Moreover, the statistics also indicate that the bigger the project, the greater the chance of failure! This is certainly cause for concern.
IPA* defines project failure as being a consequence of –
A budget over-run of more than 25%
A timeline target over-run of more than 25%
Unmet functional objectives
While the failure may be one or a combination of these factors, the outcome is the same. The same research identified five key causes of failure. Too often it is a lack of team integration, caused by outsourcing of responsibilities to another agency without the benefit of understanding accepted processes or common pitfalls.
For project success, we advise that for every external agent, an internal executive is required; one who understands project risk and can confidently ask the difficult questions. There is no room for assumptions, whatever the size of the project.
Success may well mean that the up-skilling of your executives is essential. At PCA Directions by making recommendations for best practice improvement, we can assist you build the skills of your internal staff necessary to create a risk adverse team culture.
Awareness of project risks, understanding and addressing those risks and then developing solutions from the outset gives greater prospect of project success. Those responsible for delivering major Australian infrastructure and energy projects, recently highlighted by negative press coverage, are certain to agree.
Independent Project Analysis (USA) analysed 318 projects from around the world, valued at US$3.25Bn. IPA defines a mega project as one valued at more than US$0.5Bn.