Project Readiness Reviews and Why They Are Important

Current studies have shown that:

  • 65% of Mega projects fail
  • 35% of projects worth less than $500M fail

Failure is defined as:

  • Running overtime by 50%
  • Going over budget by 25%
  • Having significant operational problems into the second year of operation

Causes of Poor Project Performance

  • Over optimism and over complexity
  • Poor execution
  • Weakness in organisational design capabilities

Consequences of Poor Project Performance

  • Delayed cashflow and recovery of invested capital
  • Increased capital outlay
  • Projects may not produce the expected outcome
  • Negative impact on brand
Actions Going Forward
  • Accept the current under achievement
  • Ensure sufficient contingency in budgets to allow overruns and underperformance of assets
  • Implement readiness reviews and ongoing health checks to ensure that the study or project is properly armed to meet the challenges ahead
Initial S-Curve, Assiduous Management Services
Early-Detection Review, Assiduous Management Services
Revised S-Curve, Assiduous Management Services