Introduction
Creating new projects is exciting, but if they are not completed or abandoned, it leads to a waste of time, energy, and resources. Companies grow and innovate through projects, but sometimes there are too many, even surpassing the number of employees. This situation can be frustrating, but few dare to put a stop to it.
The Problem of Unfinished Projects
Antonio Nieto, author of the Harvard Business Review project management manual, comments that companies hold onto projects that provide little value, resulting in an accumulation of pending matters across all sectors.
The Discomfort of Addressing Unfinished Projects
Despite knowing that purging unimportant matters is the solution, few know how to do it. It’s seen as uncomfortable or even a failure, preventing companies from shedding their workload.
Positive Impact of Letting Go of Projects
Nieto explains that organizations brave enough to prioritize projects focus their talent and energy more effectively, avoiding overload and frustration.
He argues that organizations could cut their pending projects by 50% without consequence, and even a 70% reduction would make them faster and more efficient.
Project Review Frequency
Although some companies recognize this issue, only 8% conduct monthly project reviews, while 44% does so occasionally, 26% rarely, and 7% never, according to Nieto’s upcoming book survey, “Driven by Projects: Leading Your Organization in the Era of Transformation”.
How to Release from Projects
To avoid leaving projects unfinished, Nieto proposed a question to project sponsors: “If I had to defend this project before the board, would I recommend it?”
This approach led to a 20% reduction or reevaluation of projects in just six months, relieving the burden.
In some cases, leaders defend projects without public justification. When asked for reasons to prove a project’s value compared to others, the project portfolio reduced by 35% in a year, and management became more efficient.
Nieto also advises setting deadlines for each project, as many organizations lack a defined timeframe to assess a project’s viability.
“There’s the sunk cost trap: ‘We’ve already spent too much to give up, and we’re almost there.’ There’s also reputational risk, emotional attachment, favorite projects, vanity projects—we recognize them when we see them. The issue isn’t awareness but human nature and deeply ingrained organizational habits,” he explains.
Nieto emphasizes the importance of acknowledging and rewarding leaders who create new projects, but also those who are skeptical and offer honest project assessments. This encourages leaders to be more strategic in their decision-making.
Key Questions and Answers
- What are the consequences of having too many projects? It leads to wasted time, energy, and resources; creates frustration; and results in an accumulation of pending matters.
- Why is it difficult to address unfinished projects? Few know how to do it, seeing it as uncomfortable or a failure, which prevents companies from shedding their workload.
- What are the benefits of prioritizing projects? Talent and energy are focused more effectively, avoiding overload and frustration. Organizations can cut 50% or even 70% of their pending projects without consequence, becoming faster and more efficient.
- Why is regular project review important? Only 8% of companies conduct monthly reviews, while 44% does so occasionally. Regular reviews help organizations recognize unimportant projects and make informed decisions.
- How can companies release from unneeded projects? By asking project sponsors if they would defend a project before the board, organizations can reduce or reevaluate projects. Setting deadlines and acknowledging skeptical leaders also helps manage project portfolios effectively.
