Every organisation is scrambling to harness the potential of technology to get a competitive edge. To remain competitive, organisations are launching projects to improve IT infrastructure, such as migrating to the cloud or moving to a new data centre.
Unfortunately, IT projects have a high failure rate compared to other project types. For example, a study by the Project Management Institute (PMI) found that 14% of IT projects fail completely, 31% fail to meet their initial objectives, and 43% exceed their budgets. It’s not a particularly reassuring picture for organisations looking to start IT infrastructure projects.
What Causes IT Infrastructure Projects To Fail?
Projects fail for all sorts of reasons. But in the context of IT, the most common failures are undefined project requirements and goals, limited task planning, inaccurate estimates and poor communication. So let’s explore these reasons for project failure in more detail:
Undefined or Unclear Project Requirements and Goals
One of the reasons IT infrastructure projects fail is that some project requirements and goals are undefined or unclear, which inevitably leads to confusion. Before starting an IT infrastructure project, all team members must have a clear understanding of project requirements and goals.
Scenario
A financial services company planned to migrate to a new data centre to reduce costs, increase capacity and improve performance. However, the project team did not have a clear understanding of what the migration should achieve due to unclear project requirements and goals. When the project was handed to the delivery team, they learned that the proposed data centre failed to meet the company’s SLA for their clients. This delayed the projects for several months, as alternative data centres had to be considered.
Solution
Ensure all team members know the project requirements and goals before the project commences. Goals should be specific and quantifiable, which ensures project progress can be measured. You should also encourage team members to ask questions if they are unsure about aspects of the project. Encourage stakeholders to ask questions and raise concerns, as an open dialogue about goals and requirements will increase stakeholder buy-in and help people understand their roles and responsibilities.
Limited Task Planning
Another common reason why IT infrastructure projects fail is limited task planning. When planning a project, it’s important to break it down into smaller tasks with a clear timeline, especially if the project involves several teams or departments. Without extensive task planning, completing the project on time and within budget can be challenging, leading to costly delays, misunderstandings and conflict between stakeholders.
Scenario
A company planned to upgrade its network infrastructure to improve performance. However, the project team did not plan the tasks effectively and forgot to decouple the critical infrastructure, leading to a delay in the upgrade. The planned upgrade pushed ahead, however, the network stayed down well past the scheduled maintenance time and into the working week, which massively disrupted the company’s day-to-day operations. The downtime led to a significant loss of revenue and damaged the company’s reputation with customers.
Solution
Organisations can use project management software such as Jira, Asana and Basecamp to manage tasks, track projects and collaborate as a team more effectively. Make sure to involve members of all the different teams involved in the project to ensure tasks are completed within a realistic time frame. Additionally, ensure all team members are comfortable using the software before the project commences.
Inaccurate Cost Estimates
Inaccurate cost and time estimates are another key reason IT infrastructure projects fail. Every project manager knows just how vital accurate budgeting is. But it’s surprising how many projects end up exceeding their budgets. For example, the PMI found that as many as nine out of 10 projects experience cost overruns. To significantly reduce the chances of project failure, it is vital for organisations to provide accurate estimates of the time and resources required to complete the project successfully.
Scenario
A company is undergoing cloud migration. However, the project team did not include some unforeseen costs, such as training and support costs for those using the new cloud-based systems and unforeseen licencing costs relating to add-on services required to achieve business aims which were not included in the services’ base subscriptions.
Solution
To ensure all costs are accounted for, undergo a reliable cost estimation process. First, create a work breakdown structure that splits the project into a clear set of deliverables and defines the scope of work. Next, estimate the time required to complete each deliverable, but be careful not to be too optimistic. Speak to the relevant shareholders about how long specific tasks will take.
Allocate people and material resources to each project deliverable, such as facilities, equipment, and software tools. After doing this, you will be able to calculate the project cost based on the team members, tools and the time required to complete each deliverable.
Poor Communication
Last but certainly not least, poor communication is a common cause of project failure. Research conducted by the PMI found that the most important success factor in project management is effective communication with all project stakeholders. Poor communication can happen for various reasons—sometimes communication is simply taken for granted, there is no formal project communication plan in place, no project management software and a lack of stakeholder engagement.
Scenario
A company is planning to make changes to its IT infrastructure. The project involves various office-based and remote team members and third-party consultants. A formal communication plan is not created for the project, meaning several team members are unsure who they should ask for assistance when they run into problems. As a result, the project progressed significantly slower than expected.
Solution
To improve communication during a project, have a communication plan in place that includes what needs to be communicated, on what channel (email, project management tool or messaging tool), how often communication should occur and the roles and responsibilities of each stakeholder.
Additionally, organisations must engage project stakeholders to increase support and minimise resistance. Identify stakeholders early, get them talking to one another, listen to their queries and concerns, manage expectations and work closely with them to maintain their support.
In Summary
While IT infrastructure projects have a higher failure rate than many other project types, there are steps organisations can take to reduce the chance of failure. For example, clearly defining project requirements and goals, planning tasks effectively, providing accurate time and cost estimates, and promoting communication between stakeholders will improve the chances that IT infrastructure projects succeed and deliver the expected benefits.
Need assistance with an IT infrastructure project? Evolvere is here to help! Adopting new technology is time-consuming and arduous, especially when your infrastructure team is already busy. Evolvere enables you to accelerate the process, meaning you can reap the benefits of updated systems sooner. To learn more about the infrastructure services we offer, click here.