Studies on project failure rates

Anoher stody of software project failure rates has been completed in Europe (A Study in project failure). The format is poor, but the statistics are interesting. As in the past, many different factors are identified as the cause and as usual, there is a focus on more effective project management as the requirement.

The issues identified include: lack of business alignment, poor requirements definition, business strategy changed, business benefits not clearly communicated. What this is basically saying, is that the technology team was out of control; they didn't understand what the business needed and were attempting to implement solutions that weren't needed or wanted.

While looking at the data presented, there are two things that you might say are not relevant for small business: These are primarily new development projects (software being written, not purchased) and for large businesses (million dollar projects).

The thing that I find interesting is that the issues are common to those that I find in small businesses that are purchasing software. The software is driving the action. When software suppliers sell new software, they will provide training. That training is on how to use the software. It isn't "how to use the software to help your business". Since much of what is being presented is not relevant (at the time) to the learners, it is quickly forgotton (if it is understood). What is not understood is "how does this help me do my job?".

The answers to the following questions need to be provided:

1. What is the business goal for buying the software?
2. What is the business process that I am trying to improve and what are its current limitations?
3. How will the software improve the performance of the business process?
4. How will we measure that improvement?
5. Is the business benefit (the goal) worth the expenditure?

If those questions are answered, and the project maintains its focus on the business goal, the project will be successful. Business people will not abdicate the ownership and "alignment" will not be a problem.

I get called in to help fix these type of projects. Although there are many issues encountered, I always find that a focus on those business goals and business processes will lead to success.