The common understanding of project success has three components, but is only 2-dimensional. The components correspond to each arm of the Iron Triangle: schedule, budget, and specification. But ultimately, a triangle is a 2-dimensional figure.
To show how incomplete this definition is, we’ll use an example:
An agricultural supply company once developed a new product for inseminating cows. It was an effective product that allowed farmers to get much more bang for their bull. The marketing department estimated that if just one in every ten farm bought the product, they could make over $20 million off of it. The company invested millions in developing the product assuming they could make an almost 10:1 return on investment. But upon release, no one bought it. It was shelved with zero return, so the company lost all of its investment.
The example fails to mention whether the product was delivered on-time, on-budget and on-spec. Do those questions even matter? Even without that information, we can conclude the project was an abject failure.
This illustrates the third dimension of project success. A project must realize the benefits outlined in the business case, or else it has failed.
We can take that even a step further. If the cow insemination product had made $20 million, then even if it had gone 50% over-budget and hit the market a full quarter late, it still would have had a massive return on investment. The project would have gone down as a success even if it missed the mark by almost every measure from a project management perspective.
That’s easier said than done, though. Benefits realization has earned its reputation as being notoriously difficult. You can read our post on the challenges of meeting the original business case here.
You’re not alone. WiserWulff is here to help deliver business outcomes for its clients. Reach out to us today to set up an appointment to discuss a strategy for your individual business needs.
The Third Dimension of Project Success
The common understanding of project success has three components, but is only 2-dimensional. The components correspond to each arm of the Iron Triangle: schedule, budget, and specification. But ultimately, a triangle is a 2-dimensional...
The Project Management Process
Methodology and process are critical to delivering consistent, quality project results. This post details how to get both in place for your project operations. The Importance of Methodology to Project Management A methodology is...
The Critical Role of Delegation in Project Management
Project management is a multifaceted and indispensable discipline that transcends organizational boundaries involving all departments. The success or failure of projects relies not solely on the shoulders of project managers but significantly on the...
The Organizational ABCs: Always Bring Contingencies
You’ve heard it a million times: “These are unprecedented times.” Well here’s a hot take: We’re always in unprecedented times. The present reality is always called the “new normal.” These words have never been...
Leadership’s Crucial Role in Project Success
A portfolio of projects are the critical vessels that deliver the vision of an organization strategy. Project intricate endeavors involving individuals, components, and processes. Bringing them to fruition requires meticulous planning and expertise. Considering...
3 Ways to Maximize Savings without Sacrificing Returns
When managing projects, pursuing cost savings is a common goal. However, indiscriminate cost-cutting measures can often undermine the efficacy of a project. After all, if a project fails to deliver its intended benefits, staying...