The Hidden Cost of Confusion in Multi-Organisation ICT Projects: How to Stay on Track

Multi-organisation ICT projects are full of promise—bringing together diverse teams and technologies to create something bigger than any one organisation could manage alone. But often, the potential for innovation is derailed by confusion, scope creep, and misaligned priorities. These issues don’t just affect timelines and budgets; they also have significant human, vendor, and reputational costs that can linger long after the project is completed—or abandoned.

When multiple organisations collaborate, each brings its own systems, workflows, and goals to the table. This diversity is both the strength and the weakness of these projects. The integration of different software platforms and technologies can lead to confusion as teams struggle to align their processes. Everyone is working towards a common outcome, but often with different expectations about how to get there. Without clear communication, technical integration becomes chaotic, and misunderstandings lead to delays and rework.

Now, add to this the challenge of one organisation exerting more influence than the others. This is a common scenario in multi-organisation projects, where a larger or more dominant entity may shift the scope of the project to better suit its needs. Suddenly, the focus of the project changes, and the work that seemed essential a week ago is now irrelevant. The result is scope creep, where the project expands uncontrollably, draining both time and resources. For less powerful organisations, this feels like a losing battle. Their input is overlooked, and they are left to manage an ever-changing project that they no longer control.

These changes don’t just impact the project—there’s a human cost as well. The people involved, from project managers to technical teams, often bear the brunt of constant changes. Frequent rework, shifting priorities, and unclear expectations lead to burnout, frustration, and a loss of motivation. Employees, especially those from smaller organisations, may feel powerless and underappreciated. It becomes harder to maintain morale, and over time, this can result in disengagement or even high staff turnover as people seek more stable projects. The stress of constantly adapting to new demands also impacts productivity, as people struggle to keep up with the shifting scope.

For vendors and system integrators, the cost of confusion is equally steep. Constant changes in scope and requirements mean that vendors are frequently required to renegotiate contracts, delay deliverables, and increase staffing or resources to meet new demands. This results in higher costs for the vendors, often without a clear path to recouping these additional expenses. Moreover, the frequent rework and last-minute changes impact the quality of their deliverables. Vendors may be blamed for delays or technical failures that are rooted in the constantly evolving project scope, which can tarnish their reputation in the marketplace.

Then there’s the reputational cost, which is perhaps the most far-reaching consequence. When a multi-organisation project fails—or even just drags on far longer than anticipated—it reflects poorly on everyone involved. For the dominant organisation, which may be seen as controlling the project, the failure can be particularly damaging. Other stakeholders, vendors, and even future partners may be wary of entering into new projects with organisations that are seen as poor collaborators or prone to mismanaging large, complex initiatives. Even successful projects can leave a bad taste if the process was marred by confusion, delays, and unanticipated costs.

So, how do you overcome this confusion and get these projects back on track? First, it’s essential to establish a clear governance framework from the outset. This means setting up a decision-making body that includes representatives from each organisation involved, ensuring that no one entity can unilaterally make major changes. Regular meetings with clearly defined objectives should be part of the process to prevent misalignment as the project evolves.

Another key factor is communication. It’s critical to set up clear, structured communication channels that allow for open dialogue between all parties. Transparent communication reduces misunderstandings and ensures that everyone is on the same page. If something changes, all stakeholders need to be informed immediately, with a clear explanation of the impacts on timelines and costs.

Managing scope changes effectively is also crucial. Every project has to adapt, but how you manage these adaptations can make or break the project. Any change in scope should be carefully evaluated, with input from all organisations, and should only be approved if the benefits outweigh the costs. Clear documentation outlining how changes affect timelines, resources, and budgets should be mandatory to avoid scope creep.

Accountability needs to be shared. When multiple organisations are involved, it’s easy for accountability to get lost. Who is responsible when things go wrong? The answer should be clear from the beginning. By assigning clear roles and responsibilities, you prevent finger-pointing and ensure that everyone is working towards the same goal. Shared accountability creates a sense of ownership, which is essential for keeping the project on track.

And don't underestimate the importance of culture. Each organisation has its own way of working, and cultural differences can contribute to confusion. Taking the time to understand each organisation’s culture and finding ways to bridge the gaps will foster collaboration and reduce friction. A shared sense of purpose and mutual respect can go a long way in preventing the power struggles that often lead to confusion and project failure.

In summary, confusion in multi-organisation ICT projects can be managed, but it requires careful planning, strong governance, and a commitment to communication and collaboration. The human, vendor, and reputational costs are too high to ignore. By addressing these issues early and proactively, you can turn the complexity of multi-organisation projects into a strength, rather than a liability. After all, when everyone is aligned and working together, the potential for success is enormous.