WHY MOST PROJECTS FAIL? – AND YES, INCLUDING THE WELL PLANNED ONES
Updated: Oct 22, 2018
Despite of how well a project is planned, some projects still fail. A good and thorough project workplan does not guarantee its success. Below facts emphasizes that the term successful projects has shifted from norm into rarity.
1. Budget: Expenses exceeds approved budget with unplanned spending. Bases on ERP Survey in 2014, 50 % of projects exceeds their initial budget.
2. Performance: 77% of projects were reported as underperforming based on Survey conducted by KPMG in 2013.
3. Timeline: ERP Survey in 2014, indicates 72% of projects exceeds their planned durations
17% of large IT projects deteriorate and threaten the company existence (University of Oxford study, 2012). Only 1 out of 8 IT Projects is considered successful.
Delays will impact the performance of the team including the Project manager himself. It will also impact the interest of clients and other stakeholders
4. Risk and Issue: Risks are not identified early, let alone mitigated. This leads to blind spot, a condition where all team members are not aware of any issues coming until it is really coming.
5. Failed project management process which involves the five important end-to-end project phase (initiating, planning, executing, controlling and closing)
All the above causes could be avoided if you are constantly in check of your project status. And ensure all the team members are aware of the project workplan being carried out.
The best practice is to use a digital tool called Project Management Information System (PMIS) to manage the project schedule. This tool enables a project manager to effectively track and monitor the development of projects and enables team members to update any schedule changes without having to physically reach out to colleagues, which in often case could be time consuming.
Our version of PMIS products is called eCEOs’ ePMO, Let us introduce the many advantages and functions of ePMO:
Ability to Provide Single Point of Truth (SPOT) of project progress and updates to all team members.
Project Manager can upload his workplan so that all team members are well informed. Additionally, PM can also track the involvement level of team member to update tasks assigned to them in the same workplan.
Enables PM, team member and even decision maker to see project health status in a glimpse. That way, all are aware of project health status and miscommunication regarding which workplan is the latest update could be reduced. As it displays all necessary metric in landing page, even the busiest project stakeholder can rest assured that he can get a relevant info, good or bad, of the project in a nick of time
Display: The information displayed follows the standard methodology, though open for any additional custom request. Some metrics could be included but not limited to:
How much project completion progress in percentage?
How many late tasks?
How many project risks that are still not mitigated?
How many issues that has not been resolved?
Serve as Project Assistant to keep you recapped of your items. ePMO provides a feature that allows you to set reminder in a form of email notification, oldest digital means of communication. Reminder could be set based on PM’s preference i.e. each morning, or the night before, so that the team can prioritize their task in the day. Same method can be applied to update team members by sending project report a night prior periodic team meeting
Deliver Project Report in most compelling way. eCEOs reporting feature includes charts and dashboards in visually comprehensive manner
Very flexible to various in-house Project Management Methodology. ePMO can cater the needs of applying company in-house Project Management Methodology. One company might feel the urge to consolidate all project workplan under one program in Planning stage, while other put high emphasize to Issue Tracking Management to monitor and control the project.
ePMO is also suitable and applicable to numerous industry and expertise area. It is proven as a thorough solution for agriculture, government, education, energy to oil and gas company.
In a nutshell, ePMO is designed to handle more than one project with complex cross project updates and reporting requirements. This capability makes ePMO highly suitable for many large organizations.