History is littered with projects which have failed. But what is project failure?
Founded in 1987, Independent Project Analysis (IPA) is a benchmarking, research, and consulting organization devoted to the empirical research of capital projects and project systems. They describe project failure as:
-Cost Overrun: >25% budget
-Cost index: >25% higher than industry average
-Execution schedule slippage:>25%
-Schedule index:>50% higher than industry average
-Significant production problems one year after start up.
The IPA has shown that project risk management deployed properly on projects, significantlyincreases the chance of success for cost growth and execution schedule index:
Cost Growth & Execution Schedule Index Improvements