Musing on Study of Project failures
The British Computer Society Project management website published a well researched study in project failures by Dr. John McManus and Dr. Trevor Wood-Harper.
Research highlights that only one in eight information technology projects can be considered truly successful (failure being described as those projects that do not meet the original time, cost and (quality) requirements criteria).
The study covered 214 information system projects between 1998 and 2005 across European Union and various industries from manufacturing (43 projects) and retail (36) to logistics (9) and agriculture (6). The largest group of projects (40.65%) is quite large in budgetary size (10-20 millions EUR).
Prior research by the authors in 2002 identified that 7 out of 10 software projects undertaken in the UK adopted the waterfall method for software development and delivery. Results from the analysis of cases indicates that almost one in four of the projects examined were abandoned after the feasibility stage of those projects completed approximately one in three were schedule and budget overruns.
It is unfortunate that the latest study did not look at a split between waterfall and Agile methodologies applied in these projects, and whether there was any solid trend in terms of success and failures depending on the methodology choice.
I also wonder if a number of projects completed (76.2%) is inflated as the study did not follow through with measuring user adoption without which no ROI is not achieved. That very fact underscores, in my opinion, the very reason why IS project failures are so prevalent – these projects should not be led by enablers (IS), but by process owners who should be responsible for holistic approach to organizational transformation.
Key reasons why projects get canceled
- Business reasons for project failure
- Business strategy superseded;
- Business processes change (poor alignment);
- Poor requirements management;
- Business benefits not clearly communicated or overstated;
- Failure of parent company to deliver;
- Governance issues within the contract;
- Higher cost of capital;
- Inability to provide investment capital;
- Inappropriate disaster recovery;
- Misuse of financial resources;
- Overspends in excess of agreed budgets;
- Poor project board composition;
- Take-over of client firm;
- Too big a project portfolio.
Management reasons
- Ability to adapt to new resource combinations;
- Differences between management and client;
- Insufficient risk management;
- Insufficient end-user management;
- Insufficient domain knowledge;
- Insufficient software metrics;
- Insufficient training of users;
- Inappropriate procedures and routines;
- Lack of management judgement;
- Lack of software development metrics;
- Loss of key personnel;
- Managing legacy replacement;
- Poor vendor management
- Poor software productivity;
- Poor communication between stakeholders;
- Poor contract management;
- Poor financial management;
- Project management capability;
- Poor delegation and decision making;
- Unfilled promises to users and other stakeholders.
Technical reasons
- Inappropriate architecture;
- Insufficient reuse of existing technical objects;
- Inappropriate testing tools;
- Inappropriate coding language;
- Inappropriate technical methodologies;
- Lack of formal technical standards;
- Lack of technical innovation (obsolescence);
- Misstatement of technical risk;
- Obsolescence of technology;
- Poor interface specifications;
- Poor quality code;
- Poor systems testing;
- Poor data migration;
- Poor systems integration;
- Poor configuration management;
- Poor change management procedures;
- Poor technical judgement.
The bolding is mine. let me know in comments what you think.
You know what really chaps my hide? When I go to do a search for something online and get a hit, click on it and it has NOTHING to do with what I searched for – it is just a collection of ads.
“Local business owners say Yelp offers to hide negative