By embracing fast and frequent project failure rates, organizations can become more efficient more quickly, according to a new report from research analyst Gartner. At the same time, portfolio managers should institute 'stop-loss' criteria to determine when to accept failure and bring a project to an end.
Project and portfolio management leaders who take a "fail-forward-fast" approach that accepts project failure rates of 20 to 28 percent as the norm will help their organizations become more agile by embracing experimentation and enabling the declaration of success or failure earlier in a project's life.
"Current common practices in PPM simply don't meet the needs of the day," said Audrey Apfel, managing vice president at Gartner. "Continued cost pressures on most IT organizations will force IT and PPM leaders to rethink how they deal with increasing demands on an already overburdened workforce. Steady rates of project failure will lead PPM leaders and their peers and customers to accept a certain level of failure."
Apfel said that, through 2016, the accepted norm will be a 20 to 28 percent project failure rate as organizations are forced to accept increased risk to achieve desired returns. Given the continued market turbulence and proliferation of IT, Gartner expects these failure rates to persist. Furthermore, given the
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