MAXIMUM MEGAHERTZ PROJECT 1
Organizations often launch projects with the aim of improving theircompetitive advantage therefore, ensure increased profitability.However, not all projects are successful, with failure oftenresulting in huge losses for the organization. Despite the existenceof numerous failed projects, literature on how to identify andterminate a failing project is quite limited. The lack of knowledgeon the various indicators of project failure often results in timewastage as well as loss. The case studyillustrates a situation where a CEO does not know when to terminate aproject despite the project constantly failing. This essay provides adescription on how the CEO can identify failing projects earlytherefore, terminate them without embarrassing his employees.
The identification of failing projects in the early stages iscrucial in preventing time and resource wastage. However, identifyinga dying project before completion is often complicated and may resultin junior employees feeling embarrassed, and viewing themselves asfailures. The Wireless Telecommunications CEO should consider variousfactors that may indicate the failure of a project. One major factorto consider is extreme changes in the timeline and budget. Allprojects often have a time limit to complete. Extension of thetimeline by long periods is a major indicator of a dying project.Short extensions may be required to deal with unexpected issuesincluding loss of employees, or new government incentives. However,long extensions indicate poor planning which in turn often results infailure of the projects (Williams, Klakegg, Walker, Andersen, &Magnussen, 2012). Drastic increases in the project`s budget may alsobe an indicator of failure. Although issues of inflation and othereconomic factors may result in a need to increase the project’sbudget, a drastic increase in the planned expenditure is an indicatorof a dying project. In the case, the budget doubled after the projectbegan. Such a situation may also indicate poor planning.
The identification of failure signals paves the way for thetermination of a project. The termination of a project beforecompletion may result in employees feeling embarrassed due tofeelings of being failures. However, a CEO may terminate a projectwithout embarrassing the employees involves in the planning andimplementation. One factor that may help reduce such embarrassment isthe use of a risk management plan. A risk management plan is oftencreated when planning for a project. The plan often entails a list offactors that may indicate the possibility of failure. In case suchfactors are identified, the CEO should launch an investigation toidentify if the problems likely to result in project failure can beaddressed (Shepherd, Patzelt, & Wolfe, 2011). If the problemcannot be solved, the CEO should launch a project terminationprocedure that involves a documentation of the lessons learned, aswell as the reasons for project termination. The CEO should ensurethat all individuals involved in the project receive copies of thereport to ensure the problems experienced do not occur in the future(Shepherd, Patzelt, & Wolfe, 2011). While explaining the reasonsfor the project’s termination the CEO should ensure that allemployees know it is not their fault that the project was terminated.
Project failure often results in loses. However, theidentification of a failing project may help managers avoid loses asthey can terminate the project during the early stages. In thescenario, the changing budget and extended timeline are clearindicators of a dying project. The identification of such issuesallows the manager to terminate a project without embarrassing thesix individuals involved. Other than preventing embarrassment to theemployees, a manager should also ensure that failing projects act aslearning points for all employees involved.
Shepherd, D. A., Patzelt, H., & Wolfe, M. (2011). Moving Forwardfrom Project Failure: Negative Emotions, Affective Commitment, andLearning from the Experience. Academy of Management Journal,1229-1259.
Williams, T., Jonny Klakegg, O., Walker, D. H., Andersen, B., &Morten Magnussen, O. (2012). Identifying and acting on early warningsigns in complex projects . Project Management Journal, 37-53.