Failing Rate of Project Implementation

Implementing Electric Utility System is quite similar like implementing IT Projects. The rate of failure projects is quite high.

Based on the study done on IT Projects quoted from CIO.com

n 1994, the researchers found that 31 percent of the IT projects were flat failures. That is, they were abandoned before completion and produced nothing useful. Only about 16 percent of all projects were completely successful: delivering applications on time, within budget and with all the originally specified features.

"As of 2006, the absolute failure rate is down to 19 percent," Johnson says. "The success rate is up to 35 percent." The remaining 46 percent are what the Standish Group calls "challenged": projects that didn't meet the criteria for total success but delivered a useful product.

This rate should aware us everytime we are going to start the project. Typical reasons in implementing the Electric Utility System is lack of knowledge of project scope. Or maybe... misunderstanding of project scope from both parties.

Marketing people at the starts tries to sell the project with no clear definitions of the project. Or the client as well sometimes did not see on the details. Thus, when the project starts it is difficult to implement strict milestones to close some stages. Protocol of acceptance becomes difficult to sign and vendors becomes more lenient to give some modifications. When modifications are given, the client does not stop asking for more modifications.

Thus, before starting the project both parties should know in details and agree upon the scope. When the project starts, many project management tools or methodologies can be use to monitor critical path and problems arises that can hinder the objective of the project.