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WHY PROJECTS FAIL: THE MOST IMPORTANT KEYS TO SUCCESS

Danielle Hernandez

Applications Analyst

ADNET Technologies, LLC

Follow me @Apps_Analyst

Connect with me on LinkedIn (Danielle Hernandez)

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AUDIENCE POLL

• Project Managers• Upper Management• Experience managing projects• Participated on project teams

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WHAT IS A PROJECT?

Project Management Book of Knowledge• A project is a temporary endeavor undertaken to

create a unique product, service or result.

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Is project failure a bad thing?

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ACKNOWLEDGE DIFFERENT PERSPECTIVES

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DEFINE “FAIL”

Merrium-Webster Dictionary Definition

http://www.merriam-webster.com/dictionary/fail

to fall short

to be unsuccessful

to disappoint the expectations or trust of

to miss performing an expected service or function

to leave undone : neglect

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DEFINE “FAIL”

Project Management Definition

The project never starts or is late Over budget

With less than the required

features/functions

One of the primary objectives of cost,

time or quality were not met

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DEFINE “FAIL”

Business Definition• Client expectations were not met

• Scope• Schedule• Budget• Risk• Resources• Quality

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DEFINE “SUCCESS”

Merrium-Webster Dictionary Definition• Favorable or desired outcome/result

http://www.merriam-webster.com/dictionary/success

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DEFINE “SUCCESS”

Project Management Definition

On time

Within budget

With all required features/functions

All three primary objectives of cost, time and quality were met

Project objectives are met and benefits realized

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DEFINE “SUCCESS”

Business Definition• Met/exceeded client expectations

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AUDIENCE DISCUSSION

• What does project failure mean to you?• Who decides if a project fails?

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RESEARCH & STATISTICS

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US AIR FORCE

• ERP software project• 1.03 billion in costs from 2005 to 2008• Will need 1.1 billion to continue• Has not yielded any military capability• Will not be completed on time in 2017, instead most

likely in 2020 • Restructured 3 times in 3 years (2005-2008)• Project cancelled in 2012• Will use its "existing and modified logistics systems

for 2017 audit compliance"

http://www.cio.com/article/721628/Air_Force_scraps_massive_ERP_project_after_racking_up_1_billion_in_costs

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BIG DIG• Boston’s central artery tunnel project• Initial cost = $2.6 Billion ended up at $14.8 Billion• 9 years behind schedule• Eventually completed in 2007

http://www.nasa.gov/offices/oce/appel/ask/issues/39/39s_big_dig.html

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STATE OF CALIFORNIA

• Payroll & benefits system - MyCalPAYS• Began in 2004• Ended in Feb 2013 with a stop to the project• $254 Million spent

http://www.sco.ca.gov/21century.html, http://www.computerworld.com/s/article/9236662/California_ends_contract_with_SAP_over_troubled_IT_project

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BEOING 787 DREAMLINER

• Scheduled to end in 2008, actually ended in 2011• Scheduled to cost $5 billion, actually cost 12-18 b.• More complex than they had anticipated

http://calleam.com/WTPF/?p=4617

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GENECA (2010 – 2011)• 75% of respondents admit that their projects are either

always or usually “doomed right from the start.”

• 80% admit they spend at least half their time on rework.

• 78% feel the business is usually or always out of sync with project requirements

• Only 55% feel that the business objectives of their projects are clear to them.

• Less than 20% describe the requirements process as the articulation of business need.

• Only 23% state they are always in agreement when a project is truly done

http://www.geneca.com/75-business-executives-anticipate-software-projects-fail/

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“All things are created twice; first mentally; then physically. The key to creativity is to

begin with the end in mind, with a vision and a blue print of the desired result.” —

Stephen Covey

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AUDIENCE POLL

What is the main reason that projects fail?• Scope creep• Unrealistic/unclear objectives• Lack of commitment by PM, Stakeholders or

project team• Poor methodology• Poor communication

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LINKEDIN POLL

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POOR COMMUNICATION

• Lack of communication (frequency)• Bad quality (lacks details)• Wrong choice of method• Wrong audience is included• Negative, non-constructive feedback• Poor listening

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COMMENTS WORTH NOTING

• Too many projects at once• Underestimate importance of requirements

gathering• Different agendas for project sponsor and

participants• “When Project Managers get too confident things

tend to go wrong”• Agreeing to “happy dates”• Inability for management to make decisions• Making assumptions• Blame game

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“No matter how good the team or how efficient the methodology, if we’re not

solving the right problem, the project fails.” –- Woody Williams

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AUDIENCE DISCUSSION

• What experience do you have with project failure?• Any common threads in reasons why projects have

failed from your experience?• Is it ok to walk away from a project?

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WHERE DO WE GO FROM HERE?

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SIGNS YOUR PROJECT IS FAILING

• A lot of changes are being requested• Team members become confused• Lack of communication• Resources work in the wrong direction• Tasks are not completed on time• Teams are working overtime or on unscheduled days• Resources diverted to other projects/activities• There is a lack of buy-in• More issues added than resolved• Few interim deliverables and milestones• Client is dissatisfied (internal or external)

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IS THERE A CURE FOR PROJECT FAILURE?

First step is to diagnose the

cause

Determine if the project benefits are worth the time, cost and

energy to continue

Identify the best way to get the

project back on track

Create and communicate

the restructured plan to the

project team

Implement a structured

change management

system

Learn from your mistakes

Identify ways to prevent it from

happening again

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TIPS FOR SUCCESS

• Contributor to Success/Failure• Adjust methodology for best fit• Detailed Communication Plan• Change Management System• Keep an eye on the scope• Assign right resources• User Involvement• Time Management

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“Planning without action is futile, action without planning is fatal.”

— Cornelius Fitchner

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CLOSING SUMMARY

• Identify what project success and failure mean to you and your organization

• Determine how you will operate within those guidelines

• Accept failure & learn from your mistakes• Determine how your organization will approach

failure• Celebrate success

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@ADNETTech #WorkSmart

@ADNETTechnologiesLLC

@ADNETTechnologiesInc