Avoiding Enterprise Project Failures
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Introduction
Projects are no longer regarded as isolated units, but are interrelated to one another within an enterprise and between enterprises for two reasons:
Increasing complexity of globally distributed networks
Demands of highly competitive markets for faster and more efficient deliveries and uninterrupted replenishment of high-quality products for less cost to targeted points of the networks
When economic times are good and the enterprise's balance sheets show profits, project failures are less of a concern because the enterprise can absorb the overhead costs of failures. Current times, however, are not so favorable. Many large enterprises—representing industries from healthcare to telecommunications—are faced with tighter budgets due to changing market and economic conditions, and narrower choice of resources and capital investments in humans, machines, technologies, and business processes. To survive, some enterprises have reorganized, merged, and/or downsized to the point of laying off loyal, long-time managers and workers, and then focusing on scarcer resources to avoid repeating past project mistakes and to provide more cost-effective project solutions.