The Common Reasons for Project Failure - Coursework Example

Why Projects Fail Institution Date Introduction Projects fail at an astonishingly high rate leading to an increasing scholarly focus on project failure. Many projects including infrastructure, installations, growth strategies, and post merger integrations end in dismal failure. It is estimated that more than half of projects initiated in organizations end up in failure (Schwalbe 2013, Apart from devastating organizations financially, project failure also demoralizes employees. Nowadays, projects are an important part of the organizations activities and play an increasingly bigger role as strategy tools. This report presents the common reasons for project failure and some approaches that can help project managers avoid these pitfalls. The report starts by defining project failure and dwells on what is considered project failure. It is noted that project failure is subjective as projects are considered truly unsuccessful if they fail to meet stakeholder’s or users expectations. The second part deal with the leading causes of project failure. The last section discusses some approaches that can help project managers avoid the leading cause of project failure discussed in the report. What are failed projects? In some cases, project failure is easy to determine as failure is sometimes obvious. For example, a delayed project may be considered a success in some instances. In other cases, a delayed project is considered may be considered a great success (Cerpa and Verner 2009, For example, the Channel tunnel project is considered a success although it was delayed. Project failure is considered a failure if it is not delivered according to expectations. If a project is not delivered to the expected quality and/or overruns its cost and time it is considered a failure. However, project quality is the most important consideration for success. Projects are considered successful if they are delivered according to expectations of stakeholders (Schwalbe 2013, Projects must deliver the right business requirements to be considered a success. Projects delivered on time, to the right quality, and within budget but which fail to deliver the business case are failures. Most projects begin with an overwhelming expectation of failure, particularly in IT. Failure is a subjective term in project management that may mean different things (Schwalbe 2013, However, any project that fails to meet stakeholders and user expectations in a failure. Many times project managers work against an expectation of failure from the onset of the project. In many cases, the mindset of project participant is impacted by the expectations of failure. It can be assumed that the expectation of failure is a leading and unreported cause of failure of many projects (Whitfield 2014, To overcome this burden of failure, projects need strong leaders who have a working knowledge of the pitfalls that must be avoided for projects to succeed. What causes Project Failure? 1. Failing to involve Users One of the leading causes of project failure is the lack involve users in the formulation of business requirements (Cerpa and Verner 2009, Users are the ultimate customers to every type of project that is undertaken, and it is thus important to obtain their buy-in before embarking on the project. 2. Poor Scope Definition (Poorly Defined Requirements) Project requirements describe how the projects will achieve its objectives. Project requirements must be set out as early as possible and described in adequate detail for projects to succeed (Schwalbe 2013, Failure to define the requirements adequately and early enough may lead to situations where they are not satisfied. 3. Scope Creep Scope creep is the leading cause of project failure. Scope creep is defined as a tendency by project stakeholders to add new features and requirement to a project that has already taken off (Cerpa and Verner 2009, Expanding the scope of a project is not an unusual process and shouldn’t automatically lead to failure. However, changes in scope should correspond to changes in schedule and should be correctly itemized by the project manager. The triple constraint (scope, time, and cost) means that scope cannot be changed without affecting time and/or cost. Scope creep is a leading cause of missed schedules and poor quality deliverables if it not properly managed. 4. Unrealistic Time Scales or Poorly Defined Scheduling is among the most important responsibilities of a project manager. In scheduling, the project manager defines the project milestones, time frames and key deliverables. However, project scheduling is a challenging task as it is future oriented and is often inadequately performed by most managers (Schwalbe 2013, Sometimes project managers receive unrealistic time frames from some stakeholders. Often most rushed project activities end in failure as there is no adequate time to carry out some activities. Most project managers fail in their scheduling responsibility by failing to tell stakeholders that time frames are unrealistic. However, it is important for managers to stand their ground and say no when an activity is impossible to complete in the scheduled time. According to Gido and Clements (2014), any manager that ignores red flags associated with unrealistic time frames is equally responsible for the project's eventual failure. 5. Poor communication Poor project communication is among the leading causes of failed projects. It is important for the management team and stakeholders to be kept up to date with the project’s challenges and progress (Loch and Kavadias 2011, Unfortunately, most project managers communicate poorly as they inform stakeholders when critical issues that affect the triple constraints (cost, time and scope) are encountered. Stakeholder needs for communication on status and progress is important and should be well managed. 6. Inadequate Test Time and iterations have to be allocated to project testing to ensure the quality of the project deliverables. However, many projects are inadequately tested and the final projects delivered often fail to achieve desired quality standards (Loch and Kavadias 2011, Any company should strive to ensure they deliver quality products as this has a great impact on the company’s reputation. 7. Lack of Resources Resources are the lifeline of every project. The amount of resources needed depend on the projects’ scope and size. Often, project managers have to complete project with inadequate resources. Management will tend to minimize costs while hoping to maximize productivity. In many cases projects with scarce resources are sometimes referred to as “running lean”(Gulla 2012, However, some projects fail because the amounts of resources allocated to these resources are woefully scarce. Sometimes, inadequacy of project resources may mean skills needed for project success are unavailable. In many failed projects the lack of a specific resources or resources types is the leading cause of failure. 8. Use of Unfamiliar Tools For projects to be successful they have to use the right tools. Some common tools include a good defect tracking system, a good CRM system or a good software development environment. However, if project managers try to use new or unfamiliar tools, the chance of success of the project decreases accordingly (Gido and Clements 2014, Unfamiliarity with tools means the team has to deal with the steep learning curve of the new tool while also dealing with their project duties. A gradual introduction of new tools allow project teams to continue using old tools as they get familiar with the new tool. Adequate and effective training is also necessary to ensure that the parallel introduction of a new tool is successful (Whitfield 2014, The old tool can be abandoned once the trainers and the project manager are sure that the team in competent in using the new tool. Averting Project Failure The causes of project failure discussed above can be solved by using the following methodologies in project management. Some of the solutions to the problems identified above include constituent alignment, good project scope definition and management, good project communication, good project scheduling, using good methodology, adequate testing and adequate requirement gathering (Loch and Kavadias 2011, 1. Constituent Alignment Constituent alignment is a solution to the problem of poor involvement of shareholders in the project. Successful projects have to engage the stakeholders adequately in order to succeed (Cerpa and Verner 2009, All stakeholders in the chain of command including sponsors, business unit executives and executive management have to be engaged in the project. The project team has to develop a cohesive project strategy that ensures that every constituent group is engaged and committed to success of the project. Project managers should strive for alignment especially when they are involved in projects that are not in sync with the organization’s basic vision (Whitfield 2014, Clearly defined goals and objectives go a long way in gaining the support of all project stakeholders. Repeated communication in a standardized format also helps in bringing more stakeholders aboard. Project managers should remember that it takes average person seven views of the same message for it to be retained. User suggestions and feedback must be considered throughout the project lifecycle to ensure the project is a success. The problem of user involvement can be solved by involving a subset of the users in initial project screening (Schwalbe 2013, Broader Alpha and Beta release cycles also enable more user perspectives to be incorporated in the project (Whitfield 2014, Using these methods to enhance user involvement results in projects where user needs and expectations are satisfied. 2. Proactive Risk Management Most projects fail to plan adequately for risk management. In some projects do not succeed as they fail to proactively identify, analyze and mitigate risks. Many projects fail to devote adequate rigor to project risk management (Cerpa and Verner 2009, In most instances, project managers address risks actively and this leads to the common problems of budget and schedule overruns (scope creep) (Whitfield 2014, Poor risk management leads to budget overruns, schedule slippage and leads to exceeding of budgets. Proactive risk management is one of the solutions to scope creep; a leading cause of contemporary project failure. All the risk for various project activities should be managed proactively to ensure that budgets and schedules are not exceeded. Proactive risk management begins with publishing the risk management plan and training the entire project team on how to proactively manage risk. Risk should be identified across the triple constraints of project (scope, schedule and cost) (Westland 2007, In addition, the project must maintain a risk log and make data on the project available to the project team. 3. Project Scope definition and management This approach will help project managers avoid the common pitfall of poor scope definition and to a limited extent the problem of scope creep. In many instances, project managers fail to properly define the project scope (Gulla 2012,. Sometimes the failure to define the scope properly results from poor requirement gathering, and pressure to start the project before scope is adequately defined. In addition, some managers fail to undertake rigorous scope management. Where project are characterized by these problems they often end up in failure. Project success is dependent on a clear, concise and unambiguous scope definition. The scope must be clear, and there must be a common understanding of the project scope among team members, project stakeholders and executives (Schwalbe 2013, The project manager should review the project’s scope definition with all stakeholders and obtain their buy-in. Project managers must know that successful execution and commitment to the project is dependent on clear understanding of the scope of the project. A project manager should strive to obtain agreement on what is inside, and outside the scope of the project (Turner and Müller 2003, Some projects include as scope investigation phase that includes pilot project to gather requirements. Scope investigation in complex projects is undertaken using methods such as a proof-of-concept paper, simulation or a benchmarking analysis of past projects. Using these approaches, the project manager can achieve much needed scope clarity which improves the project chances of success. 4. Rigorous requirement gathering The solution to poor scope definition is holding frequent requiring gathering meetings in the initial phase of the project. Regular revisits of the meetings will also be required in the execution phase to refresh the requirements and ensure their completion inside the schedule (Serrador and Turner 2015, Poor scope definition resulting from poor requirement gathering will almost always lead to project failure. 5. Critical project Communication To avoid the pitfall of poor communication, the project manager should start by creating a communication plan that addresses all the project’s communication needs (Gido and Clements 2014, Before the project takes off, a stakeholder analysis must also be undertaken to identify the communication needs of each constituency of stakeholders. Information and update for stakeholder should be delivered using different delivery vehicles to make sure it is effective. 6. Project scheduling tools and techniques Project managers can initially set out the project schedule on a chart that provides an important visual abstraction of the project’s activities. Combined with scheduling tools such as project viewer and Seavus’ Project planner, the chart will enable the project manager and his teams stay on schedule (Loch and Kavadias 2011, Good scheduling enables the project to allocate adequate time for each activity including testing which is often ignored or allocated inadequate time. A project chart reduces the project to a visual form that can be understood by the project team more easily. The project chart main purposes include: being the main tracking tool throughout the project, providing scheduling goals and guidance to each team member. It also offers the team a mean to spot and overcome emerging project problems. 7. Carrying out necessary testing To resolve problems associated to testing, appropriate allocation of resources and necessary testing is absolutely essential (Loch and Kavadias 2011, Testing should include regression testing, unit testing, standard build-based testing and alpha/beta testing by consumers (Gulla 2012, In many cases, inadequate testing is the consequence of poor scheduling that fails to allocate adequate time for testing. Conclusion Projects can either succeed or fail, but the highest percentage of projects end in failure. Knowledge of the causes of project failure is important to project managers to ensure that these problems are avoided in future projects. The causes of project failure discussed in this report offer a valuable reference to the project manager which enables the project manager recognize and deal with these problems. In first section of this report, we noted that scope creep is the leading cause of project failure. In the second section, the paper offers several solutions that can help project managers overcome the common pitfalls of project management. This paper illustrates that project managers and participants in projects need to be aware of common causes of project failure. Most importantly, project managers must not be pessimistic about the chances of success of the project. They must be strong enough to ensure they manage their projects successfully while avoiding the common pitfalls discussed. Applying the recommended approaches discussed in this paper will ensure project avoid failure and end in success. Notably, the leading cause of project failure can be handled by using a proactive risk management approach. Continuous requirement gathering is important as it leads to a clearly defined scope. Secondly, getting stakeholder support and alignment is also important in coming up with projects that satisfy the expectation of all constituent stakeholders. Thirdly, well planned communication also ensures that constituent stakeholders are updated and informed about the project progress and status. Finally, the project team needs to continuously test the project deliverables to ensure expected quality standards are being met. References Cerpa, N., & Verner, J. M 2009, Why did your project fail?.Communications of the ACM, 52(12), 130-134. Gido, J., & Clements, J 2014, Successful project management. Cengage Learning. Gulla, J 2012, Seven Reasons IT Projects Fail. IBM Systems Magazine. Loch, C., & Kavadias, S 2011, Implementing strategy through projects. Oxford Schwalbe, K 2013, Information technology project management. Cengage Learning Serrador, P & Turner, R 2015, The Relationship Between Project Success and Project Efficiency, Project Management Journal, Vol. 46, No. 1, 30–3. Turner, J. R., & Müller, R 2003, On the nature of the project as a temporary organization. International Journal of Project Management 21(1), 1-8. Westland, J 2007, The Project Management Life Cycle: A Complete Step-By-Step Methodology for Initiating, Planning, Executing & Closing a Project Successf. Kogan Page Publishers. Whitfield, S 2014, Taking a Closer Look at Why Projects Fail. Oil and Gas Facilities, 3(05), 18-24. Read More