Mismanaged projects are destined to fail and reduce business revenue. For every $1 billion invested in projects in the U.S., a whopping $122 million is wasted by failing to manage projects efficiently.
To avoid wasting this kind of money on your projects, you must start by understanding the reasons for project failure. Some of the top reasons for project failure are:
- Forty-one percent of respondents believe teams fail because of their inability to keep pace with changing organizational priorities.
- Thirty-eight percent feel they don’t understand project objectives, and 31 percent feel that the projects fail because they’re executed without a clear vision and goals.
- Thirty-seven percent feel that the organization can’t accurately define project requirements to its employees, which results in project failures.
Boosting employee productivity and business revenue are two of the goals small businesses will focus on in the next couple of years, according to our recent survey.1
Unnecessary and unproductive meetings greatly contribute to a decline in employee productivity and revenue loss for businesses.
For example, there are 25 million meetings per day in the U.S., 67 percent of which are considered a failure by executives, and they account for a loss of $37 billion annually.
To make matters worse, employees receive an average of 304 business emails a week, they check their email about 36 times per hour, and it takes them 16 minutes to regain focus every time.
Are you one of those people who thinks adopting the latest tech fad will lead to the complete digital transformation of your organization? Unfortunately, that’s not digital transformation—and that’s a mistake many small businesses make.
Many small businesses lack a clear understanding of the differences between digitization, digitalization, and digital transformation and they make only a few projects or functions “digital” without a clear vision of how the organization should be digitized as a whole.
Small businesses fail for many reasons. Some of the big ones are:
- Failure to effectively merge market and product knowledge
- Inefficient management of existing staff and inability to hire new employees who are a good fit
- Lack of communication and collaboration with teams on the part of leadership
- Lack of innovation, ideation, and engagement because of communication gaps between team members
The strategic implementation of collaboration software will help small businesses manage their talent pool, encourage ideation and innovation, engage the workforce, and ideate new ways to foresee and minimize business challenges.
Businesses that continually improve their processes face lower risks and lower costs. They also complete successful projects in tandem with achieving their business goals.
On the flip side, a Project Management Institute (PMI) study finds that failing to improve key organizational capabilities, while allowing others to decline, results in weaker project outcomes.