why project fails
TRANSCRIPT
Statements mostly hear, when project about to fail
1. Cut the deployment timing. Think in this way, Time is money
2. Make it Simple, take off or hide complex parts
3. Money: Since now market is down, cut money
4. What's we lose when we are "Optimists"
Defining “Failure”
The inability of the project to deliver the intended benefits to the identified stakeholders
However – Failure is relative – there are many levels of failure from complete failure to mild failure, and each should be seen in context
Levels of Failure
Complete Failure Cancelled before completion Failure after implementation so serious that have to roll-back to previous
version or manual alternative Organisation is significantly worse off than before, and may be at risk of
bankruptcy Serious Failure
Continues into operation, but does not achieve full benefits May be less effective and efficient than existing system More costs than benefits and significant loss of brand value
Medium Failure Some benefits received, but not all Many tolerances overrun Major fixes required to recover
Mild Failure Largely meets benefits but some of the tolerances exceeded (time, cost,
quality, benefits, risks, knowledge transfer, …)
Projects and Complexity
A project is a complex arrangement of time, costs, resources, scope, benefits, risks, issues, quality and structures
Failure is very easy : any one part or link can cause failure – there are millions of way to fail
Success is very difficult : there is only ONE way to succeed – the correct balance of the project elements
Projects fail when they do not projects fails when they meet the
following criteria for success Criteria1 Criteria2 Criteria3
The system works as required
It is on or under budget
It is delivered on time
Projects Fail:
PM Expectations Estimation Requirements
Inadequately trained and/or inexperienced project managers
Failure to set and manage expectations
Poor effort estimation
Failure to adequately identify, document and track requirements
Primary causes for the failure of any projects
Unclear goals and objectives
Poor planning
Failure to communicate
Lack of executive support
Unrealistic time
Objectives changing
4 Points of failed Projects
Failed Badly
Lack of User Involvement
Unrealistic Time Scales
Scope Creep Poor Testing
Why projects fail?
The goal of the project is not defined properly
Lack of change management (changes to project are not controlled)The ‘moving goalposts’ syndrome.
Why projects fail? Cont…
Poor or non-existent planningA solid plan is one of the key steps of the effective project management.
The project is not resourced as planned (resources were not available at the time, or were not booked in advance)
Why projects fail? Cont…
Lack of coordination of activitiesThe project is not led properlyThe project reporting is
inadequate or does not exist
Why projects fail? Cont…
Quality criteria is not defined or measured
Lack of ownership - It is not clear who is responsible for the project outcome
The progress is not monitored and controlled properly.
10 things you should know
To prevent projects from failure1 - You need to define the project
clearly2 - You need to plan the project (not to be mixed with project schedule) A good plan should include scheduling as well as many other points3 - You need to provide a way of including contingency plan
4 - You need a communication plan
10 things you should know
8 - You need to manage risks and issuesA good project manager revisits risks and issue management throughout the project lifecycle
9 - You need to monitor quality
10 - You need to be prepared that no matter how well a project is planned something may go wrong at some point
10 things you should know
5 - You need a quality planGetting a clear and reliable definition of what constitutes fit-for-purpose on your project is crucial for its success.
6 – You need to make it clear project managers are responsible for projects
7 - You need the manage the project plan
Project Management Laws
Murphy’s Law – Anything that can go wrong, will go wrong.
Finagle’s Law of Dynamic Negatives or Finagle’s Corollary to Murphy’s Law - Anything that can go wrong, will – at the worst possible moment.
Hofstadter’s Law – It always takes longer than you expect, even when you take into account Hofstadter’s law.
Parkinson’s Law – Work expands so as to full the time available for its completion.
Project Management Laws
Norman R. Augustine law
A bad idea executed to perfection is still a bad Idea A good idea executed poorly is of no use to
anyone
Validating the Project’s Strategic Alignment
– For every project you choose to do– You give up an infinite number of projects
Conclusion
Projects mainly fail due to management problems
Project manager is responsible for the outcome of the project
Success metrics: On time, on budget and as defined
BUT the project manager must also focus on the expected results and benefits
Example 1 : MacDonalds
2001 : Intranet to connect 30,000 outlets with real-time information
$170 million written offEarly termination when estimated costs
of completion reached $1 billionDecided that money could be better
usedPROBLEM : scope too broad – no
possible way to construct itMODE OF FAILURE: Business Case failureTO THEIR CREDIT : Decided to stop
before spending any more!
Example 2 : US IRS
GOAL : Upgrade the fraud-detection system
Switched off old systemPROBLEM: System did not work – could
not be deployed – and old system already switched off
COSTS : Estimated losses of $318 million in lost revenue/undetected fraud
MODE OF FAILURE: Many – classified as “maintenance upgrade” instead of new system
Example 3 : IRS infrastructure
8 year project to revise infrastructure Personnel retiring and lack of expertise Failure to deploy meant rebooting the old
system for 2007 tax season Costs to Date : $8 billion MODE OF FAILURE: Many – too large a
project – too long a timeframe – solutions out of date before deployed – loss of skills
Example 3 : UK NHS
Rewrite of complete national health system
More than 12 vendors – no compatibility in systems – squabbling among vendors
Users inadequately consultedContractors get no money until system
deliveredOne large contractor has pulled out at
loss of $450 millionCosts to date = $10 billion overrunMajor vendor (iSoft) under threat of
bankruptcy
Analysis of Failures
Need a formal method for analysis of failures so that we do not have to learn same lessons over and over again
Need a means of reporting failure and disclosure so that maximum benefits are gained for the future
Need to ensure that organisations accountable for their work and cannot simply hide details in order to protect reputations
HOWEVER : Analysis of Failure is itself Complex
Analysis of Failure/2
Historical Research = What Happened? Many histories – many viewpoints Can we get to the truth or are all interpretations naturally
biased Is there such a thing as an independent analysis? Analysis can only be successful if there is a well-documented
project
Example 3 / cont. …
MODES OF FAILURE : many Government contracting policy – try to reduce risk by
spreading work among vendors Government tender policies – splitting specifications from
implementation over different organisations Job too large – biting off too much
Analysis of Failures
Need a formal method for analysis of failures so that we do not have to learn same lessons over and over again
Need a means of reporting failure and disclosure so that maximum benefits are gained for the future
Need to ensure that organisations accountable for their work and cannot simply hide details in order to protect reputations
HOWEVER : Analysis of Failure is itself Complex
Analysis of Failure/2
Historical Research = What Happened? Many histories – many viewpoints Can we get to the truth or are all interpretations naturally
biased Is there such a thing as an independent analysis? Analysis can only be successful if there is a well-documented
project
Risks that can induce Failure
Organisation Failure to constitute a Project Board properly Lack of involvement from corporate management Lack of involvement from customer Lack of involvement from user Wrong people selected to assist Responsibilities not explicit Some key responsibilities not allocated
Risks that can induce Failure/2
Communication Lack of reporting structure Lack of sufficient information from decision-making Lack of usage of the information as reported – get the
information but not acted on People who receive reports do not know what they are
supposed to do with them – think that someone else is acting on them
Recommendations/2
Need a Project Management Method that be used throughout the organisations Common Language for Projects
• E.g. what is an issue, what is a risk, what does “quality” imply, what is a “tolerance”
Simple method that is easy to apply Method that can be used for early detection of failure modes
Recommendations
Recommend that all projects be divided into smaller units – easier to manage – impact of failure is reduced = DIVIDE AND CONQUER
High-level Programme Management takes the long-term view – identifies evolving technologies and decides on appropriate solution structures
Other Risks that can induce Failure
Specification + Scope ManagementBusiness Case Management + Realised
BenefitsQuality ControlChange Control + Issue ManagementRisk Analysis + Risk ManagementConfiguration ControlUser Involvement Incompetence of PersonnelUnsuitable Technology