Five Major Causes of Project Failure
Some businesses do not treat project management with the respect it deserves. They don’t provide the resources to effectively manage their projects, they create unrealistic deadlines, and then do not understand why projects fail to meet requirements.
About 56 percent of large IT projects fail to adhere to scope, schedule and budget. When project management is not valued, the results can be mayhem.
Beware these five common causes of project failure:
1. Lack of project governance leads projects astray from the company’s vision. Large scale IT projects have a significant impact on business operations. Essential solutions for mission critical functions have to adhere to the business’ requirements, but staying on track requires effective project management. When no one has the ultimate accountability for a project, no one stays on top of whether the project is actually fulfilling business needs.
2. Project scope goes out of control. Feature creep is a problem even in well managed projects. When project management isn’t valued in the organization, it’s hard to control the scope of a project. Upper management adds in features that aren’t realistic within the stated time frame and budget, leaving teams in a situation where they go over time, over budget, or both.
3. Inefficient delegation results in poor team management. A good project manager will be able to quickly assess who the right resources for the job are and properly delegate those resources. If strong project management isn’t emphasized in the company culture and practices, the results are longer turnaround times, lower quality deliverables, and other major team management issues.
4. Missed timelines have long term effects. Large scale IT projects typically revolve around development essential to the business’ success. Competitive businesses have to be agile and adapt quickly to the ever-changing business world. If project management isn’t valued, it’s impossible for businesses to meet their timelines. A missed timeline, especially on mission critical project, can result in loss of sales, poor service, and throws other projects dependent on the solution off track.
5. Massive project failures may even threaten the company itself. Sometimes projects go so far off the rails and over budget that they could possibly lead the business to shut its doors. Poor project management can result in needing more time and money than the business can feasibly pour into that particular project. If it’s for infrastructure or necessary software for the business to operate, it’s almost impossible to pull the plug on the project until the bitter end.
Don’t become another casualty of a failed project. CREDO Technology Solutions specializes in providing the leadership and the methodologies that lead your strategic initiatives to success. Whether you have a major initiative on the horizon, or you are in need of new leadership on an existing project, bringing in an objective third party to oversee the project is an effective way to ensure results, and ultimately, project success.
Greg Bair, President