As a project manager, you may find yourself in a situation where your project is not delivering the desired results. According to one Project Management Institute study From 2021, even 12% of respondents considered the projects in their companies from the previous year to have failed. But: What are the reasons that lead to project failure? A failed organization is not always the reason. However, there are some reasons why projects fail.
Be aware of the biggest challenges even before you start the project. In this blog article, you will learn the most common reasons why projects fail and how you can counteract failure with proven solutions.
What does failure mean?
The meaning of the term “failure” as Defined in the Duden is, covers two aspects: the failure to achieve a desired goal and the general lack of success. In connection with synonyms such as “fail, fail and fail,” we will go into more detail below about the various facets of project failure.
When did a project fail?
The signs that a project is failing can occur gradually or suddenly. But how do you recognize whether a project is in trouble and whether it is still possible to save it? When initial discrepancies arise and obstacles pile up, it is time to evaluate the extent of the (potential) damage. An external analysis can help you with this. You should consider the following questions:
1. Is the original project goal still being pursued?
2. Is the goal still achievable?
3. How much effort is required to fix the weak points?
You should then decide whether the project can still be saved and whether the available capacities and resources are sufficient for it. Always tell yourself: Failure is relative and (usually) subjective. Projects that are considered to have failed can still achieve significant results, even if deadlines have been missed or goals have not been achieved. Although the feeling of failure is unpleasant, it is often part of setting ambitious goals and ultimately not achieving them.
A 100 percent success rate could also indicate that your planning was not ambitious enough. However, you should ensure that projects fail for the “right” reasons, such as setting ambitious goals to provide new impetus. And not because of avoidable mistakes.
7 reasons why projects fail & suitable solutions
The usual obstacles that can hinder a smooth project flow can usually be overcome. With careful advance planning of your projects, you not only have the opportunity to prevent potential failures, but can also actively improve your strategic approach. This preventive approach not only reduces the risk of failure, but also lays the foundation for successful project execution. In order to be able to initiate preventive measures, you should be aware of the reasons why projects fail:
Reason 1: Unclear project goals
Project goals represent your intended results at the end of your project. You should define clear, time-limited goals that can be quantified once the project is completed. Without clear goals, it's hard to keep your team on track or determine the success of your project.
Example: Let's say your team is working on developing a new feature for your software product. Without a specific goal — such as “increasing user satisfaction by 20% by the next release,” it is challenging to determine which functionalities can contribute to achieving the goal. Without clear goals as guidelines, it will be difficult for you to evaluate the effectiveness of the work carried out even after the project has been completed.
Solution: Integrate clear goals into project plan
Well-thought-out project goals not only help you align your team, but also provide a clear yardstick for evaluating your project success. Therefore, set clearly defined goals right from the project planning stage, which can be viewed and understood by everyone as guidelines for the entire project process. Don't forget to set quantifiable goals in addition to qualitative criteria. It is even more effective to actively involve your team in the goal-setting process to ensure that all employees work together. It therefore makes sense to consider goal setting as an integral part of your project plan, which also includes key stakeholders, timelines, and other relevant components.
Reason 2: Expanding the scope of the project
If the required project results change over the course of the project, Are we talking about scope creep. This process is often difficult to identify as it develops gradually. Scope creep occurs when your project deliverables exceed the original project framework and creates additional work that wasn't planned.
Example: You work in management consulting and have a clear project agreement for the implementation of new processes in a specific business area of your customer. During the project, however, your customer expresses a wish to expand the focus to an additional area that was not included in the contract. This unforeseen expansion of the project requires additional resources and time adjustments to meet the new requirements.
Solution: Clearly define and communicate project scope
The clear definition of the project scope makes it easier to deliver results on time and within budget. By planning resources ahead, you can ensure that your team isn't overwhelmed by last-minute requests. A documented project scope also serves as an effective tool for rejecting additional requirements from stakeholders. In the example, this would mean that you only implement the originally defined processes for the specified business area in order to be able to complete the project on time and within budget. In addition, you could also work out a “definition of done” with your customer and include additional services as “nice to have.” If there is still capacity left for this, it can be worked on before the end of the project.
You can create a detailed description of the project scope, whether as an integral part of the project plan or as a standalone document. Once you've created the description, it's important to share it with all relevant project stakeholders. By knowing exactly what is and is not included in the project, the participants tend to refrain from making special requests. Should you still receive an additional request, you can use a change process to evaluate whether it is important enough to be included in the project scope.
Reason 3: Unrealistic expectations
Inspiring goals can help unleash new energy within your team. However, it is essential that these goals are also realistic. If your project goals are too ambitious, you run the risk of stressed team members and missed deadlines.
Example: Your marketing agency has set itself the ambitious goal of winning 100 new campaign projects this month. However, two key employees are on vacation, meaning that the remaining part of your team would have to work overtime to achieve this goal. As a result, there may be insufficient resources to achieve the desired goal. The success of the campaign acquisition could be jeopardized.
Solution: Implement SMART project goals
With careful advance planning, you can still set inspiring goals without the need for additional hours of work. In order to set ambitious yet achievable goals, it is crucial to ensure that they are SMART: i.e. specific, measurable, achievable, realistic and timely. Die Applying SMART goals clarifies how success is defined. At the same time, they provide a clear project strategy and a time frame for your project. By ensuring that your goals are achievable and within project scope, you can minimize project risk and effectively lead your team to success.
Reason 4: Limited resources
Resources such as budget, personnel, time, space and work equipment are decisive for the success of your project. A lack of resources can cause delays or even bring the project to a standstill.
Example: Let's say you run an engineering office and are tasked with planning and implementing a construction project. As the completion date approaches, you realize that the budget for specialized software for technical drawing has been exhausted. With limited financial resources and no access to the required tools, it will be difficult to complete the project as planned. In this case, you lack both the financial resources and the necessary technical tools to successfully complete the project.
Solution: Create a resource management plan
Unforeseen events, such as potential budget restrictions, cannot always be avoided. However, through targeted planning, you can ensure that your engineering firm has the necessary resources to successfully complete a construction project. A resource management plan specifies the amount and type of resources required for the project — be it specialized software for technical drawings, financial resources, or working time. By using best practices for resource allocation, you can then determine precisely when and to what extent specific resources should be allocated to the project. This enables you to react flexibly to potential challenges and implement the construction project efficiently and successfully.
Reason 5: Poor communication
In today's working world, communication is more complex than ever. Amid a wide range of communication options, it's difficult to know when and where important project updates are best shared. This can result in members of your project team disagreeing about which communication channels should be used at what time and by whom. This ultimately affects the efficiency of your work and could have a negative impact on the achievement of the project's goals.
Example: Let's say you lead a location-independent project team that is spread across Europe. They use various communication tools such as email, messages, video conferences, and shared documents in the cloud. However, your team hasn't received clear guidelines as to when and via which channel to communicate. As a result, important updates are often shared across channels that are only noticed by a few people. As a result, crucial details are lost, which can lead to redundancies in work.
Solution: Create a communication plan
A well-thought-out communication plan determines exactly how relevant ongoing project information is transmitted. It provides clarity about which tools should be used for which purposes, defines the frequency and who is responsible for sharing updates, and indicates when key stakeholders need to be involved. By implementing a robust communication plan, you can minimize the time spent searching for information and focus instead on effectively implementing your project goals.
Reason 6: Delays in schedule
Missing appointments here and late meetings there may seem unimportant at first, but it can ultimately lead to hasty work, a stressed team and significant project delays and even project failure.
Example: You are a lawyer working on a significant court case. The deadline for filing evidence has been postponed several times and now only two weeks remain until the hearing. Failure to meet deadlines now requires hasty preparation of the case, burdens your colleagues and can ultimately result in significant delays in the entire legal process.
Solution: Create a schedule
We have already mentioned the preparation of a project plan above. This useful document usually also includes a detailed timetable. This lists the individual steps that must be carried out and states who is responsible for these tasks and when these steps must be completed.
With an effective schedule, your team has clear insights into the interrelationships of the individual work stages and you can easily see which important milestones depend on others. Based on the due dates, you can assess whether there is enough time to complete each individual work step. In addition, you can involve your team in the planning process in order to optimally coordinate the timelines and responsibilities of all project participants.
Reason 7: Lack of transparency
You have created a carefully developed project plan including a timeline, communication plan, resource management plan and SMART goals - And what's next?
Example: You're part of a software development team working on a complex project. You've created all the necessary plans and yet your team members are struggling to find the relevant documents when they're needed. This is not very transparent and results in inefficient communication and potentially delays as updates cannot be delivered smoothly. Even in meetings, important information may be lost in extensive discussions. In the worst case, your project will fail due to a lack of transparency.
Solution: Use a project management tool
Project management tools enable you to organize workflows and set up processes to effectively collaborate as a team over the long term. One suitable software such as ZEP can serve as a source of information for project information, documentation, and status updates. With ZEP, you have access to all the information you need and ensure that your team is always up to date. This eliminates the need to track project time in outdated Excel spreadsheets and allows your project team to have all relevant project information at any time and from anywhere.
Preventing project failure: A conclusion
There are many reasons why projects can fail, and these reasons often overlap at one point or another. In order to prevent this and to make a project successful, there are effective strategies and reliable tools such as ZEP. But it is also crucial that you, as a project manager, can motivate your team, communicate transparently and always keep an eye on the project goal.
Especially in Risk management context Early planning is essential to prevent projects from failing. By empowering your team to plan strategically and consider all aspects of the project, you increase the chances of success and achieve your most important goals. With this in mind: Here's to well-thought-out planning and many successful projects in the future!
