McKinsey Report on Why Large Projects Fail

Summary:

On average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted. In fact, 17 percent of IT projects go so bad that they can threaten the very existence of a company.

Surveys of IT executives indicate that the key to success lies in mastering a value-assurance methodology for large-scale IT projects. This approach gets companies to focus on managing strategy and stakeholders, master technology and project content, build effective teams, and excel at core project-management practices.

It’s wise to analyze the prospects before starting a large IT project. Companies may begin with a diagnostic to determine the health of a project from the standpoint of the value-assurance approach and its relative prospects when compared with the outcomes of similar projects

Mckinsey Oct 2012