Why Tech Projects Fail (And What You Can Do About It)

Picture this: you're a small business owner or a non-technical founder with a groundbreaking idea for a new app or platform. You're convinced that your concept is going to revolutionize your industry and become the next household name. Fueled by enthusiasm and armed with a modest budget, you assemble a team of developers, designers, and project managers to turn your vision into reality.

However, months (or even years) down the line, you find yourself staring at an unfinished product, a dwindling bank account, and a growing sense of frustration. Your once-promising tech project has become a source of endless delays, budget overruns, and missed opportunities.

If this scenario sounds all too familiar, you're not alone. At Atom CTO we have seen projects fail not only in the start-up space but even when there millions of dollars budgeted and the projects are being run by blue chip consulting companies.

But why is this the case, and more importantly, what can you do to avoid falling into the same trap?

To diagnose the issues, we’ve come up with a funky acronym - CPOP: communication, people, oversight, and planning and in this article we’re going to deep dive into each of these areas and explore how they can make or break your tech project.

Communication Breakdowns

Clear and consistent communication is the foundation of any successful project, yet it's often the first thing to fall by the wayside when things get hectic.

You need clear and consistent communication at the start of a project. We’ve had clients come to us stating that they are confused because they’ve gone out to tender to a range of different development companies but each has come back with wildly different estimates.

When we dig deeper, we find out that the client hasn’t created a single specification that can be shared across multiple vendors - they don’t want to spend the time planning - instead, they say different things to different vendors and magically expect them all to be estimating the same project.

If you cannot communicate consistently and effectively to your potential tech partners then you’re never going to stay on track but this works both ways. You need to demand effective communication from the vendors that work for you and for all of the software developers / agencies reading this post - don’t hide bad news!? Business owners can’t plan properly if you are constantly going to say that something is going to be delivered but is not - you will never get into hot water if you are open with your clients, if you start hiding things then you deserve the wrath that will fall upon you.

For business owners and founders, when you’re talking to a prospective tech vendor, ensure that their methodology involves regular meetings to prioritize work and check on progress. Don’t just sign the contract and check back in 3 months, if you do that, you’re bound to be delivered something that you don’t want / need.

Don’t forget, your business does not remain static whilst development takes place. As you talk to potential customers you will find that features you thought were relevant and required from day 1, may not be and if you don’t have consistent communication with your tech team, you have no way of changing priorities.

To avoid communication breakdowns, establish clear channels of communication from the outset. Spend the money on creating comprehensive project briefs, set up regular check-ins with your team, and ensure that everyone is on the same page regarding objectives, timelines, and deliverables. Don't be afraid to put things in writing – a well-documented project plan can save you countless headaches down the road.

The People Problem

Even the most well-planned project can be derailed by people-related issues. Egos, mismatched skill sets, and a lack of accountability can all conspire to throw your tech project off course.?

To our mind people are the single greatest reason why projects fail - vendors can’t admit that they are unable to deliver and business owners are too stubborn to listen to good advice.? One business that approached us had spent ￡6 million in 6 years on developing a product that was never delivered.??

Why? It was because the CTO in charge of the project wanted to build perfection and the CEO of the company didn’t have the presence of mind to challenge him or to seek advice as to what to do.

Don’t be afraid to question yourself, your team, especially if they are not delivering but the true way to mitigate this issue is to assemble a team that is not only technically skilled but also aligned with your company's values and goals. This may mean looking beyond impressive resumes and focusing on individuals who are collaborative, adaptable, and willing to check their egos at the door. Establishing clear roles and responsibilities, setting measurable objectives, and fostering a culture of transparency and accountability can go a long way in keeping your team on track.

Oversight Oversights

When you're pouring your heart and soul (not to mention your hard-earned cash) into a tech project, it's tempting to take a hands-off approach and trust that your team has everything under control. However, this can be a recipe for disaster. Just as you wouldn't let your child grade their own homework, you shouldn't allow your tech team to operate without proper oversight.

This doesn't mean micromanaging every aspect of the project, but rather implementing a system of checks and balances to ensure that everything is progressing as planned. We recommend bringing in an external party to review the work at regular intervals and provide objective feedback. This could be a trusted advisor, a mentor, or even a third-party consultancy that specializes in tech project management.

Planning Pitfalls

Finally, we come to the fourth and final factor in the CPOP framework: planning (or lack thereof). Many tech projects fail because they try to do too much too soon, cramming in every conceivable feature and functionality without considering the user experience or the business impact. Others fail to plan for the inevitable changes and pivots that come with running a business in a dynamic market.

To avoid planning pitfalls, use a common sense approach to planning. Don't worry about measuring productivity, your main priority is to ensure that your tech team is delivering a functioning system that is iteratively getting better and is something you can put out to market to generate revenue.

This means prioritizing features based on user feedback and business value, rather than trying to build the perfect product right out of the gate. It also means building in flexibility and contingency plans to accommodate shifts in market demand, technological advancements, or other unforeseen circumstances.

Avoiding the CPOP Trap

So, how can you steer clear of the dreaded CPOP trap and set your tech project up for success? Here are a few key recommendations:

1. Clearly communicate the "why" behind the project to ensure everyone is aligned on the end goal.

2. Establish measurable KPIs to track progress and identify areas for improvement.

3. Embrace change and plan for pivots, rather than rigidly adhering to a fixed plan.

4. Foster a collaborative, ego-free environment where everyone feels empowered to contribute their best work.

5. Regularly check in with your team and ask tough questions to surface potential issues early on.

6. Don't hesitate to bring in outside expertise to provide guidance and oversight – it may seem like an added expense, but it can save you money (and heartache) in the long run.

7. Always have a Plan B (and C, and D) in your back pocket, so you can quickly adapt when things don't go according to plan.

By following these guidelines and being mindful of the CPOP factors, you can dramatically improve your chances of tech project success. Remember, building a successful app or platform is not a linear process – there will be ups and downs, triumphs and setbacks along the way. The key is to stay focused on your ultimate goal, surround yourself with a talented and dedicated team, and be willing to learn from your mistakes.

Projects will fail. You are not always going to be able to get what you want on time, and you may not always get what you want full stop. But if you plan well, hire people that listen rather than talk and understand and mitigate your risks, you can minimize the damage that a project overrun can bring and you will turn your tech project vision into a reality – and who knows, maybe even become the next big thing.

If you'd like to learn more, visit our website or listen to a LinkedIn live webinar where we describe the challenges non-technical founders face when managing projects and also provide some advice on what you can do to prevent those challenges from arising.

If you are currently facing a tech challenge or just want to have a chat, you can reach out to me via LinkedIn, via our Atom CTO page or just contact us.

We also run free clinics where you can come and talk to us about your challenges:

• Atom Tech Clinic
• Project Delivery Clinic