10 Key Project Management Mistakes - And How to Avoid Them

• What is PRINCE2 & Project Management?
• 11 Steps to Project Management Heaven
• 10 Key Project Management Mistakes - And How to Avoid Them
• PRINCE2 Style Exam Questions
• PRINCE2 Process Models
• PRINCE2 Cross Reference

Despite careful planning, keen talent and abundant enthusiasm, the harsh reality is that most projects launched across corporate, government and third sector organisations fail to deliver the intended results.

In the IT sector it has been estimated that only a third of projects can be considered truly successful – of the remainder, around a quarter are abandoned as complete failures whilst the rest run over budget, over time, or don’t add the intended value to the organisation.

Clearly, those are poor odds, and the implications can be significant. Months or even years of work can be wasted, business and reputations adversely affected, confidence and future funding prospects undermined – even share prices hit if the failure becomes public news.

Conversely, when a project runs smoothly, exactly the opposite can happen: companies and key individuals are placed on the map, new products and services are successfully established, reputations are made and a rewarding future beckons.

Without some form of applied project management process, outright success is a gamble – especially for large projects. Here we look at ten of the most common reasons why projects fail, and include some of the ways that PRINCE2 project management best practice can help in avoiding the pitfalls

1. Badly defined objectives

Often the general project concept can seem sound, but when you get down to the details, the precise target outcomes are actually quite poorly defined - meaning that few of the participants (if any) are sure exactly what they are supposed to be aiming towards. Without a clear target to point at, the chance of hitting the bullseye are pretty slim.

PRINCE2's project brief stage outlines exactly what the exercise aims to achieve. This focus on defined and measurable business justification as a key feature means that objectives are clear from the start, and success is easy to focus on.

2. Poor time management

Those generous weeks or months that acted as a comfortable time cushion at the beginning may seem to evaporate when the project team is staring at a fast-approaching deadline. It is very easy to lose track of time when team members get sidetracked and go off on tangents rather than sticking to the core objectives.

Proper scheduling and resource estimates for each process comprise a key part of PRINCE2's planning stages. The methodology of breaking a project into manageable tasks means that each stage and the project as a whole have a defined start and end.

3. Failure to budget adequately

What seemed like careful budgeting at the beginning can appear hopelessly optimistic as one or other phase of the project swallows up far more than its fair share of cash, or others gradually erode the valuable funding reserves.

Budget estimates for each activity are established in PRINCE2 before the project is initiated. This practice of allocating each stage and the whole project a budget makes tracking resources an intrinsic process.

4. Inability to adapt to change

In any other than the simplest of projects, mishaps, unforeseen events and other deviations from the plan are almost unavoidable. Without limitless resources it is unrealistic to expect that the team will be able to cope instantly with any eventuality, so learning to expect the unexpected is crucial.

PRINCE2 includes early risk analysis as well as procedures for monitoring and limiting potential problems. Regular reviews of progress against the original plan and mechanisms for dealing with deviations from it can rescue an ailing project that would otherwise run aground.

5. Lack of management backing

To those who created the project concept, and colleagues that got involved at the beginning, it feels like a great idea that is going to change the way you do business. Management have given the go ahead, but although they seem keen in principle you get the impression that their hearts are not really in it. Maybe they never fully managed to grasp why this project is so important?

PRINCE2 delivers clarity and simplicity to project management: everyone is aware of the part they play. The project board consists of someone representing the paying customer, the end user, and the supplier, so every major decision goes through the key players.

6. Inadequate human resources

It is all too common that a promising project will fall behind schedule or worse, just because the team is overstretched or under-skilled. With a larger group of people, in possession of more appropriate skills, it could have worked far better.

PRINCE2 stage planning identifies the required skills and resources, whilst project controls exist in each phase to address any corrective action needed. This can save time and money by establishing ahead of time what expertise will be needed to complete the project.

7. Communication breakdown

People often get stuck in a rut by focusing too narrowly on their specialities, and as a result become isolated from other stages without an overall sense of the project. If the team is not all on the same page, communication breakdown can soon lead to a project breakdown.

The top-down approach of PRINCE2 requires and facilitates transfer of information between every stage. Regular progress assessments are built into the management process, so responsibilities are clear and good communication is not left to chance.

8. Not testing thoroughly

Once an initial version or prototype is finished and it seems to work perfectly, the temptation can be to rush the product or service to market. While all may appear fine on the surface, if the product or service offering has not been tested exhaustively, expect plenty of glitches to show up which could give a negative first impression and alienate vital early adopters.

Product delivery processes and handover criteria outlined in PRINCE2 mean that thorough testing is carried out and signed off before the project is completed. This means that projects should be delivered ready for the end user, not in 'beta' version or requiring further fundamental work before release.

9. Misjudging user expectations

Imagine working for weeks or even months on a project, only to find that the solution that has been created is not the one the client or end user wants. Indeed, project leaders often find themselves trying to please different groups of people with fundamentally different expectations: an impossible situation to resolve.

PRINCE2's methodology of clearly establishing the project outline and business justification, as well as formal sign-off procedures, means that the project scope and management is transparent. Involving the key players from the outset ensures that no one should receive any unpleasant surprises at the end.

10. Absence of leadership

Having a clear and logical team hierarchy is essential to the success of a project. Where does the buck stop? At the top of a chain there should always be someone with overall responsibility, and at different levels managers must be clearly identified so that everyone knows who they are reporting to.

PRINCE2 establishes a project manager and management team at the earliest stage, before any further planning is carried out. There is no confusion about who staff answer to, and the project manager regularly reports to the board to ensure progress stays on track and expectations are met.

For more information on PRINCE2 training, please visit the PRINCE2 training page or contact us.