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Reasons for project failure

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David Tennant
David Tennant

Successful projects require both managerial and technical excellence. Many times, projects fail due to multiple managerial issues. This paper describes key issues leading to project failure.

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Reasons for Project Failure David V. Tennant, PE, PMP, MBA Windward1@comcast.net You can find many examples of projects that have failed. Their carcasses are everywhere. But what is the primary cause of failure? Generally, it is not simply one key cause, but rather, a multitude of factors. Below is my list of Top 10 contributors to failure that I have observed in my years of directing large capital projects. 1. Poor Planning. Most project plans I have seen include simply a budget, schedule and description of the deliverable. Some may include the project organization chart. However, to have a comprehensive plan, one must also include a clearly defined scope, potential project risks, how communications will occur, project objectives, list of key stakeholders, and other important factors. 2. Unrealistic Expectations. How many times have project teams been given an assignment and told to meet a pre-determined budget or due date? Without a formal scope definition, assigning a budget or schedule is usually unrealistic and not likely to be met. This also leads to conflict when it becomes apparent the goals were not well thought out. 3. Poorly Defined Roles and Responsibilities. This will lead to organizational conflict. If roles are not clearly established for each team member and contributing department, you will find multiple people working on the same tasks, or arguments developing over who’s responsible for key deliverables. The PM will look weak as the conflict increases and, ultimately, senior management must step in to resolve the conflict. 4. Continuous Changes. When changes in scope, priorities, objectives, or leadership occur, this will lead to confusion, double work, and morale issues. It is better to cancel a project and start over than to continuously change direction. 5. Objectives Not Clear. There are always multiple objectives in a project. Schedule and budget are just two of them. Other objectives may include stakeholder preferences (how many, what size), key deliverable functionality, and meeting market or client expectations and business relevance. It is very important that key stakeholders are interviewed so that all of the objectives can be developed and confirmed. 6. Failure to Heed Warning Signs. Projects aren’t fine one day and in the proverbial ditch the next. There are always warning signs. For example, you are missing milestone dates on your schedule. The budget is getting out of control. Scope changes are occurring. And, the worst red flag: your team is starting to abandon ship (looking to get out of your project and assigned somewhere else). Projects will always give warning signs: do not ignore them and do not wait till your project hits the iceberg before you address them.
7. Missing Key Stakeholders. Every project has stakeholders and some are more important than others. A stakeholder is someone who has a vested interest in the project. This can include clients, high level supporters or sponsors, department leaders, regulatory agencies, etc. It is critical that stakeholders are identified in the early stages of a project. If you miss a key stakeholder, you will find this person emerging mid-way through the project demanding changes to the project’s objectives, scope, schedule and budget. Take the time to identify your stakeholders; it is time well spent. 8. Poor Communications. Communications during a project can take many forms, both verbal and written. It is important to identify early on what project communications will be generated. This can include, but is not limited to: status reports (when, to whom?), gate reviews (a senior management project review with go/no go decision authority), project plans, budgets, schedules, scope change processes, risk reviews, and personal interaction by the project manager (PM). 9. Poor Leadership. The PM plays a key leadership role in shepherding the project through to completion. Here, managerial skills are more important than technical skills. The PM must be able to effectively communicate, resolve conflict, motivate the team, control continuous attempts to increase scope, and build relationships. All of these are needed skills with building relationships perhaps the most important (learn to play golf!). 10. Corporate and Senior Management Support. This may sound obvious, but in today’s business environment, company reorganizations, mergers and acquisitions, and leadership changes all contribute to project uncertainty. If your company experiences a change in leadership, all projects are subject to change, review, re-prioritizing, or cancellation. Without senior management support, your project is doomed. Building relationships to keep your project on the radar is beneficial. It will also give you early warning if your project is to be cancelled. The reader should note that all of the above issues are not technical, but managerial. Technical issues can indeed lead to project failure, but more often than not, it is managerial problems that doom projects. If the PM keeps the above failure points in mind, he or she can many times plan for success and avoid failure. As stated earlier, it is usually a combination of these issues, not just one, that leads to project failure. True project success demands both technical and managerial excellence. David Tennant has directed over $3.5-billion in projects and programs. He has served in leadership positions in both private and publicly held companies; and had engagements around the world. He has been in his training and consulting practice for over 15 years. © copyright 2019, David V. Tennant

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Reasons for project failure

  • 1. Reasons for Project Failure David V. Tennant, PE, PMP, MBA Windward1@comcast.net You can find many examples of projects that have failed. Their carcasses are everywhere. But what is the primary cause of failure? Generally, it is not simply one key cause, but rather, a multitude of factors. Below is my list of Top 10 contributors to failure that I have observed in my years of directing large capital projects. 1. Poor Planning. Most project plans I have seen include simply a budget, schedule and description of the deliverable. Some may include the project organization chart. However, to have a comprehensive plan, one must also include a clearly defined scope, potential project risks, how communications will occur, project objectives, list of key stakeholders, and other important factors. 2. Unrealistic Expectations. How many times have project teams been given an assignment and told to meet a pre-determined budget or due date? Without a formal scope definition, assigning a budget or schedule is usually unrealistic and not likely to be met. This also leads to conflict when it becomes apparent the goals were not well thought out. 3. Poorly Defined Roles and Responsibilities. This will lead to organizational conflict. If roles are not clearly established for each team member and contributing department, you will find multiple people working on the same tasks, or arguments developing over who’s responsible for key deliverables. The PM will look weak as the conflict increases and, ultimately, senior management must step in to resolve the conflict. 4. Continuous Changes. When changes in scope, priorities, objectives, or leadership occur, this will lead to confusion, double work, and morale issues. It is better to cancel a project and start over than to continuously change direction. 5. Objectives Not Clear. There are always multiple objectives in a project. Schedule and budget are just two of them. Other objectives may include stakeholder preferences (how many, what size), key deliverable functionality, and meeting market or client expectations and business relevance. It is very important that key stakeholders are interviewed so that all of the objectives can be developed and confirmed. 6. Failure to Heed Warning Signs. Projects aren’t fine one day and in the proverbial ditch the next. There are always warning signs. For example, you are missing milestone dates on your schedule. The budget is getting out of control. Scope changes are occurring. And, the worst red flag: your team is starting to abandon ship (looking to get out of your project and assigned somewhere else). Projects will always give warning signs: do not ignore them and do not wait till your project hits the iceberg before you address them.
  • 2. 7. Missing Key Stakeholders. Every project has stakeholders and some are more important than others. A stakeholder is someone who has a vested interest in the project. This can include clients, high level supporters or sponsors, department leaders, regulatory agencies, etc. It is critical that stakeholders are identified in the early stages of a project. If you miss a key stakeholder, you will find this person emerging mid-way through the project demanding changes to the project’s objectives, scope, schedule and budget. Take the time to identify your stakeholders; it is time well spent. 8. Poor Communications. Communications during a project can take many forms, both verbal and written. It is important to identify early on what project communications will be generated. This can include, but is not limited to: status reports (when, to whom?), gate reviews (a senior management project review with go/no go decision authority), project plans, budgets, schedules, scope change processes, risk reviews, and personal interaction by the project manager (PM). 9. Poor Leadership. The PM plays a key leadership role in shepherding the project through to completion. Here, managerial skills are more important than technical skills. The PM must be able to effectively communicate, resolve conflict, motivate the team, control continuous attempts to increase scope, and build relationships. All of these are needed skills with building relationships perhaps the most important (learn to play golf!). 10. Corporate and Senior Management Support. This may sound obvious, but in today’s business environment, company reorganizations, mergers and acquisitions, and leadership changes all contribute to project uncertainty. If your company experiences a change in leadership, all projects are subject to change, review, re-prioritizing, or cancellation. Without senior management support, your project is doomed. Building relationships to keep your project on the radar is beneficial. It will also give you early warning if your project is to be cancelled. The reader should note that all of the above issues are not technical, but managerial. Technical issues can indeed lead to project failure, but more often than not, it is managerial problems that doom projects. If the PM keeps the above failure points in mind, he or she can many times plan for success and avoid failure. As stated earlier, it is usually a combination of these issues, not just one, that leads to project failure. True project success demands both technical and managerial excellence. David Tennant has directed over $3.5-billion in projects and programs. He has served in leadership positions in both private and publicly held companies; and had engagements around the world. He has been in his training and consulting practice for over 15 years. © copyright 2019, David V. Tennant