Managing a project is akin to juggling balls but it is a much more complex endeavor.
There are at least six constraints in project management (https://www.pmbypm.com/project-constraints/) viz. scope, time, cost, quality, resources, and risks. These can be thought of as balls of a juggler. A good project manager has to juggle the competing demands of a project and find the right balance between different constrains in order to make the project successful.
Balancing the constraints is not an easy task. Even experienced project managers find it a challenging task.
One of the primary reasons for unsuccessful project is not able to balance different project management constraints. However, there are multitude of other reasons. Let’s take a look at the top reasons for project failure in this article.
Why do Projects Fail?
A project is thought to have failed if it doesn't achieve the objectives set out in the plan or is unable to meet the defined requirements. It can also be regarded as unsuccessful if it is unable to achieve the financial requirements.
Many projects do not fail but they are considered as challenged. A project is thought to be challenged when it meets all the defined requirements but it is not completed on time or within budget.
Some projects are considered complete when they deliver the important requirements within the defined schedule and budget. Since these projects did not deliver all the requirements, they too are thought to be challenged.
Following are the main reasons for projects failing or becoming challenged:
- Reasons Related to Project Leadership
- Lack of sponsorship – There isn’t a designated project sponsor or the sponsor doesn't have the proper authority. (https://www.pmbypm.com/project-sponsor-role-definition-customer/)
- There isn’t a designated project manager of if the manager is not assigned in the early stages of the project.
- A project coordinator is assigned to the project who doesn’t have the enough authority to oversee the project.
- A greater thrust is given to technology by the senior management. In the process, project team loses focus on the intended business goals.
- Overall absence of transparent culture. For instance, if the management does not communicate properly and information does not percolate down to everyone in the team.
- Reasons Related to Organization Setup
- Company's priorities change as the project progresses. This can lead to shift in priorities and goals of ongoing projects in the company.
- Organization is not focused on completing the project tasks. A lot of companies focus on developing a top-quality product while losing focus on market realities and customer demand. Eventually, there is a delay in launching the product.
- An enterprise level organizational project management methodology or a standard approach for doing the projects is missing. Different projects follow different approaches.
- Reasons Related to Project Management
- The project management team and project manager do not have enough knowledge, skills and experience to lead the project. Sometimes, a technical manager is appointed as a project manager without giving him proper training and orientation.
- Many project managers create a sketchy plan or do not create a plan at all. They tend to focus more on the execution tasks.
- Sometimes, people making the plans are not responsible for managing the project. E.g. plans are developed by the customer or senior managers but are handled by the project manager.
- There is insufficient monitoring and supervision by the appointed project manager. The monitoring is either not regular and periodic or it is not frequent to identify the problems.
- Reasons Related to Project Initiation
- Project charter is not developed and authorized.
- Project goals are either not defined or they are misunderstood by the project team.
- Project goals are constantly changing. Moving the goal posts is not ideal for any project.
- Involvement of the client doesn’t start at the beginning of project.
- Reasons Related to Resources
- People working in the project don’t have requisite knowledge and skills.
- Roles and responsibilities of people working in the project aren't well-defined or established. There is inadequate resource plan and tasks are not correctly assigned to the team members.
- The team members lack coordination. They don't actively support one another.
- The people working in the project team lack motivation.
- There is a constant conflict among the project team members. (https://www.pmbypm.com/conflict-management-strategies/)
- The work is assigned disproportionately among the team members. People with more experience or skill are assigned much more than the rest.
- Reasons Related to Scope
- The scope of the project is not adequately documented. The scope statement is either not made or it is sketchy and WBS is not created.
- Often there is scope creep as project scope is not managed properly. Scope creep is addition of new scope items without proper change management.
- The project has too many changes. A change, in itself, is not harmful but innumerous changes can spoil the project. Project changes should be managed well. (https://www.pmbypm.com/pmp-change-management/)
- Reasons Related to Schedule
- The tasks of the project are not estimated properly or too many project assumptions are made while estimating.
- Because of the pressure from senior management or client, milestones are not realistic.
- The schedule of the project is very high level or sketchy.
- Reasons Related to Risk Management
- There is inadequate documentation of project risks. Thy aren't assessed, prioritized, and analyzed.
- Risks monitoring and review is not done periodically and regularly.
- The risk response mechanism is ineffective.
Conclusion
I think finding the root cause of project failure is much more necessary than listing all the possible reasons. You should learn from your past mistakes and take positive steps to become successful in your projects.
This post has twenty-nine reasons for project failure. Can you think of any other reasons?
Which of the reasons from the list, do you think, is the most damaging?
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Praveen Malik, PMP, has two-plus decades of experience as a project management instructor and consultant. He regularly conducts project management workshops and shares his project management thinking in his eponymous blog PM-by-PM.