Do 80% of organizations average a project failure rate of 80%?

The answer to this question depends on how you perceive success and failure.  Our latest article published in the May PM World Journal offers several possible alternatives.

However, reflecting on data in the article shows a worrying trend:

1. Using traditional measures, 80% of organizations do appear to have project failure rates averaging around 80%, but this is not the perception of most managers in those organizations.
   
2. Organizations that manage projects successfully achieve a significant cost-benefit over those that do not. Poor project delivery is directly linked to higher project costs.

Therefore, the long sought after answer to Cobb’s Paradox can at last be unveiled:

If 75% of the managers in poorly performing organizations believe their projects are being delivered successfully, they have no reason to invest in improving project delivery capability. Outsiders may see project failure and know how to improve the organization’s systems to prevent future failures, but the majority of the managers in the organization cannot see, or will not see, there is a problem that needs fixing.  The answer to Cobb’s paradox: ‘We know why projects fail, we know how to prevent their failure — so why do they still fail?’ is the responsible managers do not perceive their projects as failing and therefore will not invest in solving a problem they cannot, or will not, acknowledge. Changing this flawed perception is a major governance challenge.  

Download Do 80% of organizations average a project failure rate of 80%?

For more papers on project governance see: https://mosaicprojects.com.au/PMKI-ORG-005.php#PPP-Success