Why High Project Failure Rates Aren’t Necessarily a Problem

In the world of project management, a high failure rate is often seen as a bad thing - but is it really?

?Sure, money can be wasted, reputations affected, and there are undoubtedly a host of other negative and adverse things that happen - but what did you really expect? ?Maybe the issue is really just the dent in our collective professional pride and ego and also that we have unrealistic expectations.

?Project management is all about doing things that haven’t really been done before and subject to quite a few constraints - that’s the reality of the project environment - so why do we think 60, 70, or 80% of project “failing” is a bad thing or an unexpected thing? What if that was the norm? The unchanging statistics over many years would seem to suggest that is actually the norm and we need to change our expectations.

?In a way project management is a lot like new businesses, research initiatives, and scientific discoveries. We don’t expect every new business to succeed but you don’t see scary headlines about that. We don’t expect every new research and development initiative to work out. We don’t expect every new scientific discovery to turn into something useful. We don’t label the ones that don’t succeed as failures, do we? No, we expect some of these things to not succeed simply by virtue that that are trying to achieve something novel and new.

?Let’s start by talking about the word “failure” - there are different degrees of failure but they are all presented in the headlines as a single thing implying catastrophic failure of projects when in fact it is often degrees of failure. ?I saw a report a few years ago that once loudly proclaimed 70% of projects failed but when you looked closer at their data it told a different story. About half the “failures” were indeed failures – didn’t deliver anything of value, way over budget, way behind schedule, very unhappy clients, or users. But when you looked at the other half of “failures” they were what I call technical failures – they delivered something that the client or user loved and was happy to pay for but they were judged a failure because what was documented didn’t match what was delivered – lets be honest, that it’s a failure. Sure, it’s a failure of proper change control, documentation, and communication but judging the nature project as a failure almost seems like a headline in search of data to justify it.

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While no one aims for failure (and it should never be a deliberate goal without acknowledging the consequences), it's essential to recognize that it may be the norm in the world of project management. Instead of fearing high project failure rates, embrace them as opportunities for growth, learning, and innovation. After all, as the old saying goes, "It's not about how many times you fall, but how many times you get back up."

?In fact, there are other ways to view project “failure”.

?1. A New Perspective on Failure

Failure is often stigmatized, but in reality, it can be a goldmine of learning opportunities. Every failed project offers insights into what didn’t work, allowing teams to learn and get better on future projects. The secret is to actually gather, store, and learn from these lessons otherwise you will be condemned to repeating the same old mistakes.

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2. Innovation Requires Risk

True innovation, and the projects that delivery it, involves venturing into the unknown. And with the unknown comes uncertainty and the potential for failure. If a company isn't failing with its projects occasionally, it might be playing it too safe and missing out on groundbreaking ideas and opportunities.

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3. Building Resilience

Dealing with failure helps teams build resilience and adaptability, both crucial traits in today's VUCA business world. Overcoming challenges strengthens team cohesion and fosters a growth mindset. Of course, you don’t have any failure to become the norm because no one needs constant failure.

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4. Rethinking Metrics of Success

Perhaps it's time to rethink our metrics of success. Instead of focusing solely on project completion, consider factors like knowledge gained, skills developed, and relationships built. These intangible metrics can be more valuable than the immediate success of a project.

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5. Fostering a Culture of Continuous Improvement

Embracing failure creates a culture of continuous improvement. Teams are more likely to engage in constructive feedback, collaborate, and iterate, leading to better outcomes in the long run as long as honesty, trust and an absence of blaming are present.

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So, should we give up trying to reduce this failure rate? Well, no. There’s always room to get better but also important to realise what normal is.? And as a final thought and nod to the growing profession of project management - Let’s celebrate that it’s not 95% failure ?? because maybe without well trained and experienced project managers that’s what it would be.

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