Project Management

Project Failure or Organizational Failure?

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San Pietro at nightI was privileged to present with my friend and colleague Majeed Hosseiney on May 2nd at the PMI EMEA Congress in Rome on the topic of leadership in organizations as it applies to the project environment. The gist of our presentation was that we have a tendency when a project fails to shine a light on the indicators we watch as project managers - the famous iron triangle. That is, we look within the project to find reasons for failure, and not so often outside the project. 

We asked the audience, "Please stand if you can say all of your projects delivered full scope, on time and within budget?" How many do you think stood up in a room of about 80 people, almost all of whom were project managers? Would you guess 50%? 20%? 10%? 5%? 1%?

0% is the correct answer.

Was it because everyone was too shy to stand to receive a round of applause for such an unusual accomplishment? Or was it really because 80 projects managers had never had a successful project as measured by iron triangle factors?

We then asked those who did not stand (everyone) to discuss with the person next to them what might be common reasons for such failure and to share with us. Responses included weak sponsorship, inadequate executive support, unskilled teams, and so on. You can probably add a few yourself. Or, maybe you can say that all of your projects were roaring successes. If so, please tell us what made them so. 

We had a great time presenting. The crux of our presentation was that project failure is often a misnomer. That is, project failures can often be attributed to organizational failure, and that failures can be reduced and even avoided by using portfolio, program, project management methods within a projectized organization. Project selection based on business goals and available budget has a much greater chance of producing successful projects. It makes decisions more transparent and more business goal-based. 

We were fortunate to be interviewed by Kristin Jones a few hours after our session. You can probably tell that we had a lot of fun. 

Have you found that external factors negatively impact your projects, sometimes more often than factors internal to your projects? Do you feel that sometimes projects are blamed for what might be a failure in leadership on the part of the organization? We'd love to hear your opinions.

 


Posted by Mike Frenette on: May 10, 2017 10:01 PM | Permalink

Comments (11)

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Sonali Malu Maharashtra, India
Agree that external factors are also responsible for project failures. Everything is not under the control of project manager; sometimes organization can help at a higher level.

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Nian Rasheed Project Manager| Asiacell Telecom Co./ Kurdistan Region/ Iraq Sulaimani, Iraq-Kurdistan Region, Iraq
Political climate and projects implementation in war zone areas.

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Drew Craig Sr. Agile & Product Coach| Vanguard Philadelphia, Pa, United States
Thanks Mike. Also enjoyed the video interview. Thanks for providing us with insights on this session.

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Pier Luigi Calabria Project Manager| INFORM Institut für Operations Research und Management GmbH, Aachen, Germany Aachen, Germany
Hi Mike, how can we consider "external factor" something like "poor sponsorship"? I mean, sponsor is in the project setup as main stakeholder, can we consider non engaging the sponsor properly, not influencing him, a PM failure? For me yes, may I dare to ask which is your view?
Thank you, regards.

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Eduin Fernando Valdes Alvarado Project Manager| F y F Fabricamos Futuro Villavicencio, Meta, Colombia
Thanks for sharing

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Vincent Guerard Coach - Trainer - Speaker - Advisor| Freelance Mont-Royal, Quebec, Canada
Who choose to do the project and under what condition? The organization!

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Mike Frenette Manager, IT PMO| Halifax Water (retired) Halifax, Nova Scotia, Canada
Yes, our point exactly, Vincent. Organizations with poor portfolio management practices may very well end up engaging in projects that are destined to fail from the beginning. The project manager may deliver full scope on time and within budget, and the result may be exactly what was expected. But if it was not a project that aligns with the organization's strategic goals, or if it displaced a much more important project, one has to question how and why it was chosen in the first place. So... was the project successful? All indicators would point to yes, except the most important indicator: strategic business benefit.

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Mike Frenette Manager, IT PMO| Halifax Water (retired) Halifax, Nova Scotia, Canada
Ciao Pier - I would agree that since the sponsor is part of the project, or should be, weak sponsorship might be considered an internal factor, not external.

However, if one were to consider that the project may have been initiated by someone with a conflict of interest in initiating the project, then it may go beyond weak sponsorship and move into the area of a serious leadership issue. The project's failure to deliver useful business benefit may be used to place a veil over organizational failure.

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RAJESH K L Project Manager, PMP| Bharat Electronics, Bengaluru, India Bengaluru, Karnataka, India
Good one. Thanks for sharing

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k. t. madhusudan C E O| Project Management Worldwide Chennai, Tamil Nadu, India
Assuming that the right project is selected & taken up a project"s success or failure has a lot to do with the working of the team, in my opinion. I read somewhere that a PMI study sometime back had found that 80% of project issues are people-centric. In the technology-people-processes interface the "people" are the critical part, without whom the other two are redundant. PMs rarely get formal "people skills" training which is the need of the hour

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Luis Branco CEO| Business Insight, Consultores de Gestão, Ldª Carcavelos, Lisboa, Portugal
Dear Mike
Interesting reflection on the theme: "Project Failure or Organizational Failure?"

Thanks for sharing

Any failure in the project can be attributed to causes inherent in the project itself (poor planning and estimates, people and resources, management and leadership), or external causes, ie, related to the organization.

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