Understanding Why Product Managers and IT Projects Fail
Over the past 15 years, I’ve held leadership roles in UX at 4 of the largest companies in the country. I’ve also led UX at small startups. I’ve seen the evolution of product development in various forms over the decades. All in all, I’ve probably worked on 100 or more IT projects. Behind each project are thousands of conversations. And behind each of those conversations are several key job roles.
Having worked on so many projects I’ve seen the successes and failures of many Product Managers. The failures and successes of the IT project and Project Manager are so intertwined that understanding why both can fail is crucial for anyone involved in product development.
The missing link and solution to solve failed IT projects are often the same, but many fail to realize it.
Hint, the solution lies in the process.
When I reflect on the reasons why Product Managers sometimes fail at their jobs and why IT projects often go over budget several common themes emerge. These themes revolve around planning, communication, adaptability, and leadership. Let me break down these issues and share some insights on how they can be addressed.
Why Product Managers Fail
One of the most significant reasons Product Managers fail is the need for a clear vision. In my career, I’ve seen how essential it is for a Product Manager to have a strong, well-defined vision that guides the product from inception to launch. Without this, aligning the team and stakeholders around a common goal becomes nearly impossible. A clear vision acts as a North Star, helping to make decisions and prioritize tasks. Without it, the product can drift off course, leading to confusion and missed opportunities.
Another critical reason for failure is poor communication skills. Product Managers must be excellent communicators, as they must convey complex ideas and strategies to various stakeholders, from engineers to executives. If a Product Manager fails to communicate effectively, misunderstandings are inevitable. I’ve seen projects falter because the vision wasn’t communicated clearly or because key stakeholders weren’t kept in the loop. In such cases, decisions can be made in isolation, leading to misalignment and, ultimately, project failure.
Have you ever been in a situation where poor communication led to a failed project? You can counter this by “workshopping the conversation” which I can help you realize.
A deep understanding of the market is another area where Product Managers can sometimes fall short. I’ve learned that knowing your market, understanding your customers’ needs, and being aware of the competitive landscape are all crucial to developing a successful product. Without this knowledge, a Product Manager might make decisions based on assumptions rather than data, which can lead to a product that doesn’t resonate with users or fails to differentiate itself from competitors.
How often are you talking to other experts in the market? If you are talking to other experts, is it a structured or unstructured conversation? Doing this step correctly is critical to evaluating and ensuring product success. Book an appointment to learn more about how I can help your product discovery and design process.
Prioritization is another challenge I’ve seen others encounter in product management. Product Managers are often pulled in multiple directions, with various teams advocating for different features or changes. The ability to prioritize effectively — to distinguish between what is critical and what is merely desirable — is essential. Failing to do so can result in a product that tries to do too much and ends up doing nothing well. I’ve seen products become bloated with features, which can lead to development delays, higher costs, and a less satisfying user experience.
Narrowing down your feature set and delivering the right product the first time is reliant on how well you frame conversations between the problem and the solution.
And finally, over-reliance on personal opinions without validating them through data or user research can be detrimental. While intuition can play a role, it should not be the sole basis for decision-making. I’ve observed how products can fail when decisions are made based on what the Product Manager thinks is best, rather than what the data or customers indicate.
How are you testing your assumptions?
Why IT Projects Go Over Budget
Turning to IT projects, I’ve seen that they often go over budget due to similar issues: poor planning, changing requirements, and ineffective management. One of the most common reasons for budget overruns is poor initial planning. If the project scope, resources, and time requirements are not accurately estimated at the outset, it’s almost inevitable that the project will run into financial trouble. I’ve learned that thorough planning is essential to set realistic expectations and ensure the project stays on track.
Planning IT projects are successful when you understand the problem and potential solution. A well-defined project happens when you understand your user and problem and can make a match between the business and user needs before writing any code.
Scope creep is another major issue. When additional features or requirements are added after the project has started without adjusting the budget or timeline, costs can quickly spiral out of control. I’ve been involved in projects where scope creep was a constant challenge, and I’ve seen how it can lead to budget overruns and delays. It’s crucial to manage scope changes carefully and ensure that any additions are justified and properly resourced.
Changing requirements is another reason why IT projects go over budget. As business needs evolve, projects often need to adapt. However, frequent changes can disrupt the project timeline and increase costs. I’ve found that it’s crucial to manage requirements carefully and ensure that any changes are necessary and well-justified.
If you’re not using a user-centered design process you might find yourself in the middle of scope creep or that you’re changing requirements quite often to fit stakeholder needs. This can be costly.
Insufficient risk management can also lead to budget overruns. Failing to identify and mitigate risks early on can result in unexpected issues that require additional time and money to resolve. I’ve learned that proactive risk management in 4 distinct areas is crucial for keeping projects within budget.
How do you know which business and product risks are the most important to focus on? I can help you understand and manage the 4 big risks.
Finally, Inadequate resource allocation is another challenge. Not allocating the right resources from the start can lead to inefficiencies and the need for additional resources later on, driving up costs. I’ve seen how projects that start with inadequate resources often struggle to catch up, leading to budget overruns.
The right cross-functional team is needed from the beginning. How do you set up a team to reduce risks? The short answer is… it depends. The problem definition and potential solution should in a lot of ways dictate how you’re set up technically.
In conclusion, both product managers and IT projects face a variety of challenges that can lead to failure or budget overruns. By understanding these challenges and addressing them proactively, you can significantly improve your chances of success. Adding a user-centered approach will also drastically improve your chances of a successful product launch.
Book a UX Audit to learn how to include a user-centered approach that will elevate your experience and reduce many of the problems Product Managers and IT projects face.
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