Projects always fail because of people. Why? In many companies, projects are the order of the day. Introducing new software, digitizing processes, or transforming business models—projects are the engine of change. But this engine often stutters.
One of the biggest misunderstandings or misconceptions is the following statement: “Projects fail because of technology or budget.” However, the reality is different. It is almost always people, as I will prove later with studies.
If the project is in intensive care,
Hans-Helmut Krause, IT consultant, recalls the introduction of an online reporting system.
Everyone was enthusiastic, management was behind it, and the technology worked. Nevertheless, employees hardly used the system. The reason? Neither the software nor the budget were the problem. It was people’s fears and resistance.
This is exactly where methods such as project coach Siegfried Stadler’s “Emergency Room” come in. When project managers have a bad feeling but don’t know why, paralysis threatens. Stadler guides them through a structured diagnostic process: stakeholders, roles, conflicts, and blockages are broken down like Lego bricks and reassembled.
This creates clarity about who is slowing things down, why they are slowing things down, and what options for action are available.
Whether it’s reporting, a new product, or the introduction of an ERP system…
About ten years ago, we at 1A Relations GmbH were called in to help with a struggling ERP project. It was a recommendation, even though we had never managed an ERP project before. But the customer, with whom we then implemented a 99% flawless ERP system, wanted it that way – and was proven right. We knew the weaknesses—or rather the strengths—of good project management. The four of us started out, took on service providers, the team, and management—and, similar to Siegfried Stadler, Lego was a “building block of success.” 🙂
Projects always fail because of people. What are the often hidden obstacles?
Experience shows that almost every project has at least one person or group that unconsciously or consciously slows things down. Reasons for this can include:
- Structural changes:
- Projects threaten habits and power structures, which is especially the case with cross-silo projects.
- Overwhelming demands:
- An employee has taken on too much or is simply not qualified.
- Lack of overall process knowledge:
- Added to this is the lack of end-to-end thinking and the inability to formulate or outline the relevant requirements.
- Self-interest:
- Freelancers want to drag out the project. Or silo thinkers want to maintain their power.
- Lack of leadership management:
- At the management level, the project usually fails sooner or later if the CEO does not moderate the issue neutrally or loses interest.
- Human banalities:
- From works councils to private conflicts – these can also influence the success of a project.
This is what makes project management so complex: technology can be repaired, people cannot. But you can understand and involve them.
Taking early countermeasures: practical tips
Project consultant Andrea Ramscheidt recommends:
“Invest time at the beginning, analyze goals and stakeholders carefully, instead of rushing into things.”
No false promises should be made. Deadlines, budgets, and sub-goals should only be approved once the data has been thoroughly checked.
- Find a sparring partner:
- An external coach or a colleague who is not involved in the project can help you broaden your perspective.
- Cultivate communication:
- Open discussions, even outside of meetings, prevent simmering conflicts.
Realism instead of perfection: Better to go live with partial results than to lose everything.
And finally, three tips from me:
Tip 1 is a serious warning:
The same employees who are supposed to play key user roles in different projects at the same time do not work. It doesn’t work. These people need to focus, which means that 50 to 100% of their time must be freed up for projects.
Tip 2:
Too many projects at the same time means trying to push too much through the bottleneck of available capacity in too short a time. Neither IT nor user capacity is unlimited. So: less is more.
Tip 3:
When a project is truly finished, you shouldn’t start the next project right away. Why?
The latest project may be finished, but it hasn’t yet been integrated into the daily operations of the areas affected, which can take anywhere from 3 to 6 months.
The “one sprint after another” mindset is therefore poison and a waste of money. This is because the investment in the project must first pay for itself, achieve ROI, and scale. Otherwise—yes, exactly—we just had a waste of money!
Projects always fail because of people – Tip #4 can be found at the end of this text.
The studies are clear: projects often fail because of the human factor.
Numerous studies show that projects repeatedly stall.
Standish Group (Chaos Report 2020/2022):
Only about 31% of IT projects are considered successful. The main causes are unclear requirements, lack of user acceptance, and lack of stakeholder support.
McKinsey (2019, Digital Transformation Survey):
70% of transformation projects fail, mostly because the “soft factors” (culture, change management, communication) are underestimated.
Harvard Business Review (2017):
Projects with active employee involvement are 50% more likely to succeed.
The message is clear: projects are not technical tasks, but primarily cultural and leadership tasks.
What to do when nothing works anymore?
Not every project can be saved. This also requires courage: the courage to stop a project, secure partial results, or openly admit failure.
The key thing is that assigning blame doesn’t help. A project manager should therefore always ask themselves: What is the reality now? What options do I have for action? This allows them to remain capable of acting – and that is often the first step towards rescue.
Here comes tip no. 4:
Every company needs a project board, i.e., a team of different people who have an overview of the company. I found the term “corporate excellence” fitting for one customer. This team meets twice a month and discusses (as in sprint management) what was, what is, what should happen, and where the bottlenecks are. This applies to all projects in the company, without exception. Only in this way can the most important or urgent matters be steered through the eye of the needle of available capacity.
Conclusion on “Projects always fail because of people”:
Whether it’s online reporting, ERP implementation, or digital transformation, projects always reflect the people in the company, but above all, the “style of leadership.” Technology can do almost anything. But the leadership team steers the course and ensures that the new technology is accepted and brings benefits.
Here’s a quote:
“Projects rarely fail because of technology—they fail because of how people deal with change.”
