Why projects fail: Identifying the root causes

Organisations annually invest substantial resources into high-profile projects that hold the promise of transforming operations, sparking innovation, and unlocking value. However, despite their potential, many of these crucial programs fail to meet strategic goals.

While it’s easy for leadership teams to blame shifting market dynamics or emerging competitors for not meeting targets, the truth often lies closer to home. The core reasons for project failure are typically internal, rooted in leadership, planning, and governance deficiencies.

Behind the scenes of these prioritised initiatives, which are now draining budgets without delivering results, there are a few consistent and preventable root causes. Recognising and addressing these internal shortcomings is key to turning around the fate of future projects and ensuring their success.

The impact of unclear objectives on project success

Initiating projects without well-defined goals or success metrics can lead to downstream confusion and make the project susceptible to deviation. When responsibilities remain ambiguous and stakeholders have different interpretations of the scope, valuable time can be wasted in trying to align everyone.

Surprisingly, up to 37% of projects in organisations start without a clear direction on outcomes, relying merely on a broad strategic narrative. These teams proceed based on assumptions rather than clear expectations. With priorities open to interpretation, projects can veer dangerously off course. By the time leaders intervene to provide clarity, early deviations may have already depleted budgets and momentum beyond the point of recovery.

Scope creep: A major contributor to project failure

Most organisations face the challenge of scope creep in their projects. This is a situation where additional features, requirements, or responsibilities are gradually added to project plans, inflating the scope and resource needs. If not managed properly, projects can end up attempting to deliver beyond their original timelines and budgets.

Unfortunately, many teams lack centralised change control processes to identify, assess, and manage these additions. Without clear protocols or ownership, scope creep becomes inevitable. Projects then progress based on individual decisions rather than a unified strategy.

By the time executive leaders intervene to control overextended resources and activities, it’s often too late. The projects have already consumed too much time and money, delivering far less than expected, and far later than planned. This highlights the importance of early detection and management of scope creep in ensuring project success.

 Communication breakdown

Projects are dependent on continuous coordination within intricate stakeholder ecosystems. When communication is inconsistent or decisions are not clarified, misalignment can quickly take root.

Surprisingly, over two-thirds of organisations identify communication challenges as the primary factor undermining project delivery. Ambiguous directives can lead to different groups interpreting priorities in their own ways. This, coupled with siloed efforts, can result in duplicated work and isolated teams overlooking risks that span across multiple projects.

As communication becomes less frequent, misconceptions proliferate until it’s discovered that projects have significantly deviated from their intended path, necessitating a difficult course correction. Despite the availability of enterprise-wide collaboration tools, poor communication practices continue to destabilise initiatives. It’s crucial to address these issues to ensure project success.

 The impact of inadequate resource allocation on project success

Resource allocation is a dynamic process, but many project leaders are reluctant to renegotiate resource needs even as project demands increase. Adhering to initial budgets or support levels can be unrealistic when projects encounter challenges that require additional expenditures or expertise.

Over 60% of organisations acknowledge that teams often underreport resource requirements due to concerns about appearances or internal politics. The result? Projects that are under-supported and hampered by resource shortages and skill gaps are unable to maintain the necessary pace of progress.

Leaders may eventually intervene to provide additional resources, but often this comes too late after avoidable delays have already put the project at risk. This underscores the importance of accurate resource reporting and timely intervention in ensuring project success.

Unravelling the hidden pitfalls of project failure

It’s a common misconception in many organisations to attribute the derailment of projects to shifting customer priorities or market dynamics. However, the harsh reality is that these projects often falter not due to external complexities, but rather due to internal disarray.

The primary culprits behind budget overruns, missed deadlines, capability gaps, and failure to deliver value are typically issues such as ambiguous direction, uncontrolled changes, disjointed communication, and insufficient resources. These issues, however, are often overlooked, leading to the failure of the project.

Despite these glaring issues, many organisations still lack the necessary governance and oversight mechanisms to proactively mitigate risks, enforce discipline, and maintain focus. This lack of structure and control is a significant contributing factor to why projects fail. It’s crucial for organisations to recognise and address these internal shortcomings to ensure the successful execution of their projects.

Turning failure into achievement

The journey of transforming potential-filled initiatives into operational successes requires proactive management of uncertainties and complexities, rather than merely reacting to them. The difference between organisations that consistently meet their targets and those that frequently fall short lies in vigilant governance, early issue resolution, and clear communication of priorities and objectives.

Reviving stalled projects involves investing in dedicated project leaders. Historical evidence suggests that specialised project professionals infuse initiatives with the necessary structure, foresight, and momentum, which are crucial for converting plans into tangible outcomes. Engaging with seasoned experts provides the much-needed oversight to transform projects from potential liabilities into powerful catalysts for progress. This approach not only mitigates project failure but also turns it into a stepping stone for future success.

For more information or to hear how Ballards project leaders can help support you on your projects, please contact Sean Devlin on sean.devlin@ballardsllp.com or call 01905 794 504.

Disclaimer. This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated with us.