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2020-03-31
Software Development

How to avoid delays in projects?

The Codest

Jakub Jakubowicz

CTO & Co-Founder

The timely implementation of an IT project is a great challenge nowadays. Everywhere you can hear or read about struggles with respecting deadlines.  Some statistics show that up to 50% of them fail and others again say even 70% of the projects don’t make it. Probably, you’ve heard several statistics about the failures of IT projects. The most important thing is that your project is well planned and not subjected to any delays. Because the goal is one – success.

The IT industry might appear extremely thriving and successful, but this problem is serious and can threaten the outcome of a business. IT projects are some of the most challenging types to manage. Many factors can affect the final result. All available industry studies show that the scale of the problem is extensive. Here are some interesting facts that will allow you to better understand the threats:

  1. On average, IT projects exceed the initially estimated budget by 27%.

  2. On average, one in six IT projects exceeds the budget by up to 200%.

  3. 55% of surveyed managers think that the main reason for failures in IT projects is due to exceeding the budget.

  4. Only 28% of companies implementing an IT project uses special techniques for project management.

  5. In turn, 77% of high-performance IT projects are implemented with the support of project management software.

  6. Only 64% of IT projects actually manage to implement all the goals set at the beginning.

  7. Managers who use any project management methodology can cope better with the implementation of the budget, meetings management, coordination of the team’s work, and compliance with the schedule.

  8. 71% of IT projects are implemented using agile project management methodologies.

  9. 57% of IT projects fail due to a faulty communication system.

At first glance, you probably already see some of the typical mistakes, which are the most common reasons for delays in implementing IT projects. I will list them so that you have a full picture of the most common threats:

Budget

Incorrect budget estimation is certainly one of the key factors. I believe that this is a really significant challenge within the entire IT industry. What do I mean exactly? I will use an example here. The client contacts the software house for potential cooperation. Then, he presents his goals, project assumptions and informs the project manager about his budget availability. However, the scope of work is often disproportionate to the budget. And here the problem arises.

That’s why I am a supporter of a different solution. Namely, in the initial estimation process, the client and software house can accept the assumptions, but they must be aware that they may change. I would like to emphasize that such an approach does not necessarily mean significant budget overruns. In one of our projects, which we implemented for one of our clients from Norway, we assumed that the development process will take X days. As a result, we managed to deliver the work 20% faster. This situation shows that it is sometimes difficult to predict the exact time of the project and thus the size of the budget.

Other project assumptions

The wrong budget estimation is only one of the aspects of the projects that can be wrongly estimated. Sometimes, the requirement that the client expects cannot be realized. Both in terms of functionality and deadline. Action in a hurry, under the pressure of time, will always lead to negative effects. The key to success is proper planning in which both the client and the software house are involved. It is necessary to understand each other and fully accept the assumptions made.

Delays in IT Projects – bad work organization

In the statistics I mentioned above, you may have noticed that the lack of a proper approach to project management can have serious consequences. Proper project management at every stage, helps to organize the work, assign tasks to specific people and oversee the effectiveness of the entire process. IT projects are usually complex, therefore using tools for project management and organization of work following Agile principles is priceless.

cause of project delays

Lack of communication

If the project requires the cooperation of both sides, client and software house, it is necessary to properly plan the entire communication process. The point is to exchange messages that are fully understandable and do not slow down the work. This aspect should be discussed and planned before the start of the development work. You can set periodic checkpoints (even daily if necessary), during which both parties will share useful information on the status of the product development.

Client changes

I will tell you a short story that very often repeats itself in our industry. When a client wants to cooperate with us, he often comes with a ready idea. Great, we like when the customer knows exactly what product he needs. However, the problem is that some assumptions are verified over time, and clients change their minds. They end up asking for something different. All this causes a considerable extension of working time, budget, and consequently poses a threat to the entire project.

Therefore, a good approach is the gradual development of the project. MVP meets these needs. This is a really effective method that can also work for your project. You can read more about it in this article.

Statistics are not everything! Your project does not have to be delayed

I am convinced that if you carefully analyze all the factors that I described in this article, you will draw the appropriate conclusions, then your project can be carried out with 100% efficiency.

To conclude, I leave you with a small tip from my experience. Before you start the development process of your product, check the available case studies of other projects, similar to yours, which were successful. Thanks to this, you will have the opportunity to analyze good practices that may be helpful. There are many ways to check other projects and products. I recommend, among others, the Clutch portal.

It’s all from me. I wish you a successful project!

Read more:

– Proptech. A fast developing industry. Why is it worth to keep an eye on it?

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