PROJECT

MANAGEMENT
Project Failure Factors
AMAIS CHOUHDARY
 Introduction
According to the Office of Government Commerce-OGC (2005) a project
was broadly defined as:

a set of co-ordinated activities that needed to be complete

within the parameters of time, cost in order to maximise and
meet specific business objectives.

PROJECTS: Unique, Time Based (temporary) endeavour undertaken

to create a unique product, service or result
Failed
Projects:
Late & Delayed

Over-Budget
Miss key Objectives
Factors Failed Projects:
• Inappropriate Communication
Management
 Definition & role in project management
 Impact on Projects
 Example
Inappropriate Organisational Structure
 Definition & role in project management
 Impact on Projects
 Example
 Communication

Communication: giving, receiving, processing and interpretation

of information.
Relationship with Project
Lack of Communication

Inability to convey your message.

Poor Communication

Not understandable by the listener

or it can be only partially understood
 Impact on Project
Poor communication = Woe for a project

Poor Productivity

Wasted Money and Effort

Legal Exposure

Interpersonal Conflict

Low Morale
A prime example of
poor communication

Mars Climate
Orbiter
The navigation mishap killed the
mission on a day when
engineers had expected to
celebrate the crafts entry into
Mars orbit.
 Poor communication between different project components:

KEY FINDINGS...

Probe hit the atmosphere at

wrong angle and burnt up.
The subcontractor Lockheed
Martin created thrusters
software that used imperial
units whereas NASA used
metric units.
This difference in units was
not communicated between
the two
There was a lack of
There was a lack of cohesion between
information transfer project teams i.e. A
between the project separate navigation
team components team coming on
i.e. Regarding actual board shortly before
velocity change etc. launch that had not
participated in any
testing beforehand.
Implementing The British Standards Institution
recommends Appropriate communication

communication processes should be established for any

project.

principles This would ensure that communication

takes place regarding all necessary aspects
of the project, including the effectiveness
and efficiency of the project management
plan and quality management system
Two vital points the document outlines, which relates to the Mars
Climate orbiter are:

“The format, language and structure of project documents and records

should be planned to ensure compatibility”
Implementing communication
principles (cont…..)
“The communication system should be planned and
implemented. It should be controlled, monitored and
reviewed to ensure that it continues to meet the needs of
the project.

Particular attention should be given to interfaces between

functions and organizations where misunderstandings and
conflicts could occur”
 Inappropriate Organisational
Structure
Organisational structure : The outline of relationships between the
roles in organisations at the different levels /parts.
 Relationship with Project
The organisation structure delineates the reporting and decision making
hierarchy of an organisation and how project management functions
inside it.
Set Rules

Key elements of organizational

Structure that would affect
Projects within it.

Organizational
Structure

People Culture
 Impact on Projects
Slow decision making. [Delays/Cost]

e.g. Poor delegation of authority.

Unsuitably tall hierarchical structure.

Poorer quality/ possible repeat of processes [Delays/Cost]

e.g. Lack of emphasis on quality control

Ineffective quality department due to poor span of control

Poor prioritisation within the project [Delays/Cost]

e.g. Broken safety culture of an organization carrying out

projects involving risks is bound to fail
 Columbia Space Shuttle

NASA’s space shuttle Columbia broke apart on February 1, 2003 as it

returned to Earth from a 16-day science mission. All seven astronauts
aboard were killed.
 NASA created the Columbia Accident Investigation Board (CAIB),
chaired by Adm. (Ret.) Harold Gehman,. The Board released its report
on August 26, 2003, concluding that the tragedy was caused by:

Technical/Physical Cause
Organisational Cause
 Organisational Cause cont..

KEY FINDINGS:

1. Accident was not only 3. Differences in

2. Lack of integrated
caused by the foam but also management across professional opinions
organisational culture. which stifled
project elements.
communication

A lack of emphasis on safety and the absence

of a top-down approach.
Implementing Management principles
As discussed earlier, organisational structure and as described in the
report for the Columbia space shuttle, ‘Organisational culture’ are
fundamental to the delivery of any project, whether it be it short term or
long term.

Project organisation structure should be designed taking into account some

important principles: (British Standards Institution-BSI, 2006)

Facilitate the desired allocations of risk

Ensure necessary expertise is available to attend each of the

project processes

Facilitate effective & efficient communication between all

project participants.

Periodic review of the structure systems to ensure adequacy.

“The present NASA culture does not
yet fully reflect the Agency's espoused
core values of Safety, People,
Excellence, and Integrity. The culture
reflects an organization in transition,
with many ongoing initiatives and lack
of a clear sense at working levels of
"how it all fits together".

There is an opportunity and need to

become an organization whose
espoused values are fully integrated
into its culture - an organization that
"lives the values" by fostering cultural
integrity. ”
THANK YOU
 Bibliography
British Standards Institution (BSI), 2006, Project management, PD 6079-4:2006, Guide
to project management in the construction industry, London

Construction Industry Council (CIC), Construction Project Management Skills,

London.

Mabey, C., Salaman, G., Storey, J. (2001) ‘Organizational Structuring and

Restructuring’ in Salaman, G. ed. Understanding Business Organisations. London,
Routledge.

Miller, D. (1989) ‘Configurations of Strategy and Structure: towards a synthesis’, in

Readings in Strategic Management. Asch, D. and Bowman, C. eds. London, Macmillan
Education.

Mullins, L. J. (1993), Management and Organizational Behaviour, 3rd ed. London,

Pitman Publishing.

OGC, Office of Government Commerce (2005), OGC Best Practice: Common Causes
of Project Failure, Trevelyan House, London