Key Factors That Determine Project Success and Failure
Abstract
The success of an organization remains the ultimate goal of every project. Extensive
research studies have been developed with the aim of establishing the key factors that are
essential in determining project success and failure (Allen, Alleyne, Farmer, McRae, & Turner,
2014). This therefore gives an empirical understanding that the project management process
remains a complex element that requires an extensive and collective attention of several aspects
of human, technical and budgetary variables.
Additionally, projects hold specialized critical success factors that if carefully addressed,
improves the likelihood of successful implementation.In order to determine the success factors of
a project, it is first essential to determine that success can be defined as meeting the developed
expectations of an organization and its stakeholders in order to achieve the projects intended
purpose. This can therefore be achieved by considering the outcomes of the project and
determining the deliverables of the project.
This paper therefore seeks to develop a research topic that identifies the factors that may
lead to the success or failure of a project (Allen, ert.al .2014). Considering the fact that it is a
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
conceptual paper, a framework that identifies the factors that drive success within a project will
be reviewed. This framework will therefore be tested empirically through the use of data from
several industries.
Introduction
The use of project management approaches has over time raised to prominence, a factor
that has seen projects viewed as critical to the economic growth or several industries. The
rationale behind the rise of project management is typically attributed to the changes that occur
due to new challenging environments and opportunities that are brought by technological
developments, the dynamic market conditions, the shifting boundaries of knowledge, changes in
environmental regulations, increase in customer involvement and the increase in scope of the
inter organizational relationships (Besteiro, Souza, & Novaski, 2015).
As determined, it is therefore crucial to determine that the emerging importance of
projects and the widespread initiation of projects within organizations in multiple sectors remains
the key driving force in a research that seeks to determine the factors that influence the success
of a project (Todorović, Mitrović, & Bjelica, 2013). This therefore makes it essential to
determine the factors that contribute to the success or failure in the implementation of a project
and to identify the elements that remain relative in the life cycle of a project.
This thesis therefore takes an in-depth study in determining the factors that cause project
failures and successes and the manner in which these elements may be controlled.This research
study is therefore conducted not only to add information to the already existing information but
to provide some insights of the criteria for a projects success and failure including the variable’s
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
that are involved with the aim of aiding organizations in effectively planning for projects (Cao
Hao, & Swierczek, 2010).
Problem Statement
The incorporation of project management within the functions of an organization has
immensely grown with projects today viewed as an essential in the growth of an organization
and the development of an economy (Cao Hao, & Swierczek, 2010). The rationale behind this
expansion is therefore attributed to the fact that project-based work have taken a rise due to the
challenging environmental factors and opportunities that have wrought out of technological
developments, changes in environmental regulations, dynamic market conditions, and the
shifting boundaries of knowledge. Additionally, the drive and focus towards the development of
products with shorter termed life cycles, increased complexity of inter organizational
relationships, and an increased involvement of the customers are also factors that are essential in
the growth of projects.
Several businesses are today operating in an environment that is filled with uncertainty.
The implementation of projects therefore remains open to different external variables such as the
ever growing necessities, unexpected events, fluctuating resource flows and unexpected events.
This clearly depicts the fact that if proper measures are not incorporated in the implementation of
projects, the chances of these projects failures are high (Cao Hao, & Swierczek, 2010).
According to sources from the Standish Group in the United States of America which is a known
market research firm, only 15% of projects developed by large companies are likely to succeed.
The major problems that result in these failures is attributed to different challenges poised by
project management such as the lack of adequate project management skills, high staff turnovers,
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
poorly defined objectives, poor follow-up approaches, limited resources and insufficient
authority for project managers.
Considering the emerging factors in relation to project management, it is therefore
essential to note that the use of projects within different organizations remains the driving force
as to why this study seeks to establish factors that have the capacity to influence the success of
projects and the rationale behind its failures. As projects are today widely used within different
industries it is crucial to determine the key factors that may lead to their successes in order to
successfully implement these elements on projects (Cecez-Kecmanovic, Kautz, & Abrahall,
2014). These factors are therefore supported by different empirical studies that are conducted by
different authors who seek to determine the approaches involved in the development of
successful projects. This research study will therefore be conducted to answer the following four
parts of the problem statement that include:
- What are the key factors that contribute to the success and failure of a project in the
manufacturing sector? - What are some of the criteria’s that can be utilized in measuring the success or failure of
a project within the manufacturing industry? - What are the appropriate measures that can be employed in achieving the success of a
project? - What approaches need to be considered in order to implement a project in the functions
of an organization?
Literature Review
Project Management
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
Projects are a vital element in the development and growth of an organization and
economy. The significance of projects in developing the functions of an organization is an
element that cannot be overemphasized as demonstrated in several literatures that give an
explanation of the success factors and failures of organization in managing projects. In as much
as projects are considered to be important, their implementation may turn out to be challenging
(Cerpa, & Verner, 2009). According to the views of various researchers, project management is
viewed as an approach developed with the aim of preventing failures in projects (p.130). Other
organizations have also developed checklists aimed at preventing their organizations from facing
the challenges of failure. However, it is essential to note that irrespective of these management
awareness’s d and checklists developed, some project have still hit the failure mark.
As stated by Fabricius, & Büttgen (2015), all projects are surrounded by inherent risk
factors, a factor that clearly indicates that the knowledge of these risk factors plays an integral
role in the achievement of success and in the mitigation of failure.Fabricius& Büttgen also allude
to the fact that projects are in many instances developed in three stages that include the approval
phase, execution and evaluation stages (pp.239). The failure exerted in managing one of these
stages poorly is therefore likely to turn out into the failure of a project.
The success or failure of a project can be viewed as a multi-dimensional element is likely
to be impacted by several factors. Some projects are prone to failures especially when they fail in
the implementation phases of project management practices that include the prospects of scope
creep, cost overrun, delays in schedules and procurement practices (Hwang, & Lim, 2013). It is
however essential to determine that despite the failures in this areas, a project may still be
successful as viewed by its users. An instance of this is depicted in Wembleys Stadium that has
over time experienced challenges in terms of project management and procurement approaches
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
and is still considered as a successful and well developed stadium by the users, a factor that has
seen the stadium play host to work class sporting activities and events.
Projects are in many instances developed to meet the objectives of the stakeholders.
These objectives are known to define the approaches of the projects success, with the projects
that fail to meet this objective considered as failure (Oellgaard, 2013). This therefore brings on
board the element of effective communication within an organization that provides the
stakeholders with the opportunity to clarify the objectives of the project to the project managers.
According to Oellgaard (2013) a projects can be categorized by certain elements such as
their objectivities as defined by their results, productivity of output, complexity that incorporates
several related activities that are interlinked with different tasks among other factors. According
to this author, some of the essential functions of project management that need to be considered
include the identification of work requirements, the allocation of resources, planning on how to
execute the project, and monitoring progress of the project’s functions to determine some of the
areas that need to be improved (pp.91).
Project Success
In order to determine the success factors of a project, it is first essential to determine that
success can be defined as meeting the developed expectations of an organization and its
stakeholders in order to achieve the projects intended purpose. This can therefore be achieved by
considering the outcomes of the project and determining the deliverables of the project.
However, Shahu, Pundir, & Ganapathy ( 2012)takes a different stance in this by alleging that the
success of a project can be determined by its ability to meet the budget and time, a factor that
may be considered as rational considering the fact that this may not be applied in all the contexts.
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
On the other hand, Stanciu, & Tinca (2013), alleges that project success can be determined in an
case where the managers are in a position to consider the benefits of that a project may achieve
in terms of resources, complexities and competencies within the parameters of the project.
Measuring Project Success
In measuring the success factors of a project, it is essential to consider the Golden
Triangle and Iron Triangle methods that have traditionally been used in measuring the success
factors of a project. The Golden Triangle in this case infers to an approach that considers some
basic factors such as the costs related, time taken in completing a project and the quality of the
products (Stanciu, & Tinca, 2013). A project will according to this approach be considered as
successful when it is completed within the cost, time and quality parameters defined by an
organization. It is however essential to mention that this approach has received several critics
that consider it inadequate in effectively pointing at the key success factors of a project
considering the fact that the opinions of customers remains minimal and that there are no long-
term follow up approaches developed.
Other research inquiries in line with this approach have resorted to approaches of trying
to determine appropriate approaches that would be used in determining the success of a project
(Joslin, & Müller, 2015). Some studies have taken approaches aimed at including the perceptions
of clients, a factor that is gaining popularity in the market today considering that the element of
Total Quality Management (TQM) has evolved to consider the satisfaction of customers as one
of the essential factors in measuring the performance of a project.
According to Milunovic, & Filipovic (2013), there are five approaches that can be used in
measuring the success factors of an organization. These approaches therefore include the projects
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
ability to meet time, budget quality, achieve customers’ acceptance and allowing their contactors
to utilize the end products for reference (Stanciu, & Tinca, 2013). However, it is significant to
note that there are three other additional success factors that can be used in measuring the
success of a project such as information systems, validity and reliability of a project including
the quality of information utilized and the benefits of this that can be measured on the basis of
efficiency, increase in profits, effectiveness, and organizational learning of a project as perceived
by the stakeholders (Todorović, Mitrović, & Bjelica, 2013). It is therefore essential to note that a
disciplined approach aimed at measuring the success factors of project management has not
changed for quite a long period of time.
However, in meeting the modernized approach of determine effective success criteria’s,
the inclusion of the Square Route approach as compared to the traditional methods remains an
essential element that research studies have established as important. The challenge presented in
the inclusion of the Square Route approach is in relation to the qualitative objectives achieved in
this approach as compared to the quantitative (Todorović, et.al. 2013). These are therefore the
benefits that organizations achieve in the implementation of this approaches in their projects with
these benefits perceived in different perspectives that include the organizations view and the
stakeholder’s views.
On the other hand, it is important to establish that through an Earned Value (EV) which
infers to a managerial tool used in communicating and tracking the status of a project, the
management of an organization will be in a position to determine the state of a project by
ensuring that a comparison is done between the project and the plan developed to meet its
requirements. According to different literatures, the earned value management (EV) can be
determined as an approach that is used in measuring and communicating the specific state and
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
progress of a project by ensuring that several factors such as the work completed, the costs
incurred and the duration of the project are taken into consideration(Turner, & Zolin, 2012). The
established sum of the approved costs and estimates are therefore recorded during a specified
period. In knowing the performance of a project, an organization remains in a position to take the
necessary actions required in ensuring that the project meets the laid down framework in regards
to costs and time.
The success of a project needs to be therefore considered as an essential element that
integrates the short and the long term implications into the functions of organization. The
essence of each and every dimension is considered as essential during different phases of a
project (Turner, & Zolin, 2012). Through an efficient dimension, an organization is in a position
to measure the deviations from the actual plans of the organization and determine the appropriate
measures that can be employed in ensuring the progress of the project.
Once the project is complete, organizations need to also consider the second dimension
that ensures that the project had an impact in meeting the needs of the customers. This therefore
determines the fact that the satisfaction of customers remains an essential element in determining
the success of a project(Turner, & Zolin, 2012). The third element takes in to consideration the
businesses direct success that are aimed at establishing if a project has achieved an established a
market share.
Project Failure
Failure according to the Oxford Dictionary is described as the lack of achievement in
performing a task or rather termed as non-performance. Project failure therefore remains one of
the unpleasant elements that costs company huge amounts that results in losses. Researches are
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
conducted on this area to determine the causes of a projects failure have revealed that this results
from internal inefficiencies and external ineffectiveness(Walczak, & Kuchta, 2013). These
studies have therefore stated that a projects failure remains a vague element that evokes several
losses within an organization when the projects fail to meet the expectations of the organization
and its stakeholders.
The effects of a failure in the implementation of a project therefore causes time overruns,
the degradation of an organizations quality, stresses, frustrations and losses, a factor that may
force some people to quit (Walczak, & Kuchta, 2013). An intense failure may also result in
negative publicity and at times the closure of an organization. Some of the factors that have been
noted to result in project failures include an organizations inability to change its management
that leads to no proper approaches in handling projects.
Communication is also another element that can be attributed to the failure of an
organization. In communication, delays are likely to be experiences considering the fact that the
team members lack the required information needed to handle projects. On the other hand, it is
also significant to note that inadequate resources are also another factor that may result in the
failure of an organization (Wells, 2012). Inadequate resources may therefore lead to unmet
deadlines and the lack of achievement in the goals of the organization, a factor that sees the
completion of projects and the dates specified jeopardized.
Implementation of Successful Projects
Considering the fact that projects are a vital element in the development and growth of an
organization and economy there is a need of incorporating appropriate elements in
implementation. The significance of projects in developing the functions of an organization is an
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
element that cannot be overemphasized as demonstrated in several literatures that give an
explanation of the success factors and failures of organization in managing projects (Yong
Qiang, Yang Bing, Jun Ying, & Peng, 2012). It is therefore essential to consider the fact that an
organizations management team develops a set of missions and visions of the organizations that
are aligned to the organizations functions. Additionally, the management needs to ensure that
this visons and missions are communicated effectively within the organization and roles defined
for each and every team.
An organization also needs to ensure that resources are directed towards the achievement
of an organizations vision and mission(Yong Qiang, et.al. 2012). This would also see to it that
the human resources are also trained to meet the demands of the market. Incorporation of reward
systems aimed at motivating the employees is also another factor that organization’s need to
invest in to spur growth.
Conclusion
As discovered in this study, it is essential to establish that the use of project management
approaches has over time raised to prominence, a factor that has seen projects viewed as critical
to the economic growth or several industries (Yong Qiang, et.al. 2012).. The rationale behind the
rise of project management is typically attributed to the changes that occur due to new
challenging environments and opportunities that are brought by technological developments, the
dynamic market conditions, the shifting boundaries of knowledge, changes in environmental
regulations, increase in customer involvement and the increase in scope of the inter
organizational relationships.
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
This therefore determines that the incorporation of project management within the
functions of an organization has immensely grown with projects today viewed as an essential in
the growth of an organization and the development of an economy(Yong Qiang, et.al. 2012)..
The rationale behind this expansion is therefore attributed to the fact that project-based work
have taken a rise due to the challenging environmental factors and opportunities that have
wrought out of technological developments, changes in environmental regulations, dynamic
market conditions, and the shifting boundaries of knowledge.
The success or failure of a project can therefore be perceived as a multi-dimensional
element is likely to be impacted by several factors. Some projects are prone to failures especially
when they fail in the implementation phases of project management practices that include the
prospects of scope creep, cost overrun, delays in schedules and procurement practices. In a
nutshell, it is essential to determine that success can be defined as meeting the developed
expectations of an organization and its stakeholders in order to achieve the projects intended
purpose.
KEY FACTORS THAT DETERMINE PROJECT SUCCESS AND FAILURE
References
Allen, M., Alleyne, D., Farmer, C., McRae, A., & Turner, C. (2014). A Framework for Project
Success. Journal of Information Technology & Economic Development, 5(2), 1-17.
Besteiro, É. C., de Souza Pinto, J., & Novaski, O. (2015). Success Factors in Project
Management. Business Management Dynamics, 4(9), 19-34.
Cao Hao, T., & Swierczek, F. W. (2010). Critical success factors in project management:
implication from Vietnam. Asia Pacific Business Review, 16(4), 567-589.
