Research data by Gallup and other organizations consistently point out that the top reasons for project overruns are not about operational or tactical methods, but about “people factors”. If key stakeholders, Executive management, finance and IT/end-users cross the organization do not have aligned expectations and goals regarding the business impact of a technology initiative, the project will be doomed to failure.
Stakeholder alignment must not only exist at the outset — it must be maintained throughout the life of the project. This requires ongoing communication among stakeholders regarding the challenges and objectives of the initiative. Poor communication creates tactical problems, and the people doing the work or affected by its outcome will not be emotionally invested in its success because they are not truly actively engaged in the project. This leads to project delays and cost overruns. Worse, poor communication can result in a lack of clarity regarding the project ROI, making it difficult to meet immediate business objectives and drive future investments.