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Diana Kronegger
Diana Kronegger

Picture this: You are at the helm of an ambitious project, excited about the possibilities, but all too aware of the hurdles ahead. The success of your project hinges on a delicate balance of time, resources, and scope. It is a journey fraught with challenges and uncertainties, and the path to success can be treacherous. 

In the world of project management, it is no secret that the road to triumph is often lined with the wreckage of failed projects. These failures are not just statistics; they are missed opportunities, wasted resources, and, in some cases, cautionary tales of what not to do. But here is the good news: by understanding the underlying reasons for project failure and adopting the right strategies, you can steer your projects away from the brink of disaster and towards the shores of success. 

In this article, we will take you through the fascinating landscape of project management. We will explore the perilous pitfalls that have led countless projects astray and provide you with the tools and insights to navigate them. Together, we will journey from the initiation and planning phases, where the foundation is laid, to the final lessons learned, and emerge with a deeper understanding of what it takes to deliver successful projects. 

Whether you are a seasoned project manager or new to the world of project management, this blog will equip you with valuable insights that will help you avoid the common traps that have claimed so many projects before. So, fasten your seatbelts and get ready to embark on a journey that will not only teach you the art of project success but also highlight how Nagarro's expertise can be your trusted guide in this endeavor. At the end of this voyage, we will set you on the path to project success and offer a helping hand through your very own Call to Action (CTA). Now, let us explore the reasons why projects have failed and how to prevent it. 

Part 1: Potential causes of project failure 

Inadequate definition of project parameters

During the project lifecycle, many obstacles may occur. Typically, the initiation and planning phases play a crucial role in determining a project's success. The simple reason is that most parameters are set at the beginning of a project and lay the foundation. For example, the project scope, the budget and time constraints, the SMART (specific, measurable, achievable, relevant, and time-bound) goals, team size, roles, and stakeholders are defined, and the project proposal and charter are compiled at the beginning of the project. An incomplete definition of these parameters can result in project failure.

Unclear objectives and lack of direction

If the objectives of a project are unclear, and there is a lack of direction, it will lead to confusion within the project team, and team members will not know what to work on, which will cause project delays and make expectations unrealistic. For this reason, it is vital that the project manager keeps track of the activities and deadlines for the milestones. Roles need to be clearly defined to attain the desired project deliverables.

Failure to track and measure progress

During a project, the plan should be put into action, which implies tracking and measuring the progress, minimizing risks, managing the budget, keeping stakeholders up to date, and incorporating changes if needed. Regular status reports can help to observe tasks and check if the project’s initial goals can still be met after a certain period and changing circumstances. If the predefined goals and milestones are not regularly tracked, the project can develop in an undesired direction.  

Scope creep

Budget constraints may arise if the scope changes and project deliverables exceed the project scope or if resources are needed for longer than expected. This can lead to escalations and tensions within the project team and stakeholders. It also implies overtime and deliverables not being accepted, because they were originally planned differently.

Resource allocation challenges

Additionally, having the right resources with the necessary skill set for the duration of a project lifecycle is essential for the project success. However, resources committed to a project may also be allocated to other projects, potentially causing capacity issues if the project's timeline extends beyond the original plan. If this is the case, new employees might join the project and need to be onboarded from scratch, which will again cause the project to be delayed.

Communication and transparency issues

Another vital point during project execution is communication throughout the project and transparency for all parties involved in the deliverables and obstacles. This means that every task of the project should be accessible to everyone contributing to it and everyone should be able to see each status of the project. Furthermore, the reasoning behind decisions should be documented and accessible to all stakeholders. Transparency leads to a better team spirit, performance, and accountability. If the communication is lagging and not transparent, project members might lose their motivation.  

Part 2: Preventing project failure

To prevent project failure, consider the following strategies: 

Clear project objectives

Define project objectives and the project scope clearly including deliverables and exclusions at the beginning of the project and involve team members in the goal-setting process. Identify and document necessary tasks, resources, and dependencies during the planning phase of a project and make them accessible to all team members. Check in on the project goals and objectives regularly.

Implement SMART goals
  • Specific: The goal should be specific and clear. You can use the five “W” questions to establish your project goals.
  • Measurable: Progress of the goals should be regularly assessed to stay focused and meet the deadlines.
  • Achievable: The set goal needs to be attainable and realistic.
  • Relevant: The goal should matter to the project team and should align with other project goals.
  • Time-bound: There needs to be a deadline set in place, so that you can prioritize your tasks according to it.

Smart goals help to create a clear project roadmap and mitigate risk.  Align these goals with the overall organizational objectives and evaluate the progress regularly.

Resource management

Resource management includes employees, equipment, tools, and budget. Not having efficient resource management can be costly and lower the performance of the team. Employees with the necessary expertise should be available for the entire project lifecycle. Monitor the resource utilization and prevent relocation issues. Ensure that team members have the necessary skills for their roles and provide opportunities for skill development.

Regular monitoring

The project manager should monitor the progress regularly and intervene when necessary to prevent delays and budget overruns. Define procedures for escalating issues to address challenges promptly. Ensure that the allocated budget is spent correctly and can be altered in case of scope changes. Make sure that deadlines and deliverables are met. Encourage accountability for tasks assigned to team members and foster communication between team members.


Establish a preferred form of communication with project stakeholders and maintain regular check-ins with the team. Foster open and transparent communication among team members and stakeholders to increase accountability and quality. Hold periodic meetings with stakeholders to keep them informed about project delays and risks. 

Lessons learned

After project completion, conduct a “lessons-learned” session to analyze successes, failures, and areas for improvement, enhancing future project effectiveness. The session should be documented and stored so that it can be retrieved for review and help to reduce risks and improve the quality for future projects.

By following these steps, you can prevent scope-creep and achieve successful project closure. Remember, effective project management is an ongoing process that requires adaptability and constant monitoring. 

Part 3: Example of a failed project 

Ford's failed Edsel project serves as an illustrative example. Extensive market research was conducted over ten years at a cost of $250 million. But when the car was finally released in 1957, the market had already moved on to buying compact cars and the Edsel was not attractive for potential customers anymore. This example emphasizes the importance of keeping up with the speed of the market and shows the result of poor communication, missed deadlines and scope creep. It also underscores the importance of staying abreast with market trends, making accurate project timeline estimations, and managing resources efficiently.  

In summary, the initiation and planning phases of a project are the foundation upon which the project's success is built. They set the project's course, establish parameters, and provide a roadmap for the entire project team. However, it is essential to recognize that effective project management is a continuous process that involves regular monitoring, adaptation, and communication throughout the project's lifecycle. 

Final thoughts 

Failed projects remind us that change is inevitable. Failure is not the end but a part of the journey. It is how we respond to and learn from failure that defines our future success. By addressing the potential causes of project failure and implementing preventive measures, you can significantly increase the chances of successful project outcomes. To ensure your projects are in capable hands, consider partnering with experts like Nagarro, whose proven expertise in project management can help you achieve your project goals and avoid common pitfalls.  

Do not let your projects become a statistic of failure. Reach out to Nagarro today and ensure your project's success.