Project failure is a topic that no project manager wants to encounter, but unfortunately, it is a reality that many have faced.
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Typically, a project is considered a failure when it does not meet its objectives. This will result in wasted resources, time, and money. The causes of project failure can be multiple and vary from project to project.
"Leading a project to success can be a challenging task, especially if you're not aware of potential challenges and pitfalls. Therefore, it's essential to educate yourself about the causes of project failure, as well as the best project management tools. By doing so, you can navigate these challenges and lead your project to success with ease."
In this blog, we will explore the different reasons for project failure, the signs of project management failures, and the tools that can help prevent project failure.
So, let’s dive in and start with the definition– what is a project failure?
What Is a Project Failure?
Simply defined, project failure is when a project doesn’t meet its expected goals or objectives. This can happen at any stage of a project’s life cycle– from planning to execution.
Besides, the causes of project failure can be many, such as poor planning, unclear objectives, lack of communication, insufficient resources, and flawed project management.
It is worth noting that project failure can have serious consequences for a business, including wasted resources and time and a negative impact on the organization’s reputation.
For these reasons, it is important that project failure be avoided at all costs. To avoid project failure, a project manager should proactively identify and address potential risks and leverage the best tools and project management processes to ensure project success.
What Are the Causes of Project Failure?
We can prevent possible project failure only if we are aware of its causes, right? In other words, having a better understanding of the reasons for project failure is important to avoid project failure.
Here are the top 7 causes of project failure in project management. Let’s look at them one by one.
1. Poor Project Planning
You have probably heard some iteration of this quote attributed to Benjamin Franklin: “By failing to prepare, you are preparing to fail.”
If project management is the practice of turning ideas into reality, then it is vital to know the project objectives and goals before you start.
Before initiating a new project, as a project manager, it is your duty to ensure that you have met with stakeholders to discuss their expectations on time, cost, and quality. Include as much detail as you can in your scope of work, too.
Read to know more on how to maintain and manage the quality of project.
With a detailed scope, projects can follow a clear direction, and progress can easily be tracked. Guard the project scope and project requirements as fiercely as possible. If your client would like to make changes, issue a change order along with an adjusted budget and project timeline.
Remember that your projects should fit within a realistic timeframe. KPMG Canada conducted a study that showed that 60% of the failed projects have a deadline of less than a year.
Keep a buffer so you have the liberty of completing a project without rushing through it. All these best practices will certainly help you prevent project failure.
2. Irregular Progress Tracking
Having regular check-ins is vital to the health of your project. By doing so, you can spot risks before they develop into bigger unyielding problems.
Track your milestones so you have a clear idea of how the project is progressing. If it’s behind schedule, you will have time to course correct and inform stakeholders well in advance.
Source: Wistia
Keep an eye out on your budget and resources, so you can allocate or request more before you encounter any hurdles. If your team knows that you have your eye on the budget, they are less likely to account for their gray hours to projects you’re leading.
When a project is on the verge of failing, there will be warning signs. Close monitoring of key parameters will allow you to take action sooner and can prevent project failure.
3. Inadequate Employee Training
Project Managers in small to medium-sized businesses are less likely to have formal training for certification.
While there are great project managers out there who don’t have certifications, going through training equips you with tools, tips, and a network to lean on.
According to PricewaterhouseCoopers Insights and Trends report, certified project managers supervise 80 percent of successful projects; thus, we need some great project management tools.
With stats like that, it’s wise to hire a trained project manager and encourage upskilling. Project managers have a lot of responsibility, so it’s in everyone’s best interest that they are formally educated and experienced.
Besides, each project will have its own unique set of challenges and risks. Nevertheless, with knowledge and experience, PMs will be able to identify and mitigate risks– preventing project failure.
4. Misaligned Workforce
Happy employees have a 12% spike in productivity compared to their counterparts, and people who are invested in what they’re working on are generally happier.
This is why it’s important for team members to “buy in” to the project they’re working on. Teams with a sense of ownership are more likely to produce better quality work because they know that their efforts make an impact on the overall success or project failure.
In order to foster a sense of ownership, there are four things you can do:
- Include your team in the planning stage of the project. Allowing input into the way things are done will encourage a sense of ownership in the project.
- Clearly delegate responsibilities and tasks to team members. Clarify with your team the types of decisions they can make with and without you. This eliminates any gray areas and needs for micromanaging.
- Communicate – do it early and often. Discuss and celebrate progress; address and learn from mistakes together.
- Lead by example. Be as accountable to your team as you would like them to be to you.
Teams should be supported on the management level, too. Whether it’s bringing in extra resources or empowering employees to become better project managers.
5. Poor Communication
A survey conducted by Spike Cavell shows that 57% of projects fail due to poor communication. Teams that don’t communicate well with each other will have a lack of transparency. Without transparency, key decision-makers won’t have all the information to make optimal decisions, and chaos may ensue.
Aim to make communication a habit. It creates an environment of trust and kills conflicts that stem from miscommunication.
Also, plan how you intend to ensure everyone is on the same page. Whether it’s a casual ten-minute recap at the end of each day or weekly strategic meetings. Examine the needs of the project and go from there.
Finally, remember to include all contact information on the project plan. Include email addresses and phone numbers, as well as the ongoing meeting schedules, so everyone is in the loop. All these practices will certainly help you prevent project failure.
Also read: Streamline Organizational Communication with Project Management Software
6. Flawed Resource Planning
Resource planning is crucial for project success, as a lack of resources is a problem that can be attributed to all of the symptoms above. Projects with poor cost estimations and infrequent tracking are likely to go off budget.
Team members that don’t raise flags with each other or account for their gray hours to a budget will exacerbate the problem. Finally, project managers that are don’t know how to track and manage finances will surely drive a project failure.
Any project that is 10% or less over budget is doing well, and most projects that come in 10% over budget would be deemed a success.
However, diligent oversight of expenses, re-analyzing and re-planning the budget, and educating the project team will help drive the project in the right direction. Use historical data kept from previous projects to build out your budget for resources instead of guesstimates.
7. Scope Creep
The scope is everything you are going to do and, conversely, not going to do. As mentioned before, include as many details as you possibly can – then guard it throughout the duration of the project against informal or unplanned changes.
If a client wants more work or needs to make a change, issue a change order. That way, a new schedule, risk management plan, and budget can be created.
If the goals of the project change frequently, more time and resources get wasted, and people involved in the project may get confused. This will make management and the customer unhappy and may lead team members to “buy out.”
These are the 7 main reasons for project failure that every project manager should be aware of.
What are the Signs of Project Management Failure?
As discussed above, project management failures can be disastrous for any project. Therefore, it’s crucial to recognize the warning signs before it’s too late.
Here are the 5 most common signs of project management failure that every project manager should watch out for.
1. Missed Deadlines
One of the most obvious signs of project management failure is consistently missing deadlines. When deadlines are missed, it can be an indication of poor planning, lack of resources, or inadequate project management.
2. Budget Overruns
Another common sign of project management failure is exceeding the project budget. This can happen due to poor financial planning, unexpected expenses, or changes in project scope.
3. Low Team Morale
Poor team morale can be an indication of project management failure. When team members are demotivated, it can lead to decreased productivity, missed deadlines, and poor quality work.
4. Lack of Communication
A lack of communication between project team members or stakeholders can be a sign of project management failure. When team members aren’t communicating effectively, it can lead to misunderstandings, missed deadlines, and project delays.
5. Scope Creep
Scope creep refers to a situation where the project’s scope grows beyond what was originally planned. This can usually lead to missed deadlines, budget overruns, and reduced project quality– ultimately resulting in project management failure.
Although the signs of project management failure can vary from project to project, these are all the most common indicators. Recognizing these signs at an early stage and taking corrective action can help prevent project failure.
So now you know the causes and signs of project failure in project management.
But how will you leverage this knowledge to avoid project failure? Well, let’s move on to the next section to find ways to prevent project failure.
How to Avoid Project Failure? 5 Effective Tips
Avoiding project failure certainly requires a proactive approach and a comprehensive understanding of project management.
In this section, we will explore some effective ways to avoid project failure.
1. Define Clear Objectives
The first way to avoid project failure is to define clear objectives. This includes outlining specific deliverables, timelines, and budgets and identifying key stakeholders. This will help you ensure that everyone involved in the project is aligned and working towards the same goals.
2. Plan and Monitor Progress
The next way to avoid project failure is effective planning and monitoring of project progress. Both these factors play a critical role in successful project management. This includes creating a detailed project plan, identifying and mitigating potential risks, and regularly tracking project status.
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3. Build a Strong Team
Building a strong project team is essential to project success. This includes recruiting team members with the right skills and experience, fostering collaboration and communication among team members, and providing clear direction and expectations.
4. Communicate Effectively
Effective communication is critical to project success. This includes regular communication with project stakeholders, setting clear expectations for team members, and providing timely feedback and updates.
5. Embrace Change
Change is inevitable in any project, and project managers should be prepared to adapt and adjust as necessary. This includes being open to new ideas, actively seeking feedback from stakeholders, and being willing to adjust project plans as needed.
Following all these strategies will certainly help project managers increase their chances of project success and avoid project failure in project management.
In addition to these strategies, investing in the right project management tools can significantly reduce the risk of project failure.
In the next section, we will explore some of the best project management software and learn how they can help you avoid project failure.
What Tools Help Prevent Project Failure?
Although there are hundreds of project management software solutions designed for unique types of projects, here are the five most common and popular ones that can help prevent project failure.
Software Name | Free Trial | Demo | Mobile App |
|---|---|---|---|
| Zoho Projects | 10-day free trial | Yes | Yes |
| TeamGantt | 14-day free trial | No | Yes |
| Asana | Free trial with limited features | No | Yes |
| BugHerd | 14-day free trial | No | Yes |
| Jira | 7-Days Free trial | No | Yes |
1. Zoho Projects
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Zoho Projects
Zoho Projects is a cloud-based project management tool that allows teams to plan, track, and collaborate on projects in real time. With Zoho Projects, project managers can create tasks, assign them to team members, and monitor progress using real-time analytics. Overall, this tool will certainly help you prevent project failure.
Zoho Projects Features
- Task management
- Time tracking
- Gantt charts
- Custom fields
- Collaboration tools
Zoho Projects Pricing: Zoho Projects offers three pricing options as listed below:
- Free plan: INR 0 (Up to 3 users)
- Premium Plan: INR 350/user/month
- Enterprise Plan: INR 700/user/month
Zoho Projects Pros and Cons
- Robust set of features and customization options.
- Affordable pricing plans for businesses of all sizes
- Steep learning curve for beginners.
- Some features can be slow to load or glitchy at times.
2. TeamGantt
TeamGantt
TeamGantt is a project management tool that focuses on creating visual timelines that allow teams to easily track project progress. With TeamGantt, project managers can create custom timelines, assign tasks to team members, set deadlines, and monitor progress using real-time analytics. To sum up, TeamGantt is an ideal tool for preventing project failure.
TeamGantt Features
- Custom timelines
- Task dependencies
- Collaboration tools
- Time tracking
- Analytics and reporting
TeamGantt Pricing: TeamGantt Projects offers three pricing options as listed below:
- Lite plan: $24/manager/month
- Pro Plan: $59/manager/month
- Enterprise Plan: $99/manager/month
These are the costs when billed monthly. If you choose annual payment, you will receive approximately a 20% discount on these prices.
TeamGantt Pros and Cons
- Simple and intuitive user interface.
- Affordable pricing plans for small teams.
- Limited features compared to some other project management tools.
- No mobile app available for Android devices.
3. Asana
Asana
Asana is a popular project management tool that allows teams to manage projects and workflows in a streamlined, efficient way. With Asana, project managers can create project timelines, assign tasks to team members, set deadlines, and monitor progress as tasks are completed.
Asana Features
- Task management
- Project timelines
- Team calendars
- Task dependencies
- Collaboration tools
Asana Pricing: Asana offers multiple customized pricing options based on business requirements. Get in touch with their sales team to get a custom quote.
Asana Pros and Cons
- Versatile tool with a wide range of features.
- Intuitive user interface and easy to use.
- Higher pricing compared to some other project management tools.
- Limited customization options for certain features.
4. BugHerd
BugHerd
BugHerd is a great project management tool for development teams that want to streamline their bug-tracking process. With BugHerd, project managers can create and assign bug reports, track progress as issues are resolved, and collaborate with team members in real time. To summarize, with this software, project managers can avoid project failures.
BugHerd Features
- Issue tracking
- Project management
- Collaboration tools
- Time tracking
- Analytics and reporting
BugHerd Pricing: BugHerd offers 5 different customized pricing options based on business requirements. Get in touch with their sales team to get a custom quote.
BugHerd Pros and Cons
- Streamlined bug-tracking process.
- Easy to use and intuitive interface.
- Limited features compared to some other project management tools.
- No mobile app available for Android devices.
5. Jira
Jira
Jira is a powerful project management tool that is specifically designed for software development teams. With Jira, project managers can create and track issues, assign tasks to team members, and monitor progress using real-time analytics.
Jira Features
- Issue tracking
- Custom workflows
- Team calendars
- Collaboration tools
- Integrations with other software tools
Jira Pricing: Jira offers multiple different customized pricing options based on business requirements. Get in touch with their sales team to get a custom quote.
Bitrix24 Pros and Cons
- Powerful features specifically designed for software development teams.
- Highly customizable and scalable for large teams.
- Steep learning curve for beginners.
- Some users may find pricing a bit higher.
By using one of these project management tools, project managers can prevent project failure besides addressing issues that can derail a project.
Conclusion
Project failure can be a serious issue for businesses, and project managers should take proactive measures to prevent it. For example, by identifying and addressing potential risks, project managers can lower the risk of project failure. Additionally, using the best practices and tools listed above will help you keep better track of project progress and take the necessary actions as and when needed.
Frequently Asked Questions
Yes, a failed project can often be salvaged by identifying the root causes of failure, addressing them, and implementing corrective measures. This may involve redefining project goals, revising timelines, reallocating resources, and making necessary changes to the project plan.
Failed projects can provide valuable lessons and insights that can help improve future projects. For example, by analyzing the reasons for project failure, teams can identify areas where mistakes were made and risks were not mitigated. This knowledge can be used to make informed decisions, develop better project plans, and implement corrective measures to prevent similar mistakes in the future.
Remote working has had a significant impact on project failure– both positive and negative. For example, on the negative front, it has posed challenges such as increased dependency on technology, potential communication gaps, and reduced team cohesion. All these factors may potentially impact the project's success.
Paras Kela is a highly skilled SaaS content writer with over 7 years of experience in the IT field. His expertise lies in simplifying complex technical concepts for easy comprehension. With a portfolio of over 100 high-quality blogs covering various SaaS topics, Paras’s writing style is engaging, informative, and SEO-friendly, ensuring maximum effectiveness. He continuously updates his skills and knowledge to stay current with industry trends, making his writing relevant and reliable.
