When projects fail (WHY?)

October 21, 2019 0

“Most people are so focused on technical details that they can’t see the bigger picture. Don’t bother “checking the numbers” instead “check your assumptions.“ – Eli Goldrattt

“Check your assumptions”. YES! The entire post hinges around this master advice – you will see. Thus, under its empowering light, let me continue with (another) quote, this one from the PMI Pulse of the Profession 2019 (2019) document. Let´s try to digest this with slow, analytical thinking: “Data from the new 2019 Pulse survey show organizations wasted almost 12 percent of their investment in project spend last year due to poor performance—a number that’s barely budged over the past five years.” Hmmm. Seems that despite all the efforts in the Project Management sphere, we are stuck. Why? Well, last year´s edition of this very publication (PMI Pulse of the Profession 2018 (2018)) states that:

“1) Organizations fail to bridge the gap between strategy design and delivery.
2) Executives don’t recognize that strategy is delivered through projects.
3) The essential importance of project management as the driver of an organization’s strategy isn’t fully realized.”

Let that slowly sink in and in the meantime, let me quote the survey within the same document (PMI Pulse of the Profession 2018 (2018)) which has this question: “Of the projects started in your organization in the past 12 months that were deemed failures, what were the primary causes of those failures? (Select up to 3)”. The top three answers were “Change in organization´s priorities (39%), Change in project objectives (37%), Inaccurate requirements gathering” (35%). Bonus track – the next one is “Inadequate vision or goal for the project” with 29%. Hmmm…

“So Fernando, lots of fancy quotes but… what´s your point, man?” ANSWER: my point is that the problem with projects is (mostly) not within/about projects themselves. The project is not the problem – the problem is the ORGANIZATION itself, being it a corporation, SME, NGO, government agency or any other. The problem is that there is an underlying assumption that organizations are ready to execute projects (or at least certain types of projects) for which they just lack the necessary skills and the required maturity level. And we got evidence – smoking guns, in my opinion. In my experience, the chronic demand (lack of) competent project sponsors is just the tip of the iceberg, but a huge one it is: hitting this sole tip has sunk thousands of “Titanics” (meaning, projects of course). But then 90% of the mass of ice is submerged. The very PMI states that there is an abyss between the organization strategy and leadership and its project´s ecosystem. Projects need to align to the organization, but I say that the organization needs to be ready (aligned) for projects as well. It is the organization the one that must raise to the challenge of a “projectized” reality. Organizations should function in such a way that projects are condemned to success. An utopia? Perhaps. But my experience and the provided evidence demonstrates that the current average org is more on the other end of the spectrum – chronic chaos – which is in turn absolutely unacceptable. This sad reality translates into projects that are sentenced to failure even before they are formally “born”: no real sponsor, no real budget, unclear scope, governance mess, chronic resource overallocation… you name it. Alas! That´s why we are seeing the current state of things, where seemingly no progress is possible (5 years in a row with no improvements as per 2019 Pulse of the Profession, remember?).

But let me finish on a brighter note. Organizations are human constructs and, so long we don´t break natural laws of the Universe, we can mold them. As of how to do this – how to craft project-compatible organizations (more flexible, change-driven, congruent both horizontally and vertically) – we will talk about it in a coming post. Let me give you just a teaser for curious minds (yet another quote – I just can´t help it):