Why Projects Fail: Part I

In business, a “project” is an effort to create something that did not exist on planet earth before we started. Manufacturing companies create cars, smartphones, and computers, while Service companies create things like software, movies, and weddings. At Sageplan we are usually implementing some new piece of technology to help our client run their business more efficiently. Some of our recent projects include setting up smart monitors in the exam rooms of a doctor’s office, securely connecting the office internet for two locations of a business, and creating an RFID-based inventory management system for a company with high-value inventory.

Running a project is a fantastic opportunity for a company to improve the way it does business, but there are risks associated with every plan. Companies can spend tons of time and money on a project, only to have all the effort wasted by creating something that does not meet expectations. Project Management is a profession that takes years of training to learn, but there are some basic principles that are easy to understand and can help any business reduce the risk of having their effort end in failure.

There are two main reasons why business projects fall short of original expectations. The first of these is a failure to properly define the team’s goal. The project goal needs to be a clear statement on exactly what will be achieved. Inexperienced project managers will fall into the trap of allowing their goals to be vague, which leaves the exact objectives unclear. If your plan is not well defined, your team might work very hard to create a product or service that does not serve the needs of the company or its customers, an outcome that is far too common in the business world today.

Here are a few things you can do to ensure that your project definition statement is clear, and meets the needs of everyone involved:

• Know your Stakeholders: Stakeholders are all of the people and organizations that will interact with the new product or service that is being created. Be sure that all of the stakeholders agree on the project goals and objectives.
• Understand the Time, Resource, and Quality Constraints: There’s an old saying in business that you can get a project done for you fast, for a good price, and well made, but you have to pick which two of those three things you really want. Project managers are always balancing the quality of the product or service with time-frame and budget constraints. Make certain you are clear on which of these three parameters is most important to your stakeholders.
• Write Your Goals Using the S.M.A.R.T. Methodology: S.M.A.R.T. is an acronym Project Managers use to make sure the project goal is defined in a way that ensures everyone is clear on what needs to get done. A S.M.A.R.T. goal ensures that your goal statement is:
  • Specific: Do we know exactly what we need to create?
  • Measurable: Is the goal written in a way that we will know when it’s done?
  • Agreeable: Does the goal align with our organization’s Vision and Mission?
  • Realistic: Do we have the skill and resources available to get it done?
  • Time-Bound: Do we have a deadline for when the project will be complete?

This methodical process will help you write a clear project goal definition so that all of your stakeholders know what needs to be done. If we go through this process carefully, we can dramatically reduce the chance of having the project fail for the first of two common pitfalls.

That leaves Planning as our other key risk, and we’ll cover that topic in our next blog.

Do you have a project on the horizon and need some help? Schedule a free consultation with me and let’s talk it over!