Welcome to Gullane Leisure Furniture Ltd – Gullane Furniture | gullanetech.co.uk

Doomed projects: Here are the reasons they continue to be pursued

Doomed projects: Here are the reasons they continue to be pursued
(Image source: Geek & Poke)
This article will discuss the causes, severity, and methods to avoid bad projects. Before we get started, let’s look at what makes a project doomed.
If a project is not able to manage its three constraints (scope, time and cost), it will fail. The project’s quality is affected if it fails to meet any of the three constraints. The project manager is responsible for identifying these projects and making the right decision to avoid losing them.

Source: Project smart
Let’s look at some statistics to see the seriousness of this problem:
As per PMI (Project Management Institute): An average large-scale IT projects run 40% over budget. About 7% of them fail to complete within the timeframe with a delivery value at least half of what was expected.

Geneva surveyed 600 IT and business professionals in the United States. The results showed that nearly 75% of respondents were unsure about project success.

According to Harvard Business Review research, one in six IT projects is affected by cost overruns. They reviewed 1,471 IT projects, and found that one project had a cost overrun by 200%.

A third of projects fail to achieve their goals, which is a staggering 36%. (PMI: Pulse of the Professional 2015)

These statistics remind us of the many challenges and problems that can be encountered in any project.
What are the challenges organizations face when tackling projects?
Financial loss can result from non-compliance with project scope. It can affect the company’s credibility, product portfolio, as well as its long-term goals.

This will result in a significant loss of engagement and affect the team’s morale. This could lead to an increase in employee turnover.

Every failed project has a negative impact on the organization’s growth in the short and long term.

Image Credits: Geek & Poke
Why do we continue with doomed projects?
Here are a few reasons they should continue:
Some projects have a high potential cost. The project sponsor would rather keep them alive than terminate them.

Many government projects are not intended to make any profit. Sponsors are often hesitant to understand the current status of a project. Alas! They ask the project team for completion at all costs.

Many companies find backing out of certain projects a problem. They keep these projects running at all cost.

A project that is being completed for a customer under a fixed contract will only be completed according to the contract terms. It might not be profitable.

Larger projects can take a lot longer to make decisions. The projects will continue until an order to end them is issued.

How can you avoid bad projects
The accuracy of a project’s feasibility report and its planning is key to its success. The role of the project manager is to contribute to the planning stage. The project manager prepares the plan along with his team.
Understanding the project and its requirements.

Description of the project/product

General requirements for the project.

GMP (Good Manufacturing Practice), Safety, Environmental Health and Safety are some of the special requirements.

Current price and profit level for the project.

Budget Plan for the project.

Project timeline and milestones

During project development, high-level risks could be present.

The assumption was made during reporting.

At the beginning of any project, establish ground rules. The team’s efficiency will improve when these rules are in place. Here’s an example to illustrate the importance of establishing ground rules. Suppose that in a project called ABC, the team agreed to receive weekly updates on the project and implemented it well. A team member from the quality section rarely attended meetings. He was absent from meetings whenever he did.