Project Management Challenges and Failures

Introduction

Despite the growing professionalism in project management, the numbers tell a concerning story. Projects continue to face delays, cost overruns, and outright failures, leading to significant losses for organisations worldwide. With countless certifications, tools, and methodologies available, why do these challenges persist? In this article, we explore the root causes of project failure and examine whether modern project management practices are equipped to handle the complexities of today’s projects. 

Project and Project Management

Numerous surveys, studies, and books have documented project management failures, represented by project delays, budget overruns, and even project failures (see textbox). 

Depending on the reference, we have seen reports claiming that only 0.5% of projects achieved their cost, time, and business goals (Flyvbjerg & Gardner, 2023). A 2014 PwC report claims that only “2.5% of companies successfully completed 100% of their projects” (PwC, 2014). Other reports claim that 70% of projects fail, while in capital projects, we have seen studies that show that 60% are successful (Barshop, 2016). Even the success rate of megaprojects (those costing more than one billion dollars) is 35% or lower (Merrow, 2011).  

Consequently, the reality, backed up by studies and surveys from various organisations, shows that we have more failures than successes. Why do projects fail despite years of professionalism in project management, millions of certificate holders, hundreds or thousands of books and software tools, and numerous certifications from many associations? 

In other words, the consequences of projects and project management failures for organisations are billions of dollars (if not trillions) in actual losses or lost opportunities. Failure of critical projects can even threaten the entire business.  

Why Do Projects Fail?

Today, many believe that project management is widely spread and accepted, yet projects continue to fail.  

Numerous software tools are branded as “project management software.” However, most of them are about task management, and some might include timesheet management, collaborations, and other functionalities. Other tools might be sophisticated but limited to certain functions like scheduling, cost control, or risk management. However, projects continue to fail.  

On the other hand, we have guides from project management associations, yet projects continue to fail.  

We have hundreds of certifications and millions of certification holders, yet projects continue to fail.

Why do projects fail despite years of professionalism in project management?

So, why do projects fail? 

A quick answer, which might be controversial, is that we (as a community) have not identified and addressed the root causes. We are often distracted or get lost in the symptoms. For example, we do not have a standard definition of success and how to assess it, leading to endless debates due to the lack of common ground. In other words, we do not have a baseline, a reference that we can agree on, and in the absence of a reference, how can we measure progress or growth? 

If we shift the discussion outside the direct influence of project management, we realise that organisations do not typically face problems in formulating strategy and the organisation’s strategic direction. However, they often face strategy implementation failures. Consequently, they fail to bridge the gap between the formulated strategy and achieving the desired outcomes. Therefore, we must start with an organisational strategic plan and the executives behind it to transform project management and achieve impactful results. 

What Is The Root Cause?

The root cause is the lack of recognition of project management as a core organisational function.

Mounir Ajam

If we ask five people why projects fail, we will likely get tens of causes. We will hear about change, scope creep, lack of clarity on requirements, market conditions, teams or contractors’ performance, and more. Also, the symptoms might vary depending on a project’s industry, type, size, or complexity. However, we believe most of those reasons are system failure symptoms. If we drill down, one “root cause” might seem to be the lack of focus on the entire project value stream. Another apparent root cause might be the absence of organisational project management systems and methods. A common cause is a lack of proper planning or framing. These ideas are close to the root cause, but not yet.  

We hypothesise that the root cause starts with the lack of recognition of project management as a core organisational function; everything else is a symptom or a side effect. 

We hear a lot about the “Project Economy” and the importance of project management. We might hear other ideas about project management value contradicting our statement on the lack of recognition. We think we have fallen into the knowing-doing gap  (Pfeffer & Sutton, 1999). We might talk big, but our actions do not align or rise to the needed responsibility and accountability level. Hence, the need for this book. 

Conclusion: Are We Not Improving?

For decades, despite the growth in members of professional associations, certifications, certification holders, and many software, books, etc., we have not seen any meaningful change in projects’ performance. At best, we have seen fluctuations in the rate of success. However, project management failures are still too common, if not dominant. Our collective work has not compensated for the confusion and fragmentation of project management. We are not learning from our history; it is like treating a significant injury with a band-aid.  

It is time to break away from our past and seek what might appear to be radical change.  

This book is our attempt to break the cycle of doom. We will present the current reality and the case for change, offer our solution, and then offer the mechanism to build the future before closing with practical tips.