3) Project: Information technology (IT) Projects
Most major organizations worldwide have suffered failed IT projects during the last decade, mainly due to inefficient project management, according to a new research carried out by consultancy firm KPMG.
Cost: The KPMG, which has carried out research among 134 major listed companies in the UK, US, Africa, Australia and Europe, found that 56% of the organizations surveyed had to write off at least one failed IT project in a year. The average loss incurred by the businesses surveyed was ?8 million per failed project, whilst the largest single project failure reported had cost ?133 million (3).
Cause of failure : The survey found that causes of failure were inadequate planning, poor scope of the management and poor communication between the IT function and the business, need of improvement in management, ineffective co-ordination, bad quality assurance, inadequate risk management, costs overrun, timescales slip and the planned benefits lost their focus.
Consequences:
Financial losses and loss of business.
Jane Novak’s blog about Yemen
The losses in many of these could have been avoided by eliminating the above mentioned causes.
4) Project: Developmental Projects in Yemen
In Yemen, 189 projects were cancelled as a result of investor negligence, following the grace period of four months given to them by the Government. The President ordered the cancellation of the land licenses of investors who had failed to begin their investment projects in Hadramout, despite the free land offered to them ten years ago.
A joint study conducted by the General Investment authority, the German GTZ and the Private Sector’s Development Project disclosed that 86 Yemeni, foreign and Gulf backed projects had failed (4).
Reasons of failure: During a workshop held in Aden to discuss the reasons for the failures, it was revealed that most of the projects which failed were those granted to small, private companies. The authority added that the rate of failure for construction companies was 73 percent, the rate of failure for corporate companies were 67 percent, and for limited liability companies 60 percent. Public Shareholding Companies represented the lowest rate of project failure, boasting a failure rate of just 11 percent.
The highest rate of project failures was found in projects targeting the agricultural and livestock sector, with a failure rate of 95 percent. The services sector records showed a failure rate of 92 percent, while the real-estate sector witnessed a failure of 89 percent. Finally, the rate of failure for projects in the tourism sector was 62 percent.
