Ep. 40 Fireside Chat: Uncovering the Root Causes of Project Failure Beyond Surface Symptoms

Business Breaks - All Things Business

Episode Summary:

- Defining project failure i.e. not achieving the original goal, even if the project goes live
- Importance of thorough planning and analysis in project preparation
- Relying on anecdotal evidence and surface symptoms can lead to ineffective solutions
- Discrepancy between perceived problem and actual underlying issue
- Considering input from all individuals, including introverts and those who fear change
- Many projects fail during the planning stage
- Sticking with familiar partners or brands out of loyalty or comfort can be seen as collusion
- Assessing if current partners are delivering what is needed for strategic projects
- Detrimental effects of collusion in smaller companies
- Prioritizing what is strategically important over familiar partners or brands
- Lack of communication and poor team dynamics between business and IT departments
- Example of project with lack of coordination between finance and business teams for treasury payments
- Managing multiple departments and external resources to compensate for lack of internal resources
- Stress and pressure from last-minute project implementation
- Need for transparency and effective management in such situations
- Importance of being realistic and adding contingency in project timelines
- Adding at least 20% contingency to project timelines
- Not assuming everything will go smoothly and accounting for unforeseen events
- Building in contingency for transitions between project stages
- Importance of communication and ensuring everyone is aware of project timeline and adjustments
- Negative impact of project champion leaving and lack of support from rest of team
- Sunk cost fallacy and continuing projects without viable business case
- Personal experience of recommending project termination due to lack of support, but CFO using report to push for better support from vendor
- Disconnect and different expectations between IT and Finance teams
- Finding solution outside system not initially recognised by finance team
- Poor communication as frequent issue in project failure
- Importance of feedback and passing on necessary information in projects
- Using common sense and adjusting timelines if necessary
- Questioning why people don't communicate or give feedback
- Success or failure of project often depends on initial setup and planning
- Importance of proper analysis and not relying on assumptions or anecdotal statements
- Need for right resources at different project stages
- Respecting sequence of events from analysis to deployment
- Risks of not having contingency plans and rushing to meet deadlines
- External factors outside project's control
- Importance of not panicking and learning from difficult situations
- Salvaging failing projects with calmness and learning from the experience
- Relevance of IT systems in projects
- Importance of good business case for projects
- Accountability in private industry and consequences of wasting money without reviewing business case
- Regularly reviewing business case in large projects to ensure it still makes sense
- Adjusting project plan if original business case no longer valid
- Continuing planning throughout project's duration
- Importance of communication and managing expectations, especially with executive sponsors
- Building trust with executive sponsors and reducing need for constant communication
- Providing clear and detailed reports and analysis to executive sponsors
- Addressing concerns and questions from executive sponsors promptly
- Engaging and leveraging relationship with executive sponsors for project success
- Positive impact of demonstrating good project management skills on referrals and continuity of work

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