All the activities in an organization are carried out in general on operations and projects. Operations and projects have in common the fact that they are planned, executed, controlled and run by people, and they also support resource constraints.
Operations are ongoing activities, carried repetitively. The difference they bring asides from projects is the kind of activities with a deadline, with defined time points for the beginning and end of the project and results.
Studies show that on average 25% of business projects fail, while 50% are not included in the initial-time constraints, budget and quality standards. What is it that failed business projects have in common? Bad project management. Just like a house that need a solid foundation to stand the test of time, a project can only be successful if it’s properly managed.
For example, let’s make a short review on some of the most well – known business project that have failed because of weak management in the last years:
Volkswagen and the vehicle emission system
This is one of the most recent scandals in business world. In a nutshell, in 2015, Volkswagen cheated the emission testing imposed by the US government, by using a defeat device, a piece of software programmed to detect when the car was undergoing emission testing an to minimize emissions.
Now, the company has to pay up to 18 billion dollars in fines and has already lost at least 25 billion dollars because of the dive in stock price. It is a hard blow that will certainly affect the company for the years to come. It all could have been avoided, if someone involved in the project wouldn’t have tried to cut costs and raise profits with any risk, by installing the defeat device instead of a more costly components meant to clean the emissions. This is one example in which a cost control software such as ExTreM Expense Report is very useful, because it helps the management have a better overview on the entire cost of a project.
Target expansion in Canada
One of the best known retail chains in USA decided to open up stores in Canada, by buying more than 180 leases from Canadian retailer Zeller in 2015. Canadians loved to do shopping in Target stores because of the low prices.
However, some unfortunate management decisions drove away the Canadian clients. For one thing, the merchandise was not as cheap as in USA, because of various operational costs, logistics and so on, and the stores were not properly stocked, with the items high in demand. Naturally, the Canadians didn’t spent their money at their local Target retail chains because they didn’t receive the same merchandise they were used to from the US.
Considering the lack of quality control, risk management and project assessment, it is clear that the retailer didn’t know what to expect on the Canadian market and what their audience wanted. Proper research is very important, as well as working with insiders from a local market when expanding a business. WorkForce Schedule is the perfect human resource planning software, as it helps keeping track of employees and business collaborators, even for those who are remote. Thus, with a better organization and proper resources, this failed project wouldn’t have happened.
Christmas themed parks
In 2013 and 2014, there were some interesting projects in development in the UK, mainly some Christmas themed recreational parks. Glamorous events were held where the projects should have been presented, but they were all failures. Why? Because the company who organized these events wasn’t able to deliver quality presentations for the investors and they basically used false advertising.
As far as these projects goes, they were shut down after only a couple of weeks; there was no proper project management involved, most likely because there wasn’t even a business strategy or a business plan for the investors. By using external consultants or in – house experts, the two projects known as The Magical Journey and Magical Winterland could have been a success. To ensure quality, to have a real business plan and to keep track on the progress of a project, project management software is a great help, for any type of company.
Don’t allow your business projects to fail. Do your research, plan and organize and maximize the use of all your resources, regardless if it’s human resources or project management software that helps you keep everything on track. Lantech – Soft project management software is designed to ensure the success of your business, from start to finish.