Why only 3% of companies successfully complete 100% of their projects while the other ones fail?
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Isn’t it a bit discouraging to hear that only 3 out of 100 companies successfully complete all of their projects?
To make matters even worse, the expectations are surprisingly low as 75% of IT executives believe their projects are “doomed from the start” and half of all project management offices close in just 3 years. For every $1 billion a company invests in a project, it loses $199 million.
Why do projects fail? Well, how could they not when as much as 46% of businesses admit they don’t fully understand the value of project management - even though they realize that understanding the value of project management boosts success rate by 16%.
The biggest project management challenge companies have is knowing exactly how much time (and money) they need to set aside for a project: either timelines are too long (which triggers procrastination), or they are too short because project managers underestimate the complexity of the project.
Estimation of resources is difficult but companies which master it can better meet their clients’ needs, predict and assess their demands in advance, and assign available resources to where they’re most needed.
Another reason why projects fail is that 80% of project managers don’t know how their projects align with their company’s business strategy. Furthermore, only 60% of organizations implement risk management tactics, even though 30% of all projects fail due to undefined risks.
Another very common problem is that project manager are inexperienced. This is evident when the person in charge doesn’t: define team members’ individual roles, explain how each person’s contributions will be evaluated, and describe what’s in it for them.
Flexibility is critical but many managers don’t know when a project requires re-assessment. The best advice is to take a step back and get a fresh look on the overall project, but refrain from making too many changes. In order to keep a project on the right track, a project manager has to constantly monitor its progress, watch out for potential problems, and take corrective measures.
The best solution to stop project from failing is to use a reliable project management software – the one tool in a project manager’s arsenal that can solve all the potential issues. To find out what are some of the worst project management pitfalls and in what ways a project management software can help you evade them, check out our infographic and download The Complete Guide To Managing Digital Projects for free.