
Navigating the complex labyrinth of Information Technology (IT) project management can sometimes lead to the daunting occurrence of project failure. Regardless of your experience level (Veteran or Novice), every Project Manager will face failure. As unsettling as it might be, understanding why IT projects fail offers critical insight and presents an opportunity for growth and learning.
Understanding the Pervasiveness of IT Project Failure

The widespread occurrence of IT project failure is not just a myth but a stark reality backed by hard statistics. According to research conducted by The Standish Group, a startling revelation came forth: a mere 29% of IT projects reach a successful completion, while an alarming 19% result in absolute failure.
Through this critical lens, it is apparent that this issue is pervasive and necessitates a thoughtful and proactive approach. Unpacking this reality is vital for project managers and decision-makers alike in order to understand the root causes and address them effectively. The rest of this article delves deeper into the reasons behind this pervasive failure and offers my insights on how to overcome these challenges and turn project failure into a steppingstone for future success.
Common Reasons for IT Project Failure

In attempting to dissect why do projects fail; it becomes clear that there is no one-size-fits-all answer.
Several culprits, often intertwined, contribute to the demise of IT projects. Among these, a disconnect between business and project objectives frequently surfaces as a primary concern. This disconnect results in ill-defined project requirements and a lack of robust planning. Other roadblocks can be traced back to communication gaps among key stakeholders, leading to misunderstandings and conflicts. Technical expertise is another critical factor. Without it, even the most well-planned project can flounder due to unforeseen complexities and technical hitches.
Furthermore, insufficient risk management can leave a project vulnerable to unexpected roadblocks, leading to delays and potential failure. Lastly, the role of end-users in IT projects cannot be understated. Their lack of involvement often results in solutions that fail to meet user needs or expectations. In sum, while the reasons for project failure may vary, they often stem from:
In My Experience
- Misalignment of goals–This is one of the most common issues that I have seen during my career. Regardless of your project methodology, it is critical that you understand the stakeholders goals and scope of your project.
- Inadequate communication–I worked on a project in which the CIO was not aligned with the Division level CEO. It didn’t become clear until halfway through the project that even though they were using the same words, they were going after something completely different. Constantly ask questions and reaffirm what the core goals and objectives of the project are.
- Lack of technical prowess–Every developer that I have ever worked with believes they can code anything, in any language. I learned the hard way that this is not true, no matter how much they fit into the “Developer” stereotype.
- Poor risk management–This is such easy trap to fall prey to. A small issue that the team is confident will be corrected in short order, that then requires a little more time, and then a little more time; All of a sudden you have to raise an issue surrounding the fact that the team needs to refactor the entire application. I have to continue to remind myself that every risk is important to call out and track.
- Insufficient end-user engagement–Many times a customer, whether that be internal or external, believes that they can throw the project over the wall to the technical team and nothing else is required from them. At the end of the project timeline, they will receive a perfect product that does everything that they want. The reality is that it is critical for the “Customer” to be actively involved in the project, to ensure the project meets their needs and expectations.
How to Lead through IT Project Failure

As a project manager, encountering a failing project can be a challenging experience, but it can also present an opportunity for growth and resilience. The initial step in effectively navigating this situation involves maintaining open channels of communication with all stakeholders. Providing a clear, objective, and accurate depiction of the project’s status is paramount, as is creating a realistic recovery strategy. Do not sugar coat the situation. Maintain professionalism, but be clear as to what the reality of the situation is.
When dealing with project failure, it’s also essential to manage stakeholders’ expectations. This includes informing them of any potential risks or obstacles that may arise during the recovery process. Transparency in this respect is key as it builds trust and fosters collaboration. A sense of collective ownership and responsibility can drive a team towards shared success.
In addition to these actions, another crucial element of leading through failure is understanding that setbacks are often the precursors to triumph. Failure can be an invaluable teacher, provided one is open to learning and growing from the experience. This mindset can be pivotal in not only recovering from the failure but in ensuring future project successes as well. As a project leader it is not only critical that you maintain this perspective, but you must also coach your team members into having this mentality as well. When things aren’t going well on a project, it is very easy for the team to implode on themselves through negative thought.
In sum, leading through an IT project failure demands clear communication, a comprehensive recovery plan, adept expectation management, and an embrace of the lessons learned from failure. Mastery of these elements can turn even the most challenging project failures into opportunities for growth and improvement.
Learning from IT Project Failure

Navigating a path forward from an unsuccessful IT project begins with embracing the educational potential of failure. An integral step in this journey is conducting a thorough and objective analysis of the project’s lifecycle. This isn’t a time to allocate blame or dwell on the negatives but rather to identify and explore the stumbling blocks that thwarted the project’s success. Establishing a clear picture of what led to the project’s downfall, the contributing factors, and how these could have been mitigated are all fundamental elements of this reflective process.
As I stated earlier in the section regarding project goals and scope; it doesn’t matter what your methodology is, you need to conduct retrospectives, project closing analysis, or whatever other terminology you are familiar with. The point being, it is important during and after a project to objectively look at what went well and what could be improved on. This can be a really challenging activity for project managers to lead and facilitate. I will put out a detailed guide in the near future on How to Efficiently and Effectively Facilitate Retrospectives.
The power of learning from failure is realized when this newfound knowledge is applied to future endeavors. This involves making necessary adjustments based on the identified missteps. Whether it’s enhancing the communication strategies, refining the project objectives, augmenting technical expertise, or bolstering risk management. Each correction should be geared towards averting the repetition of past mistakes.
Turning IT Project Failure into Success

At first glance, project failure and success may seem diametrically opposed. Yet, under the right conditions, a failed IT project can become a springboard for future achievements.
In line with Webster’s definition of failure – the absence of success – failure can indeed lay the groundwork for progress and innovation. This process begins by realigning the project’s goals, making them more coherent and achievable. In tandem, it is vital to enhance communication channels and streamline workflows to create a robust, well-structured project plan. Investing in upskilling and training the team is another aspect worth prioritizing. Enhancing the technical and managerial competencies of the team can effectively counteract the complexities and uncertainties that are inherent in IT projects.
In this way, even a failed project can provide invaluable insights that guide the course correction needed to steer future projects towards success. In sum, the transformative journey from project failure to success hinges on redefining objectives, optimizing communication, honing skills, and treating failure as a learning opportunity. A failed project need not be the end of the road but can instead serve as a valuable detour, leading to unexpected triumphs.
The first large scale agile project that I ever worked on was a glorious disaster! All of the common reasons for why IT project fail that I covered earlier in this post occurred on that project, plus many additional reasons. It was an awful experience, that taught me more about project management, agile management, and leadership than any class or certification. The second phase of that program was significantly more successful, and the third phase was fun and felt easy.
The Importance of a Supportive Organizational Culture

In the process of dealing with and rebounding from IT project failure, a nurturing organizational culture cannot be overstated. It is important to note that simply identifying and rectifying issues isn’t enough.
Embedding a culture of continuous learning in your team is crucial. This includes fostering an environment where individuals feel comfortable sharing their experiences, insights, and learnings from the failed project. This process not only strengthens the team’s problem-solving skills but also nurtures resilience, thereby bolstering their ability to bounce back from future setbacks. In essence, learning from project failure is not just about dissecting what went wrong. It’s about using that information to fuel growth, resilience, and ultimately, project success.
A culture that berates failure and discourages risk-taking creates a stifling environment that curtails innovation and impedes progression. On the other hand, an organizational climate that perceives failure as an avenue for learning fosters a dynamic environment. In which creativity flourishes and team members are empowered to push their boundaries.
Cultivating such a culture is a hallmark of effective leadership and instrumental in driving project success. Embracing the challenges, leveraging the lessons learned, and fostering an environment of continuous growth and learning can turn the tide on IT project failures. Thus, the culture of an organization plays a significant role in shaping the outcomes of projects, transforming potential setbacks into opportunities for development and success. As a project manager, promoting this supportive and growth-centric culture can be a game changer in managing IT project failure.