Sometimes we find ourselves in a position where, for reasons outside of our control, there are not sufficient resources or finances to support a project or projects. This can be for a variety of reasons including cost restriction, resource availability, or changes in prioritisation. In this situation, decisions have to be made about the continuing viability of the project(s) in the short, medium, and long term. The decisions should take in to account the impact on the organisation as a whole, clients, staff, and external partners.
There are normally 4 options:
- Continue with the project at the current speed if resources and/or funding can be found
- Slow down the project by reducing resources and/or available funding
- Pause the project completely for an agreed period before restarting it in future
- Stop the project completely
To make these decisions quickly we use a 2-stage approach:
- Assess each project against a set of simple criteria and, where there are multiple projects, use a scoring mechanism to help with prioritisation (there is a list of criteria at the bottom of this article which, while not exhaustive, should be helpful)
- Once projects are prioritised, assess their ongoing viability and benefits against available resources and funding
As part of this consider whether it is possible to combine projects, share resources, reduce deliverables, or extend milestones. The end product should be a list of projects that are split into those that need to continue, those that can slow down or pause, and those that can stop. There may be grey areas so 2-3 iterations through the assessment is sometimes required. And do not be afraid to stop projects completely. Sometimes projects are only viable for a certain period and a previously strong business case may not survive a long delay. Difficult though the decision might be, particularly if significant investment has already been made (the “sunk cost fallacy”), sometimes stopping a project is the most beneficial thing that an organisation can do.
Working out which category your project should be in is the first step. Our next article will cover how to slow down, pause, or stop safely – with examples.
- Is there a regulatory deadline or requirement that must be met?
- Is this project required to keep the business operating (e.g. replacement of a failing system, operational restructure)?
- Does this project provide any competitive advantage in the short, medium or long term?
- Does the project impact clients?
- Does the project impact staff or external partners?
- Is this project still viable if there is a delay or pause?
- Will the project cost be significantly increased if there is a delay or pause?
- Can there be a reduction or change in the scope of the project?
- Is there a risk of financial loss to the organisation?
- Is there the potential for reputational impact?