Why Projects Fail

Why Projects Fail

Projects do not fail for one single reason alone; they fail for multiple reasons. The three basic components of a project, the so-called "iron triangle" of projects, are scope (what is supposed to be provided by the project; for example what is to be built), budget (how much it is supposed to cost) and schedule (how long it is supposed to take) Several of the failure modes, as might be expected, involve these three items. There are, however, also other ways that projects can fail. Some of these involve "softer" issues, such as human factors. (Harding, 2012)

Poorly scoped project

Every project should have a clearly written scope that defines what the project is providing and sometimes states what it is not providing. Not doing so almost guarantees a partial project failure in term of budget and schedule as the project team tries to figure out what it is really trying to do, or has to do in order to meet the overall project objectives. Once the scope of a project is defined and established, scope changes become the enemy. Once the scope of the project is defined, avoid changes. Improve and optimize the process after the project has been completed.

Poorly budgeted project

Another often-repeated fatal error on projects is arbitrarily setting the budget. Project costs typically consist of equipment costs. Every project should have a well-documented budget (based on a well-defined scope) to serve as a basis for cost control. Not doing so almost guarantees a partial failure in terms of a budget overrun. (Lundquist, 2005)

Poorly planned and scheduled

Another way that projects can fail is to have an inadequately thought-out schedule and plan for execution. A well thought-out project schedule allows time for items such as reviews, detailed tie-ins, bidding cycles, and so on. It also needs to be properly sequenced to assure that required tasks are completed before moving on to the next task, and that nothing needs to be "undone" and...