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The success of an IT project relies not only on technical execution but equally on clearly defined responsibilities. When the key stakeholders are not clearly identified, projects often run beyond their planned timelines.
In part two of this series, Why IT Projects Fail, we focus on the importance of identifying stakeholders and having good governance. To catch up on the first article of the series, click here.
Successful execution of an IT project requires collaboration across departments such as legal, procurement, IT and operations. Each team has a distinct role, and failure to identify the right stakeholders in an IT project undermines project timelines, budgets, governance and trust between the customer and the service provider. The lack of stakeholder clarity often leads to:
- Unauthorised decisions and decision paralysis: When it is unclear who the authorised decision-makers are, individuals without the proper authority may approve actions or make commitments. These unauthorised decisions often need to be reversed or renegotiated, causing delays and unnecessary costs. On the other hand, where no one is authorised to make a final decision during a deadlock, progress on the project is impeded. Therefore, time sensitive dispute resolution processes with clear escalation routes and designated tie‑breakers are essential to resolve disputes and maintain momentum on the project.
- Lack of buy-in: Excluding key stakeholders can result in resistance or lack of support for the IT project. For example, if end-users or operational teams are not involved, the final product may fail to meet practical needs, reducing effectiveness, and if legal is not involved, regulatory requirements may not have been considered in the product development. Both examples could lead to redevelopment or adjustments at a late stage in the project, resulting in project delays or even failure. .
- Budget constraints: It is essential to identify the project owner and the department responsible for funding the project. When it is not clear who is responsible for the costs of the project, budget approval and constrains can cause delays and can impact on delivery timelines, quality of service or products and service levels.
- Lack of clearly defined scope and scope creep: Conflicting requirements or requests from various people in the organisation, and scope that is not clearly defined can lead to scope changes, which increase budgets, extend timelines and cause disruption and disputes.
- Misaligned project objectives: Without the right stakeholders, misalignment between the commercial terms of the agreement and operational realities is common, which delays contract negotiation and conclusion.
What we've learned from our project experience:
- Clearly defined roles and responsibilities: From the outset, key stakeholders and authorised decision-makers, along with their specific responsibilities, need to be identified. Tip: create a table setting out responsibilities, specifying who is responsible for what, ensuring that the right stakeholders are engaged and accountable for the duration of the project.
- Defined scope and deliverables: Clearly outline the scope of the project and explicitly state what is in and out of scope. Tip: make sure the parties are aligned with how project deliverables will be measured and signed off! This will help reduce ambiguity regarding the project outcomes, help prevent scope creep, reduce budget expansions, and limit disputes.
- Project timelines / milestones: make sure all parties are aligned on timeline expectation and, where possible, clearly record milestones and timelines. Tip: create a realistic project timeline with input from all stakeholders.
- Dispute resolution mechanisms: Include clear mechanisms for escalating and resolving disputes, even at a pre-contract phase. The mechanisms should be practical, allowing the parties to address conflicts efficiently.
For expert guidance on strengthening IT project governance, contact our team below. We are able to assist with navigating both complex and straightforward IT projects with confidence and clarity.
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