In the last few decades, project-based organizing of activities has been one of the main ways organizations implement changes in their business. Generally, a company's core activity is considered 'operational work' or 'run the business,' while initiatives aimed at changing some part of the business are organized as project initiatives. Depending on the maturity and strategy of the organization, project initiatives can be more or less structured, but the following key features characterize them:
- They have a clearly defined business goal
- They are resource-constrained
- Projects are not repetitive
Although almost all organizations implement projects today, project success assessments are very discouraging. According to some research, up to 70% of projects are considered unsuccessful by organizations, with a significant portion of these projects being deemed unsuccessful due to exceeding the planned budget. Bearing this in mind, there is a tremendous opportunity for improvement in project management practices. This text highlights some of the biggest mistakes seen in project management practice.
1. You have chosen the wrong methodology for managing the project
The two most commonly present project methodologies can be classified as traditional ('waterfall') or agile; both extremes have advantages and disadvantages. Whichever methodology you choose, it must be suitable for the specific project. If the wrong one is selected, the methodology will likely require useless bureaucracy on the project and have inappropriate flexibility. A typical example used is: would you want to use an agile methodology that encourages discovering the project scope later when building a bridge? Certainly not, as infrastructure projects are a typical example where a higher level of certainty and predictability is needed at the beginning of the project.
2. You are not seriously managing risks
No matter how mature the organization, how qualified the team is, or how strong the project support is, project risks always exist, and the biggest mistake that can be made is not recognizing them promptly. In practice, the question is often asked: 'Why is it important to deal with hypothetical situations and spend time on them before they happen?' There are many reasons, and here are just a few of them:
- The risk identification process puts the project team in a situation to proactively think about possible project scenarios and prepare for them.
- Risk identification often forces acknowledging some truths that are not publicly discussed.
- Risk management involves all participants in the project, from operational members to executive sponsors, and discussing risks increases transparency at all levels.
- If any risks materialize, there is a greater chance that corrective actions will be implemented according to a pre-defined response to the risk, calmly and with a clear head.
3. You are not using an adequate project management software tool
In addition to many modern project management tools that often offer accessible or affordable usage models, managing a project in Excel is still frequently encountered. Although non-specialized tools can cover some of the project management needs, such as a list of project activities, specialized tools offer many benefits and increase the chance of project success, including:
- The ability to track project indicators in real-time (KPIs)
- The ability to automate reporting, which increases the level of understanding and transparency on the project
- Systematized project documentation and communication, saving time spent on 'overhead' activities
4. The project lacks adequate support from management and a governance structure
This problem is less common in smaller organizations, but in larger companies and corporations, it is recognized as one of the critical factors that can 'kill the project.' Management of a company not actively involved in the project can often slow the decision-making process. Still, it can also directly block project progress by making decisions that affect the availability of resources for the project or introduce additional complexities and risks. For all these reasons, it is crucial to define an appropriate governance structure and processes on the project and only then engage project sponsors correctly.
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