How Many IT Projects Fail? …and My Personal Experience

I started working on IT projects a long time ago, but I never wondered why many of them struggled until I became a project manager in one of the previous companies I worked for. Not long after that, I came across a surprising statistic: up to 70% of IT projects fail. I’ve been personally involved in projects that missed deadlines, but I didn’t have any idea how widespread the issue was. So, if you’ve ever wondered how many IT projects fail, you’re not alone.

In this post, I’ll share what I’ve learned from my own experiences with failed (and successful) IT projects and, more importantly, how you can avoid the reasons for failure.

How Many IT Projects Fail and Why?

The research by Standish Group and Project Management Institute (PMI) shows that up to 70% of IT projects fail. These projects either don’t meet their planned goals, run way over budget, or take much longer than expected. But this statistic doesn’t mean failure is inevitable. By understanding why so many IT projects fail, you can take steps to avoid becoming part of that 70%.

Top Reasons Why IT Projects Fail (From My Experience)

After working on many IT projects, I’ve noticed certain patterns that cause problems over and over again. Here are the main reasons why so many IT projects fail:

1. Methodology

You’ve probably heard about Waterfall, Agile, Scrum, and all the other methodologies. There are many people that make money promoting one over the other, but to be honest, all of them are great…and all of them suck at the same time! 

How is that possible? Well, each project is a different story – different people, different requirements, budgets, timelines, etc. That’s why each of them requires a different approach. And even if you had perfect results on the last five projects, using any of these methodologies, it doesn’t mean that you will have the same results on the next project. Every project is like a living organism, it changes all the time, so you have to adapt.

2. Poor Planning

A project without a really good plan will most likely fail. If you don’t set clear project objectives and expectations for all participants, it’s easy for everyone on the project to lose focus. On top of that, you (or the solution architect) must be able to provide good estimates for the work required to finish each specific task. The users who will use products and services delivered by the project should have a clear picture of what they will receive at the end of the project.

3. Scope Creep

This is one I’ve battled with on many projects. Scope creep happens when stakeholders keep adding new features or making changes in the middle of the project. While you cannot avoid some smaller changes, too many can postpone the whole project, and increase the total cost. I’ve had projects where we thought we were almost done, but then someone came up with some new ideas. We spent most of the budget already, and on top of that, we had to postpone the project for 3 months.

4. Inadequate Resources

I’ve been on projects where the team didn’t have enough people, time, or budget to get the job done. It’s very hard to meet expectations when you’re working with limited resources, and in my experience, this is a common reason why IT projects fail. Try to keep the balance between project expectations and resources.

5. Lack of Leadership

Without strong leadership, the project can easily fail. You must have a project sponsor and a project manager, or your teams will lack direction. I’ve been part of projects where the lack of leadership resulted in confusion and missed deadlines as a result.

6. Miscommunication

Effective communication is key to a successful project. I’ve learned that the hard way. When the communication is not clear and honest, even small things can turn into big problems. Teams have to be well-informed during each step of the project, and every team member has to be aware of its responsibilities, especially when teams are working in different locations.

7. Unrealistic Expectations

I’ve seen this happen on almost every project. Unrealistic timelines and overambitious goals lead to rushed work and poor quality. Setting achievable expectations and goals is crucial to project success.

8. Resistance to Change

IT projects often involve new systems, software, devices, etc. Not everyone welcomes change. I must admit that I am also not always happy when I have to adapt to some new tool or process. But I am aware that sometimes you have to change simply to keep up with the rest of the world. I’ve seen IT projects stall because key users and end users were reluctant to adopt new processes or technologies.

How to Prevent IT Project Failures

Now that you know how many IT projects fail, let’s focus on how you can avoid the same fate. Here are some steps I’ve found that can make a difference:

1. Start with Strong Planning

A clearly defined plan is the foundation of every project. Make sure you set clear goals and timelines. Also, make sure that your estimates and budget are precise. If you are working with key users and end users, make sure you explain to them what they will get with this project, so they can have clear expectations.

2. Manage Scope Creep Carefully

Scope creep is almost unavoidable, but it can be managed. Make sure you perform a thorough analysis at the beginning of the project. Ask as many questions as you can, and try to get 100% clear answers from other participants. Implement some kind of change management process and make sure stakeholders understand that each new request will increase the cost and/or postpone the go-live.

3. Make Sure You Have Enough Resources

Before you even start working on a project, make sure you have the right team, tools, and budget to meet the project goals. Trying to do more with less often leads to failure. Don’t try to squeeze the time or budget only to prove to someone that you can finish the project because you will most probably fail without enough people/time/money. Even if some kind of miracle happens, and you manage to finish the project, it could lead to unwanted consequences (unhappy team, burnouts, etc.).

4. Appoint a Strong Project Leader

A strong and experienced project manager can be the difference between success and failure. They will keep the team focused, resolve conflicts, and ensure that deadlines are met. This person must have exceptional organizational and communication skills. He or she must be able to solve problems and make important decisions when needed.

5. Communicate Regularly

Keep the communication flowing between all project members. Make sure that the communication is clear, honest, and on time. Don’t try to hide information from other stakeholders, even if the situation is really bad. There is always a way out! Use tools like Slack or Microsoft Teams to stay connected and ensure that everyone is on the same page.

6. Set Realistic Goals

Don’t promise more than you can deliver. Set realistic expectations that align with the budget and timeframe. If you think that there is not enough money or time to deliver the project completely, discuss this with other team members and try to find a workaround. If the expectations are too high, simply ask for more time or a higher budget if possible. It’s better to meet a modest goal than fail to deliver an overly ambitious one.

IMPORTANT: Do whatever you can to avoid poor quality! It’s much better to spend more time and/or money to deliver a high-quality product than to deliver something that doesn’t work as it should. Having a low-quality product/service usually leads to increased costs in the future.

7. Support from Every Participant

Make sure everyone in the organization supports the project from the top down. Getting everyone on board early can prevent resistance down the road. Also, talk to managers and try to find a way to incentivize all project members. People have their regular daily tasks, and participating in a project requires a lot of additional time from their side. If it’s not possible to give these people some kind of bonus, make sure that they get a proper replacement for their daily work. You definitely don’t want half of the project to suffer burnout in the middle of the project.

Conclusion

The next time someone asks you “How many IT projects fail?”, you’ll know the answer. But the good news is that failure doesn’t have to be your project’s destiny. With smart planning, clear and honest communication, and strong leadership, you can greatly improve your chances of success.

What’s your experience with IT projects? Have you faced challenges that led to failure, or found ways to overcome the odds? I’d love to hear your stories in the comments below!