The document discusses factors that contribute to project success and failure. It summarizes research from the Standish Group that found only 16.2% of projects in 1994 were completed on time and on budget, with 84.8% failing. More recent data from 2000 showed improvement to a 28% success rate. The top 10 factors identified by the Standish Group that cause project failure are listed, including incomplete requirements, lack of user involvement, and unrealistic expectations. The document concludes with areas that affect project success, such as clearly defined goals, top management support, and user involvement.

1. Lead a Project to Success
By Chelse Benham
"People aren't afraid of failure; they just don't know how to succeed. We are each
responsible for our own success (or failure). Winning at what you do is no
exception. To ensure a win, you must take a proactive approach. Prevention of
failure is an important part of that process." – Jeffrey Gitomer, author
Before you can successfully lead a project it is wise to know what causes a
project to fail. By most statistics, failure is an extremely likely possibility. How
possible? The Standish Group released some of the earliest numbers regarding
failed projects in a cross section of large, medium and small companies across
major industry segments, e.g., banking, securities, manufacturing, retail,
wholesale, health care, insurance, services, and local, state and federal
organizations. In its “CHOAS Report” released in 1994, the Standish Group
found that only a mere 16.2 percent of all projects were completed on time and
within budget with all features and functions as specified. That means 84.8
percent of projects failed in one or all of these areas.
Jim Johnson, author of “Collaborating on Project Success,” released more recent
statistics in 2000 that reflected an increase in project success from 16.2 percent
in 1994 to 28 percent in 2000. Johnson attributes the increase to the Standish
“Recipe for Success” established in 1998.
Although there seems to be improvement in the success rate of projects
undertaken, there is a staggering 70 percent failure rate still in effect. Agreeably,
there will always be failure, but why should it be so disproportionately high?
A simplified answer would be inexperience, poor planning, technical illiteracy and
a lack of resources and support. However, the causes are more complicated than
that.
In a nutshell, The Standish Group identified 10 top factors why projects fail. They
are:
1. Incomplete requirements
2. Lack of user involvement
3. Lack of resources
4. Unrealistic expectations
5. Insufficient executive support
6. Changing requirements and specifications
7. Lack of planning
8. Product is made obsolete
9. Lack of information technology management
10. Technical illiteracy

2. Furthermore, there are four things that foreshadow a project’s failure: lack of
efficient internal and external communication, no effective decision making and
not having productive teamwork.
“Corporate America spends more than $275 billion each year on approximately
200,000 application software development projects. Many of these projects will
fail, but not for lack of money or technology; most will fail for lack of skilled project
management.” This statement found in the “CHAOS: A Recipe for Success”
report.
The report further defines, “Project management is a process that spans the full
lifecycle of a project, from inception to completion. Its cornerstones are planning,
execution and control of all resources, tasks and activities necessary to complete
a project.”
If you are looking for a tried-and-true method of success there is a formula that
does work to reduce projects from failing.
According to industry analysts three factors determine the success of a project:
duration, team and project size. In basic terms, evidence found that the smaller
the team and the shorter the duration of the project, the greater likelihood of the
project’s success. It is also interesting to mention that these same statistics found
no correlation between a company’s size and its project success rate. Bigger is
not necessarily better.
Incorporating measures of success is as important as avoiding the pitfalls in a
project.
As an international leader of project analysis, The Standish Group states the
biggest contributors to project success are user involvement, executive support
and a clear statement of business objectives. According to their findings, 50
percent of a project’s chances for success are found in these three areas! The
“CHAOS Ten” – a list of 10 critical areas of project management that determine
success developed by The Standish Group – outlines the other seven critical
areas. Besides the top three listed above, the following are significant factors that
affect a project:
• Experienced project manager
• The creation of small milestones
• Firm basic requirements
• Competent staff
• Proper planning
• Ownership
• All other factors combined

3. It is necessary to point out that of all the factors mentioned the most important
contributor to project success is user involvement. According to many experts,
the absence of user involvement is the number one cause of project failure.
A larger view of a project focuses on other areas of extreme importance: good
planning, accountability of team members and schedule control.
Initial planning is not enough. There must be back-up plans and fall-back
positions to handle changes and pitfalls. To successfully plan for this, all team
members must have a clear understanding of their roles and duties in the project.
They must know how expectations versus achievements will be measured and
graded. Therefore, a system of communication must be in place. A system of
continual monitoring of time, milestones, people and production ensures this.
To recap, listed below are areas that affect a project’s success:
• Clearly defined project goals
• Top management support
• Competent project manager
• User involvement
• Skilled team members
• Sufficient resource allocation
• Adequate communication channels
• Control mechanisms (planning, business plan, schedules)
• Trouble-shooting sessions and fall-back positions
Good project management is flexible and responsive. It considers all facets of the
project and attends to every detail. To ensure your success keep your eye on the
prize and your mind ready for adjustments.