When a project that has been initiated with a huge investment fails, it wastes time, money as well as resources. There are companies losing an amount of around $100million for a $1 billion project according to studies. Sometimes, the bigger projects cause bigger losses and are more vulnerable to fail.
So what are basically the reasons a mega project fail? According to researches, several factors behind a project failure are dissimilar choices and priorities, lack of resources, and many more. Here are some to be considered:
Nowadays, the projects have some dynamic aspects. No matter in whichever industry you work, lack of alertness and consistency can invite danger. The companies adapting agile framework are gaining profits than the non agile firms and though there are very less than 1/3rd companies that promote the use of agile.
Investing in cheap or low key software will cost you less but also the number of features will reduce with the cost. All the reputed companies appreciate the use of valuable softwares and thus choose quality business solution software. Well developed companies prefer the best product management softwares to ensure reliability, consistency, ease of integration and use, compatibility over multiple platforms security, technical reliability etc.
Improper Organization of Remote Teams
Nowadays, the companies have teams offshore and all around the world. It is important for the teams to collaborate and communicate effectively to successfully run a project. The teams have to deal with different languages as well as regions. In such scenarios, the companies require such business management software that can allow the project lead or guide to share the project details and latest updates via a common system. These softwares or solutions must allow easy communication, data sharing and conversations to maintain the work flow.
Poor Managerial Support
It is important for every project to have a sponsor who can guide the team from the beginning till the end. The project sponsors and leaders play a very important role in making a project successful. However, out of three projects barely 2 projects had effective sponsors who constantly get engaged with the project to avoid problems and provide guidance. For the sponsors, time is a major issue and this can cost failure to the company. As a solution, the sponsors, the managers and the entire team behind the project must schedule regular meetings and communicate about the project. Their duties include planning, meeting, reporting, solving issues, promoting the project etc. Also it is beneficial to get Project Management Office software to regulate proper managerial support and assistance.
No arrangements to meet the company’s goals and plans
Defining a project goal is important for every company. If the goals and plans for a project are not decided, it can turn into a major failure. Companies need to align the project goals and plans while understanding the priorities. It is important to test the strategies and goals to check whether they saving time, hard work, money and resources.
Lack of communication between the team and all the layers of workers is one of the major reasons that cause failure. There are softwares that can help regulate communication between project members and all the companies must consider purchasing such softwares. Internal communication within the organization along with external communication with the customers is equally important. This is the tool that can regulate communication in a secure way.
Every firm must consider these important aspects while planning a project. All the projects should be designed keeping in mind these rules and aspects to succeed.