Why Projects Fail: The Hidden Issues Most Consultancies Miss

What Are the Hidden Issues in Consulting, and Why Do They Matter?

Many projects fail to meet their objectives, often due to unseen leadership and capability issues that go unnoticed by traditional consultants. These failures can cause significant setbacks for organizations, yet many consultancies overlook the core root causes.

In this article, we explore why projects falter, the unseen risks that often remain undetected, and how CATO’s approach ensures a thorough, results-driven assessment to uncover what truly matters.

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The Problem: Are We Missing the Real Issues?

Too often, large consulting firms focus on surface-level project plans, objectives, and delivery timelines, missing deeper issues that undermine success.

Projects typically go in one of two directions:

1. Successful Projects (20-30%): These projects hit their targets, stay within budget, and achieve their intended goals.
2. Troubled Projects (70-80%): These projects start to deteriorate early on due to overlooked issues that compound over time.

The second type of project often suffers from a false sense of security provided by inexperienced consultants, who may not have the real-world expertise needed to identify and manage the hidden risks.

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A Real-World Example: Repeated Project Failures

We’ve seen cases where organizations attempted to implement the same software solution multiple times, only to achieve failed or mediocre results. These implementations were guided by well-known consultancies who focused on the technical aspects of project delivery but failed to assess the human and operational factors that contribute to project success.

When CATO advisers reviewed the project, we identified four key issues that had gone undetected:

• A Lack of Leadership Control: The project director held ultimate oversight but lacked the experience to implement the right measures and controls.
• Poor User Testing: End-user testing was not prioritized early in the project, leading to gaps in understanding how the software would be used in real scenarios.
• Failure to Ask the Right Questions: Both the client and consultants failed to ask critical questions that would have revealed risks and potential obstacles.
• Overestimation of Capabilities: There was an assumption that both the project team and consultants had the necessary skills, which wasn’t the case.

These issues compounded over time, resulting in delays, budget overruns, and frustrated stakeholders.

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What Can Be Done to Prevent These Failures?

The key to successful consulting lies in proven experience and the ability to ask the right questions. Too often, consultancies focus on complex processes and high-level plans, but they overlook the human element that can make or break a project.

Here’s how CATO’s approach is different:

1. We Focus on Leadership Capability: Our advisers don’t just look at the project plan; they assess the leadership structure to ensure that the right controls are in place.
2. We Prioritize End-User Testing: Understanding how a solution will be used in practice is essential. We work with clients to ensure thorough testing happens at the right stages.
3. We Ask the Right Questions: Instead of relying on assumptions, our advisers ask critical questions to uncover potential risks and blind spots.
4. We Provide Honest Assessments: We don’t overestimate capabilities or sugarcoat risks. Our goal is to provide real, actionable advice that leads to meaningful outcomes.

Key Takeaways: How to Ensure Project Success

• Good leadership matters: Assess the capabilities of your project leaders, not just the project plan.
• Question everything: Don’t assume things are on track without digging deeper into potential risks.
• Focus on the right experience: Choose consultants with a proven track record who have the expertise to identify hidden issues and guide you to success.

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