25 Mar Most Projects fail to Deliver
Recent research conducted by credible companies such as the Standish Group, McKinsey & Company, Gallup, Geneca, and PMI, all point to very poor track track in project success! Here is a synopsis of their findings. Chances are that your projects are suffering from the same underlying root-causes of failure.
The Standish Group 2015 CHAOS Report* showed that out of all 50,000 projects in the study, 71% failed to meet these three criteria: on time, on budget, and with satisfactory results. The problem is even higher for big projects. Medium-sized projects failed at 91% and large projects at 94%.
An article in InfoQ explains the Standish Group CHAOS survey results. It shows that project failures come from the following five (5) areas:
- Lack of executive support. Financial and emotional backing is missing.
- Missing emotional maturity. Behaviours of how people work together is weak.
- Poor user involvement. Decision-making and information-gathering process is not there.
- No optimization. Structured means of improving
- No optimization. Structured means of improving business effectiveness is not executed.
- Not enough skilled staff. Highly proficient people are promoted or retire.
Top Seven Project Management Statistics on Failure:
- 70 percent of projects fail. [source: 4 PM]
- 17 percent of IT projects go so badly, they threaten the existence of the company. [source: McKinsey & Company in conjunction with the University of Oxford]
- Only 2.5 percent of companies successfully complete 100 percent of their projects. [source: Gallup]
- 57 percent of projects fail due to breakdown in communications. [source: IT Cortex]
- 73 percent of respondents admit that their projects are either always or usually “doomed right from the start,” including 27 percent who always feel this way. [source: Geneca]
- 75 percent of respondents lack confidence in project success. Fuzzy business objectives, out-of-sync stakeholders, and excessive rework are key culprits. [source: Geneca]
- Only 26 percent of all projects succeed. [source: PMI]
According to Dick Billows at 4pm.com, Organizations that consistently succeed with projects perform well at every level in the project management process:
- They control the initiation of projects; planning, approving and monitoring projects based on the business value those projects produce.
- They manage the pool of project resources just as they manage their capital budgets; allocating people’s time and money to projects based on the payback.
- They follow a consistent methodology for all projects; holding people accountable for measurable achievements.