Why do most projects fail. There are many reasons why projects fail. Only 30% of projects achieve their goals within the budget and time allocated. What is it that sets high-performing projects apart from those that fail? This infographic outlines common characteristics of high-performing projects that you can incorporate into your projects.
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Let’s begin with the most important. A project manager who is certified and has many years of experience. This is second only to risk management, which is a common factor in around 80% of high-performing projects. While the core components of project management remain the same, the methods, tools, and organizational structure have changed rapidly. This is why certification, experience, and training are so important.
It is not easy to find a qualified and experienced project manager. According to PMI, there will be close to 16,000,000 new positions in project management by 2020. A project management certification is a great way to switch careers.
But, being a good manager is only one of the most important factors. High-performing projects are known to have a high rate of success because they use risk management frequently. No matter how well you plan during the project’s lifetime, there are still external and internal factors that can impact the project’s outcome. Risk management is the ability to identify these factors and respond promptly.
Another common factor is the ability to set measurable and achievable goals or deliverables. It is important to determine if it is achievable first. These are often agreed upon when a project is started and used to measure its success.
When the deliverable is not tangible, it is important to have a measurable goal. It’s easier to measure the outcome of a project if it is to build something. For projects like improving product output or training a division on a methodology, it’s more difficult to measure. It is crucial to agree on a clear goal before you start.
High-performing projects often have a realistic budget. It is crucial to get this right if you want your project to be successful. Large IT projects (larger than 15 million dollars) are almost always over budget. This situation is so dire that it threatens the survival and livelihood of approximately 17% of companies. This is a clear example of how important budgeting can be to a project.
Budgeting is a mistake that can lead to future risks not being anticipated and plans for them. Even though you can identify them with risk management techniques, you must have the budget to address them. If you don’t manage your budget properly, even the best budget can go wrong. Be sure to use good budget management techniques.
Communication is essential for many things, but it is vital for the success of a project. There are many types of communication in a project. The top management must communicate clearly to the team the goals and deliverables, as well as the importance of this project to the overall company strategy. Managers must address communication within and between teams. This is a key factor in a project’s success, according to 26%. It can be easily addressed with project management software. Finally, you must communicate regularly with stakeholders to update them on the progress of your project.
Technically, a successful project is one that achieves the agreed objectives on time and within budget. In reality, project success can be measured by a few other criteria. Stakeholder satisfaction is the most important. A majority of companies consider a project successful if all stakeholders are satisfied. Yes, even though delivering on time and within budget is not ideal.