Revisiting Project Successes & Failures

A project can be a complex, nonroutine, one-time effort constrained by time, budget, schedule, satisfaction, quality, and scope to meet the customer’s needs. Today, many businesses prioritize project management because it focuses on meeting project objectives and achieving them successfully. Moreover, it got significant because it employs managerial processes and tools that give managers a good chance of achieving their project’s goal.

Project Management Today

Project management has become an essential part of various industrial segments because it crosses corporate and geographic boundaries, adapting to the unique characteristics of various businesses and teams. Here are some of the project trends on the project’s success/ failures.

The Most Important Project Management Trends for 2022

• The growth of Artificial Intelligence (AI) and Automation
• Hybrid project management approaches are getting increased.
• The significance of emotional intelligence (EQ)
• A greater emphasis on data analytics and numbers
• Tools and solutions for advanced project management
• Increased use of remote working

Key Project Management Statistics 2022 (Success and Failures)

Project Success Statistics

• Project management software is used by 77% of high-performing projects. (Hive, 2020)
• 35% of organizations are somewhat satisfied with their project management maturity level. (Wellingtone, 2020)
• 29% of projects are completed on time (Wellingtone, 2020).
• Surprisingly, 54% of organizations lack access to real-time KPIs (Wellingtone, 2020).
• Around 51% of organizations complete projects that meet the business objective or original goal. Meanwhile, 52% of organizations complete projects that meet the needs of stakeholders (KPMG, 2020).

 Project Failure Statistics

• COVID-19 had a moderate or significant impact on 58% of organizations, causing project delays and cancellations (KPMG, 2020).
• Organizations with low-value delivery maturity have a project failure rate of 21%, which is significantly higher than the failure rate of organizations with high-value delivery maturity, which is 11% (PMI, 2020).
• 25% of organizations do not use technology suitable for team collaborations on informal projects, despite consuming 20% of their productive time at work (Wellingtone, 2020).
• The most challenging obstacles to implementing agile techniques in an organization are resistance to change (48%), a lack of leadership participation (46%), and inconsistent practices across teams (45%). (Digital.ai, 2020).
• 47% of agile projects are late, have budget overruns, or have dissatisfied customers (Scrum, 2021).
• Understanding these statistics allows project professionals to prepare better for what comes next and make more informed decisions.

Success and Failure of Projects

The business environment is constantly changing, and meeting the customer’s ever-changing needs has become challenging. In addition, customers’ expectations increase as competition in the global market increases. This is sometimes reflected in the pressure that Project Managers face when attempting to provide the best possible value to their customers.

While project management is constantly improving, there are some challenges for which solutions have yet to be found. Global projects are typically getting complex, and as a result, a similar project may be successful in one part of the world while failing in another. Let’s look at the factors for successes and failures on similar projects, as well as how leadership style can help to improve project performance as a contributing factor to the project’s outcome.

Causes of project failure

A project is considered a failure if it fails to deliver on time within the estimated budget. Most project managers have felt the agony of a failed project. In fact, according to a Pulse of the Profession® survey 2021, 12% of projects in an organization failed in the previous year.

When a project is considered a failure?  

1. First, the project did not meet the expectations.
2. The client did not receive the desired deliverable.
3. The work was not finished on time.

So here’s to planning ahead of time and avoiding these common project pitfalls.

1. Unclear Goals And Objectives

Businesses that fail to set clear employee goals and objectives waste significant time and effort. The following are the consequences of ambiguous project goals and objectives.

• Unclear objectives lead to ambiguous operational methods.
• Individually, the level of performance can be justified.
• It’s not always obvious when a project deviates from its original path.
• People involved in a project cannot work to their full potential.

2. Lack Of Resource Planning

In project management, resources refer to people, money, and materials.   Human resources are likely underutilized or overworked if you do not use a good task management tool.

Another critical aspect of project resource planning is financial planning. Projects with poor cost estimation and inconsistent tracking will almost certainly go over budget. In addition, project managers who do not understand how to track and manage finances are more likely to fail the project.

3. Poor Communication 

Poor communication in the workplace can have disastrous consequences for the project, including poor collaboration and decreased productivity, resulting in stressed employees, dissatisfied customers, and workplace mistrust.

Whether it’s delayed communication, a lack of communication, or no communication at all, the fact is that the project is likely to fall through the cracks if the project professionals don’t have an effective communication strategy in place.

4. Stakeholder Management Is Inadequate

Stakeholders have an inherent interest in the project, for better or worse. Project managers are responsible for identifying and communicating with all stakeholders promptly and without delays. Unfortunately, there are numerous reasons for poor stakeholder management, some of which are listed below.

• Stakeholders are too narrowly defined.
• Failure to strike a balance between compliance and strategic opportunities
• Stakeholders are prematurely removing resources.
• Stakeholders’ disinterest
• Stakeholders are unaware of the project’s progress.

Engaged stakeholders provide support and insights to help a project succeed, whereas disengaged stakeholders can become barriers to success.

5. Poorly Defined Project Scope

The project scope details everything you intend to do (and not going to do). In project management, scope creep refers to uncontrolled, continuous changes in the scope of a project. Conversely, a poorly defined project scope leads to scope creep, where the former is vaguely defined, documented, or controlled.

A project with an unclear project scope is more likely to fail and encounter a variety of issues, including:

• Failure to meet customer expectations
• Continual changes are being requested throughout the project’s life cycle.
• The budget exceeds the allocated budget.
• Failure to meet deadlines

6. Inaccurate Cost And Time Estimates

Inaccurate cost and time estimate frequently result in team members making accurate predictions about the expected duration of tasks and the project’s cost based on an average duration of time and cost for previous projects.

Inaccurate estimates are frequently the result of two underlying causes:

• Upfront planning
• Poor estimation practices

7. Inadequate Risk management

Risk management enables project managers to identify and analyze issues that may arise during the project and impede its progress. If risks are not effectively managed, they will likely emerge during the project’s later stages, causing significant scope creep. Conversely, poor risk management can lead to project delays, low user adoption, late assignments, overspent budgets, and project failure.

8. Monitoring And Controlling

Monitoring and controlling the project is one of the lesser-known facts that project managers and their teams often overlook. However, a project manager needs to “track, review, and regulate the project’s progress; identify areas that require changes in the planning, and initiate the corresponding changes.”

Every effort should be made to keep the project on track, and if it falls behind budget or schedule, the plan should be adjusted to get the project back on track.

How to Recover a Failing Project?

Three key questions you can ask to quickly and clearly understand the project.

1. Are the problems internal or external?

You can determine whether the source of the problem is internal (and thus correctable) or external (outside of your control).

Review project documents such as the charter, plan, and schedule for:

• Requirements from relevant stakeholders.
• A reasonable timetable with attainable goals.
• Allocation of resources
• A method of collecting and managing change requests.
• Unexpected expenses (internal and external).
• Success metrics.
• A procedure for upholding quality standards.

2. Why are we behind schedule?

Next, determine why the project is running late.

• Were tasks properly prioritized?
• Were tasks clearly explained?
• Was the timetable overly ambitious?
• How frequently did the project manager provide status updates?
• Who made important project decisions?
• Is there a record of decisions and change requests?
• How were risks communicated and addressed?
• Was the initial budget adequate?

3. Is the team working effectively?

Finally, consider how well the team worked together.

• Did the team understand the project’s goal and its roles and responsibilities?
• Was the team using the same procedures and tools?
• Did the team meet regularly to share updates and challenges?
• Was a clear communication strategy in place?
• Were the right people assigned to the project?
• Were there any issues with suppliers or vendors?

Techniques for recovering failing projects

While failures are unavoidable in project management, project professionals can always learn from the failures to succeed in the future. So, let’s look at how project managers can ensure that their next project runs smoothly and that any potential problems are identified and resolved before they become too large to cause project failure.

• Plan diligently and identify any gaps.
• Communicate effectively and frequently.
• Examine your Resources
• Set realistic goals for yourself.
• Use the Proper Methodology
• Monitor Project Development

Strategic alignment in project management

Strategic alignment in project management refers to aligning project goals with your organization’s long-term vision and mission.

Contrary to popular belief, strategic alignment in project management does not only refer to establishing and maintaining key financial metrics. Instead, it’s a broad concept that encompasses everything from key financial and quality indicators to customer satisfaction, brand recognition, and value proposition.

Every project has a goal. While some may seek to provide a service or product, others may seek intangible benefits such as positive customer relationships or company goodwill. These strategic goals guide a project professional’s day-to-day business operations and help them turn their ideas into desired results.

Importance of Strategic Alignment in Project Management

• Focus the energy in the right place
• Allow for productive team collaboration
• Describe the organization’s competitive advantages
• Manage priorities that conflict
• Avoid duplication.
• Accept market manoeuvrability

Leadership performance is significant to project success

Effective leadership in project management is the ability to persuade people of the need for change, stimulate new ways of thinking and problem solving, and encourage them to achieve project objectives. Leadership also guides team members to grow as professionals while completing their project responsibilities.

Today’s evidence-based theories of leadership can be characterized into six major classes, which include:

• Attributes
• Behavior
• Contingency
• Visionary
• Emotional intelligence
• Competency

PMI’s Talent Triangle – How to Stand Out as a Successful Project Manager

Project managers must be more agile and resourceful than ever to keep up with and make an impact in a fast-changing world. PMI has always been dedicated to assisting project professionals in developing strong skills. Nonetheless, project managers now require a skill set that includes a variety of disciplines and practices, as well as other in-demand skills.

To assist project professionals in navigating this changing world of work and embracing smarter ways of working, project professionals need to focus on:

• Ways of Working: Formerly Technical Project Management
• Power Skills: Formerly Leadership
• Business Acumen: Formerly Strategic and Business Management

Factors of project success

Project success has been defined as a project that meets its objectives on time and within budget. A development project’s success extends beyond meeting schedule and budget objectives. It also includes meeting the expectations of beneficiaries, stakeholders, donors, and funding agencies. However, defining these dimensions of success is more complicated and can only be assessed years after the project is completed.

Measuring project success after the fact is important because it aids in determining future strategies when planning new projects. Continuous improvement based on data from past projects enables project managers to identify problems before they occur. Using past data allows new processes to be implemented with fewer errors and greater management success.

Here are some of the factors for the project’s success:

1. Goals and objectives

The project’s overall goal is specified and recognized by all stakeholders; it is not at odds with subsidiary objectives, and project leaders have a clear vision of the project’s outcomes.

2. Capable sponsors

Sponsors play an active role in the project’s life cycle; they bear ultimate responsibility and accountability for the project’s outcomes.

3. Secure funding

The project has a secure funding base; contingency funding is recognized from the start, and budgets are strictly regulated to ensure maximum value is realized.

4. Project planning and review

Pre-project planning is thorough and considered; progress is monitored regularly and carefully; the project has realistic time schedules, active risk management, and a post-project review.

5. End users and operators

End users or operators are involved in the project’s design; the project team works with users who can effectively and efficiently implement what the project has produced.

6. Aligned supply chain 

All direct and indirect suppliers know the project’s requirements, timelines, and quality standards. As a result, the supply chain’s higher and lower tiers are coordinated.

7. Proven methods and tools

Good project management tools, methods, and techniques are used to maintain an effective balance of flexibility and robustness.

8. Appropriate standards 

Quality standards are actively used to drive output quality. In addition, other standards are regularly monitored to ensure delivery at the best practice levels.

Knowing what success factors are important at the end of a project is critical for assessing how that project went and making changes for the next one. It is critical to understand what distinguishes success from failure.

By investing time in learning about the future of project management, project professionals will be better prepared to capitalize on new opportunities and develop their skill set accordingly. So many opportunities for growth and success are on the horizon; use these trends and factors to propel your company, projects, and team to new heights!

Feel free to check out my discussion on this topic with Thomas Walenta in YouTube

For any questions related to your Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting talktodharam.com

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