In part 1 of this article series, we accepted that Projects sometimes need to be cancelled. In part 2, we look at how sometimes the Project being worked on is no longer the right Project. In this part 3, we will look at the other cause of cancelling: the Project isn't being done right.
A classic way to consider project performance is via the triple constraint of scope/cost/time, often with quality thrown in the mix. However, despite the best of intentions, it is widely documented how projects often go awry during delivery. Cost or schedule over-runs, or low quality output that don’t meet the requirements; everyone has not only heard but probably been involved in a project car-crash. Although these Projects can sometimes eventually be recovered and successfully deliver what they set out, on some occasions they could go so far off the rails that they becomes undeliverable – perhaps it many times over budget and years late. It may be time to cancel. The focus here should be on the Project Business Case: the document where the benefits of the project are weighed against the associated costs. This Business Case will constantly evolve, and as a Project is delayed or proving more costly than initially forecast, it will start to impact that careful balance of cost vs benefit to the point where it may eventually tip over the threshold of just not being worth it. What causes this? There are of course a myriad of potential causes, but if a Predictive lifecycle was used then essentially the Projects Performance Measurement Baseline wasn’t robust enough: Estimates too optimistic indicating a flawed estimating process, too many unknowns not effectively managed via the risk process, ineffective project management or technical skills, or perhaps requirements were not well enough defined. If an agile development method was used, perhaps the initial backlog wasn’t sufficiently documented, Project or Sprint goals ineffectively understood, poor backlog prioritisation and maintenance by the product owner – indicating a skills gaps etc In this case, the desire that drove the original project to be initiated may often still exist. The result here is that a change of approach may need to be considered. Perhaps a revisit of the often key “buy vs build” decision, change in a key supplier, or perhaps a fundamentally different technical approach to delivering the desired outputs. Have you ever worked on a Project which has been way behind schedule, or hugely over cost? Have you ever had to fundamentally change your approach? Let us know in the comments below! Stay Healthy! Project Health Check - projecthealthcheck.org
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In part 1 of this article series, we accepted that Projects sometimes need to be cancelled. In this part 2, we look at one of the two reasons we identified: it's no longer the right Project.
Projects are often part of a Programme, a wider organisational structure that looks at the bigger picture and the long term business strategy across many years. Individual Projects on the other hand tend to come-and-go,the way, maybe lasting a couple of years at most. It is the Programme that will really be looking at the business vision and roadmap; where the business is going and how it will get there. For this it will likely use Benefits Management techniques such as benefits profiles and benefits maps: looking at the Businesses Objectives, it will trace these back into desired benefits, outcomes and then into outputs required – which Projects are then conceived to deliver. The problem may be that along the way that the wider organisation has changed, such that the output the project was designed to deliver is no longer fit for purpose - it will no longer trigger the benefits that were desired. For example, consider an organisation looking at expanding its manufacturing capacity at a certain site in order to meet a forecast increased demand for it’s product from its customer base. Potentially a number of Projects would then be initiated to build the new physical infrastructure (buildings, roads), train additional staff, provision IT and canteen facilities etc. But, if a change in economic circumstances results in the business reducing its forecast demand for their product, then this entire endeavour may no longer be required - they don't need the increased capacity after all. So it’s not that the projects aren’t delivering well against its requirements, it’s that those requirements have changed in a major way or potentially may no longer exist at all. How does this happen? Simply: the world changes, and implementing projects takes time. By the time the Project has been initiated and started working, it is no longer needed. A good acronym for monitoring these wider global influences is PESTLE: Political, Economic, Social, Technological, Legislative and Economic. Have you ever experienced a Project getting overtaken by real-world events, such that it is no longer relevant? Keep the points above these in mind when you ask the question: is this still the right Project? Stay Healthy! Project Health Check - projecthealthcheck.org Work in Project Management long enough, and eventually you will come across everything - this will include having a Project you were working on cancelled. This can be a difficult process because we are often personally invested in Projects, and seeing all that hard work being seemingly be in vein can be difficult. In this article series I give some considerations to cancelling projects, discussing if it should be done, why it should be and how.
Firstly, today I will look at the question "Should Projects ever be cancelled?" Quite simply: Yes. The alternative is to suggest that all Projects, no matter how warped, off-track or irrelevant they have become, should be permitted to go on indefinitely. That clearly doesn’t make sense, so we need to accept the hard truth that cancelling a project is sometimes the correct decision. However, rather than seeing it as a purely negative activity, I suggest that cancelling Projects should actually be seen as a sign of strength. There is always the temptation to continue to throw good money after bad, to keep plugging away at something for just a bit longer, work a bit harder etc. But to have the courage to go against this and make the decision to end the project is tough – but such is the nature of leadership. It requires the ability to emotionally disconnect from the project and look at the big picture, consider the facts at hand and make a clear decision. So whose responsibility is this decision? Well this will depend on the organisational structure, but essentially the Project sponsor, sponsoring group or body; this may be the Programme Manager, a Project Sponsor or a Project Board. If this isn’t clear within your organisation then this potentially points at bigger problems, and even hints at how the project may have found itself in this position in the first place. The Project Manager themselves shouldn’t make the decision, instead they may identify that they don’t think the project will meet its desired goals, and communicate this to the higher decision making body for review. So, why would a Project be cancelled? In my view it can one of two main reasons: It’s not the right project any more, or the project isn’t being done right. In the next articles in this series I will look at each of these in turn - stay tuned! In the team time, have you ever worked on a Project that has been cancelled - or even had to decide to cancel one yourself? Stay Healthy! Project Health Check - projecthealthcheck.org |
Mission:To understand why do Projects Fail and what we need to do differently to stop it happening again. Archives
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