Johannesburg, 29 Jun 2005
Every company will in the course of its operations embark on a project. Whether the project is a strategic imperative or not, its chance of failing or being challenged, is greater than that of it succeeding.
Gartner`s 2004 Third Quarter Research Report on application software development projects shows that 29% of all projects succeeded (delivered on time, on budget, with required features and functions); 53% were challenged (late, over budget and/or with less than the required features and functions); and 18% failed (cancelled prior to completion or delivered and never used). In SA, 46% of all projects succeeded; 44% were challenged; and 9% failed.
Jurie Smith, general manager of the project management division at Business Connexion, says: "Given these worrying statistics and the billions companies spend each year on projects, it would be foolhardy not to delve into the reasons behind the disappointments."
He notes that there are numerous reasons for projects failing, ranging from incomplete project requirements and specifications to lack of user input.
In his MBA dissertation entitled "Why Information Technology Software Projects Fail in South Africa", Smith concluded that incomplete requirements and specifications accounted for 9.33% of project failures, changing requirements and specifications accounted for about 8.96% of failures, and the lack of user input and unclear objectives each accounted for 8% of failures.
While other softer issues like the lack of executive support can challenge a project and ultimately lead to its failure, a problem comes from embarking on an initiative that does not fit in with the organisation`s project portfolio.
"While doing something might be a good idea, a company still needs to assimilate this with its project portfolio or stand the risk of a project failing," says Smith.
Unrealistic expectations, a lack of resources, unrealistic time frames, poor communication, technological incompetence, a weak business case and inadequate risk management all contribute to the failure of a project.
"A project fails one day at a time," says Smith, "so to be successful, a company has to have its finger on the pulse at all times." It needs to ensure that checks and balances are in place to limit the impact of the various factors that contribute to project failure.
Having a good project manager is invaluable in ensuring the success of a project. However, he states, this is easier said than done. He notes that a good project manager is a rare find. "There is a glaring shortage of skilled project managers with the business acumen, technical expertise and project management skills to ensure success. While it is quite common to find a manager with skill in one arena, it is rare to find one that excels in all three departments," he says.
A good bet for most organisations is to ensure an autonomous party, external to the project, provides proactive management assurance around projects. "An independent party contributes to project success and is able to look at the project`s continued viability objectively because he or she is not entrenched in the daily detail of the project. The advantage of this is that one can correct potential pitfalls before they even happen," says Smith.
Sometimes projects are cancelled before they get too far along in the project cycle. These cancellations also cost a company money - how much will depend on how far into the planning or execution stage the project was when it was stopped.
During his research, Smith found projects were cancelled mainly because of changed requirements and specifications.
Other reasons for projects being cancelled are: lack of executive support, unrealistic expectations, a weak business case, lack of planning and incomplete requirements.
"Although some cancelled projects have been restarted, this does not happen frequently. Therefore, to avoid the pains associated with failure, it is vital that organisations have the tools in place to ensure a positive project outcome. Keeping an eye on the issues raised above is certainly a good place to start on the road to success," concludes Smith.
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