12 Reasons Why Projects Fail & Solutions for Them

KEY TAKEAWAYS

The big question everyone wants to know the answer to during a project retrospective is, “Why was this project not a success?” For every project, the common goal is to achieve a smooth and seamless execution and aim for the best outcome. But projects change course at times due to unexpected business decisions that negatively affect all remaining work milestones.

To know the signs to look for, identify risks, and prevent a project from failing are the project manager’s responsibility.

Why do projects fail?

Projects don’t always succeed, but how likely that happens is a point of debate. According to the Project Management Institute’s Pulse of the Profession report, organizations that lack adequate project management strategies have a project failure rate of over 60%. 

Historically, PMI has conducted surveys and hosted research to understand project success rates, and recent statistics indicate that while most projects meet their original goals, many still face challenges, such as scope creep, budget overruns, and timeline delays. Only an estimated one-third of projects are completed on time and within budget.

Smaller projects are much more successful than large, complex efforts. Companies that don’t use project management software are more likely to miss deadlines and spend more money. Not all organizations prioritize project management, and some admit to undervaluing it.

But that is just one of the many reasons why projects sometimes fall short of expectations. Here are other common issues that derail projects and ways to avoid them. 

How to avoid common pitfalls in project management

Start your project with a kickoff meeting

According to a PMI survey, over 17% of projects suffer due to poor planning. Not having a clear outline of the next steps puts the project in reaction mode, which can quickly turn into chaos. 

To avoid this, always begin your project with a kickoff meeting. Let team members know what the project is about, its purpose, and the result it aims to achieve. Also schedule a meeting with stakeholders to discuss and document their requirements on cost, time, and product quality. 

Having a clear picture of project goals and objectives helps all parties understand what they are working toward and the part they have to play in making it happen. When everyone involved knows from the very beginning what they need to do, they can carry out their tasks more effectively.

Define parameters and enforce them

Completing a project is like playing a game in the sense that winning is simply not possible if you don’t know the rules. If team members do not have a clear outline of what needs to be done and how to do it, the project cannot move forward.

The project manager must keep the team aligned, especially on the scope of the work, deliverables needed, deadlines, limitations, strategies, and expectations. And if deliverables do not meet the standard, there should be an effort to review and reiterate what is expected, by whom, and by when. Continually review and rank tasks by priority, and assign them to the most proficient project team members for the best work outcome.

Clarify roles and responsibilities

Projects struggle when there is ambiguity regarding team member roles and responsibilities, causing confusion, duplicative efforts, and lack of ownership and accountability. 

Roles should be defined at the beginning during the project kickoff meetings. Make attendance a requirement and discuss each member’s responsibilities. If you’re working with a remote team, get their contact information, location, and availability so you can delegate work properly.

Build an effective resource plan

Inadequate resource forecasting is a leading cause of project failure over 20% of the time. When resources are not enough, the imbalance between personnel resources and funding will create competing priorities that affect project execution and delivery.

Before the project officially starts, project managers should confirm how many people are needed and for how long, and schedule them to be available when needed. Proper manpower allocation increases efficiency and boosts productivity, resulting in projects progressing faster without compromising work quality.

Provide accurate cost estimates

There may be times when your cost estimates do not reflect the work needed or something has not been accounted for entirely. When resources run out, the project stops.

Prevent this from happening by completing a thorough investigation of cost estimating and double-checking with leads for their sign off on the numbers so the correct resources can be secured before the work starts. 

Document your project properly

Inadequate documentation impacts project outcomes in a number of ways. It can lead to miscommunication, delays, and even disputes. All these can result further in clients losing trust and confidence in your ability to manage projects and may even hurt your organization’s reputation. 

Proper documentation is essential for successful project execution. Begin by identifying which documents you will need. These may include project charter, requirements checklist, stakeholder communication document, proposals, and progress reports. 

Delegate the task of overseeing these documents to a team member. You will also need to determine which method of documentation you want to use. Do you want to keep physical copies of these documents or would you prefer keeping them in a cloud storage or both?

Maintain communication across teams

Whether between upper management, with the team, among users, or other stakeholders, inadequate or poor communication is a leading cause of project failure. It drives misunderstandings, delays, and misaligned expectations.

For a project to succeed, everyone should feel free to come forward to express their concerns or give suggestions and be heard, and there should be a stage set or meeting cadence to express this. When members are on the same page and there’s transparency, they are able to work at an optimal level.

Create a healthy and supportive team culture

Team culture should put value on competence, proactiveness, teamwork, and professionalism. Encouraging unprofessional behavior is a recipe for demoralization, which could hurt your project.

When everyone in the team displays good work ethic, is committed to their role, and is willing to provide support to others as they work toward a shared goal, projects have a higher chance of success.

Stay engaged

Project execution without solid management support will do more harm than good. When leaders are not fully engaged because they have too much on their plate or are simply not fully committed to the initiative, team members can become demotivated and unable to perform their best. And poor team performance results in poor project quality.

As the project manager, foster engagement by providing all the resources and support they need. Be a role model and remain committed to the work. Be with your team every step of the way and be willing to step in when needed.

Look out for warning signs

When a project is on the verge of failing, warning signs become increasingly apparent. Project managers should take action immediately to save the project. Being able to identify red flags early on and steer clear of them is the responsibility of the project manager, who is tasked with being transparent about issues and sharing them with key team leaders before it is too late to fix the problem.

Continuously hone your project management skills

Project managers have a big responsibility. Among everyone involved, they play the most significant role in the execution of the project. A project manager who lacks experience and skills may find it difficult to lead a team and guide them toward success.

To better manage projects, take the time to enhance your skills and expand your knowledge. You can take training courses and acquire the necessary certifications, particularly the Project Management Professional (PMP) certification. 

Even after you’ve acquired professional accreditation, continue learning by going on workshops and stay updated with the latest trends. This way, you can easily guide your team through any changes that may arise.

Be willing to adapt to changes

Some teams are unwilling to adopt new processes that increase efficiency because of comfort in “this is how things are always done here,” but this can hurt your project badly.

Inability to adapt to changes in requirements, new technology, or external factors results in work that quickly becomes obsolete or irrelevant, especially if the project is long and takes years to complete. While there may be stakeholders and leaders that have been with the company for decades and are used to doing things one way or one speed, they must be open to better ways of working. A lot can be learned from new hires based on the latest trends, competition, and advice.

How remote working has impacted project management

The new culture of working remotely has definitely had an impact on project management. There are both pros and cons to being able to work from anywhere, and the results of project failure and success in this environment are still being calculated.

Ways remote working teams have made it more likely for projects to fail:

• An intermix of time zones makes it more difficult to coordinate and address things in a timely manner.
• There are more distractions and a need for more meetings to get the work moving; not everyone on a team is cut out or equipped for remote work.
• It becomes harder to keep everyone’s attention when they are not in person and have the ability to mute themselves or turn off their camera to do other things.

Ways remote work has made projects less likely to fail:

• There are more tools than ever to keep teams connected and accountable.
• Remote teams have an opportunity to work 24/7 across time zones to speed up progress.
• Work flexibility creates less burnout for teams when they don’t have commutes and long days sitting in uncomfortable cubicles and office settings.

Bottom line

While a 100% success rate isn’t realistic, it’s essential to be aware of common project pitfalls in project management and, more importantly, how the team can avoid them.

Conducting a detailed project discovery with the team before the start of a project is important and your best chance at success. Closely examine all risks and blockers before beginning a project. Understanding what lies ahead gives the project manager, project team, stakeholders, vendors, and the client options and the best plan and flexibility to move forward.

Employing tools that allow users to easily manage tasks like time tracking, cost tracking, and cost estimations; adequate employee training; solid project planning; and management transparency can also help keep projects on the right and successful track.

With the right strategies and tools, your team can deliver what your project has promised to clients and customers.