Information Technology Project Failures in 2006-08

The primary idea behind this text is that the main reason that is the reason for the growing failure of projects involving information technology. The author, hereinafter referred to as Levinson was examining the findings of a study conducted by a consulting and research firm that conducted a survey of projects across 400 businesses (1). The results showed an increase in the number of finished IT projects. The findings from this specific report were specifically focused on an increasing rate of failure from 2006-2008. According to the author that the results of IT projects has been fluctuating between years. For instance, the time period between 1994 and 2000 saw the projects show a positive or a successful rate, then an unsatisfactory performance rating between 2000 and 2002. Then, it was followed by a performance record that was positive which saw the success rate increase gradually until the year.

The principal reason behind the project’s failure was identified as the decline in the economy because of the decline in economic activity. This process is commonly referred to as the globalization or recession. According to Levinson the start of the recession in 2007 caused a cut of IT budgets (2). In quoting from the words that the head of the consulting firm, the author said that this resulted in more project managers accumulating more confidence from politicians in rescinding projects. In a nutshell the findings of The Standish Group revealed that the slowdown in the economy that began in the year 2007 has negatively affected the project’s performance due to the introduction of several factors that inhibited. They eventually led to abandonment and the failure of several projects.

Yes, I do agree that excessive governance and control can lead to projects that fail. This is due to the fact that, as the writer explains that too much oversight and compliance has been identified as establishing additional layers that act as blocking factors (in this instance, what is referred to as the extra layer that are red tape) during the project’s stages. The audit and scrutiny phases will, in turn, slow down the speed with that project phases must be completed to deliver the business goals. This will result in the project take longer time than it was initially allotted. This makes it unimportant to the stakeholders involved, who may decide to stop or end the entire project. In addition the fact has been proven that excessive oversight and compliance could result in poor management. Project managers will likely be unable to keep paying attention to the ever-changing goals, risks and goals. They could also lead to the project failing. A good example would be when an accountant fails to sign off on the purchase of equipment for project due to the fact that the price of the purchase is greater than the price originally anticipated. Failure to adjust to these new business demands could halt other projects.

When Jim Johnson stating that ‘ cancellation of a project due to the funding is depleted or isn’t necessarily a negative thing in the sense that if there is a reduction or absence of project funding, it is likely that project workers will be cut. This will make it difficult for the remaining employees to manage the additional tasks. The lack of financial assistance is consequently seen as a positive sign for a particular project because it will cause the decision to make one of the “best choices to cancel the project because of overwork rather than allowing the project in its current state and finish its phase in which case it would be categorized in the category of failed projects. In the absence of funding the project may not go smoothly to its final stage, and thus be classified as a failed project.

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