In the dynamic world of business, not all projects lead to success. According to Wrike, only 64% of projects meet their goals. The financial loss of these failed projects is monumental, with businesses losing billions annually. Beyond finances, the reputational, emotional and mental toll on team members can be significant, leading to frustration and burnout. Many of us have faced moments when we realize a project is veering off course, and despite herculean efforts to realign it, sometimes it becomes clear that letting go might be the best option. In this article, we will explore the signs that indicate a project has reached its demise and how to gracefully move on.
The Consequences Of Holding Onto A Dead Project
At Valstroom, we believe that projects on a lifeline can be saved with the right project rescue and recovery tactics. That being said, it’s important to identify when a project is on a lifeline, and when a project is dead at the scene. Even with determination to redirect a failing project back on track, continuing to work on a project far past its ‘expiration date’ can end up having various consequences on your organization. These are some of the major reasons you should consider letting go of a project.
It Wastes Time, Money, And Resources
Continuing to pour time, money, and human resources into a failing project is akin to throwing good money after bad. Even if you are trying to use the time, money, and resources to rescue and recover the project, remember that not every project can be quickly and easily saved. Consider this: Is recovering the project worth it, and is your organization able to risk the financial strain? It may be overwhelming, difficult, and even scary, to consider a project a failure. In the project management world, failure happens, and it isn’t the end of the world. The most important part is being able to pick you and your team back up and move forward despite the stumble. The resources, money, and time you would put into a failing project may be better utilized on more promising ventures.
It Burns Out The Project Team
Everyone can smell the burning fire of a dying project. Even if you haven’t fully explained the situation to your project team, they will likely sense that there is blood in the water. Endlessly striving to revive a faltering project can demoralize and exhaust team members. This will lead to mass burnout, a decline in overall morale, and can affect the ramp-up and performance of future projects. Even more concerning is the fact that this burnout can have a ripple effect on the rest of the organization as your, once passionate, team moves onto other projects. Frustration can also be present if management continues to have a stubborn grip on the project. It’s important to be transparent with your team about the project’s health and performance.
It Destroys ROI
So let’s say you do successfully rescue and recover the failing project. You may think a recovered project warrants celebration, but keep in mind that the fight doesn’t end there. You still have to consider the project’s objectives and how effectively they were met. When a project stretches beyond its intended timeline and budget, the return on investment (ROI) can plummet drastically. Even if the project eventually reaches completion, the ROI might be so diminished that the project is deemed a financial failure.
For these reasons, trying to recover a dying project may do more harm than good. But that begs the question, how do you know if a project needs to be put down versus if it’s worth the rescue and recovery efforts? Let’s start with some telltale signs that point to euthanasia.
Signs It’s Time To Cancel A Project
The Project / Product Is No Longer Relevant Or Timely
In today’s fast-paced market, timing is crucial. If a project drags on for too long, its initial objectives become obsolete, and the project’s intended gain quickly loses relevance. Too often in our experience, we find project teams still valiantly working on out-of-date projects. The project may have once been timely and relevant, but project development has extended so far beyond its prime due date that the market has completely shifted. Competitors could have already come up with, or executed the same or similar idea. Your initial idea can be expanded upon and innovated by other organizations before your project even has the chance to enter the market. In addition, new technologies may now be satisfying your intended Use Cases. Consider where the market was when the project began and how it has morphed since then. With that in mind, is your intended goal still valuable? Continuing to spend time, money, and resources on an out-of-date, low-value project is simply embarrassing and reputation tarnishing in the project management world.
You And Your Project Team Have Lost Passion For The Project
The project team is the heart of any project, which is why the dying passion will be the first thing you notice when a project is in need of rescue and recovery. Passion drives innovation and productivity. Low levels of team engagement and enthusiasm are the early signs that the project may no longer hold the value, priority, or importance it once did.
Stakeholders Have Checked Out
If stakeholders begin the project with enthusiasm and active participation, but are now becoming less responsive, it’s a significant red flag. This happens when the confidence in the team, or the realization of project benefits, starts to erode. Stakeholder exhaustion and, even worse, boredom sets in and your project no longer has the support it needs to succeed. Their disengagement can lead to a lack of necessary resources and guidance, making the project hard to get back on track.
Scope Has Changed Drastically And The Project Needs A Refreshed Strategy
Constant scope change is another key sign that something is amiss. If a project’s scope shifts so drastically that you feel the need to restart with a new strategy, it might be more efficient and effective to close the current project and initiate a new one with clear, updated objectives supported by all stakeholders. As a project manager, it’s vital to try to keep the scope as static as possible to ensure consistency across the project lifecycle and all deliverables. That said, if your project is being executed within an Agile framework, it may be acceptable, or even advisable, to keep adjusting and tweaking the scope to ensure end-game relevance. However, even in these circumstances it is still critical to maintain the same purpose (why) of the end goal or the use case you are aiming to satisfy. This allows the team to adapt to rapidly changing environments and markets and still realize or even exceed the intended benefits.
Can My Project Be Rescued?
If you are still uncertain about canceling your project, you can try evaluating your project’s current status to verify whether it is worth recovering. First, scrutinize the project’s alignment with its original objectives and business goals. If the core objectives still hold significant value and can be achieved with adjustments, recovery might be feasible.
Next, assess the level of stakeholder commitment—projects with strong, continued support may warrant continued efforts. Examine resource availability and if your team has the expertise, motivation, and bandwidth to implement necessary course corrections without overextending. Finally, evaluate the financial implications by calculating the additional investment required to remediate and compare it against current potential returns. If the project’s scope has irreversibly drifted, stakeholder support has waned, or the financial burden of continuation overshadows projected benefits, it may be more pragmatic to cut losses and consider cancellation. Ego’s aside, be honest and realistic about whether your project is still when scrutinizing the project viability through all these aforementioned lenses and then… make the tough decision and commit to it.
Our team at Valstroom specializes in project rescue and recovery. With more than 75 years of collective experience in the trenches, we can give you the emergency support and guidance you need to bring your project back to life. We’ll be transparent about whether recovery is possible, and actively train management on how to improve their project management and avoid future project failure. If project cancellation is the chosen path, we can also assist in seamlessly and discreetly winding your project down to ensure minimal collateral damage and maximized team morale. Contact us today!
A Checklist Of What To Do Before You Cancel A Project
- Get Feedback From Team And Stakeholders: Be transparent with your team and stakeholders about your considerations to close the project. Gather their thoughts and feedback; their insights can provide valuable perspective.
- Review Project Finances: Ensure all financial aspects of the project are settled. Close out contracts, cancel platform subscriptions, and pay outstanding invoices to prevent future financial liabilities.
- Release Resources: Free up any resources that were assigned to the project. This includes personnel, equipment, and budget allocations, making them available for other company initiatives.
- Review & Evaluate The Project: Conduct a thorough evaluation to understand what went right, what went wrong, and document the lessons learned. Communicate this to the team and share it with the rest of the organization so everyone can benefit from the experience. You also get leadership points for vulnerability and bravery.
- Prepare A Project Closure Report For Senior Management: Draft a detailed project closure report summarizing the key findings, accomplishments, and reasons for closure. Present this to senior management for their records and future reference.
Conclusion: Embracing Strategic Decisions for Future Success
While the decision to let go of a project is never easy, recognizing the signs of a failing project and acting accordingly is crucial for maintaining organizational health and morale. By understanding the consequences of holding on too long and implementing a structured closure process, you can ensure that your resources are better spent on ventures with higher potential for success. At the end of the day, moving on from a dead project is not a failure, but rather a smart strategic move to prioritize growth and sustainability.
