WHY PROJECTS FAIL (Part 2)

One of the telltale signs of large E&P project failure is the turnover of project leadership. “93% of E&P projects with a turnover of the project director failed.” (Merrow).

While other factors may be at play in the projects surveyed, one still cannot dismiss the striking correlation. Indeed, when a project wants to go wrong, many things go wrong more or less at the same time. Not to forget the small matter of the project director’s core team that comes with the director and leaves with the director.

The project director is usually the only individual on the project team with a holistic view of the technical, commercial, contractual, and regulatory aspects of the project, leaving the project severely vulnerable to discontinuity in the project director role. On small projects where a project director may be thought unnecessary, the project manager assumes most of the functions handled by project directors on large projects. But the effects of discontinuity in the roles are similar.

When a project director/manager leaves, the project team experiences sudden psychological and functional disorientation. The situation is not always arrested by the new project director/manager. I have experienced a few such changes in my career, none was a smooth transition. In some cases, the work done before the change of batons was completely ripped apart and restarted. This is generally bad for morale and the health of the project. 

Solutions?

I believe that a lot of effort should go into selecting and keeping the project director or manager for the duration of the project. The right project director or manager very likely knows how to plan and execute the project to avoid failure. This means his/her views on the overall project strategy should not be overlooked by the business team; project directors do not like situations that look like they are being set up for failure.

Some of the sensitive issues include project staffing needs, a realistic schedule, and contractor evaluation and selection. I know an experienced project manager who turned down a high-paying PM job because he was unclear about his authority regarding project staffing. I know a different project manager who, citing staffing concerns and insufficient authority, left his job the Friday following the Monday of his appointment.

With the right director/manager selected and provided with adequate authority to go along with his responsibility, the project sponsor may also benefit from adequate succession planning. A useful strategy could be shadowing. The project director/manager should have a company-nominated deputy whose job is to shadow the director/manager and get ready to take over, at least temporarily, should the unthinkable happen and the principal leaves. 

Bringing it together

1. Changes to the leadership team of a project is generally not a good thing.
2. Time and effort should be spent on selecting the right leadership for a project.
3. The leadership should be granted support, authority and relative autonomy to do the project right. Experienced and competent project leaders don't do well as puppets.
4. Sponsoring organisations need practical strategies for succession, should project directors/managers leave suddenly.

Project failure is a multidimensional problem. Eliminating specific contributory factors that lead to failure may reduce the dimensionality of the problem and improve the chances of success of projects, large and small.