More Software Project Failure / Challenge Information From CAI
Bob Lawhorn of CAI, one of my favorite speakers, had a list of recent software project failure information.
- Poorly defined applications (miscommunication between business and IT) contribute to a 66% project failure rate, costing U.S. businesses at least $30 billion every year (Forrester Research)
- 60% - 80% of project failures can be attributed directly to poor requirements gathering, analysis, and management (Meta Group)
- 50% are rolled back out of production (Gartner)
- 40% of problems are found by end users (Gartner)
- 25% - 40% of all spending on projects is wasted as a result of re-work (Carnegie Mellon)
- Up to 80% of budgets are consumed fixing self-inflicted problems (Dynamic Markets Limited 2007 Study)
Bob also listed reasons why projects fail including:
Requirements Issues: Unrealistic project goals, uncontrolled scope creep with no allowance for such in the plan.
Estimating Issues:Inappropriate schedule, no process to re-estimate when the project changes, no reasonableness chekcks.
Quality issues: Trying to test in quality rather than a process that implements quality throughout
Poor Team Productivity: High rework (doing the same thing multiple times due to issues with the initial work)
Project Management Issues: (Lack of planning, earned value, impact of changes and issues... No estimates so no earned value)
Cultural Issues: Hiding the bad news
Bob also touched on how their automated project office product can help with many of these issues and can integrate with Galorath's SEER-SEM for estimation.