How to Kill Failing Projects

A colleague posed this topic:

It is estimated that only one-third of projects are fully successful, even with dramatic improvements in project management methodologies over the past several years. Most of us have been involved in projects that are not meeting the objectives and are consuming valuable resources (people, infrastructure, dollars). And yet, even when indicators suggest that a project is headed for failure, it is difficult to kill the project and reallocate resources to other, more fruitful efforts. I would appreciate any thoughts anyone has on this subject. I would be particularly interested in hearing from those who may have been faced with this situation and successfully dealt with it.

My response:

In my view, the operative phrase is proactive honesty. Ideally, a leader (project manager, product manager, CxO or other) will have established and be tracking to performance points necessary for success. The earlier a problem is detected and surfaced, the greater the chance that necessary corrections can be put in place. Projects that are beginning to move over budget or schedule may benefit from brainstorming among the project teams. This may surface ideas to reduce time and costs and aligns team members behind the project.

As an example, I was once faced with having to cut staffing in half for an already bare bones project. I fully expected to kill the project and reassign team members when I took the problem to my team that afternoon. To my surprise, they came up with ideas and signed up for the extra hours necessary to make the project successful. As a contrasting point, half of this same team had come from a doomed project that had been scuttled just AFTER the development phase completed. They had put tremendous time and effort into the earlier project and suspected that much of their efforts could have been better deployed. I found that trust in management goes a long way toward insuring timely corrective action and a higher rate of success. DO NOT KILL THE MESSENGER AND DO NOT BE AFRAID TO ADMIT YOUR MISTAKES!

A tougher problem occurs when outside competitive forces or a serious “gotcha” shifts the ROI into a losing proposition. Proactively coming to terms with the new reality and moving quickly to redeploy resources to healthier projects is the best course to preserve both money and morale. Even when the change involves layoffs, I found that the morale and confidence of my staff remained high so long as I dealt with the situation proactively, honestly and with compassion.