Projects remain a difficult endeavor for most companies. While studies have shown repeatedly that organizations increasingly use projects and process improvement to stay ahead of competition, many projects still fail because the most common roadblocks to success have not been addressed.
This lack of preparation can lead to project failure. Estimates vary, but the Project Management Institute (PMI) reports that worldwide, 11.4% of money invested in projects is wasted because of poor project performance. PMI also reported that in organizations where project management is not highly valued, as many as half of all projects either fail or do not achieve the intended goal.
Training employees in process improvement methodologies such as Lean Six Sigma or in project management may help improve project success. But not all organizations fully commit to this training.
That’s just one of a handful of problems that frequently lead to process improvement project failure. Frequent causes of project failure include the following.
Lack of Executive Support
This ranks as the chief roadblock to process improvement. Without executive buy-in from leadership, all the work, enthusiasm, attention to detail and professionalism shown by employees can come to nothing. Establishing a culture of continuous process improvement requires all stakeholders to provide the support in time, money and resources that projects need to succeed.
Lack of Employee Training
One way a lack of commitment from executives materializes is in lack of training opportunities for employees. Some companies excel in this area, but many do not. PMI lists “future-proof talent” as a necessity for project success, which means employees who receive training in the latest skills and knowledge needed for their jobs. Offering employees the chance to develop expertise in process improvement and earn belts in Six Sigma are examples of how to make employees more valuable assets to an organization.
Not Creating a New Culture
Individual projects that use the tools and techniques of Lean and Six Sigma are crucial to achieving strategic goals. However, without an organization-wide strategy to create a culture of continuous process improvement, few changes will have lasting impact. One key element of process improvement is to have employees involved, making suggestions on ways to make an operation more effective. This creates continuous improvement. Without a plan to foster this type of participation, an organization will fall short on efficiency goals. It also will lead to less engagement in projects and increased project failures.
Not Leveraging Technology
PMI calls this area PMTQ – Project Management Technology Quotient. They argue that a high PMTQ is necessary for project success. To make this point, they report that global spending on digitally transformative technologies and services will reach $1.97 trillion in 2022 and that 80% of organizations have “undergone a significant transformation.”
However, only 25% of those organizations report that digital transformation projects have given them tangible benefits. That’s 75% who are not seeing those benefits because projects have failed. The answer, PMI believes, is a higher PMTQ and an understanding of how to leverage technology to achieve business strategy via process improvement projects.
Lack of Communication
Lack of communication is a mainstay of “failure lists” in every category, and this includes process improvement projects. Failure is all-but-guaranteed if project justification and expected outcomes are not communicated to everyone. Managers should tie project outcomes to tangible goals from the outset. Good communication leads to openness and transparency, both of which lay the foundation for success in process improvement projects. Without it, people lose focus and their sense of purpose. Failure is certain to follow.
Process improvement projects never derail for just one reason. Usually, a combination of the factors listed above come into play. Organizations do well to keep these pitfalls in mind, starting with their own commitment and the training of their staff.
