Leading Causes of Technology Project Failure

Association Survey Reveals Nearly Half of Organizations Have Ended Technology Projects Prematurely

Nearly half (43.3 percent) of respondents stated that their organization recently “killed” an IT-related project before it was fully implemented, according to a survey of information technology (IT) experts at the North America Computer Audit, Control and Security (NA CACS) conference sponsored by ISACA. The top two reasons cited for ending the project were that business needs had changed (29.9 percent) and the project did not deliver as promised (23.4 percent). “Unfortunately, many underperforming IT-related projects continue on longer than they should because management does not constantly assess projects and ensure they generate appropriate value and benefits,” said Marios Damianides, CISM, CISA, CPA, CA, a past international president of ISACA and the IT Governance Institute. “Business requirements change rapidly. It is a good management practice and a sign of appropriate governance to evaluate and take action on underperforming IT projects as they progress, rather than suffer the financial and reputational consequences further down the road.”

The survey also cited additional reasons for ending IT projects, including:

• Project was no longer a priority (14.4 percent)
• Project exceeded the budget (13.2 percent)
• Project did not support the business strategy (6.6 percent)

Respondents were also asked to rank IT-related issues in order of importance. According to the results, security (45.7 percent) is the most important IT-related issue their organizations will address throughout 2008. Other IT-related issues, in order of importance, are risk (15.3 percent), compliance (15.1 percent), governance (14.8 percent) and assurance/audit (9.1 percent).

A total of 386 IT experts responded to the e-mail survey of participants who attended the 38th annual North American CACS conference, held in May 2008 in Las Vegas, Nevada, USA.

“It is important to take the pulse of experts at this global conference because at a typical enterprise, 20 percent of technology investments are not fully realized,” said Lynn Lawton, CISA, FBCS CITP, FCA, FIIA, PIIA, international president of ISACA. “IT investments represent a potential for significant value and also for waste, both financially and in competitive opportunities.”

To help organizations greatly reduce the costs resulting from inefficient investments, ISACA’s research affiliate, the IT Governance Institute (ITGI), has developed Val IT, a comprehensive collection of proven management practices and techniques for evaluating and managing investment in business change and innovation. Freely available for download from www.isaca.org/valit, Val IT can help increase the value of technology investments and lead to business growth.

Survey Methodology

This summary is based on the findings of an e-mail survey conducted by ISACA during the period of April 23 to April 30 among 386 IT professionals who attended the 38th annual NA CACS conference, which was held in May 2008 in Las Vegas, Nevada, USA. The margin of error is +/-5%.

About ISACA

With more than 75,000 members in more than 160 countries, ISACA® (www.isaca.org) is a recognized worldwide leader in IT governance, control, security and assurance. Founded in 1969, ISACA sponsors international conferences, publishes the Information Systems Control Journal®, and develops international information systems auditing and control standards. It also administers the globally respected Certified Information Systems Auditor™ (CISA®) designation, earned by more than 60,000 professionals since 1978; the Certified Information Security Manager® (CISM®) designation, earned by more than 9,000 professionals since 2002; and the new Certified in the Governance of Enterprise ITTM (CGEITTM) designation.