5 Key Steps to Recover a Failing Project or Programme
Business programmes can and do fail often, and with alarming frequency. In fact, industry surveys estimate that up to 70% of projects fail to deliver on their intended goals. At the large programme level, the picture is similarly dire for a failing project: project managers fail to deliver more than two-thirds of major programmes on time, on budget, or within scope, resulting in huge value losses (often exceeding €20 million per programme). These failing projects or programmes occur across industries globally and stem from issues like poor planning, weak leadership support, and misaligned objectives. The good news is that a failing programme can be turned around. It requires swift, strategic intervention and strong leadership commitment. Below, we outline five key steps, all of which are based on global best practices in programme management, to rescue a troubled programme and put it back on track. Step 1: Acknowledge Failing Project Crisis and Secure Executive Support The first step in any turnaround is recognising that the failing project or programme is in trouble and rallying top-level support to fix it. Denial or “hoping for the best” must be replaced with decisive action. Communicate candidly with senior stakeholders about the problems and demonstrate that a recovery plan is underway, because it’s vital to show someone is in control of the situation. Equally important, ensure you have an engaged executive sponsor or steering committee backing the recovery effort. Lack of sponsor support is a leading cause of programme failure (41% of underperforming projects cite it as a primary reason), and in a recovery scenario, it can be devastating. Having a high-ranking sponsor visibly involved sends a clear message that turning this programme around is a top priority. If internal resources are stretched or viewed as part of the problem, consider bringing in an objective outsider to lead the recovery. Often, organisations appoint an external program turnaround specialist – a “Recovery Manager” or “Programme Manager” – with full authority to make changes. By formally acknowledging the crisis, resetting expectations, and securing leadership buy-in, you create the conditions needed for the hard work of recovery, from failing project to successful project, to begin. Step 2: Assess the Situation and Identify Root Causes for your Failing Project With executive support in place, the next step is to pause and diagnose why the programme is failing. Time is of the essence, and especially so when and if major budget, schedule, or scope variances have exceeded acceptable limits; immediate intervention is critical, or the programme will continue on a path to failure. Conduct a rapid but thorough assessment of the programme’s current status, issues, and risks. Gather facts from all relevant sources: project charters, plans, progress reports, financial data, and stakeholder interviews. The goal is to pinpoint the root causes of trouble. For example, we can determine if problems are primarily internal (e.g. unclear requirements, team capacity shortfalls, poor communication) or driven by external factors (e.g. vendor failures, market changes). Investigate where and why the programme went off track. Ask yourself and the team questions like: Did we define objectives clearly? Is our scope realistic? Why are milestones being missed? Then you can engage the core team for insights and foster an atmosphere of openness (blame-shifting will only cloud the diagnosis). It may help to categorise findings into threats (immediate risks or “bad news”), opportunities (any positive insights or quick wins), and problems (issues requiring action). Conduct this assessment phase quickly and thoroughly, as stakeholders will demand prompt answers and corrective action. By understanding the key failure points, you can determine what you can salvage and formulate an informed recovery strategy. Step 3: Re-Define Programme Objectives and Plan the Recovery Armed with the assessment findings, it’s time to reset the failing project or programme’s direction. Start by redefining the scope, objectives, and success metrics to reflect reality. Many failing programmes suffer from unclear goals or misalignment with business strategy, which is a factor in nearly 44% of project failures. We can address this by ensuring the programme’s goals are crystal-clear and directly tied to strategic business priorities. Next, create a recovery plan that is realistic and focused. This new plan should focus on what we can realistically achieve, include any necessary scope changes or reprioritisation, and establish feasible milestones with buffered timelines. Revisit the budget and put stricter cost controls in place (since budget overruns often accompany failing projects). It’s wise to prioritise high-impact deliverables, such as what must be delivered versus what can be trimmed or deferred. In short, re-baseline the project: adjust deadlines, resources, and expectations to achievable levels and get all key stakeholders to formally approve this revised plan. As part of planning, also outline how you will manage risks and governance going forward (e.g. more frequent checkpoints, escalation processes). The recovery plan is, fundamentally, a new roadmap to success that addresses previous shortcomings. By clearly defining a limited, attainable scope and solid plan, you begin to re-establish credibility with management and the team. Everyone should understand exactly what the new targets are and collectively commit to making it happen. Step 4: Re-engage the Team and Strengthen Governance A failing project or programme often leaves morale in tatters and communication broken. Remember this: step 4 is about getting your people re-engaged and then implementing strong governance to guide the recovery. Start with the team: assemble the project core team (and extended team if needed) for a frank reset meeting. Acknowledge past difficulties and then unite everyone around the new plan and mission. It’s critical to foster a no-blame culture at this stage, so just focus on solutions, not fault-finding. Empower team members by emphasising their strengths and past wins, and make clear that their expertise is vital to recovery. As the recovery leader, be accessible, transparent, and supportive. Rebuild trust and confidence through open dialogue and by demonstrating that management has their back. Also be prepared to address personnel or leadership issues head-on: if there are team capacity gaps, toxic dynamics, or unclear roles, fix