One way to avoid this pitfall is by developing a communications management plan that covers project and stakeholder communications and is followed from the outset of the project. It can also be beneficial to undertake a stakeholder analysis that uncovers expectations and communication needs. Project managers should be ready to regularly offer up project updates through various information delivery channels that meet the diverse needs of stakeholders.

Everyone knows how vital it is to proactively share information and knowledge during a project if you want to succeed; yet poor communication continues to trip teams up time and time again. If you and your team haven't set aside any time to focus on improving your communication skills recently, don't wait until the next project disaster to convince you that it's necessary.

#5: Lack of Resources

How can you expect a project to successfully complete before the deadline if it lacks the necessary resources? Well, you cannot. The majority of the project managers you speak with will moan about the scarcity of resources. Additionally, they consider it as one of the reasons for project failure.

Start out by knowing your scope. You must know the scope to know what resources you will need to be successful. The more defined the scope, the better you will be at assigning resources.

Be proactive when it comes to requesting resources in a matrix organization. Don’t wait until the project is in trouble before scrambling for resources. Keep abreast of your schedule, know when you are projected to be over or under-allocated, and act early. By paying attention to red flags, you will be in a better position to handle resource issues when they arrive.

Project managers can easily reduce the risk of failure by identifying the common reasons that pave the way for project failure. They will have to take steps to prevent these factors from casting negative shadows on their projects. Keep things organized and avoid mismanagement. Ensure that all your team members are on the same page and united for a common cause. The involvement of stakeholders is critical to your project's success. All this will go a long way in helping you in reducing the chances of project failure.

You can watch the entire webinar here, as well as other Pinnacle webinars.

Pinnacle offers a wide range of management solutions, including Enterprise Program Management and Integrated Program Management, to improve your on-time and on-schedule delivery. or .