Rescue Mission: The First Steps to Recovering a Troubled Project

You and your team have dedicated months of effort and countless resources to a project.

Only to see deadlines come and go, budgets be blown out of the water, and projects failing to meet strategic objectives.

This isn’t unheard of; 37% of an organization’s projects are at risk of failure. 

With so much at stake, swift and decisive action is essential. 

This is where you bring in an unbiased, outside expert to provide a fresh perspective on the project and implement review and recovery.

What is Project Review & Recovery?

When your project is spiraling out of control, it’s difficult to see the full picture. 

Project review and recovery is like bringing in a fresh pair of expert eyes to diagnose what’s going wrong and how to fix it. 

This strategic process assesses the current state of your project, pinpoints the issues, and implements corrective actions to get things back on track as quickly as possible.

For example, an automotive manufacturer client of ours found its HR Transformation Program in deep trouble. 

With annual HR service costs hitting $20 million, they aimed to cut costs and improve services by bringing many functions back in-house. However, eight months in, none of the 15 projects were hitting milestones, costs were soaring, and the program was in jeopardy.

In a critical move, their CIO brought in PM Solutions to manage the turnaround. 

Our team of experts quickly took charge. Using our proprietary Project Review and Recovery techniques, we reset requirements, milestones, resources, and targets.

The results? Within seven months of completing the program, HR expenses were slashed from $20 million to $6.8 million annually, with further reductions anticipated.

Bringing in outside experts gives you an unbiased assessment and practical solutions to steer your project toward success, as this automotive giant did.

Common Symptoms of Troubled Projects

Projects can go off track for many reasons, but some common warning signs indicate serious trouble. 

Recognizing these symptoms early in the project’s lifetime can mean the difference between a project that successfully recovers and one that fails. Here are the key indicators to watch for:

• Missed Milestones: Significant gaps between planned and actual milestone dates or the absence of established milestones can signal serious delays. Gaps greater than 5% over the plan can signal serious delays.
• Financial Risk: At completion, the project is expected to exceed the budget by more than 10%, indicating serious financial overruns.
• Scope Changes: The number of approved scope changes exceeds a set threshold, suggesting frequent and potentially uncontrolled changes.
• Work Effort: Actual hours worked significantly exceed budgeted hours, pointing to inefficiencies or unplanned work.
• Quality Issues: A growing number of defects, errors, or review issues during the project lifecycle can compromise the project’s quality.
• Customer Relationship: A poor or rapidly declining working relationship with the customer can undermine project success and satisfaction.

First Steps in Project Review & Recovery

When a project is faltering, taking the right initial steps is crucial to setting the stage for a successful turnaround. 

PM Solutions employs a structured approach to address these challenges:

Initial Assessment

The first step after identifying a troubled project is to conduct a comprehensive review of the project’s current state to identify specific problem areas. 

This involves thoroughly examining scope, resource availability, capability, roles and responsibilities, and project monitoring and control.

As your support team, PM Solutions provides senior leadership with a clear and actionable assessment, recognizing the project’s achievements and pinpointing critical issues that need attention. 

This assessment forms the foundation for the recovery process.

Creating a Corrective Plan

Based on the assessment, we craft a corrective action plan that addresses the identified issues and outlines the necessary steps to realign the project with its goals.

This plan is presented to senior leadership for approval, ensuring all key stakeholders are on board with the proposed recovery actions.

Implementation

Depending on the situation, our recovery experts may lead the turnaround efforts or provide mentorship to your existing project team to guide them through recovery.

We oversee the implementation of the corrective actions, focusing on the most critical areas to drive recovery and restore project health.

Top 5 Actions Taken to Recover Projects

Once the initial steps are in place, PM Solutions focuses on targeted actions to drive recovery. 

Here’s how we approach the most effective recovery strategies:

Improving Communication and Stakeholder Management 

Effective communication is essential for aligning project goals with stakeholder expectations and ensuring everyone is on the same page. 

Poor communication can lead to misunderstandings, delays, and decreased morale. We enhance communication channels by implementing…

• Regular status updates
• Setting up stakeholder meetings
• And clarifying roles and responsibilities

This ensures that stakeholders are informed, engaged, and able to provide timely feedback, thus preventing further issues and building trust.

Redefining the Project

Projects often need help with scope creep or unrealistic financial expectations. Redefining the project helps address these issues and realign them with their original objectives or revise them to meet current needs.

As your partner, we assess and adjust the project scope to eliminate unnecessary tasks and focus on essential deliverables. 

This includes re-justifying the project’s financials to ensure the budget aligns with the revised scope. By doing so, we create a more manageable and focused project plan.

Adjusting Resources

Insufficient or misallocated resources can severely impact a project’s progress and success. 

Adjusting resources ensures the project has the necessary support to meet its objectives.

We evaluate current resource allocation and adjust as needed, which may involve…

• Reallocating team members
• Hiring additional staff
• Acquiring new tools

This helps optimize resource use and address any gaps affecting the project.

Resolving Technical Issues

Technical problems can derail a project and cause significant delays. Addressing these issues promptly is crucial for maintaining project momentum and quality.

We identify and tackle technical challenges by bringing in experts to resolve critical issues, conducting technical reviews, and implementing fixes. 

Leadership Changes

A change in project leadership may be necessary if the current project manager cannot drive recovery effectively. 

New leadership can provide a fresh perspective and renewed focus.

We assess the current project management team and recommend leadership changes if required. 

This could involve replacing the project manager or bringing in a consultant with specialized expertise to guide the recovery efforts. 

This step helps ensure that the project has the right leadership to steer it towards success.

Recover and Protect Your Investments Today

Project failures can be costly, but with the right approach and expert guidance, it is possible to regain control and get this back on track. 

PM Solutions’ project review and recovery service offers a lifeline to struggling projects, helping organizations get back on track and achieve their objectives. 

Don’t let your investments go to waste—contact us today to safeguard your project’s success.