How to Steer a Derailed Project Back on Course
How to Steer a Derailed Project Back on Course
Even the best-laid plans can veer off track! Or maybe it is especially, the best laid plan go of track! Critical to success is the ability navigating through challenges, unforseen or otherwise. Here’s are some thoughts for getting a project back on track, leveraging a structured approach aligned with a comprehensive project management framework.
Reassess and Realignment: Begin by conducting a thorough review of the project’s current state versus the original objectives.
This involves evaluating the scope, schedule, budget, risk quality, project dependencies. The reassessment should be undertaken in the context of the program or portfolio of projects that the company might be undertaking and the strategic direction of the board, all of which might have changed since the initial project authorisation. Identifying the root causes of deviation- be it scope creep, resource constraints, changes external to the project or underestimated risks- is crucial, so an understanding of what changes will be needed to draw the project to closure, one way or the other.
Reassess Benefits: What were the original stated benefits of the project? Review the original justification for the project against the current status, commodity outlook, economic conditions, reevaluating any project metrics like NPV, payback periods, etc. Outside of monetary considerations, what was the benefit to the user? If the project is to continue, Does the updated project benefits analysis still justify the completion of the project? Beware sunk cost fallacy.
The Sunk Cost Fallacy is the tendency for people to continue an endeavor or course of action even when abandoning it would be more beneficial. Because we have invested our time, energy, or other resources, we feel that it would all have been for nothing if we quit. Beware that other cognitive biases may also be at work (subject of a separate article).
Engage and Communicate: Stakeholder engagement cannot be overstated. Keeping an open line of communication with stakeholders, including the project team, sponsors, clients and other stakeholders ensures transparency. Regular updates, adjusted expectations, and solicited feedback foster a collaborative environment conducive to problem-solving.
Adapt and Overcome: Flexibility is your ally. Adjust the project plan based on the reassessment. This may involve reprioritising tasks, reallocating resources, renegotiating deadlines or cancelling the project. Implementing a change control process to manage scope changes effectively, ensuring that any adjustments align with the project’s goals and overall organisational objectives.
Risk Re-evaluation: Updating the risk management plan to address new challenges is critical. Proactively identifying potential risks and developing mitigation strategies can prevent further setbacks, keeping the project on a steadier path.
Project Closure: If the project is not considered to warrant completion (even in a modified format), consideration should be given project what is to become of the project. Are there assets to be disposed of, can the incomplete project be monetised, or can the project be closed in such a way that it can be restarted again once the commodity prices and/or the stars align, or can it be closed in such a way that delivers incremental valve to the organisation. Even with project closure, careful planning, resourcing and effort is still required to get the best outcome, or in the very least, a less-worse outcome.
Monitor and Adjust: Implement a robust monitoring system to track progress against the revised plan. Utilise performance metrics to guide corrective actions, ensuring the project remains aligned with its objectives.
Leverage Lessons Learned: Finally, document and analyse lessons learned throughout the project. This is not only aids in immediate recovery efforts but also enhances future project management practices, particularly if there are projects that are continuing.
Getting a project back on track requires a balanced blend of strategic planning, effective communication, and adaptability. By adopting a structured approach to identify issues, engage stakeholders, and implement corrective measures, companies can navigate their teams through turbulent waters back to the shores of success, or at least chose where the shipwreck will be.
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