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April 9, 2008
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The Robert E. Nolan Company is an operations and technology consulting firm specializing in the insurance industry. For 35 years, we have helped insurance companies redesign processes and apply technology to improve service, quality,
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Why Are So Many Projects Late?
By Linda Bambacus
Senior Consultant
linda_bambacus@renolan.com

"When a task cannot be partitioned because of sequential constraints, the application of more effort has no effect on the schedule." —Frederick P. Brooks, The Mythical Man-Month: Essays on Software Engineering

It's one of the harshest realities of project management: some things really just take as long as they take. And adding more people won't make things better—or faster.

Frederick Brooks' essay was prompted by the fact that many software projects are "late." He highlighted many of the chief reasons so many projects get behind (and stay behind)—changing requirements, inadequate planning, and ineffective communications. Faced with a high-profile project that is slipping behind schedule, many companies try to rectify the situation by adding more people. The highly-scientific phrase used for this problem-solving method is "throwing bodies at the problem."

In reality, adding more people often makes things worse, not better. If a project is already poorly planned or poorly managed, the application of more resources will likely exacerbate rather than alleviate the problem; in turn, even more time and effort to get things right will be required. In the end, devoting more resources to a failing project can actually accelerate the failure rather than avert it.

What if we could do a better job up front when it comes to estimating time and resources? Wouldn't that avoid the problem altogether?

The answer hinges on three important project realities:

  1. Uncertainty: Even the most painstakingly prepared project estimates (of time and people) are only as good as the facts and assumptions upon which they are based. The earlier an estimate is provided in the project life cycle—before clear requirements or design decisions have been determined—the less precise the estimate will be. That's why defining what the project requirements are (and what they are not) sooner versus later is so important.

    Continually refining estimates as project deliverables become better defined is crucial. Breaking big projects into smaller deliverable chunks can lessen risks associated with big deliverables and reduce the variability associated with estimates. That means there is a better chance that estimates about time and resources will be more accurate and will enable you to staff your project appropriately.

    Reducing uncertainty enables you to logically subdivide the work to be done and quantify the types and numbers of resources needed. Only then can you determine if your resource plan is appropriately balanced and, if not, what needs to be done to correct it.
  1. All Work Is Not Created Equal: All work—and therefore, all project time—is not created equal. You can't necessarily take a one-person project estimated at six man-months, add one more person, and turn it into a three man-month project. Project math doesn't work that way.

    The amount of work one person can do and the time it takes to do it depend upon the specific work involved, the specific skill sets required to do it, and the specific project circumstances at that point in time: whether scope is defined or not; requirements are complete or incomplete; key decisions are made or still pending.
  1. Estimates Are Almost Always Biased: Most of the project estimates I've seen have been based on what are usually described as "most likely" scenarios. That sounds perfectly reasonable. But for a project that consists of many different tasks and a high degree of complexity (sounds like most of your projects, doesn't it?), this estimating method doesn't work. In fact, it tends to produce gross underestimates.

    In your experience, how often have a set of complex items all been completed exactly on schedule, even when that schedule was deemed to be "most likely"? Not often, I'll bet. That's because it takes only one variable to exceed the "most likely" estimate and bingo—you are now behind plan and off schedule.

    Estimating any task (regardless of its complexity) based on a "most likely" method is going to yield a project estimate that understates the total actual duration. Why?

We're back to item #1 above: uncertainty. When multiple tasks are being executed simultaneously (or in close proximity), it takes only one that exceeds its estimate to make the entire project late. As a result, the more tasks and the greater the complexity, the more chances that this will happen.

In the end, the most effective way to deliver projects on time is to focus on reducing uncertainty. Doing this produces more accurate estimates that take real- world risks into account. This can help you avoid throwing bodies at the problem when it's clearly too late to make a positive impact. And remember, common sense should always prevail.