8 Reasons Behind the Failure of Million Dollar Projects

   2019-06-27       69        Agriculture
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Fewer than a third of the Projects were completed on time and on the budget in the year 2018 due to poor project management. Find out the reason why Million dollar Projects fail!

8 Reasons Behind the Failure of Million Dollar Projects

 

According to PMI.org, for every $ 1 Billion invested in the USA, over $ 122 million gets wasted because of poor project management. The Denver airport is the largest in terms of area and 6th in terms of total customers, it supports. Denver Airport, with BAE system, desired to upgrade the time-consuming luggage check-in and transfer system. While there were several reasons behind the failure of the project,  the major reason behind the failure included management taking unnecessary risks and the airline not being included in the planning process.

 Reasons behind the failure of projects have been a hotbed of discussion between experts and today Certification Planner presents the top reasons behind the failure of Million Dollars Projects.

1. Missing out on the Customization Options

 Identifying halfway through the project that the major assumptions made with respect to the use of the end product or system are not accurate can be problematic. Identifying all the variations required during the working of the end product or system should be done before the procurement and development process.

2. Understanding the End Product and their Actual Use

The false sense of perspective is the number one reason behind project failure. It is a simple deduction that incorrect understanding of the end product will always result in falling short of the expected result. If we follow the general psychology, project team considers the system or software that they are delivering as the end product and completely misses the point that whatever they are delivering is means to achieve a certain business objective. 


3. Missing out on End-User’s Needs

It is actually hilarious how often the end users are kept out of the loop during the length of the project. This creates a huge gap between what the end user desires and what is delivered. Very often the requirement statements need to be altered during the course of action to deliver the best result. However, this change can be realized only id the end user is an active part of the project.

4. Missing out on the Updated Requirements

The requirements keep evolving as the project progresses. The updated requirement can come from the client or the understanding of business needs and should be kept under consideration.


5. Focusing on Technical Details rather than Business Value

An interesting insight into the reasons behind the failure of projects came when we started investigating the effects of considering a project as an IT project. When a project is marked as an IT project (or given a name with context to the sector or end result), the vision for the project gets constrained to delivering an effective IT solution without considering the ripple effects on rest of the business.


6. Unclear Accountability for the Measured Result

A baseline for the result provides a black and white idea of how successful the project is. While it might be challenging to design baseline for every iterative level in a project, not having them may result in too much investment of time, effort and finance before you realize that you need to step back and do the task again.


7. Presence of Inexperienced Project Managers or lack of Tools and Techniques for Effective Project Management

While certifications in project management is not a must, certifications update the professionals with the latest industry developments. A gap in knowledge and missing out on the latest tools and technologies is another huge reason for the failure of projects.


8. Little Communication at every Level of Management

A classic example of disaster caused because of lack of communication is the Challenger Space Shuttle that exploded 73seconds after the launch.  The engine

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Gaurav
Certification Planner, LLC
www.certificationplanner.com
support@certificationplanner.com

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Richar Kick

I am a professional working in Certification training from 4 years...


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