A project is considered to be in trouble when it exhibits any of the signs below.
– Project Progress: Disbursements are lower than planned; Sub-projects or related projects are halted; The actual project progress cumulative curve (S-curve) is skewed downwards and tends to increasingly diverge from the planned curve.
– Communication and Stakeholder Relations: Project challenges and outstanding issues are not raised at project review meetings; There is no consensus among stakeholders on how to assess problems and solutions at the meeting; Relationships and cooperation between stakeholders are rapidly deteriorating.
– Project Costs: Project completion costs are projected to exceed the approved total investment.
– Project Schedule: Project completion milestones are not clearly defined (accompanied by a feasible project schedule); Deadlines for key project milestones are delayed compared to the planned schedule.
– Project Scope: Project requirements are frequently proposed to change; There is no consensus among parties on certain work scopes.
– Project Quality: The number of quality non-compliance issues is increasing, and there is a lack of control and corrective measures.
– Project Resources: Inability to allocate human resources suitable for the project requirements; A stressful and distrustful project work environment; Project members do not properly understand the situation and nature of the project issues.
Project salvage involves applying reasonable solutions and methods to re-establish the project’s scope, schedule, and costs while still achieving the benefits and value the project brings to the organization, business, and key stakeholders. Once the decision to salvage a troubled project has been made, the project owner needs to decide early and act urgently and comprehensively. The longer the delay, the greater the costs incurred, and the more complex and difficult the solutions become.
As Albert Einstein once said, “We cannot solve problems with the same way we created them.” Similarly, to address troubled projects, we need a different mindset—a mindset coupled with responsibility and action—instead of the old way of thinking and doing things that has allowed project problems to accumulate and worsen.
To change mindsets and approaches, we need a “change of leadership,” a search for the right project leader. This person should possess the ethical qualities to build trust with stakeholders; be able to inspire and rekindle the enthusiasm and spirit of a dwindling project team; maintain a firm stance in ensuring the achievement of the project’s and the organization’s/business’s common goals and interests; and have the courage to lead their project management team through numerous challenges and obstacles to achieve the ultimate objectives.
Another crucial aspect in salvaging a troubled project is accurately assessing the project’s current situation and identifying the root causes of the problems. We need to slice the “watermelon” to see through the situation, comprehensively assess the value and benefits of the project, and establish new goals regarding quality, scope, cost, schedule, etc.
The solutions proposed to achieve these new goals need to be systematic and synchronized from the highest leadership level of the organization or enterprise down to the project management board, and then to the project management organization, with clearly defined roles and accountability.
The key to the success of project salvage is that the highest-level leadership of the organization or business must be fully and transparently communicated, and they also need to proactively engage and make timely decisions on project issues within their authority, avoiding making numerous promises that are then not fulfilled.
During the project salvage process, the project management organization needs to apply appropriate methods and approaches, shifting from the “quick win” approach of conventional project management to a “steady, steady progress” approach, adhering to the overall salvage plan, completing each task set out in each salvage phase, and summarizing results and experiences from each phase to update and adjust the implementation plan for the next phase. Throughout each implementation phase, the project management organization needs to communicate transparently and promptly with stakeholders and implement strict management and control measures to prevent deviations from the norm and avoid the project falling back into crisis.
Saving a troubled project is about “saving” the investment that the organization or business has made in that project, with the goal that after the rescue is complete, the project will still deliver value and benefits to the organization, business, and key stakeholders. Successful project rescue also aims to restore the organization’s position and reputation, and to bring happiness to those who genuinely worked on the project!
Excerpt from the book “Project Management: Understanding It Right and Doing It Right”