How projects fail and what to do about it

You don’t have to look far to find project failures. While many circumstances contribute to project failure, a few common circumstances often are the culprits that make good projects go bad. Here are the most prevalent management failures that lead to failed projects:

A lack of proper management. Projects without professionally trained —and supported— project managers are like sailboats without a rudder. Eventually they will crash. The only question is what they will hit before sinking. Proper project management is mandatory.

Poor stakeholder management. Generating deliverables that don’t meet the expectations of stakeholders usually results in project failure. Disenchanted stakeholders rarely use deliverables they didn’t want or expect, no matter how good they may be. Making sure stakeholders buy into the products you’re producing is vital to delivering successful projects.

Throwing good money after bad. One of my favorite phrases is, “Fail early, it’s cheaper.” Nowhere is this more accurate than with projects. Once a project becomes troubled, cancellation may be the best outcome, because it saves money, time and, in the long run, can enhance your reputation. Justifying spending more money to validate the money you have spent so far is foolish. Look at where the project is today, and the time and money it will take to generate business value. If the money it takes to recover the project stands up to the scrutiny of a business case, then continue. If not, cancellation is the best alternative.

Avoiding the perception of failure while you are already seen as failing. Managers rarely understand that failed projects that take forever to “go away” do more reputational damage than one cancelled to minimize corporate impacts. Project cancellation is a proactive alternative to failure. When things go bad, understand the root cause and stop the project. Then, perform better project definition, risk management or other alternatives to start a new project with an increased chance for success.

For more about project management, check out my Project Management Foundations course.