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Three Reasons Projects Fail 

In this article, Farah Abou Shakra breaks down the three reasons why projects fail. Its challenges, and impacts it has on organisations.

By Farah Abou Shakra 21 Mar 2025
Three Reasons Projects Fail 

Introduction

If you have worked in project environments for a while, then you have definitely come across a project that struggled or failed to achieve its objectives. So why does this happen? Why do projects fail? You can find endless lists of reasons for that, from technology, organisational misalignment, lack of clarity, scope creep, inadequate resources and so on. This article simplifies and summarises the many factors that can lead a project to fail into three categories.  

Project Failure Illustration

1. A Foundational Project Management Step is Overlooked or Not Handled Properly 

Regardless of how you choose to manage your project, there is a key structure that should underpin any successful one. When this structure is compromised, the project is at risk of failure. The structure includes:  

  1. (What) A clear scope throughout the project phases: At any point in time, if you ask different project team members or stakeholders about what the project is about or what the goals are and you get fundamentally different responses, then you are headed for trouble.  
  2. (Who) Correct identification and engagement with stakeholders: Missing key stakeholders or not engaging with them appropriately will undoubtedly lead to an array of problems, from scope creep to escalations and objections and even to halting projects.  
  3. (How) A defined system that informs how the project will progress until its completion and/or closure: Whether you call it a project plan, a roadmap, or a task board and whether you adopt a known framework like scrum or waterfall or you freestyle it, there has to be an underlying system that ensures the project is headed in the right direction and that keeps everyone on the same page.  

2. The Project is Managed Using the Wrong Approach 

This is essentially an elaboration of point 3 above.   

Until the early 2000s, the most used approach to managing projects was what we know as a waterfall. Waterfall, or the predictive project management approach, is basically about planning upfront and then methodically managing and controlling risk and change as the project is executed. Then, the software development growth saw the introduction of agile, which is very much change-driven or adaptive. There are many adaptive methods, but in a nutshell, agile project management focuses on embracing change, empowering people and delivering value rather than devising a detailed plan and carefully controlling it. Hybrid, on the other hand, is basically a tailored approach that takes elements of predictive and adaptive based on the needs of the project at hand.  

Choosing the right approach to manage a project is critical to its success, and it is highly dependent on the clarity and complexity of requirements (e.g. The Stacey Model) as well as the ways of working in your wider organisation. Plan a waterfall project in a fast-paced, ever-evolving environment, and you will see your scope changed before you even start executing. Use agile for a project with crystal clear requirements in a highly regulated environment, and you will not know what to talk about in the daily stand-up. Therefore, it is critical for a project manager to keep an open mind and be ready to work with or tailor an approach that works for the project, its people and the wider organisation.  

3. Poor Leadership 

Beyond processes and frameworks, at the heart of every business endeavour or project are the people. For a project to be successful, there needs to be a healthy team dynamic supported by good leadership.   

The role of a project manager can differ widely depending on the project team structure. Project teams working in predictive environments can have more defined roles than those working in adaptive environments, but regardless of that, the project manager plays a pivotal role in establishing the work environment. Additionally, just like planning approaches, leadership styles differ based on personal preferences, and they are also influenced by the organisational culture.   

The bottom line is that to ensure your team’s and project’s success. There is a set of principles you should hold on to regardless of the leadership style you adopt.  

  1. Create a safe work environment: This is an environment where team members feel empowered to share their thoughts, make mistakes, and ask for help. There is only one path to this ideal environment: to lead by example, trust your team, ask for their help, and admit any mistakes you make.  
  2. Ensure expectations are clear: This starts with the project goals and goes on to the individual responsibilities of the project team. This doesn’t mean that you have to prescribe everything; in fact, in some highly empowered self-organising teams, there is minimal work to be done. That said, it is important to ensure that, as a leader, everyone knows what is expected of them at any point in time.  
  3. Keep learning and tailoring: If we stop learning, we stop growing. You are not destined for one leadership style. As you learn more about a project, a team or an organisation, tailor your approach to best fit the circumstances without compromising the first two principles. 

Conclusion

In conclusion, there are many things that can go wrong and lead to project failure, but they all fall back to a small set of missteps. Holding on to the key structural and leadership principles detailed in this article will pave the way for success in any business environment.