Preventing Project Failure

Welcome 10 Major Causes of Project Failure

getpmtraining.com

1

Centreline Solutions Inc.
Project Management Institute Global Registered Education Provider #2029

Why Projects Fail v.2005.02.18

Copyright, 2004 © Centreline Solutions Inc.

Preventing Project Failure

getpmtraining.com

2

Why Projects Fail v.2005.02.18

Copyright, 2004 © Centreline Solutions Inc.

1

Preventing Project Failure

In this seminar we will cover:
What is project failure? The impacts of project failure? The Top 10 problems that result in project failure • The cause of the problem • How to fix the problem • How to prevent the problem from happening again

getpmtraining.com

3

Why Projects Fail v.2005.02.18

Copyright, 2004 © Centreline Solutions Inc.

Why do I.T. Projects Fail?

Why do I.T. Projects Fail?

getpmtraining.com

4

Why Projects Fail v.2005.02.18

Copyright, 2004 © Centreline Solutions Inc.

2

18 Copyright.T. 2004 © Centreline Solutions Inc.02.com 6 Why Projects Fail v.com 5 Why Projects Fail v. Iron Triangle Manage the Iron Triangle.2005.18 Copyright. Projects Fail? Because nobody stops them from failing! getpmtraining.2005.02. or it will manage you getpmtraining. 2004 © Centreline Solutions Inc. 3 .Why do I.

• • • • • New technologies are difficult to use or predict Aggressive time schedules Lack of resources First time.02. unique services Unrealistic expectations getpmtraining. 2004 © Centreline Solutions Inc. it is your role to prevent these projects from failing.18 Copyright.I.18 Copyright. Role of the PM As Project Manager.2005.com How? 8 Why Projects Fail v.02. Project Disposition I.com 7 Why Projects Fail v. Projects have a bad attitude.T. 4 . They WANT to fail.2005. getpmtraining. 2004 © Centreline Solutions Inc.T.

18 Copyright.18 Copyright.2005.2005. 2004 © Centreline Solutions Inc.02. 2004 © Centreline Solutions Inc.com 9 Why Projects Fail v. 5 .com 10 Why Projects Fail v.How? You can do it this way… getpmtraining. getpmtraining.02. How? Or • • • Learn what usually goes wrong Plan out how to deal with it Then…just follow the plan.

18 Copyright.18 Copyright.02.com 12 Why Projects Fail v.How to Manage Projects Managing Projects is very much like driving a car. • getpmtraining. speed. 6 . 2004 © Centreline Solutions Inc.2005. weather. What is Project Failure? A project is considered a failure… whenever a project does not meet the expectations of the stakeholders. getpmtraining.com • • • 11 Determine the destination. etc) Follow the plan Continuously monitor progress and keep the car on the road Why Projects Fail v. breaks. timeframe and how much you have to spend Create a plan (route.02. 2004 © Centreline Solutions Inc.2005.

02.com 14 Why Projects Fail v. 7 .2005. 2004 © Centreline Solutions Inc.2005. getpmtraining.02. sometimes resulting in people quitting • Low job satisfaction • Low corporate market value • Low public opinion • Negative media campaigns Why Projects Fail v.18 Copyright.So What if it Fails… Impacts of project failure? • Cost & Time Overruns • Quality degradation • Frustration. 2004 © Centreline Solutions Inc.18 Copyright.com 13 Impacts of Project Failures • The cumulative effects can be very costly to your company • May even force the company into closure getpmtraining. sometimes resulting in people quitting • Stress.

com Oh. still a bit bigger…ok.2005.2005.com 15 Why Projects Fail v.02. #1 .18 Copyright. 8 .10 Primary Causes of Project Failure 10 Primary Causes of Project Failure… getpmtraining.18 Copyright.Lack of Change Management Also known as “You’d like it just a bit bigger? No problem” getpmtraining.02. Even bigger? It wasn’t in the plan but okay… 16 Why Projects Fail v. 2004 © Centreline Solutions Inc. 2004 © Centreline Solutions Inc.

Lack of Change Management When scope creep happens.#1 .02. getpmtraining.2005.com 18 Why Projects Fail v. 2004 © Centreline Solutions Inc.Lack of Change Management The Problem: • Changes that were not initially planned for are added to the project • The project takes longer and costs more than planned and there is no record of why.2005. getpmtraining. 9 .com 17 Why Projects Fail v. #1 . the end result is always more work than expected.18 Copyright. 2004 © Centreline Solutions Inc.18 Copyright.02.

2005.02.#1 .18 Copyright.Lack of Change Management Cause: • Not having a method to handle or recognize changes getpmtraining. 10 .com 19 Why Projects Fail v.com 20 Why Projects Fail v. 2004 © Centreline Solutions Inc. 2004 © Centreline Solutions Inc.2005.Lack of Change Management What to do: • Document the change management process to be used and followed by the project team • Educate the project team to recognize a change or deviation from the plan • Follow the change management processes getpmtraining.18 Copyright. #1 .02.

2005. 11 . causing delays getpmtraining.com • Issues or changes do not get escalated • Project reporting (and therefore control) is sluggish 22 Why Projects Fail v.18 Copyright.18 Copyright. #2 .02.Poor Communications getpmtraining.2005.Poor Communications The Problems: • Team members do not have the information they need when then need it.com 21 Why Projects Fail v. 2004 © Centreline Solutions Inc.02. 2004 © Centreline Solutions Inc.#2 .

Poor Communications What to do & Prevention: • Find out the communications requirements of all team members and stakeholders.02. 2004 © Centreline Solutions Inc. plan.2005.2005.18 Copyright. getpmtraining. and by whom Why Projects Fail v. 2004 © Centreline Solutions Inc.Poor Communications Cause: • The project’s communications plan was not completed • The project’s communications plan does not have enough detail getpmtraining.com 24 12 . and follow the plan – Who needs the information – What do they need to know – What level of detail – How do they want it – When and how often do they need it – How should it be delivered. document them in a comm.#2 . #2 .02.com 23 Why Projects Fail v.18 Copyright.

02. the right skillsets. 2004 © Centreline Solutions Inc.2005. 13 . or the team is not committed to the project.com 26 Why Projects Fail v.Inadequate Resources The Problems: • • • • Tasks take longer than expected to complete Deadlines and milestones get missed Project completion date comes into jeopardy You end up working double-shifts to complete all the work getpmtraining. 2004 © Centreline Solutions Inc.02.Inadequate Resources You do not have enough people.18 Copyright. #3 .#3 .2005.com 25 Why Projects Fail v.18 Copyright. getpmtraining.

2004 © Centreline Solutions Inc.2005. 2004 © Centreline Solutions Inc.com Why Projects Fail v.Inadequate Resources What to do: • Get executive sponsorship for the project • Document which resources and skillsets are needed to get the job done • Create a plan that gives enough time to get the job done with the allocated resources • Pre-assign the required resources to the team getpmtraining. #3 .2005.18 Copyright.02.Inadequate Resources Cause: • There was no pre-commitment of resources to the project • The project was not supported • There was no analysis and documentation of all skillsets required 27 getpmtraining.#3 .18 Copyright.02. 14 .com 28 Why Projects Fail v.

2005.2005. #4 . 2004 © Centreline Solutions Inc.02.com 29 Why Projects Fail v.#4 .02.Poorly Defined Requirements The Problems: • Customer will be unhappy • Customer will complain and you will end up doing the what they want .” getpmtraining.18 Copyright. 15 .Poorly Defined Requirements “I’d like a set of stairs that leads up to a bridge.18 Copyright. 2004 © Centreline Solutions Inc.often at your expense getpmtraining.com 30 Why Projects Fail v.

Poorly Defined Requirements What to do: • Find out and document exactly what the customer wants • Inform everybody of the project scope • Document business.02. #4 . 2004 © Centreline Solutions Inc.Poorly Defined Requirements Cause: • What the customer wants was not clearly documented • What you believe the customer wants is different that what the customer believes they’ve asked for • The customer did not sign off for the requirements document getpmtraining.#4 .02. • Have the customer agree to and sign off the requirement documents getpmtraining.2005.com 31 Why Projects Fail v.18 Copyright. functional and technical requirements.18 Copyright. 16 .com 32 Why Projects Fail v. 2004 © Centreline Solutions Inc.2005.

#5 .Inaccurate Estimates The Problems: • An unrealistic timeline or budget will be agreed to • You will not be able to do all the work in the time allocated getpmtraining.02.18 Copyright.2005.Inaccurate Estimates How do you figure out how long the project will take? getpmtraining. 2004 © Centreline Solutions Inc. 17 .com 34 Why Projects Fail v.#5 .18 Copyright.02. 2004 © Centreline Solutions Inc.com 33 Why Projects Fail v.2005.

2004 © Centreline Solutions Inc.Inaccurate Estimates Cause: • No formal estimating method • Estimate confidence is low • Volume of work not understood getpmtraining. #5 .com 36 Why Projects Fail v.2005.2005.#5 .02.18 Copyright.02.com 35 Why Projects Fail v.18 18 . 2004 © Centreline Solutions Inc. getpmtraining.Inaccurate Estimates What to do: • • • • • List all the work as well as possible Estimate each work package Add up all work packages Do not give “elevator” estimates if possible Always give answers using a range of dates: – Estimates where the work is well defined: • ~15% inaccuracy – Estimates where the work is not well defined: • ~100% inaccuracy Copyright.

Poor Risk Management The Problems: • Unexpected events cause delays • Domino effect of things going wrong getpmtraining. 19 . I left it in my car this morning and there was a bit of an incident. 2004 © Centreline Solutions Inc.02.02.Poor Risk Management Sorry about the project.#6 . #6 .com 37 Why Projects Fail v. 2004 © Centreline Solutions Inc. getpmtraining.18 Copyright.2005.2005.18 Copyright.com 38 Why Projects Fail v.

com 39 Why Projects Fail v.Poor Risk Management What to do: • List all the work as well as possible • Figure out what can go wrong with each piece of work • Prioritize each risk: – High/Med/Low probability – High/Med/Low impact (or effect) • Sort the list • Create a plan to deal with the risks at the top of the list Why Projects Fail v. 2004 © Centreline Solutions Inc.02. getpmtraining. 2004 © Centreline Solutions Inc.2005.18 Copyright.com 40 20 .2005.Poor Risk Management Cause: • No formal risk management • Just try to predict the big things that can go wrong • It’s the sum of all the little things that make a project late • Nothing is more stressful than trying to keep on schedule when unexpected things keep happening getpmtraining.#6 .18 Copyright.02. #6 .

#7 .02.2005. Deliverable Completed.com 41 Why Projects Fail v. #7 .18 Copyright.com 42 Why Projects Fail v.Poorly Defined Deliverables “Emergency phones installed.2005. 2004 © Centreline Solutions Inc. saying you didn’t do it to their specifications getpmtraining. 2004 © Centreline Solutions Inc. 21 .18 Copyright.Poorly Defined Deliverables The Problems: • Difficult to get agreement that the project is finished • Customer keeps wanting more. “ getpmtraining.02.

com 43 Why Projects Fail v.2005.02. 2004 © Centreline Solutions Inc. so we just assumed 1. 1. #7 .18 Copyright.22 GHz is better – Good response is good. Red #ED2D2D is better – Fast is good.2005.” getpmtraining.com 44 • For example: – Red is bad.Poorly Defined Deliverables What to do: • Ensure milestones or deliverables are: – Clearly defined – Measurable (or quantifiable) getpmtraining. sub 1Ms is better Why Projects Fail v.18 Copyright.02.Poorly Defined Deliverables Cause: • The milestones or deliverables were not measurable • “The customer never told us how many they wanted.#7 . 22 . 2004 © Centreline Solutions Inc.

#8 . 2004 © Centreline Solutions Inc.#8 .02.com 46 Why Projects Fail v.Over Optimism The Problems: • There was little or no planning before deciding you can get the job done • The task you agree to turns out to be more work than expected • It takes you longer and jeopardizes other deliverables getpmtraining.18 Copyright.2005.18 Copyright.com 45 Why Projects Fail v.Over Optimism Of course we can do that for you… getpmtraining. 23 .2005.02. 2004 © Centreline Solutions Inc.

18 Copyright. 2004 © Centreline Solutions Inc.2005.Over Optimism Cause: • Not enough time spent planning • You may have been pressured into giving an answer right then and there • Didn’t have a full understanding of the work involved before committing getpmtraining.com 48 Why Projects Fail v.02.18 Copyright. 2004 © Centreline Solutions Inc. #8 .2005. 24 .02.com 47 Why Projects Fail v. this will benefit you and your manager getpmtraining.Over Optimism What to do: • Take the time to fully understand the work before agreeing to it • It’s okay to say the work is not possible or will take too long • Only agree to work when you’re sure it can be done.#8 .

18 Copyright.No Time for Project Management The Problems: • The plan is flawed from the start • The project gets out of control and can’t be recovered.02. No time to plan. Just start digging. 2004 © Centreline Solutions Inc.com 49 Why Projects Fail v. getpmtraining.2005. 2004 © Centreline Solutions Inc.18 Copyright.02.#9 .2005. #9 . 25 . getpmtraining.No Time for Project Management Hurry… we have a tight deadline.com 50 Why Projects Fail v.

com 51 Why Projects Fail v. You have to continuously watch the road (the plan) and make little adjustments.2005. 26 .No Time for Project Management Cause: • You have to do the work and weren’t also given time for project management • Perhaps you only have a 10% or 20% allotment for project management duties getpmtraining.02.No Time for Project Management What to do: • Planning a project is like setting out a roadmap.18 Copyright.com 52 Why Projects Fail v.#9 . • Controlling a project is like controlling a car. #9 . Imagine driving home tonight and only controlling the car 10-20% of the time.18 Copyright.02. getpmtraining. 2004 © Centreline Solutions Inc.2005. 2004 © Centreline Solutions Inc. Without it you will likely get lost.

com 53 Why Projects Fail v.#10 .2005.18 Copyright. 2004 © Centreline Solutions Inc. I’ve been riding scooters for two years now.02.2005.Improved PM Skillset Needed The Problems: • • • • Your projects don’t finish on time Your projects are always squeezed at the end Your projects are stressful You have to deal with unrealistic expectations or customers • You feel your projects are out of control getpmtraining.com 54 Why Projects Fail v. #10 .Improved PM Skillset Needed I think I know how this helmet goes on.18 Copyright. 2004 © Centreline Solutions Inc. 27 . getpmtraining.02.

plan. execute and control their projects • Contact a PMI Certified Global Registered Education Provider in your area (such as Centreline Solutions Incorporated) • Visit us on the web at: – http://www. 28 .com getpmtraining.18 Copyright.Improved PM Skillset Needed What to do: • Learn the methods.2005. 2004 © Centreline Solutions Inc. #10 .Improved PM Skillset Needed Cause: • People often don’t know what they don’t know • Their projects are out of control but they don’t know why • They feel they are doing okay but could benefit from formal project management education getpmtraining. and techniques successful professional project manager use to initiate.com 56 Why Projects Fail v.18 Copyright.#10 .com 55 Why Projects Fail v. tools.02.2005.getpmtraining.02. 2004 © Centreline Solutions Inc.

Projects – The Complete Project Management Course – PMP Preparation Course – Guaranteed PMP Certification Program – Project Management Overview • For full details. 2004 © Centreline Solutions Inc.2005.2005. visit us on the web at: – http://www.T.com Why Projects Fail v.com 57 Break getpmtraining. 2004 © Centreline Solutions Inc.18 Copyright. 29 .getpmtraining.18 Copyright.02.Thank You! About Centreline Solutions Incorporated • PMI Global Registered Education Provider • Specialists in project management education • Some of our other courses include: – Managing I. getpmtraining.com 58 Why Projects Fail v.02.

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