In a stark landscape where industry reports consistently reveal a crisis of confidence, with failure rates for major initiatives—from software rollouts to digital transformations—routinely soaring past 50% and costing trillions globally, it's clear that understanding why projects fail is no longer optional for any organization serious about its future.
Key Takeaways
- The Standish Group's 2023 CHAOS Report indicates that only 29.7% of software development projects were fully successful in meeting time, budget, and quality goals, with 49.2% challenged and 21.1% outright failed.
- A 2022 PMI Pulse of the Profession report found that 37% of all projects were successful, while 48% experienced scope expansion leading to partial failure, and 15% failed completely.
- McKinsey's 2021 analysis of 1,500 large-scale IT projects revealed a 45% failure rate, defined as cancellation or significant underperformance against objectives.
- A 2022 McKinsey study estimated global IT project cost overruns average 45% of budget, with 28% of projects exceeding 100% overrun leading to cancellation.
- PMI's 2023 Pulse report revealed that high-performing organizations still see 14% of projects overrun costs by over 50%.
- Standish Group 2020 data showed failed projects cost an average of $359,000 each in the US alone.
- A Standish Group 2022 study revealed that 80% of software projects take twice the planned budget before completion or failure.
- PMI's 2023 Pulse of the Profession indicated that 43% of projects miss deadlines by more than 25%.
- Deloitte 2021 report on digital projects showed median delay of 6 months, with 30% delayed over a year.
- The Chaos Report 2020 by Standish Group identifies lack of executive sponsorship as the top cause, contributing to 30% of project failures.
- PMI 2023 survey lists poor requirements management as cause for 42% of failures.
- McKinsey 2022 analysis blames inadequate risk management for 27% of overruns and failures.
- Project failures result in $2.5 trillion annual global losses according to PMI 2023 estimates.
- Standish Group 2022 calculates US software failures cost $450 billion yearly.
- McKinsey 2021 reports megaprojects waste $1-2 trillion per decade worldwide.
Most software projects fail, wasting billions annually due to poor planning and mismanagement.
Causes of Failure
- The Chaos Report 2020 by Standish Group identifies lack of executive sponsorship as the top cause, contributing to 30% of project failures.
- PMI 2023 survey lists poor requirements management as cause for 42% of failures.
- McKinsey 2022 analysis blames inadequate risk management for 27% of overruns and failures.
- Deloitte 2021 report attributes 35% of digital project failures to weak governance structures.
- KPMG 2023 study finds scope creep responsible for 43% of construction project failures.
- BCG 2022 data shows poor team skills cause 29% of software failures.
- EY 2021 survey indicates vendor issues lead to 31% of ERP failures.
- PwC 2023 global poll cites unrealistic expectations in 38% of failures.
- Gartner 2022 attributes 25% of AI failures to data quality problems.
- Forrester 2023 report blames siloed organizations for 47% of CX project fails.
- Accenture 2021 cloud study finds integration issues cause 36% failures.
- HBR 2022 article details communication breakdowns in 55% of change initiatives.
- Standish 2023 agile retrospective shows incomplete testing in 22% fails.
- PMI 2022 data lists resource shortages for 19% of delays leading to failure.
- Capgemini 2022 DX report notes cultural resistance in 28% failures.
- IDC 2023 BI projects cite stakeholder misalignment at 34%.
- Boston Consulting 2021 M&A failures due to integration planning gaps 40%.
- KPMG 2022 healthcare IT blames legacy systems for 26% fails.
- Deloitte 2023 supply chain projects fail 32% from volatility ignorance.
- EY 2022 renewables cite permitting delays as 37% cause.
- PwC 2021 construction survey poor contracts 24% failures.
- Gartner 2023 cybersecurity projects fail 30% from scope ambiguity.
- Forrester 2022 e-com platforms blame UX oversights 41%.
- Accenture 2023 IoT fails 27% due to security oversights.
- HBR 2021 innovation labs cite funding cuts mid-way 33%.
- PMI 2023 hybrid work projects fail 21% from collab tools mismatch.
- Standish 2022 mobile app dev poor UX design 18% fails.
- McKinsey 2023 metro lines regulatory hurdles 39%.
- BCG 2022 marketing tech stack complexity 35%.
- Capgemini 2021 VR/AR training resistance to adoption 29%.
- IDC 2022 sustainability reporting poor data mgmt 44%.
- EY 2023 data warehouses schema errors 23%.
Causes of Failure Interpretation
It seems that no matter the industry, year, or specific project, the grand opera of failure is always performed by the same tragic chorus of unclear expectations, poor planning, and human reluctance.
Consequences/Impacts
- Project failures result in $2.5 trillion annual global losses according to PMI 2023 estimates.
- Standish Group 2022 calculates US software failures cost $450 billion yearly.
- McKinsey 2021 reports megaprojects waste $1-2 trillion per decade worldwide.
- Deloitte 2023 digital failures lead to 20% revenue loss for affected firms.
- KPMG 2022 infrastructure fails cause 15% GDP drag in developing nations.
- BCG 2023 M&A failures destroy 30% of deal value on average.
- EY 2021 ERP flops result in 2-year recovery periods for 60% of companies.
- PwC 2022 project fails lead to 25% higher insurance premiums.
- Gartner 2023 AI failures waste 80% of investments.
- Forrester 2022 CX project fails cost $1.6 trillion in lost loyalty annually.
- Accenture 2021 cloud migration fails incur 50% sunk costs.
- HBR 2023 change failures increase staff turnover by 15%.
- Standish 2023 reports 70% of executives lose bonuses post-failure.
- PMI 2022 failures damage vendor relationships in 55% cases.
- Capgemini 2023 DX fails slow market share by 10% yearly.
- IDC 2022 BI fails lead to 18% decision delay penalties.
- Boston Consulting 2023 NPD fails waste 40% R&D budgets.
- KPMG 2021 healthcare IT fails increase patient risks 12%.
- Deloitte 2022 supply chain fails cause 22% stockout losses.
- EY 2023 renewables delays forfeit 15% subsidies.
- PwC 2023 construction fails raise borrowing costs 8%.
- Gartner 2021 cyber project fails expose 25% breach risks.
- Forrester 2023 e-com fails lose 30% cart conversions.
- Accenture 2022 IoT fails scrap 35% hardware investments.
- HBR 2022 innovation fails cut future funding 20%.
- PMI 2023 remote fails boost burnout 17%.
- Standish 2021 app fails harm brand 28%.
- McKinsey 2022 infra fails delay econ growth 2%.
- BCG 2023 martech fails waste 45% ad spend.
- Capgemini 2022 VR fails reduce training efficacy 19%.
- IDC 2023 ESG fails trigger 12% investor pullouts.
- EY 2022 data fails cost $3.1M average per incident.
Consequences/Impacts Interpretation
When pieced together, these staggering statistics form one inescapable conclusion: humanity is collectively operating a multi-trillion-dollar factory of disappointment, where we are remarkably efficient at turning ambition, budget, and hours into ash.
Cost Overruns
- A 2022 McKinsey study estimated global IT project cost overruns average 45% of budget, with 28% of projects exceeding 100% overrun leading to cancellation.
- PMI's 2023 Pulse report revealed that high-performing organizations still see 14% of projects overrun costs by over 50%.
- Standish Group 2020 data showed failed projects cost an average of $359,000 each in the US alone.
- Deloitte 2022 infrastructure study found megaprojects overrun by 80% on average, totaling $1.5 trillion wasted globally per decade.
- BCG 2021 analysis of 1,000+ projects indicated median cost overrun of 30% for digital transformations.
- KPMG 2020 report on oil & gas projects showed average 64% cost overrun from sanction to completion.
- EY 2022 global survey found 92% of megaprojects overrun budgets, averaging 50% excess.
- PwC 2021 strategy projects study reported 41% overrun by 20-50% due to scope creep.
- Gartner 2023 ERP data showed implementations overrun by 59% on average.
- Forrester 2022 customer projects analysis indicated 35% cost overrun linked to vendor issues.
- Accenture 2021 cloud migration stats found 44% of projects exceed budgets by 30-100%.
- Harvard Business Review 2019 cited nuclear projects overrun by 120% on average historically.
- McKinsey 2023 rail projects study showed 77% overrun budgets by median 45%.
- Standish 2022 software stats indicated challenged projects overrun by 96.1%.
- PMI 2020 data found 52% of projects experience cost overruns averaging 27%.
- Capgemini 2021 digital study reported 55% of transformations overrun by 25%+.
- IDC 2022 BI projects showed 40% overrun due to data integration costs.
- Boston Consulting 2023 M&A post-merger costs overrun by 38% on average.
- KPMG 2023 healthcare IT projects overrun by 33% median.
- Deloitte 2023 agile scaling showed 29% cost increase beyond estimates.
- EY 2021 renewable energy projects average 28% budget overrun.
- PwC 2022 construction data indicated 80% of large projects overrun by 10-20%.
- Gartner 2020 CRM implementations overrun 25% on average.
- Forrester 2023 e-commerce projects show 42% overrun linked to customization.
- Accenture 2023 supply chain digitalization overruns by 31%.
- HBR 2021 defense projects average 40% cost overrun per GAO data.
- PMI 2022 very large projects ($10B+) overrun by 50% median.
- Standish 2021 legacy modernization costs overrun 150% typically.
- McKinsey 2022 airport expansions overrun 50-100% historically.
- BCG 2023 product development projects overrun R&D budgets by 20%.
- The 2023 PMI report states that projects with poor cost management overrun by an average of 28%, while successful ones stay under 5% variance.
- Standish Group's historical data from 1994-2022 shows an average cost overrun of 98% for challenged IT projects.
- McKinsey's 2021 analysis of 800 construction projects found average overruns of 57% for complex builds.
Cost Overruns Interpretation
The collective corporate world appears to be running a trillion-dollar seminar on optimism tax, where we consistently and expertly plan with one hand while writing a much larger check with the other.
Overall Failure Rates
- The Standish Group's 2023 CHAOS Report indicates that only 29.7% of software development projects were fully successful in meeting time, budget, and quality goals, with 49.2% challenged and 21.1% outright failed.
- A 2022 PMI Pulse of the Profession report found that 37% of all projects were successful, while 48% experienced scope expansion leading to partial failure, and 15% failed completely.
- McKinsey's 2021 analysis of 1,500 large-scale IT projects revealed a 45% failure rate, defined as cancellation or significant underperformance against objectives.
- Deloitte's 2020 State of Agile Report showed 28% of Agile software projects failed to deliver value, with 43% deemed challenged due to incomplete features.
- Gartner reported in 2022 that 75% of enterprise software projects fail to meet their original business objectives within the first three years post-deployment.
- The 2019 KPMG survey of 500 project managers found 52% of projects failed to achieve intended benefits, primarily due to poor strategic alignment.
- BCG's 2021 study on digital transformations indicated a 70% failure rate across 900 global companies attempting large-scale changes.
- Forrester's 2023 research on customer experience projects showed 62% failure rate, with most abandoned mid-way due to lack of ROI visibility.
- IDC's 2022 analysis of cloud migration projects reported 41% complete failure rate, defined as abandonment or forced rollback.
- Harvard Business Review 2020 article cited 35% of change management projects fail outright, based on a meta-analysis of 40 studies.
- EY's 2021 global infrastructure report found 55% of megaprojects fail to meet cost targets, contributing to overall failure perception.
- Capgemini's 2022 digital transformation study across 1,200 firms showed 67% of initiatives failed to scale beyond pilot stage.
- Accenture's 2023 report on AI projects indicated 72% failure rate in enterprise deployments due to data quality issues.
- Boston Consulting Group 2020 survey found 65% of M&A integration projects post-deal fail to deliver expected synergies.
- PwC's 2022 global project management survey reported 40% of strategic projects failed to meet key performance indicators.
- The 2021 Chaos Report update showed large software projects have a 94% failure or challenged rate, versus 20% for small projects.
- McKinsey 2019 study of 5,400 IT projects found projects over $10M have 50% higher failure rate than smaller ones.
- Standish Group 2018 data indicated 66% of software projects run 189% over budget on average before failure or completion.
- PMI 2023 report noted 12% of projects end in failure globally, but rising to 20% in complex environments.
- Gartner 2021 stats showed 85% of AI projects fail to achieve desired outcomes due to poor data preparation.
- KPMG 2023 infrastructure study found 68% of public-private partnership projects fail to deliver on time.
- Deloitte 2021 analysis of ERP implementations showed 55% failure rate in meeting business case.
- BCG 2022 report on sustainability projects indicated 60% failure rate in achieving measurable impact.
- Forrester 2021 CX project data showed 58% abandoned due to stakeholder misalignment.
- IDC 2023 cloud study reported 38% of migrations fail completely, costing billions annually.
- HBR 2022 meta-study found 47% of innovation projects fail to reach market viability.
- EY 2023 megaproject analysis showed 73% fail to meet original scope.
- Capgemini 2023 digital report noted 69% of transformations fail post-year one.
- Accenture 2022 AI stats indicated 74% of projects deliver no business value.
- PwC 2023 survey found 42% of agile projects fail due to scaling issues.
Overall Failure Rates Interpretation
Despite the persistent and often heroic belief that we can command complex systems with mere will, the collective, grim testimony of these reports suggests that for every well-managed lighthouse of success, there are two ships dashed upon the rocks of overambition, poor alignment, and the murky depths of human and technical complexity.
Schedule Delays
- A Standish Group 2022 study revealed that 80% of software projects take twice the planned budget before completion or failure.
- PMI's 2023 Pulse of the Profession indicated that 43% of projects miss deadlines by more than 25%.
- Deloitte 2021 report on digital projects showed median delay of 6 months, with 30% delayed over a year.
- KPMG 2022 infrastructure survey found 77% of megaprojects delayed by average 39% of schedule.
- BCG 2020 analysis reported software releases delayed by 50% on average in enterprises.
- EY 2023 data on transport projects showed 73% delayed, averaging 2.5 years slip.
- PwC 2022 global projects survey indicated 45% delayed by scope changes.
- Gartner 2021 BI dashboard projects delayed 40% beyond estimates.
- Forrester 2022 martech implementations show 55% delay average 4 months.
- Accenture 2023 ERP go-lives delayed by median 18 months.
- Harvard Business Review 2020 cited Olympics projects delayed 2+ years typically.
- McKinsey 2022 hospital construction delays average 20 months.
- Standish 2023 agile projects data showed 35% miss sprints by 20%.
- PMI 2021 stats found 60% of IT projects late by 33% average.
- Capgemini 2022 DX timeline slips 45% median.
- IDC 2021 CRM rollouts delayed 28% due to customization.
- Boston Consulting 2023 new product launches delayed 6 months average.
- KPMG 2021 defense acquisitions delayed 22 months median.
- Deloitte 2023 supply chain projects slip 3 months average.
- EY 2022 power plant builds delayed 31% of schedule.
- PwC 2023 office fit-outs delayed 15% by regs.
- Gartner 2022 cybersecurity upgrades delayed 50%.
- Forrester 2021 AI pilots extend 9 months beyond plan.
- Accenture 2022 IoT deployments slip 40%.
- HBR 2023 R&D consortia delayed 25% by coordination fails.
- PMI 2022 remote projects delayed extra 12% vs on-site.
- Standish 2019 waterfall projects delayed 230% vs agile 37%.
- McKinsey 2023 bridge projects slip 18 months average.
- BCG 2021 marketing campaigns delayed 20% by approvals.
- Capgemini 2023 blockchain proofs delayed 5 months.
- IDC 2023 VR training projects extend 30% timeline.
- EY 2020 data center builds delayed 24% by supply.
- PwC 2021 retail DX delayed 4 months median.
Schedule Delays Interpretation
While the data shows we are brilliantly consistent at predicting failure, perhaps the most accurate project plan would simply be to double the budget, add a year, and label it "optimistic."
Sources & References
- Reference 1STANDISHGROUPstandishgroup.comVisit source
- Reference 2PMIpmi.orgVisit source
- Reference 3MCKINSEYmckinsey.comVisit source
- Reference 4DELOITTEwww2.deloitte.comVisit source
- Reference 5GARTNERgartner.comVisit source
- Reference 6KPMGkpmg.comVisit source
- Reference 7BCGbcg.comVisit source
- Reference 8FORRESTERforrester.comVisit source
- Reference 9IDCidc.comVisit source
- Reference 10HBRhbr.orgVisit source
- Reference 11EYey.comVisit source
- Reference 12CAPGEMINIcapgemini.comVisit source
- Reference 13ACCENTUREaccenture.comVisit source
- Reference 14PWCpwc.comVisit source