Why Projects Fail: The Role of People and Change (and How to Solve It)

Why Projects Fail: The Role of People and Change (and How to Solve It)

I am writing this article from first hand experience from various industries and would like to identify similar experiences from across the globe. I have seen several projects failing because people simply do not do what they said they will be doing. Projects are People Centric and people is at the core for failing projects. My question is however, are you experiencing the same challenges and have you tried some of the resolves I am suggesting herewith below?

Projects often fail for several reasons i.e. Procurement bureaucracy, business case not understood in full, technical limitations or budget issues – I can go on for a while explaining my experience. But each one of these reasons can be connected to the People Element. So lets not focus on the secondary causes, rather grab the primary reason for project failure – PEOPLE!

1. Leadership is not presented by Business rather by the IT PMO

Problem:
Leadership is critical for a project’s success, but when leaders are unclear of their objectives or disengaged, it can cause confusion and lack of direction for the team. A well known problem, is the legacy of PMOs. In typical digitization projects the IT Department’s PMO will be responsible for delivering business projects. The PMO and IT Team usually takes control as they assume responsibility for the budgeting cycle for technology and resources meaning they own the budget. Now I must ask, who is really the sponsor of the project of PMO makes these decisions? They, the PMO or IT, are usually the first Department being forced to cut budgets. See the problem? The IT and PMO will cut budgets without understanding the impact on the business to meet certain KPIs. Now my question is, how do the Project Sponsor (Business Executive) fit into this picture? He/she/they did not submit budget hence they are not the sponsor, IT is. And this in my view is a recipe for disaster.  

Possible resolve:
To resolve this, establish a clear leadership structure early in the project. If following PRINCE2 or PMI methodologies, ensure that the Sponsor is appointed by Business. Appointing the project Manager is the responsibility of the Executive, not the PMO. The leadership team should:

• Establish the project delivery team upon obtaining approval to proceed (initiate) the project.
• The PMO delivery method needs to be aligned with the business objectives and strategy. This is a quick fix as many PMOs are managed by non-qualified people quickly resulting is misunderstanding of roles. PMO provides support to the Project Delivery Team. Not managing the project. The PMO cannot be held responsible for the delivery of projects from a supporting point of view. The Project Manager, Project Assurance and Executive is to be held responsible by Business, not IT.  
• A schedule is not a document to manage progress. It is to schedule activities. Reporting on progress is a multi-step disciplinary and should be included in project documentation such as project management plans and governance approaches such as communication, scope management, reporting, quality, business case benefits etc. The PMO must have a clear view on its Governance requirements and deliverables. 
• Project management documentation in several examples is very light and need to be aligned with a proper delivery method and process. The problem with templates is that the Project Manager will quickly stop thinking and just follow the already provided information in the template whereas proper analyses should be done of and content should be customized for each and every project to meet with the uniqueness of the project. 
• Ensure the executive sponsor is fully engaged, providing the strategic direction needed. The Executive can override any decisions being made by IT or PMO but for this need to be the budget owner. 

2. Poor Communication

Problem:
When communication breaks down between team members, stakeholders, or leadership, the project can quickly lose alignment, leading to missed deadlines or misunderstood goals. There are several reasons for communication breakdown to mention a few:

• Workload and pressure 
• Misunderstanding
• Delays and impacts 
• Wrong assumptions made 
• Poor leadership and or management 
• Project complexity resulting in people not wanting to loose face
• Language barriers working on International projects 
• Distrust and conflict 
• And many more 

Solution:
A project leader fostering a safe workspace ensures open and honest communication by establishing a culture of trust and respect. They encourage team members to voice concerns, share ideas, and discuss challenges without fear of judgment or retaliation. By actively listening, addressing issues transparently, and providing constructive feedback, the leader reinforces the importance of collaboration. Regular check-ins, clear communication channels, and celebrating diverse perspectives further empower the team, creating an environment where communication barriers are addressed, and solutions can flourish.

Create a robust communication plan at the project’s start. This plan should:

• Define how and when information is shared between stakeholders, project teams, and leadership.
• Use regular reporting structures such as status updates, meetings, and dashboards to keep everyone informed.
• Foster open communication channels where team members feel comfortable voicing concerns or asking questions.

Using collaborative tools like Microsoft Teams, ClickUp project management software can also improve day-to-day communication by centralizing information.

3. Resistance to Change

Problem:
Resistance to change is one of the biggest hurdles in any project, especially when new systems or processes disrupt the status quo.

Solution:
Address resistance by engaging a dedicated Change Manager from the beginning of the project. The Change Manager can:

• Clearly communicate the objectives of the Business case for the project for all to have a common understanding of the effort required to implement the change.
• Implement a change management framework (such as Prosci’s ADKAR model) to systematically measure attitude and reduce resistance.
• Communicate the benefits of the change clearly and often.
• Involve key stakeholders early to gather input and create a sense of ownership.
• Organize training and support programs to ensure everyone feels comfortable with the new processes or technology.

Having a “Change Champion” within each department will help drive acceptance, making the transition smoother.

4. Misaligned Team Roles and Responsibilities

Problem:
When roles are not clearly defined, team members may duplicate efforts or overlook key tasks, leading to confusion and inefficiency.

Solution:
A RACI matrix (Responsible, Accountable, Consulted, Informed) can be an effective tool to define and clarify roles. For each task or deliverable, determine:

• Who is responsible for completing it.
• Who is accountable for ensuring it’s done right.
• Who should be consulted for input.
• Who needs to be kept informed.

Ensure that everyone involved in the project understands their roles and responsibilities from day one. Regularly review and adjust responsibilities if needed to ensure the team stays aligned throughout the project. Create a sense of responsibility for each contributor on the project.

5. Inadequate Stakeholder Engagement

Problem:
If stakeholders aren’t engaged or involved in key decision-making moments, the project risks drifting away from their needs and expectations and may result in the objectives of the Business Case not being pursued. 

Solution:
Develop a stakeholder engagement plan that outlines:

• Who the key stakeholders are (both internal and external).
• What their interests and expectations are.
• How and when they will be involved in the project.
• Set up KPIs for each role and keep the responsible to perform to expectations.

Actively engage stakeholders throughout the project lifecycle by hosting regular check-ins, reviews, and feedback sessions. Keep communication transparent and ensure they have a voice in major decisions to maintain alignment with their needs.

6. Failure to Manage Change Impact

Problem:
Projects often fail when the wider impact of change on the organization or team is not understood or managed. This can lead to disruptions during implementation.

Solution:
Conduct a Change Impact Assessment early in the project to:

• Identify all areas affected by the change.
• Determine the level of disruption expected in each area.
• Develop mitigation plans to reduce the impact (e.g., phased rollouts, parallel running of systems, temporary staffing support).
• Identify training requirements and how it will be executed.

Work closely with the Change Manager to develop readiness assessments and transition plans to ensure teams are fully prepared. Providing ongoing support during the implementation phase, such as additional training and resources, can ease the impact and boost adoption.

7. Cultural Resistance

Problem:
In some organizations, the company culture can be resistant to new ways of working, especially in industries that are traditionally conservative or hierarchical.

Solution:
Address cultural resistance by:

• Creating a change-friendly environment. Leadership should model the desired behaviours and champion the change effort.
• Engaging early with cultural influencers—respected individuals within the organization who can help shift perceptions.
• Involving teams in the process by gathering feedback, holding workshops, and empowering them to be part of the change.

A gradual, phased approach to change is often better received than a sudden overhaul. Offering incentives for early adopters or those who contribute to the success of the change can also help shift the company culture towards more openness.

8. Inconsistent Decision-Making

Problem:
When decision-making is delayed, inconsistent, or based on personal agendas rather than the project’s objectives, it stalls progress and leads to confusion.

Solution:
Implement a decision-making framework that ensures decisions are made in a structured and timely manner. This can include:

• Defining clear escalation paths for unresolved issues.
• Creating decision logs to track who made each decision and why.
• Establishing governance structures like a Project Board to oversee major decisions, ensuring they align with the project’s objectives.

By using structured decision-making processes, the project can avoid unnecessary delays and keep everyone on the same page.

9. Lack of Training and Skill Development

Problem:
When team members or end-users aren’t trained adequately, they struggle to adopt new systems or processes, reducing productivity and increasing the chance of project failure.

Solution:
Invest in continuous training and development by:

• Conducting a skills gap analysis to identify areas where team members need support.
• Developing a tailored training plan that includes hands-on workshops, tutorials, and ongoing coaching.
• Incorporating refresher courses as the project progresses, especially if new technologies or complex processes are being implemented.

Additionally, ensure that training sessions are timed appropriately, so that team members receive support when they need it most—just before new systems or processes go live.

Conclusion

While there are many reasons why projects fail, most challenges can be overcome by focusing on the people and change management aspects of the project. By establishing clear leadership, improving communication, managing resistance, and providing ongoing training, organizations can avoid common pitfalls and significantly increase the success rate of their projects.

When people are engaged, change is managed effectively, and roles are clear, even the most complex projects stand a much better chance of delivering value.