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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
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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.
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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
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deliver the promised benefits a post implementation review can provide
information that can be used to improve project performance in the future.