How to Avoid Project Failure by Anticlue

We have all heard the war stories of failed projects - Scope Changes running out of control, Budget Overuns, Lack of System Adoption, Automation Failures, and Live Events with fundamental system errors.

But how is project failure determined? When is the tipping point between a success and failure? Why do projects fail? Often hindsight is 20/20 and the key reasons for project failure are clear to the beholder. Consider this tale of two Ambulatory EMR implementations in different physician practice organizations. Both practice organizations have approximately 30 physician offices. Both Ambulatory EMR Implementation projects are about 2 years behind schedule. Then the likeness stops, ABC implementation has provided new equipment and installed basic result reporting in 5 sites. The XYZ implementation has provided new equipment, implemented a centralized billing office, and implemented results, orders, documentation, and e-Prescribing in all offices. Which one is a success? Which one is a failure? Surprisingly, ABC is perceived at a stunning success while XYZ implementation is described as a failure.

Let's expand upon what exactly is project failure and examine the common characteristics which cause some projects to fail.

Defining Project Failure

A project is considered a failure when it has not delivered what was needed according to expectations. A project is considered a success when it delivers the desired business benefits according to cost, schedule, quality and risk constraints.

Unfortunately, those definitions do not crystallize what is needed for project success, because success is achieved according to the manage expectations of the organization. In the above scenario even though project XYZ has delivered everything which was in the project requirements it is still consider a failure because it didn't include the vital elements for sustainability that the stakeholders needed. How key stakeholders perceive the project deem its success or failure.

Common Reasons for Project Failure

Let's delve into the key reasons for project failure:

• The wrong business need has been addressed - Nothing is more frustrating that solving the wrong problem. Every so often projects are launched and executed delivering a solution which doesn't address the true business need. In these cases, the project will be considered a failure, even though everything was delivered according to plan - on time, on budget. If your project doesn't deliver what the organization really needs, it will be negatively perceived. this will inevitably negatively affect how it's perceived. It is important to solve and address the true business needs. If during your project, it becomes clear that the outcome will not address the true need. Escalate it up through the project sponsors and governance committee.


• The business case is a fairy tale and outcome delivery is a dream - Welcome to mission impossible for project managers. Optimistic Honesty is your true course here. We all enjoy challenges, but be truthful about the risks and work to mitigate and avoid the troublesome ones as much as possible. Work collaboratively with the sponsor to overcome barriers and obstacles while keeping eyes on the desired outcomes. Clearly identify the trigger events and have the whole team be watchful. Often in these types of project there are dependency on the deliverables, which is why it's a good idea to keep one eye on the goal and the other on the risks. Also exhibit the leadership skill of truthful realism and have the difficult conversations soon rather than later. For example, you CMIO may be disappointed but with clinical system adoption is crucial. It will be harder to have the conversations after the problems have occurred.
  
• Project Goverance has not been define or implemented - Quite often in change transformation projects, sponsorship and project governance are the key ingredients to successful adoption and implementation. Project governance comes in the form of a steering committee. The Steering Committee provides guidance for the project recommending mitigation strategies to risks, encouraging re-enforcement with stakeholders, and monitoring project performance. They have the strategic view of the project and provide advocacy for the change. The project sponsor's role is to the lead the change effort assuring stakeholders expectations are managed and results are achieved. Both roles are key to project success.


• Execution is heralded by Hail Mary Passes - If in order to deliver your project, you know it is going to rely on a few hail mary passes its time to look at the execution roadblocks. In Healthcare IT, what we do should be perceived as magic. Our team including the informatics department should be a well oiled packed solution implementation machine. Delivering technology adoption kicks it up from just implementing a solution, but if the solution implementation is not your team's strong suit you have an impending project failure. To avoid the failure, look for the weak links or skill set gaps and address them through training and bringing in consultant who have done it all before.


• The business environment changes - It's the management renewal process, one day while getting coffee down the hall, the rumor mill is buzzing with the latest management changes. Perhaps that VP who was advocating for your project has now decided upon greener pastures, or suddenly that latest and greatest technology missed its FDA approval for glucose monitors. Suddenly your project has become outdate while in mid-step. It is time to regroup with the steering committee still in place and assure the desired benefits are still worth the effort.

The Take Away

For a project to be successful, you need to manage to the outcomes and business benefits desired and assure the delivered solution is adopted and utilized by the stakeholders. It is not enough to be on time and on budget. Make sure you manage the change transformation along with the project execution. Success is deemed from the eyes of the stakeholder, so add in the tasks and steps to manage their expectations, market the solution, reinforce their support, and address their concerns.

If you enjoyed this post, you may also enjoy reading:

• The top 10 reasons of project failure


• The top 10 Characteristics of a Chaotic Project Management Culture


• The 5 levels of Healthcare IT Credibility

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