Failed projects and the lessons learned – 2023

Not sure why project management is needed?

In this blog, we’ve uncovered some of the most famous failed projects throughout history and explore what we can learn from them today. 

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Sometimes, the most effective way of understanding the need for project management and the reason why it’s so important is to look at previous failed projects. What is project failure? It can mean many things, from cost and time overruns to scope creep and a failure to deliver a return on investment. We’ve uncovered some of the biggest project failures in history where governance was lacking which resulted in the inability to meet objectives and deliver what was planned. Read on for our top 8 high-profile failed projects and discover the lessons that we can learn from each of them.

1. Airbus A380

In 2004, Airbus was all set to launch the biggest passenger plane in the skies. Parts were shipped from Toulouse to Hamburg for assemblage but it soon became apparent that none of the pieces actually fitted together. It was later learned that the designers were all using different CAD programs which resulted in different measurements. 

Lesson Learned: This highlights the importance of project management to keep everyone on the same page. Even across different time zones and borders, always ensure that the team is using the same programs and systems to get the task done.

2. Challenger Space Shuttle

This project failure had tragic consequences. On January 28 1986, the Challenger Space Shuttle exploded just 76 seconds after it had launched due to a combination of a faulty seal on a rocket booster and cold weather. It was determined that human error was partly to blame.

 Lesson Learned: Human error can be greatly minimised by effective project management. The role of a project manager is to put systems in place to reduce the risk of human error impacting on projects, big or small.

3. World Athletics Championships 2019

In 2019, the best world athletes made their way to Doha to compete in the World Athletics Championships. Unfortunately, the host nation was unable to sell the majority of tickets so athletes were forced to compete in nearly-empty stadiums.

Lesson Learned: It doesn’t matter how much money you put into an event. If you don’t have a strong homegrown fan base, it will be very difficult to fill seats and create a memorable experience.

4. McDonald’s Arch Deluxe Burger

When McDonald’s launched a new ‘grown-up’ version of their iconic hamburger, called the Arch Deluxe Burger in 1996, it was discovered that customers weren’t interested in changing the original formula. McDonald’s put more than $150 million dollars into their ad campaign but the burger failed to gain popularity and was soon dropped.

 Lesson Learned: The biggest lesson learned here is to always let customer data drive product strategy. With the right project management, McDonald’s would have had a clearer idea of what its customers wanted. A great way to do this is to track selective key metrics and ensure your tools can accurately track the data in real time. Then, use the numbers to formulate your strategies.

5. Knight Capital

In 1985, Coca Cola launched a product called ‘New Coke’ which turned into a real fizzer with the public. Even though the new recipe went through a taste trial of 200,000 people, it turned out that fans of Coca Cola were too loyal to the original recipe to be enticed to drink a new one.

Lesson Learned: While Coca Cola did their market research and learned that customers were open to a new product, they failed to see their customer’s own motivations. More than a mere taste test was needed to understand how fans would feel when their beloved Coca Cola was suddenly replaced by a different product. It’s a reminder to treat project management as a science and an art that needs to be worked into the project accordingly.

6. Ford Edsel

The Ford Edsel was a result of extensive research into what Ford consumers wanted in a car. The problem was that by the time the model was released, the market had already moved on to more compact cars and the Ford Edsel was already outdated. 

Lesson Learned: While project research is absolutely essential, it is only successful if used in a timely manner. This highlights the importance of being quick to market fresh ideas before the public moves on to the next trend.

7. The Garden Bridge

The Garden Bridge has been dubbed a failed vanity project, pushed by Boris Johnson when her was the Mayor of London. The project cost £53m in total, despite never actually being built. According to a report, the bridge was over-optimistic both in terms of the fundraising possible and the final cost. This led to a shortfall which could never be overcome, despite surveying work on the riverbed already getting underway.

Lesson learned: Ambition is a powerful thing, but it needs to be grounded in reality, particularly when relying on fundraising to get projects off the ground. In retrospect, it would have been wise to establish if the project was feasible before spending £161,000 for a website.

8. The NHS’ Civilian IT Project

The project that aimed to revolutionise the NHS IT systems was a failure that cost the taxpayer somewhere in the region of £10bn. The politically-motivated and top-down nature of the project meant that scope creep and a complete underestimation of the requirements doomed this project from the start. The government was later criticised for its inability to handle large IT contracts.

Lesson learned: It’s important to consider the size and capabilities of your own organisation before taking on an ambitious project.

9. Sony Betamax

While physical media might seem like an archaic concept, there are still lessons to be learned from the battles that were fought in the 1970s. You might be surprised to learn that Sony only recently halted production of their Betamax tapes. Betamax lost the battle for our attention when VHS become ubiquitous in our homes. But for some unknown reason, Sony was still clinging on to hope until 2016.

Lesson learned: While Sony Betamax may have been first to market, the project failed because it didn’t innovate. In the face of a cheaper product (VHS) with a better marketing model, Sony stuck to their guns and lost market share as a result. 

10. Waterworld

The making of the movie Waterworld seemed doomed from the start. The director started shooting without finalising the script and multiple rewrites along the way resulted in production being extended from the scheduled 96 days into 150 days which pushed costs to $135 million dollars over budget.

Lesson Learned: Defining the scope of a project before it starts is crucial to preventing cost and time overruns. In the case of this movie, the script should have been signed off before production even began.

11. Pepsi Crystal

When this clear version of Pepsi hit the shelves, the reception soon lost its fizz. Although customers were keen to try this new version of Pepsi, they soon abandoned it as it didn’t taste as they expected.

Pepsi’s COO at the time later admitted that he ignored reports from his team that Pepsi Crystal didn’t taste quite right, but he pushed ahead with production anyway.

Lesson learned: When you have a wealth of knowledge on your side, it makes sense to make the most of it. While taking every single piece of feedback on board might be impossible, there is a middle ground that stops you from missing important cues. 

12. Denver International Airport

Denver International Airport wanted to create the most sophisticated luggage handling system in the world but it quickly became far too complex. The project was delayed for 16 months at a cost of $560 million and dropped altogether in 2005.
Lesson Learned: This is another case of defining the scope of a project before it begins. When ambition and excitement takes over, it becomes too easy to push ahead and ultimately derail the entire project.

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