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ICBM-SBE HYDERABAD Vol. 04, No. 02 July – Dec, 2016 ISSN 2347-9256 Editorial Research Articles Rethinking Human Resource Management - Capitalizing Human: The Next Level Dr. Prabhakaran Paleri Global Talent Management Strategies for Organizational Success in a VUCA World - A Conceptual Framework Dr. A. Narasima Venkatesh Critical Failure Factors (CFFs) of IT Projects Dr. G. P. Sudhakar Brand Switching Behaviour of Mobile Phone Consumers Using Markov Chain Analysis Dr. C. V. Krishna & K. S. R. Sarma Modelling of Dividend Determinant in Emerging Economy: An Empirical Evidence from Indian Steel Industry Dr. Akash Agarwal Diversification Strategy and its Effects on Profitability: A Comparative Study Ms. Surovi Gupta Challenges of Educating Rural India Sanjay K Deshpande & Dr. M. M. Munshi Exploring the Linkages between Experiential Value and Attitude of Online Shoppers: A Key to Create a Seamless Customer Experience Professor (Dr.) Parimal H. Vyas & Parag S. Shukla

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Page 1: HYDERABAD - G.P.Sudhakargpsudhakar.com/wp-content/uploads/2018/01/UDAAN Vol... · and Alagarsamy (2013) have defined project failure as “Project failure is when you do not get what

ICBM-SBEHYDERABAD

Vol. 04, No. 02 July – Dec, 2016 ISSN 2347-9256

EditorialResearch ArticlesRethinking Human Resource Management - Capitalizing Human: The Next LevelDr. Prabhakaran Paleri

Global Talent Management Strategies for Organizational Success in a VUCA World - A Conceptual FrameworkDr. A. Narasima Venkatesh

Critical Failure Factors (CFFs) of IT ProjectsDr. G. P. Sudhakar

Brand Switching Behaviour of Mobile Phone Consumers Using Markov Chain AnalysisDr. C. V. Krishna & K. S. R. Sarma

Modelling of Dividend Determinant in Emerging Economy: An Empirical Evidence from Indian Steel Industry Dr. Akash Agarwal

Diversifi cation Strategy and its Eff ects on Profi tability: A Comparative StudyMs. Surovi Gupta

Challenges of Educating Rural IndiaSanjay K Deshpande & Dr. M. M. Munshi

Exploring the Linkages between Experiential Value and Attitude of Online Shoppers: A Key to Create a Seamless Customer ExperienceProfessor (Dr.) Parimal H. Vyas & Parag S. Shukla

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31Vol . 04, No. 02, July - December 2016

Critical Failure Factors (CFFs) of IT Projects

Dr. G.P.SudhakarFaculty Member, The ICFAI University Group, Hyderabad, India

AbstractThere is much hype about the organizational IT project failure rate in both industry and research

community. 66 factors of IT project failure are identified based on literature review of conceptual

and empirical studies. The IT project failures factors are categorized into 6 categories such as

environmental factors, organizational factors, team factors, project factors, technology factors and

project management factors. Based on the occurrence of each project failure factor in the collected

literature, top-10 Critical Failure Factors (CFFs) of IT projects are identified. The top ten critical failure

factors of IT projects include poor project planning, inappropriate estimations, unclear project

objectives & goals, lack of senior management involvement, support and commitment, lack of risk

management, unrealistic schedules and deadlines, scope creep, project management methodology,

ineffective communication, and vague requirements and scope.

Key Words: Critical Failure Factors, IT Projects, Project Failure.

“Information Technology is not a magic formula that is going to solve all our problems. But

it is a powerful force that can and must be harnessed to our global mission of peace and

development”.

- Kofi Annan (2003), Former Secretary General, United Nations

1. Introduction Very little research has been done on finding the detailed factors leading to project failures

(Verner et.al., 2008). IT projects add value and quality to day to day life (Qassim, 2008). IT enhances

productivity and efficiency of individuals as well as teams and organizations (Taimour, 2005).

According to Verner et. al. (2008), software project management is a combination of technical

project management and a set of business decisions impacting the product. IT Project managers

and stakeholders have to face many challenges and pressures from different functions of business

such as marketing, finance, HR, operations, accounting, and users which impact the schedules,

costs and quality of IT project. According to Kessler (2001), technical projects are considered for

business reasons even though the technology is more sophisticated or complex. According to

him, errors introduced in the project at early stage such as requirements are difficult to remove

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32UDAAN: The International Journal of Management Research

and make the project expensive to progress. The project left to itself encounter the chaos (Kessler,

2001). Project failure rate is high in applied disciplines (Emam and Koru, 2008).

Current day organizations are forced with delivering more projects and programs with shrinking

budgets; that scenario, the most inevitable is project failure (Oracle, 2011). According to Rajkumar

and Alagarsamy (2013) have defined project failure as “Project failure is when you do not get what

you expect at the end of your project”. According to Gilge (2013) of KPMG, if we observe the

failed projects, the failures attributed are avoidable and can be predictable. Hence, project team

or stakeholders have to keep a watch on those attributes. According to Emam and Koru (2008), IT

project failures rates reported by different researchers and practitioners range from 9% to 40%.

Critical IT systems are either technical or socio-technical systems used by business organizations

(Ogheneovo, 2014). Williams et. al. (2015) said that project failure is a sensitive issue which can

impact poorly on the organization and can impact the reputation of the team who developed

the software. According to Quick (2004), even if the resources are available also, IT projects keep

failing; organizations are unable to identify that the people are the main reason for project failure.

According to Morisio et. al. (2007), even after 40 years of start of software projects also, software

projects still fail.

“Although the overall project failure rate is high, word of software crisis is exaggerated”.

- Emam and Koru (2008)

2. Research Methodology This paper carries the research on IT project failures addressing the main research questions of

“What factors contribute to IT project failure?”, “What are the categories of factors contributing

to IT project failure?” and “what are the most critical failure factors of IT projects?”. The research is

carried out based on literature review of conceptual and empirical studies available on Internet

and databases using Google Scholar, DOAJ, OpenJGate, and Google. The keywords used for

searching the relevant literature include “Failure Factors of IT Projects”, “Failure Factors of Software

Projects”, “Critical Failure Factors”, “Project Failure”, etc.

Based on the results of search engine, the articles are gathered. As a first step, after reading each

article, the factors contributing to project failure are identified and tabulated. The factors are then

categories into six different categories of failures factors of IT projects. Later on the occurrence

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33Vol . 04, No. 02, July - December 2016

of each factor in all the collected literature is counted and tabulated. Based on the number of

occurrences of each factorby arranging in descending order, the top-10 Critical Failure Factors

(CFFs) of IT projects are identified.

3. Some Important Statistics About IT Projects“When a building is half done, there is something to see. When a software project is half done,

there is very little (if any) to see”.

- Dorsey, P. (2000)

IT Project management landscape has changed even in the last two years (Burger, 2015). The

changes in project efficiency required, project reporting and stress are making the current day

project manager entirely different than the project manager in 2005. The project management

statistics are surprising. One in 6 projects has an average cost overrun of 200% and schedule

overrun of 70% across industries (Burger, 2015). US economy loses around $150 billion every

year with failed IT projects. 75% of the IT and business executives feel that their projects will fail.

50% of the PMOs (Project Management Office) will close down within 3 year of inception. Only

56% of the IT project managers have certifications such as PMP or PRINCE2. Among Fortune 500

companies, 97% feel that project management is important for their organizational performance

and business performance. There are going to be 15 million project management jobs within a

decade.

Williams et. al. (2015) in their survey found that 70% of the companies have reported atleast

one project failure in 2015. Williams et. al. (2015) found that 54% of the project failures can be

attributed to project management issues and only 3% of the project failures can be attributed to

technical reasons (Figure 1). Project failure can be experienced in both private and public sector

(Holgeid and Thompson, 2013).

Figure 1: Project Failure Reasons

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34UDAAN: The International Journal of Management Research

33% of the projects fail because of lack of senior management involvement (Burger, 2015). As

of 2015, 44% of the project managers do not use any software PM tool for project tracking and

management despite PriceWaterhouse Coopers research indicates that use of software project

management tool can increase the project performance, productivity and success (Burger, 2015).

According to Gilge (2013) of KPMG, what works a decade ago may not work today, particularly

related to large projects. Even experienced project managers ignore the warning signs and go

ahead with development in many areas leading to project failures. The alarming thing is many

stakeholders can tell when things are going wrong; however they do not inform the management

in many cases (Gilge, 2013). The failure rate in large IT projects can range from 50% to 80% (Dorsey,

2000; Williams et. al., 2015); humans have tendency to hide bad news, the real figure might be

even higher(Williams et. al., 2015). Failure rates are higher in large IT projects to compare with

small IT projects (Qassim, 2008). Large projects are more likely to fail than small IT projects (Lewis,

2003; Taimour, 2005). 60% of the small projects whose duration is less than 12 months have failed

in a survey conducted in Canadian public and private sector organizations (Whittaker, 1999)

(Figure 2). Large IT projects have tendency to overrun the budget by 50% or more (Whittaker,

1999; Henderson, 2006).

Figure 2: Large and Small Projects in Failed IT Projects

According to PMI, 17% of the project investments are lost and gone forever (Pmtoday, 2014).

According to the first Standish Group CHAOS Report1994, 31% of the projects were cancelled

before completion, 53% of the projects experienced 200% overruns over original estimates

(Verner et.al., 2008) (See Table 1). CHAOS report is based on extensive survey and personal

interviews with IT project management practitioners.

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35Vol . 04, No. 02, July - December 2016

Table 1: Standish Group CHAOS Report Statistics

Figure 3: IT Projects Failed vs. Succeed Over 2 Decades (Standish CHAOS)

4. Literature Review

“In many IT projects, there is no one person who has an overview of the whole project”.

- Taimour (2005)

Verner et.al. (2008) have done a research on 70 failed software projects in US, Australia and Chile

and identified 57 failure factors related to project development and management. They have

interviewed over 90 software project management practitioners. According to their research for

any project number of failure factors range from 5 to 47 factors with median 28 factors (Figure 4).

Verner et. al. research indicates that factors related to project management and organizational

factors which are under control of project manager are responsible for project failures. Project

under estimations and delivery dates effecting the development process were identified as major

factors related to failure of projects.

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36UDAAN: The International Journal of Management Research

Figure 4: Number of Failure Factors any Project can have

According to Kessler (2001), lack of understanding of project team development stages, normal

rhythm and fluctuations by the project manager, can restrict the team’s ability to move forward.

The project failure rate figures are used by many different organizations as benchmarks to compare

with their organizational project performance (Emam and Koru, 2008).Emam and Koru (2008)

have done a web survey of IT projects of Cutter Consortium clients executed between 2005 and

2007 to find out the factors impacting project failures, and to find out whether project size has

any impact on project failure. In their research they found that there is no relationship between

project size and project cancellation. In their research it was found that 15.52% projects in 2005

and 11.54% projects in 2007 were cancelled before completion. The most critical performance

problem in IT projects is to estimate the schedules and managing the estimates (Emam and Koru,

2008). Because of inadequate training in the team, the project sponsor may behave in a coercive

way as the project gets into peak (Pmtoday, 2014).

Failed projects are cancelled before completion or never implemented (Taimour, 2005). The most

common flaw in data migration is that very few resources are invested in that activity (Dorsey,

2000). Kappelman et. al. (2006) have surveyed 55 IT project managers and 19 panel experts to find

out the top project related risks based on early warning signs.

Whittaker (1999) done a survey of Canada’s 1450 public and private institutions to find out the

reasons for IT project failure; and found that lack of top management support, poor project

planning and weak business are the main reasons for IT project failure. In specific research

Whittaker (1999), project failure was defined as the project exceeded costs and schedules by 30%

and the project has been cancelled even before completion or deferred due to inability to execute.

There is a correlation between schedule and budget overrun in IT projects (Whittaker, 1999).

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37Vol . 04, No. 02, July - December 2016

Charette (2005) gave examples of failed IT projects such as air traffic control system of US Federal

Aviation Administration cancelled after spending $2.6 billion in 1994, retailer Sainsbury’s ended

up hiring 3,000 executives to stock their shelves after failure of their supply chain management

system in 2009, Sydney Water Corporation has cancelled its billing system after spending $32.3

million on the project in 2002, Denver International Airport experienced financial losses when

their automated baggage handling system failed in 1995, and American airlines cancelled a taxi

aggregator project they took up after spending $165 million and 3 and ½ years into the project

in 1992 highlighting the reasons of over optimistic schedules and underestimation of technical

difficulties. In 1991, entire AT&T telephone network was down leaving 12 million customers in

trouble because of single bad character in a one line of code. In 1986, London Stock Exchange

cancelled Taurus System’s development after spending $600 million expressing the reasons of

design error and system complexity. NHS, UK has to spend $14.3 billion more for development

and $50.8 billion more for deployment of their electronic health records project. In 1999, NASA

Mars Climate Orbiter was lost because the computers on-board failed to convert English system

units of measures into metric system (Ogheneovo, 2014).

According to Jones (2006), the larger the IT project, the greater the gap is between planed

delivery dates and actual delivery dates. Project success or failure can be measured based on the

project meeting management expectations (Quick, 2004). Laurie (2003) has done research on the

University Accounting System project failure at Northumbria University, UK. According to Laurie

(2003), technology has little to do with, and project management methodology has to be proper

for avoiding project failure. The project management methodology fundamentals can be applied

to any size of the project irrespective of whether small or large project. Once the University

Accounting System did not work for 6 weeks, the team assessed that to bring it to functioning

stage it would take another two years. As a corrective action the university has to restructure the

IT team, design and implement IS strategy, monitor the procedures and processes,and build trust

between academia and administration. In this project, university has paid thousands of pounds

to database software vendor without taking legal advice.

According to Carlos (2005), when everyone is stressed out, the team looks at the single individual

in the project; that is, project manager. 80/20 rule can be applied to project failure factors (Carlos,

2005).

Morisio et. al. (2007) have done a study of 14 companies comprising 38 projects (20 successful and

18 failed projects) in Italy using questionnaires and personal interviews to find out the correlation

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38UDAAN: The International Journal of Management Research

between project staff experience, project manager experience, techniques for requirements

engineering with the project outcome. They found that requirements deficiencies, poor project

planning and adding more people to late project make project fail. This empirical research

confirms the Brooks Law again.

Attarzadeh (2008) have done a survey of 50 undergraduate students in Malaysia who have

executed a project assignment. He found that the reasons for project failures include lack of user

involvement, lack of project planning, incorrect cost estimations, incomplete requirements, and

lack of resources. According to Attarzadeh (2008), the growth in new knowledge has increased

the complexity of project.

According to Sauser et. al. (2009), when a project fails, often engineering and technical reasons

checked for by many stakeholders; this was the same case with NASA Mar’s Climate Orbiter

Misssion which failed after 9 months of travel in space. The reason for failure was attributed

to the approach of project management. Managing risks, uncertainty, managing change and

innovation can lead to project failure of not handled well. The specific reasons for project failure

were attributed to the architectural innovation, and the misfit between project type and project

management approach followed.

According to Mattaand Atshkenas(2003) research published in Harvard Business Review, when a

promising project cannot be delivered, the problem can be attributed to the way the project

was carried out. The managers may think that all the variables related to complex project can be

considered; which is not possible in reality.

Pintoand Mantel(1990)have done a survey of 97 failed projects, and found that the project

failure is related to the types of the project, the stage in which the project is currently in, and the

way project is carried out. According to Pinto and Mantel (1990), the meaning of project failure

has got different definitions and distinctions in the literature.Software product development

requires 10 times more effort than the effort put to develop a prototype (Henderson, 2006). The

software product is in such a way that changes in one component may lead to changes in another

component.

Abbasi et. al. (2014) have done research on three different non-IT projects which failed. They are

British Petroleum could not stop oil flow for three months even after the deep water oil well

explosion; The CEO could not able to handle the organizational change after Chrysler and Fiat

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39Vol . 04, No. 02, July - December 2016

merged; and Millennium dome construction in UK failed for several reasons such as lack of

vision, lack of contingency plans, poor execution, criticisms, poor marketing strategies, financial

mismanagement, and lack of operational expertise. The millennium project was closed on 31

December 2000 because it could not attract sufficient visitors and experiencing financial losses.

5. Failure Factors of IT Projects - Conceptual Model “Working backwards from a fixed project completion date is a sure way to guarantee project

failure”. - Dorsey (2000)

According to Kessler (2001), context, entropy and society are the common factors leading to the

project failure. According to Rajkumar and Alagarsamy (2013), there is no single overriding factor

leading to project failure. Number of factors and their interactions are involved in project failures.

Changes in requirements and scope, lack of senior management commitment, and inappropriate

management skills are the reasons for IT project failures (Emam and Koru, 2008). According to

Pmtoday (2014), as projects get complicated, the failure factors get even more complicated. The

failure factors of the IT projects are mostly linked to the project and organization itself (Qassim,

2008). Project and organization aspects can interact and can impact project failure.

According to Taimour (2005), most common factors of IT project failures are related to project

management itself. Whittaker (1999) have asked respondents in their research to rank the project

failure factors in categories such as risk management, project management planning, project

accountabilities, establishing project expectations, project management execution, corporate

culture, project team, and technology architecture. According to Intosai (2008), project team,

stakeholders, customers, and suppliers can impact the project failure; the main reasons for

project failure are in project management factors. Ogheneovo (2014) based on secondary study

identified the categories of factors impacting IT project failure as human errors, management

aspects, support systems, cyber security and environmental factors.

According to Quick (2004), the category of factors which contribute to IT project failure include

people, expectations management, project management process, technology, and project

sponsorship. According to Lewis (2003), software project implementation involves people,

techniques, cultures, experience, and technology. Too much concentration on system training

rather than user training and poor documentation could lead a project to failure (Lewis, 2003).

The conceptual model of IT project failure factors is shown in Figure 5.

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40UDAAN: The International Journal of Management Research

Figure 5: IT Project Failure Conceptual Model

6. Failure Factors “Our problem is that common sense is often ignored in systems projects.”

----------Dorsey (2000)

Most failure factors are predictable and avoidable; however identifying which factors are important

and which can be acted upon is difficult to choose (Verner et.al., 2008).In large organizations, risk

management has been given higher importance attributed to project failures (Whittaker, 1999).

Factors contributing to schedule and cost overruns in IT projects include project team, project

accountabilities, risk management and project execution (Whittaker, 1999). Risk management

remains as highest ranked factor among project failure factors for IT projects (Whittaker, 1999).

According to Kappelman et.al.(2006), every project must have well defined project change

controls, because competitors change, business processes change, market opportunities change,

technology changes, regulatory framework changes, law changes and senior management

changes. If the stakeholders don’t communicate with each other and work together, the project

can go in different directions.

According to Intosai(2008), quality of project plan delivery depends on the technical skills

and competencies of IT project manager. When projects become large, risk management

becomes critical factor impacting project failure. According Griffin-May (2008), mostly when

an IT project is implemented, data migration is forgotten. Communication problems can lead

to delays, misunderstandings, mistakes, confusion and finally failures. Lack of support for senior

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41Vol . 04, No. 02, July - December 2016

management leads to lack of resources, lack of commitment, lack of staffing, and lack of funding

(Griffin-May, 2008). The motives of different stakeholders in a project are different. Organizations

face problems when individual motives are impacting the project outcome. Improper expectations

management contributes to project failures.

Pinto and Mantel (1990) research indicates that at the strategic stage of the project, mission and

client acceptance are critical; at tactical stage of a project, trouble shooting, personnel, client

acceptance, schedules, plans, and technical tasks are critical to the project.

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42UDAAN: The International Journal of Management Research

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7. Critical Failure Factors (CFFs) and Findings“Building loosely-coupled solutions take longer time than building tightly-coupled one”

- Henderson, P. (2006)

Based on the number of occurrences of each factor in Table 2, the critical failure factors for IT

projects are tabulated in Table 3.

Table 3: Critical Failure Factors (CFFs) of IT Projects

The resultant critical failure factors are in line with the research done by Verner et. al. (2008) on 70

failed projects, and identified the frequent factors of project failure include unrealistic schedules

and deadlines, inappropriate estimations, lack of risk management, vague requirements, and

ineffective communication. Also the derived CFFs in this research have some commonality

with the critical failure factors identified by The Standish Group in their CHAOS report of 1995

(Kessler, 2001). The CHAOS report reported the top-10 factors that cause project failures include

incomplete requirements, lack of user involvement, lack of resources, unrealistic expectations,

lack of executive support, changing requirements, lack of project planning, no need of the

deliverable, lack of IT management and technology illiteracy. According to Griffin-May (2008),

lack of management support is the top reason for project failure.

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46UDAAN: The International Journal of Management Research

Other findings of the research include: among environmental factors, lack of user involvement,

among organizational factors, lack of senior management involvement, support and commitment,

among team factors, lack of project management skills, among project factors, unclear project

objectives and goals, among project management factors, poor project planning and among

technology factors, misalignment of IT and business processes are identified as critical leading to

failure of the project.

8. Success Recommendations for IT Projects “The delivery of software product can require up to ten times the effort of producing a proof of

concept prototype”.

- Fredrick Brooks in Mythical Man-Month (1979)

According to Kessler (2001), IT projects require much technical understanding, team building

expertise, creativity, energy, optimism, political savvy, perseverance and project management

for making projects successful. It is best practice to have clear set of well-defined goals and

objectives, and review them thorough out project duration. It is best practice to use integrated

and proactive approach of risk management for project success. The recommended practice is

to use standardised practices such as Earned Value Management (EVM) for project performance

measurement and evaluation. Also, it is best practice to have benchmarks and baselines for

schedules, quality, costs and budgets. Formal change control procedures can enhance the

probability of success of the project. Communication management plan should consists of project

communication and stakeholder communication (Oracle, 2011). It is best practice to enforce a

standardised project management methodology for enhancing project success.

According to Oracle (2011), strong project leadership combined with support of PMO and project

culture are required to overcome the complacency. According to Rajkumar and Alagarsamy

(2013), top management support, solid technical leadership and sound project management

methodology are required for making a project success. It is best practice to monitor the project

progress against estimates, do not depend on single schedule or cost estimation, and fully satisfy

user requirements for making an IT project successful (Rajkumar and Alagarsamy, 2013). It is

important to use project management tools and techniques to avoid project failures (Gilge, 2013).

According to Ogheneovo, (2014), good software project characteristics include functionality,

dependability, efficiency, maintainability, survivability, and acceptability.

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47Vol . 04, No. 02, July - December 2016

Emam and Koru (2008) have defined the project success criteria as meeting user satisfaction,

ability to meet schedules, budgets, quality and productivity. According to them, organizational

maturity, project management methodology and project management experience effect the

project success. According to Williams et. al. (2015), involving customer from beginning and

effective communication can reduce the project failures. According to Pmtoday (2014), there

should be single objective a project and different stakeholders have to concentrate on different

tasks/things. Reliable estimates, top management support, clear business goals, greater financial

control, more power and decision making capacity to project team, establishment of PMO

can enhance the success likelihood of IT projects (Qassim, 2008). There should be well defined

guidelines for selecting the project, during the project and after project execution.

Project managers can position themselves for success by planning before implementation,

paying attention to critical path, calculating and informing risks, getting support from executive

management, and by participating in design and implementation (Taimour, 2005). Strong

technological leadership, a sound project management methodology and top management

support are required to successful projects (Dorsey, 2000). Conducting technical audits can

support the project towards progress, where the management does not know whether the

project team is misrepresenting (Dorsey, 2000). According to Dorsey (2000), the success mantra

is don’t cut corners, audit each deliverable, monitor top management commitment, and procure

correct technical lead for the project.

Paying attention to early warning signs at early phases of project can increase the project success

probability. By institutionalizing early warning signs, organizations can save lot of money by

premature cancellation of projects which have early warning signs (Kappelman et.al., 2006). There

are more chances for project success, if the project plans are more detailed (Intosai, 2008). The key

to project success is to have well defined project change control process (Intosai, 2008).

According to Intosai (2008), organizations with values such as openness, cooperation, honesty,

and collaboration can overcome the project failure difficulties. Careful analysis of risks can

reduce the project disasters (Jones, 2006). According to Jones (2006), the single distinguishing

factor between successful project and failed project is the effective software quality control. For

unsuccessful project bad fix injection rate is around 20%; whereas for successful projects the bad

fix injection rate is only 2%. That, is one in every five fixes in bad projects inject a new defect into

the system.

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48UDAAN: The International Journal of Management Research

Following a process or methodology can make an IT project success. This is because the process

ensures that there will be check points at different stages of the project (Quick, 2004). According

to Quick (2004), even if methodology, process, technology, sponsorship and guidelines are proper,

project success cannot be guaranteed if the quality of people is poor. Roles and responsibilities

are to be clearly defined in the project (Laurie, 2003). For project success, senior management has

to show the responsibility and provide needed resources to the project throughout the course

of project. At the same time, contingency plans for any probable disaster are to be made (Laurie,

2003).

According to Carlos (2005), the project manager has to monitor the project from many

directions. In addition to project team skills, project manager skills, communication, leadership,

management, conflict resolution, diplomacy and corrective actions are required for the success of

the project. According to Morisio et. al. (2007), human factors play key role in project success and

the productivity among developers can vary by a factor of ten. User involvement is an indicator of

project success and it is a critical factor in project execution (Morisio et. al., 2007).

Clear communication between project manager and the people involved the project can avoid

scope creep in the project (Griffin-May, 2008). To make a project successful, everyone should

understand the project objective. The organization has to ensure that the right project manager

and the right team are in place to execute the project.

According to Attarzadeh (2008), top four factors contributing to project success include top

management support, user involvement, proper planning and clear requirements. An organization,

which introduces new technology slowly in an incremental way into the organization, is more

likely to succeed, instead of a big-bang approach (Henderson, 2006).Giving too much control to

the customer can also drift the project outcome.

9. Further Research & Conclusion Further research can be done by conducting empirical study on failed IT projects based on the

critical failure factors. If so the most factors loaded and their relationships can also be found with

the project outcome. Current day executives’ expectancies reach a new level, while organizations

are facing with conflicting objectives and changing priorities, higher transparency is required to

showcase the project investment in an organization. No IT project fails for a single reason. The

reasons for project failure can be numerous. However, if the project manager concentrates on

the critical failure factors and he or she ensures that they do not happen to his or her project, the

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49Vol . 04, No. 02, July - December 2016

likelihood of the project becoming success is high. As we know, different stakeholders define the

project failure in different ways. Hence, the organization, or team or the project management

board has to define the project success or failure in a quantified way. Otherwise, different

stakeholders claim the project outcome in different ways. By avoid IT project failures, lot of money

can be saved, operational costs can be reduced and organizational productivity and efficiency

can be improved.

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