| Failure is rampant among IT projects. An article | | | | department, from IT employees to the CIO. |
| published by states that 71 percent of information | | | | Prevention is, in fact, more effective than finding a |
| technology initiatives are unsuccessful. To ensure | | | | way to solve a problem that has already surfaced. |
| these trends don’t prevail within your | | | | An ounce of prevention |
| organization, it’s essential to understand the | | | | Although the consequences of project failure are |
| causes of failure and take steps to prevent them. | | | | dire, strategies exist to help IT departments improve |
| What failure means to the individual | | | | their methods and strengthen their resources. Here |
| Depending on the nature of technology project | | | | are some suggestions: |
| failure, the ramifications can be significant. For | | | | Be reasonable — In a high stress environment, it is |
| instance, in 1988, reports that Bank of America fired | | | | important to recognize the large workloads each IT |
| 225 employees in the wake of a serious technological | | | | worker has. Pushing staff to the limit can put too |
| malfunction that initially cost the company billions of | | | | much pressure on them, raising the risk of making |
| dollars. Although these cases may be rare, there is | | | | mistakes. |
| little doubt that IT project failure often leads to | | | | Pay attention to detail — IT projects involve |
| finger pointing and mistrust and can result in | | | | many steps and different processes, and can require |
| plummeting staff morale, lower motivation, and a lack | | | | significant resource allocations. By breaking down |
| of employee commitment that may put the | | | | project elements, assigning reasonable timelines, |
| company at risk of ongoing project failure. | | | | identifying responsibilities and required resources in |
| Failure and the business | | | | advance, and adopting other project management |
| Failure damages not only IT workers but the | | | | best practices, companies can increase the odds of |
| company itself. In some cases, project failure | | | | success. |
| compromises a company’s reputation, particularly | | | | Seek professional advice — IT consultants are |
| when external-facing applications malfunction. Failure | | | | available to provide a company with unbiased |
| can also compromise a company’s competitive | | | | technical support. They can help refine your |
| edge and reduce its agility. The most damaging | | | | company’s project management and execution |
| consequence of IT project failure is to the bottom | | | | capabilities and identify any red flags that may |
| line. A study conducted by KPMG shows that the | | | | compromise project success. Technology advisory |
| average failed IT project can cost approximates | | | | may be the most effective preventative measure |
| million. For mid-sized companies, this magnitude of loss | | | | available. |
| can potentially threaten corporate survival – and | | | | IT project failure is a serious issue prevalent among |
| will certainly compromise profitability and shareholder | | | | companies in all industries. By learning from past |
| returns. | | | | mistakes and adopting preventive measures, you can |
| These outcomes cannot be overlooked and must be | | | | position your organization to improve the odds of |
| addressed by all levels of the information technology | | | | ongoing success. |