An Analysis of Project Failure: Causes, Implications, and Solutions

This essay delves into the multifaceted causes of project failure, emphasizing the criteria used to assess such failures. It highlights that projects are initiated with specific objectives, and success is measured by adherence to timelines, budget, and quality. The essay argues that deviations in these areas lead to project failure. It analyzes factors such as ineffective leadership, cultural differences, and inaccurate budget estimates as primary causes, detailing their implications for project management practices. The discussion covers the impacts of project failure, including increased costs, failure to meet business requirements, and diminished innovation capabilities. The essay concludes by summarizing the key factors contributing to project failures and their consequences, reinforcing the importance of addressing these issues to enhance project outcomes. The analysis underscores that projects do not fail instantaneously but gradually, with ineffective leadership and team dynamics playing a critical role.

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ABSTRACT
This essay presents an analysis of the various causes of project failure with emphasis on the
various angles in which such failures are assessed. The essay draws attention to the fact that
projects are initiated with specific objectives upon which the successful implementation of the
project is assessed on completion. It argues that if the project is successfully implemented in it
initial quality within timelines and budget, it can be said to have succeeded .On the other hand if
this is not achieved, the project can be said to have failed. The essay analyzes the various causes
that can make projects to fail as well as the overall impact that such failures are likely to have on
the project management practice. The essay then ends with a conclusion that analyzes the main
points that have been addressed.

INTRODUCTION
Different projects are initiated to achieve certain predetermined needs both at the individual,
organizational and community level. A project can also be initiated to meet needs for a certain
country. This, therefore, means that each project to be initiated must have certain objective upon
which the success of a project is measured. The achievement or failure to achieve these
objectives is to a large extent dependent on the ability of the project team to adhere to established
guidelines in their operations. Project management involves the initiation planning and
execution, controlling and closure of the work of a given team in order to satisfy certain specific
goals. For a project to be deemed successful, it must meet an established success criterion. This
essay will focus on analyzing the various causes of project failure as well as their implications
for the practice of project management.
Project team or other shareholders in a project can assess the failure of a project based on a
number of parameters. Projects cover specific timelines between their initiation and closure; one
of the parameters would, therefore, be the completion of a project within the timelines.
Alternatively, each project has a budget that is meant to facilitate successful implementation of
all the activities and various stages of a project. Project scope is also another parameter that is
used to establish the success or failure of a project. In this case, the project team or other
interested parties and stakeholders look at whether the initial scope of the project was adhered to.
These are however not the only reasons as to why projects fail, a view held by many different
scholars. There are several causes of project failure, all of which have an implication on the
project management practice.

Ineffective leadership. The role played by a project manager is quite significant in establishing
the success of a project. He or she is tasked with the responsibility of ensuring a project is
successfully initiated, planned for, designed, executed and monitored controlled and closed.
Among the specific responsibilities include ensuring that the project deliverables are maintained.
A project can therefore succeed or fail depending on how the project manager is able to provide
overall leadership to the project team (Bakar, et al,2011) States that a project manager is tasked
with the responsibility of planning and controlling resources to ensure completion of a project
within the schedule, budget and specified quality which are important in making a project
successful. They also go ahead to identify project evaluation, setting up of teams and systems,
monitoring planning, controlling, communication, training and negotiating contract conditions as
the most important roles of a project manager. The inability of a project manager to undertake
these responsibilities would, therefore, result in ineffective leadership and hence the reason for
project failure. (Anantatmula, 2010) also, supports this view that the success of a project is to a
large extent dependent on the leadership provided by the project manager. A good example of a
failed project as a result of poor leadership space shuttle Colombia, which broke down in 2003
killing the seven Astronauts that were on board. This was since attributed to poor leadership on
the part of NASA to which the space shuttle belonged (Starbuck and Farjoun, 2009).Another
example of a failed project due to poor leadership is Denver International Airport baggage
handling system.
Cultural differences. This is particularly the case with international projects involving people
from different cultures and nationalities. Cultural differences refer to a system of beliefs, values
and rules of conduct which distinguish one societal group from another. Having people from
different cultures can be a reason for success or failure depending on how these differences are

handled. Cultural diversity is increasingly becoming important due to the fact different groups
working together are likely to be comprised of various cultural, ethnic groups .This presents an
opportunity to learn from each other which acts as a basis for cooperation and collaboration.
Among the advantages that accrue to project teams is increased morale, availability of different
perspectives and community relationships. In multinational projects, these cultural differences if
not handled well are likely to have an impact on the success of the projects by reducing the
morale of the project team and making it impossible for the group members to collaborate and
cooperate(Shore, 2008). Successful management of cultural differences among a project team
can make the team more effective and facilitate timely completion of a project. Consequently,
failure to manage cultural differences can lead to project delays. Therefore one cause of project
failure especially for international projects is the failure to understand and manage cultural
differences among the project team (Kivrak, et al,2009). Lack of consideration of cultural
differences makes the project team lack motivation and hence be unable to do their best thus
resulting to project failure.
Wrong Budget estimates. Project budget represents a detailed estimation of all the costs that are
required to successfully complete a particular project. Project budget provides an overview of
how funds will be utilized in various endeavors from the initiation to the completion of the
project. Project budgets differ from project to project depending on the complexity ,time and
scope among other factors .Adoption of correct budget estimates is important in that it ensures
that the project quality is maintained and that the project is completed within the schedule. At
many times project teams work with budget estimates that are completely off which result in
resources running out before projects are completed and subsequent halting of projects

(Abouzahra,2011). Coming up with a project budget requires the input of both the project
manager, project sponsor and the project team.
(Shauchenka, 2013)However, argues that failure of projects is not solely because of poor
leadership on the part of the project manager but also as a result of incapacity and lack of
cooperation on the part of the entire project team. Realization of a project that meets the desired
quality and that is within the budget and timelines requires commitment on the part of the project
team. However regardless of the whether the manager is a good leader if the team he leads lacks
commitment, are inefficient and basically concerned with other activities not related to the
project, it is likely to result to project failure. Other aspects that lead to project failure include
poor communication, over planning, poor stakeholder participation, underestimation of
timelines, poor planning, setting unrealistic expectations and lack of scope document (Gichoya,
2005).
Project management basically refers to the act of overseeing and implementation of a project.
Usually, every project has specific objectives which are geared towards producing a certain
defined outcome. With this as the case, therefore, there are serious implications that come as a
result of project failure.
Extra cost. The major consequence of project failure has to do with the budget of the project.
Failure of a project to be completed within the scope and budget means that a project will require
additional price tag which can be considered as unwanted. This extra budget is incurred in terms
of extra resources both human and capital, project equipment and other resources all of which
have the capability of undermining the reputation and stability of the project organization
(Robertson and Williams, 2007).

Failure to meet Business or organization requirements. Any project that is initiated is usually
meant to satisfy certain predetermined needs upon completion. These requirements, however,
remain unsatisfied in an event where project failure is experienced. What this means, therefore,
is that organizations may be forced to initiate new projects to satisfy those needs which lead to
wastage of time and resources. In some instances, however, there would be no time to initiate
newer projects which could have an adverse impact on the operation of a business or
organization (Shepherd, Patzelt and Wolfe, 2011)
Failure of organizations to innovate. In the modern business world, there are high rates of
competition that require business and organizations to constantly innovate in order to remain
competitive. Successful innovation requires a substantial amount of resources. However, the
ability to innovate can be significantly affected by project failure which is likely to steal
resources and shift the focus of management and project team. This ends up minimizing the
ability of an organization to innovate or making it impossible for an organization to innovate
(Shenhar, et al, 2011).
This also affects the ability of an organization to develop due to the fact that so much time is and
resources are spent on the failed project hence reducing the resources of an organization as well
as the time that can be used in other undertakings to ensure the overall growth of an organization.
Analysis: Projects do not fail instantly. Failure is a gradual process and which occurs in the full
awareness of the project team. Ineffective leadership makes one or a number of project aspects
dysfunctional which finally results to failure. When the project team cannot work as a single
group as a result of perceived differences that may exist among them, it becomes difficult to
monitor progress and maintain the scope of the project which ultimately leads to project failure.

Every part of project implementation requires some budgetary considerations, this makes budget
an important component of project success without which implication cannot take place. Since
organizations work with certain guidelines and within timelines, and due to the interdependent
nature of operations, failure in a single undertaking has the possibility of leaving the rest in
jeorpady.
CONCLUSION
In conclusion, there are numerous factors that lead to failing of projects. Among the most
common is poor leadership on the part of the project manager, incompetence on the part of the
project team, failure to adhere to project scope, inadequate project budget and inaccurate time
estimates. Cultural differences among the project team if not managed well can also be a cause
for project failure. There are also a number of implications that accrue to project management
practice as a result of project failure. These include wastage of time and resources, failure to
meet project expectations incapacitation of organization among others.

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