14 August 2024

Why do good projects go bad?

Bad things happen to good projects

Bad things happen to good projects. Things go wrong. We all know that.

The statistics on project failure vary—some say 70% of transformation projects fail, others argue it’s lower or higher. It depends on how you ask the questions, who ask them, and how they report the results.

Torture numbers, and they’ll tell you anything.

Who defines failure, anyway?

As you start to scratch under the surface of some of the statistics, it becomes clear that there are issues with the definition of failure. Is it:

  • A project going over budget?
  • Delays that push back delivery dates?
  • Not delivering everything that was promised?
  • Delivering something…but not the right thing?

And what kind of projects are we talking about? Buildings, IT, global transformation initiatives, software upgrades? The industry may change, but the patterns are eerily similar.

Here’s the thing—some people will declare success no matter what happens. They’ll move the goalposts, redefine what “done” means, or conveniently forget the project ever started. Others argue there’s no solid evidence that project failure is even a real problem.

But in the end, does the exact number really matter?

Projects fail, and despite decades of experience, we don’t seem to be getting much better at preventing it.

How do I buck the trend?

As a consultant, I’ve seen my fair share of troubled projects. But I make sure they don’t fail. How? By course-correcting when I see the warning signs.

The reality is that most failures don’t happen overnight. They creep in slowly, through missed deadlines, misaligned expectations, budget overruns, and shifting priorities.

My advice is to focus on what makes a project succeed rather than waiting for problems to arise.

The six keys to successful change

  1. Be specific on what you are delivering – The objectives and goals, tell people about it all the time, make sure leaders are still committed to them and keep the scope realistic, guard it carefully
  2. Be clear on the benefits – for customers, end-users, and the company leadership. Define them, and keep remind people about them
  3. Communicate. Communicate. Communicate. Tell people what you’re going to do, remind them why (the benefits), make sure everyone else is communicating too, listen and respond to feedback. use different channels, make sure it’s two-way, regular
  4. Make sure the people are motivated – how are they feeling about the change and their future, are people listening to their fears, are they learning and being developed, are they being rewarded (and not just financially)?
  5. Have a simple predictable plan – what are you going to do and when, do you have what you need to deliver
  6. Keep an eye on the risks – ask yourself what you worry about (and do something about it!)

Why do we keep making the same mistakes?

For me, the real question is if we know why projects fail, why do we keep making the same mistakes?

Is it because we underestimate complexity? Ignore red flags? Resist changing our approach.

If we can understand why projects fail, not just the numbers of projects failing, then we have a real chance of breaking the cycle and focusing on what makes projects work.

What do you think? Have you seen these patterns play out? Let’s talk about it.

10 reasons why projects fail

While no two projects are the same, failure often follows a familiar pattern. Here are 10 of the most common reasons projects go off the rails:

  1. Lack of executive direction and commitment– If leadership isn’t fully on board, the project is already in trouble. Success requires clear sponsorship and active support from the top.
  2. Unclear goals and objectives– If no one knows exactly what success looks like, how can a project deliver it? Vague goals lead to confusion, scope creep, and misalignment.
  3. Unclear benefits– Without a strong business case, people lose motivation. Teams need to see the value in what they’re building.
  4. Effect on people’s futures– Change brings uncertainty. If people fear the outcome, they may resist it—consciously or unconsciously.
  5. Ineffective communication– Miscommunication leads to misunderstandings, delays, and frustration. Transparent, regular updates are crucial. Worse still, sporadic communication or communication without a strategy will fail to engage people and generate the right sort of energy and engagement with the change.
  6. Organisational structure blocks change– Some companies are simply not set up for change. Rigid structures, outdated processes, and internal politics can kill a project before it even starts.
  7. Needs constantly changing– If priorities shift every few weeks, the project loses focus. Without stability, teams waste time chasing moving targets.
  8. Not enough resources– Underfunded and understaffed projects struggle to keep up, leading to delays and burnout.
  9. Little or no user involvement– If the people who will actually use the solutions aren’t consulted, it’s highly unlikely that the final results will meet their needs.
  10. Change not aligned with business strategy– A project might sound like a great idea, but if it doesn’t fit the company’s broader vision, it’s unlikely to get long-term support.

Feel free to get in touch if you have any questions and want to have a conversation.