Today’s post is written by Maja Mrsic, sponsored by Active Collab.
Despite your best efforts to clearly define the scope, timeline, and resources required to complete the project successfully, things don’t always go according the plan.
Customer service levels fell by 25-50% during a company integration program because team management focused their efforts in reorganising and changing employees’ roles, all with “the very best intentions”.
Hardware problems caused a bank to lose control of several billion dollars worth of trust accounts. All depositors were forced to withdraw their trust money.
The FBI spent $170m on a project to upgrade its computer systems. However, the requirements were not clearly defined and the software didn’t work as the agency expected.
These are just a few examples that show how a project can fail while wasting time and money.
According to the Standish Group’s CHAOS Report, and other surveys, project failures are more common than we would wish. It is more difficult to predict and manage all the obstacles that may arise on the way to success the more complex a project becomes. Even if the team does their jobs flawlessly and all activities are completed properly, there is no guarantee that the project will succeed.
Why do some projects fail? These are 7 reasons why projects fail so you can avoid them on your projects.
1. Scope Creep
It is crucial to clearly define:
What the project will deliver
It will be complete when it is completed
How much it will cost
Who will do the job?
How the project will be completed.

We can’t always keep everything on the same page. Changes can cause a project to be terminated, whether it’s because the client wants to alter the scope of work or because the team faces unexpected difficulties.
In June 2010, Chrysler and Fiat merged. The merger was not successful. Merging required major organisational changes, such as the introduction of new technology, the creation of a new management team, and a change in business processes and policies. The differences in corporate culture caused anxiety among the team. They were unable adapt to modern technology and methods, which eventually led to the company’s demise.
2. Miscommunication
Many people are involved in large projects. They all want to be part of the project and to take part in decision-making. It’s in everyone’s best interest to achieve the best results. However, people may have different goals or ambitions.
Here are the problems. This is where the problems begin.
Tip: Set realistic and achievable goals and give one person the final decision-making authority.
Pixar, the computer animation film company, has established a group called “brain trust” that meets regularly to provide feedback on various stages of project development. Although they are encouraged and encouraged to discuss both the positive and the negative aspects of projects, their advice does not have to impact the final outcome. The film director’s perspective will determine whether any changes are made.
A project management tool is one thing that can improve communication between all parties. Active Collab is a project management tool that helps you and your team stay organized. It also improves the workflow of your projects and keeps everyone in the loop, from clients to employees.
3. Working with the Wrong People
PMI’s Pulse Of The Profession report shows that $122 million of every $1 billion spent in the United States was lost due to poor project performance.
Your project will fail regardless of how much time you spend planning each step.