Project Failure Source 6 - Optimism

Note: This posting is a continuation to the topic posted on June 24th and relates to my project management workshop titled "10 Ways to Increase Your Project's Success". In this post I discuss one of the sources of project failure and how we may mitigate this risk to our projects.

Source 6 - Optimism
Optimism is a tricky challenge. In order to make it through each day, project managers need to be optimistic. Projects always seem impossible to complete with the resources and schedule allocated. However, using the project management approach these projects end up getting done. As a result, project managers tend to be more optimistic. However, problems arise when this optimism clouds perceptions of reality. Project managers and the project team need to be sure to acknowledge risk in the project an observe the true impact of the risk on the project without assuming the risk will go away or can simply be absorbed by the project.

Effect on Project
Being blinded by optimism results in a project that will take on too much scope, will end up over budget, and will extend beyond the target completion date. Too much optimism creates a project environment where risk is ignored and results in the project team needing to react to many environmental changes and take on additional work. This additional work then extends the project timelines and consumes more budget. The project team does not have time to plan for the changes and negotiate changes to scope, schedule, and budget and therefore must absorb these changes.

Actions Taken by the Project Manager
Project managers and the project team must be aware of their optimism and take risk seriously. A risk management plan must be in place and risk continually monitored. While maintaining optimism is very important for the project team, the optimism should never influence risk evaluation.

Next Source: Resource Assumptions