WHY Projects Fail

Most organizational and operational stakeholders* rely on new IT initiatives to create additional business value. However, Giga Information Group has found that only 8.33% of IT budgets are spent on new IT initiatives.

Research has also found that more than 40% of initiatives are cancelled prior to delivery, and another 30% fail to deliver a return greater than their cost. Even more alarming is that in many cases organizational and operational stakeholders are unaware of those few initiatives that deliver positive returns.

A major reason why initiatives fail, or go unnoticed, is that few stakeholders are effective at aligning them with organizational and operational priorities. This is due to a lack of an operating system to precisely communicate the relationship between organizational, operational, and infrastructure priorities.

CFO's are prioritizing major initiatives according to their organizational and operational priorities. CIO's and CSO's will rise or fall by their ability to demonstrate alignment of IT initiatives with these business priorities and why their solutions are important.

Without a collaborative operating system for stakeholders to communicate this alignment of organizational, operational and infrastructural priorities, initiatives lack relevance and significance. As a result the majority of them will continue to be cancelled, or fail to deliver a return greater than their cost.

* Stakeholders: Individuals within a company, its customers/prospects, and its suppliers responsible for organizational, operational, and infrastructure decisions and/or results.

Say What?

“The ASP model was technology driven and it failed to touch the nerve of the business world. This was a failure of communication - the marketing messages were developed by vendors, for vendors, and it was a technology push rather than a customer pull.”

Wendy Currie
Director of Strategic Information
Brunel University, London

Online :-)

Operating Systems (OS) at Work

SIM - Aligning initiatives with priorities

Independent Research

  • How to Buy and Not Get Sold
  • Investing in Information Technology
  • WHY Projects Fail.pdfDownload printable version (PDF)


    Stakeholders, internal and external, who elevate the importance of their offerings and align them with an executive’s organizational and operational priorities, will be more successful.