The High Cost of Project Failure


April 13, 2016 by Brandi Johnson

shutterstock_128589035According to PMI, 37% of projects fail to meet their business objectives, and 17% fail outright. Those failed projects cost your organization money – both hard costs and the time and effort spent. Not all of that effort is recoverable. In fact, nearly 36% of those costs are unrecoverable. For a large project with a budget over $1M (which have a 50% higher failure rate than smaller projects with budgets under $350k), that’s $360,000 in lost expense and effort.

While no enterprise project management solution can prevent project failure, implementing the right system can give you the visibility you need to keep your projects on track to support key business objectives.

Top reasons IT projects fail:

  • Over budget
  • Schedule overrun
  • Failed to meet key business objectives

How Cloud Coach can help:

  • Budget Considerations:
    • Track plan versus actual costs on a project to see where you’re going over.
    • Uncover the hidden cost of project meetings – is your team meeting to discuss the project more than they’re actually working on the project?
    • Notify project managers and executives when a task, phase or project is at risk to go over budget with automatic alerts.
  • Schedule Overrun:
    • Use project templates to create consistency in project delivery and execution.
    • View the critical path of your projects to see which tasks are impacting your delivery.
    • Visualize your resource capacity to ensure the right team is available to deliver the project.
    • Notify project managers and executives when a task, phase or project is at risk to go over time with automatic alerts.
  • Business Objectives:
    • Create portfolios and programs aligned with key business objectives.
    • Perform cost benefit analysis to identify the most important projects to your business.
    • Implement charters to ensure project goals are always available for your team to review.
    • Use issue and risk tracking to capture, resolve and report on activities that affect your project delivery and scope.
    • Notify project managers and executives when a scope change is requested that may impact your project delivery with automatic alerts.