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Causes of Project Failure

Project failure can occur for many reasons and negatively impact organizations. Common causes of project failure include inadequate project planning, scope creep, using untested tools and techniques, lack of necessary resources, poor risk management, bad leadership, insufficient user engagement, weak controlling and monitoring, inadequate documentation, inexperienced project managers, misaligned company culture, ineffective communication, and poor overall project management. Being aware of these potential pitfalls allows project managers to focus on mitigating risks and maximizing the chances of success.

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Shaikh Bilal
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322 views

Causes of Project Failure

Project failure can occur for many reasons and negatively impact organizations. Common causes of project failure include inadequate project planning, scope creep, using untested tools and techniques, lack of necessary resources, poor risk management, bad leadership, insufficient user engagement, weak controlling and monitoring, inadequate documentation, inexperienced project managers, misaligned company culture, ineffective communication, and poor overall project management. Being aware of these potential pitfalls allows project managers to focus on mitigating risks and maximizing the chances of success.

Uploaded by

Shaikh Bilal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Causes of Project Failure

Each year, organizations around the world face considerable number of project failure, often
wasting a huge amount per failed project. The same organizations spend a lot of time trying to
make a decision over the causes of project failure, call in expensive consultants to assess and
recover failing projects, and often give up completely on what originally seemed like well-
planned, well-organized projects, destined for success.
Project failure can happen in any organization and to any project. There are an infinite number
of reasons for failure. A project is assumed under project failure if it has not delivered its basic
required expectations. Projects are generally started to meet a business ambition but it must also
meet the stakeholder presumptions. If the project can meet both the business ambitions and all
stakeholder presumptions, then it can be considered as a success.
Some of the causes of project failure are as below:

Inadequate Project Planning


Project planning is an important part of project management and it is the responsibility of the
project manager to set a proper plan for the project. Project planning is generally used to
organize distinct parts of a project including workload, project plan, management of team etc.
You must have a clear vision of what you are going to do and know how to execute tasks to reach
the project goal. But if the project is not planned properly then it may fail or doesn’t meet all the
expectations of stakeholders and customers.

Scope Creep
Scope creep refers to change in scope of the project and also known as requirement creep or
feature creep. The scope is the work required for a project. Scope creep refers to how the
requirements of a project keep on changing over a project lifecycle. It is caused by the changing
requirements of the project stakeholders or due to miscommunication and dissidence. It may
result in roadblocks, project delay or move over budget and hence project failure but sometimes
it is not a bad thing. Scope creep is an actuality that every project manager predicts and plans
for.

Use of Unpracticed Tools and Techniques


Good tools and techniques are required for the success of a project. A common illusion is made
by the project manager and team leader to utilize unpracticed tools and techniques at the
starting of project. Sometimes, it can cause many severe problems during project life-cycle as the
team has to deal with the learning curve of new techniques along with usual project duties. As
team members are not familiar with the new techniques, the project may undergo deferment
issues. For this, team members should use new tools in the combat successively.

Shortage of Resources/ Requirements


Every project requires some resources according to need. The quantity of resources depends on
the size and scope of the project. Sometimes, the project is inaccessible due to the shortage of
resources and necessary requirements. This is one of the cases in which project success is not
available. For example, if a project requires a skilled Java programmer and candidate appointed
for the project do not have that skill then the project cannot continue until a necessary resource
is provided.

Poor Risk Management


“Poor risk management is one of the primary contributors to project failure, and had a negative
impact on project success.”

Poor or no risk management has the ability to influence the project management. Project failure
is the worst case of poor risk management. The goals are not reached and all the investment is
wasted along with time and efforts that have been put into the project. Some of the most
significant influences on the poor risk management are given as:

 Project failure
 Slow- running projects
 Risk of reputation damage
 Superfluity budget
 Unresponsive customers and less user adoption
 Inactive benefits

Bad Leadership
When we see this word, leader, we usually think, the project manager. However, the people at
each management-level have a responsible to ensure that the project is successful.
Management should not micromanage but provide support to ensure that the PM can follow
through with the expectations placed upon them
Lack of User Engagement
A project which is aimed at developing some product is going to have especial patrons i.e. a group
of people who does business at the establishment. Whether the product is a part of the software,
a hardware widget or development of existing mechanism, users are the extreme customers. The
user should be engaged during the project life- cycle as their suggestion and feedbacks are
categorized to guide the project effectually. Failure to user engagement in the project leads to
an improper end result product and project is failed to meet the user expectations.

Poor Controlling and Monitoring


Controlling and monitoring are the essential parts of project management. A project can succeed
only when there is proper governance for the project management. Without proper planning and
monitoring, the project may fail. The absence of controlling and monitoring impacts the project
in many ways:

 Deviation in cost, scope, and schedule baselines


 Project may not be completed on time as expected
 Quality of the deliverables can be degraded
 Company/organization stature will damage
 Antagonism between project team can be raised.
 Poor project performance
 Unsatisfied customer

Inadequate Documentation and Tracking


This is the responsibility of the project manager. Tracking milestones is how you are going to
know whether you are meeting expectations. Proper recording and monitoring lets the PM
identify where more resources are needed to complete a project on time.

Inexperienced Project Managers


Project failure is a common term that every project manager wants to rupture from. No one
craves to take the responsibility of project failure as it may blot his career record. But if a project
fails, then it simply means that project manager did a poor job. Ensure that the project manager
has enough knowledge of what the best techniques are because hiring of well-skilled project
manager can’t be omitted.
Culture or Ethical Misalignment
Company culture must be comprised of competence, pro-activeness, and professionalism. If it
isn’t, team members will not be motivated to do their best. Basically, everyone involved must
be invested in their part of the project to successfully complete it.

Ineffective Communication
Project team knows their manager only through his communications. Whether it a project, an
operation or personal life, communication plays an important role. Without communication, you
are executing tasks in the murky area. Project managers should develop a communication plan.
Even time-to-time meet-ups should be planned to discuss the project performance.

Poor Project Management


When there is no above-mentioned reason for project failure then the project may fail due to
poor management. If a project is decently staffed, have a good WBS, proper planning, availability
of resources, proper scheduling, and the support of sponsors but even gets fail then the only
reason behind it is that project management was poor. The success of the project depends on
the project manager and project team. Therefore, appoint right staff for your
company/organization with significant experience.

Conclusion
It should always be kept in mind that the success of a project is not fixed. If a project succeeds,
there are also some chances of its failure. So, it becomes important for the project manager to
know which factors can result in project failure. It will help him to focus on those factors while
managing the project. The above-mentioned list of the causes of the project failure will enable a
project manager to stay at the top in his field. By knowing all the factors that may lead to the
project failure, the project manager, and his team can get prepared to tackle the problems that
may arise. It will, in turn, minimize the chances of project failure and maximize the possibility of
the success of the project. Validate and enhance your project management skills to avoid project
failure now!

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