Projects and Project Management Archives | Page 8 of 8

10 Project Failures That Stunned the World

The world has witnessed its fair share of project failures in the ever-evolving landscape of innovation and ambition. These grand endeavors, often pursued with the utmost determination, have sometimes crumbled in the face of unforeseen challenges.

Let’s embark on a journey to explore the stories of these failures. From the iconic Sydney Opera House, a modern architectural masterpiece fraught with budget overruns and structural challenges, to the Betamax, Sony’s once-revolutionary but ultimately defeated video format. And then, consider the bold decision by Coca-Cola to change its sacred recipe.

These projects have left an indelible mark in the annals of history. Join us as we delve into the riveting tales of these and more, examining the lessons they impart in the volatile world of innovation, ambition, and, sometimes, spectacular project failure.

1. Sydney Opera House

the Sydney Opera House is one of the icon architecture pieces in the world however it also one of the biggest project failures in history.

In project management there are three significant constraints to any project that need to be considered. They are the triple constraints of time or scheduling, the cost of the project and the scope. The time and cost constraints are self-explanatory, however what is meant by the scope of a project are the deliverables required to make the project come to life. Essentially it provides the vision for the project. What is important to remember is that changes in one constraint will have a ripple effect on one or both of the other constraints.

Unfortunately, in the case of the Sydney Opera House there was no defined scope. No clear deliverables in place led to a massive blow out in both time and cost. In fact the cost of the project ended up being 15 times more than was originally budgeted and took 10 years longer. It serves as one of history’s greatest project failures.

Author: Christian Mehlfuhrer, User Chmehl

Project Failures – Sydney Opera House

Today we know the Sydney Opera House as one of the most recognised architectural pieces in the world. It is located on Bennelong Point at the foot of the beautiful Sydney Harbour and adjacent to the Sydney Botanical Gardens and it has hosted many iconic moments.

In project management there are three significant aspects of any project that need to be considered. These are the triple constraints of time or scheduling, the cost of the project and the scope. The scope of a project is its deliverables. Essentially it provides the vision for the project. Unfortunately, in the case of the Sydney Opera House there was no defined scope. No clear deliverables in place led to a massive blow out in both time and cost..

We are getting ahead of ourselves. Let’s start at the beginning….

Management of Stakeholders in projects

In order for risk associated with projects to be minimised it is essential that stakeholders are engaged. There are four significant stages in the management of stakeholders.

Stakeholder Identification

Stakeholders are “any group or individual who can affect or is affected by the achievement of the organisation’s objective” (Freeman, 1984)

The Evolution of Management Theory – Stakeholders

As business has developed over the years so has the management theory underpinning it. The classic definition of management as an activity is held by Henri Fayol, “To manage is to forecast and plan, to organise, to command, to coordinate and to control”.

Management Theory has evolved from being viewed in isolation where a mangers social responsibility solely relied on increasing profits, to a more modern view of how a decision will affect others.

The modern manager asks themselves what the flow on effect of decisions will be and will it be viewed by stakeholders in a positive or negative way. The effect of evolving managing theories has had the consequence of closing the gulf between the business and the ethical world.

A key challenge for modern management theory is to reform economic thinking so that it can include ethical challenges. It can be argued that the work of Milton Friedman, Michael Jenson, Michael Porter and Oliver Williamson all added important building blocks to the development of stakeholder theory.

There are four pivotal management theories that need to be explored further in order to gain a better understanding of the evolution of management theory.

Success Equals Profit maximisation

Milton Friedman was an American economist who received the Nobel Prize in Economic Sciences in 1976. He is most well-known for his work with the Chicago school of Economics and his rejection of Keynesianism in favour of monetarism.

Source: http://reason.com/blog/2012/07/31/vid-happy-100th-birthday-to-milton-fried

Friedman posited that the purpose of business is to “use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud”.