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TITLE: A SURVEY OF FAILURE FACTORS AMONG SOFTWARE DEVELOPMENT PROJECT IN MALAYSIA AND VIETNAM

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Dr. Timothy O Olawumi

The built environment faces numerous challenges in its quest to be more productive and sustainable, and the adoption of a smart and creative process of carrying out the various operations. This study aims to investigate the profound barriers faced by construction stakeholders in their attempts to integrate BIM and sustainability practices in the construction processes. A two-round Delphi survey formed the basis of aggregating consensus among the expert panel based on a set of 38 factors derived via content analysis of previous studies. Descriptive results and inferential tests were employed for data analysis, and the results validated using the interrater agreement analysis. The three key barriers by descending order of significance were industry's resistance to change from traditional working practices, an extended period of adapting to innovative technologies and the lack of understanding of the processes and workflows required for BIM and sustainability. Deductions were also made based on the comparative analysis of the expert groups. The findings will advance the implementation of BIM and sustainability practices in construction projects and enable project stakeholders to focus on addressing the critical challenges discussed in this study.

project failure case study in malaysia

GODFRED KOI-AKROFI

The general objective of this work was to contribute to the general body of knowledge and research work in the area of managing IT projects successfully. To achieve the general objective, the research was aimed at exploring the reasons why most IT projects fail from past literature, and come out with the most prevalent causes of failure, and then develop a framework to help manage IT projects successfully. The assumption this work was dependent on was that once the prevalent causes of failure are known, then conversely, we can propose what should be done to deliver IT projects successfully. This work only deals with secondary data, primarily from journal articles and newsletters of IT based institutions. About 32 categories/sets of research outputs were used as literature base for the analysis. No primary data was employed for this work. It was found out that for an IT project to be delivered successfully, there are four areas that are so critical: Skills of project manager/team members, Top Management Involvement, Proper Methodology/Processes, and Good Communication. This represents the success factors dimension. It was discovered that the success of IT projects depends so much primarily on the activities of the initiating stage followed by the planning stage, and then the executing, monitoring and controlling stage, and finally, closing stage. This represents the process dimension. A framework depicting all these was developed.

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project failure case study in malaysia

Gustavo’s The Business Automator

project failure case study in malaysia

The Anatomy of a Failed IT Project: Case Studies and Lessons Learned

project failure case study in malaysia

Failure is an uncomfortable word. However, it's important to remember that failure is not the end but rather a learning opportunity , in IT and Project Management, understanding what went wrong can often be as valuable as knowing what goes right. This blog post aims to dissect my real-world cases of failed IT projects to extract actionable lessons for future endeavours.

brown wooden blocks on white surface

The Importance of Studying Failures

Before diving into my case studies, let me address a crucial question:

Why should we study failures?

The simple answer is to avoid making the same mistakes, when we understand the reasons behind a project's failure, we're better equipped to mitigate those issues in future projects; the goal is not to blame nor point to anyone but to understand, adapt, and improve.

Case Study 1: Scope Creep

Let's start with a project that was initially scoped to develop a Customer Relationship Management (CRM) system for a mid-sized company within six months.

What Went Wrong

As the project progressed, additional features were requested, the client's demands changed and suddenly the team was overwhelmed. Deadlines were missed, and the budget ballooned.

Lessons Learned

The primary lesson here is the importance of a well-defined project scope. Any changes to the scope should be carefully considered , involving all stakeholders, and adjustments to resources and timelines should be made accordingly.

Case Study 2: Poor Communication

This case involves a project aimed at implementing a new security infrastructure for a financial institution.

The project suffered from a lack of clear communication. Requirements were misunderstood, leading to incorrect implementations and eventual rework. Critical updates were not effectively communicated to all team members for “watertight compartments“ causing further delays.

Effective communication is the backbone of any successful project. Regular team meetings, clear documentation, and established communication protocols can prevent many issues related to misunderstandings or lack of information.

Case Study 3: Inadequate Risk Management

This case study focuses on a software development project for a healthcare provider.

The project did not have a comprehensive risk management plan. When the team encountered issues like third-party API limitations and unexpected data privacy concerns, there were no contingency plans in place.

Risk management is not a one-time activity but a continuous process. Always have contingency plans for identified risks and update your risk assessments as the project progresses.

Common Themes

After examining these case studies, some common themes emerge, lack of planning and foresight, poor communication and inadequate risk management, but actually there are different common reasons:

Scope Creep

The project starts with a well-defined scope, but as it progresses, additional features or functionalities are added, usually without sufficient adjustments to the budget or timeline.

Poor Communication

A lack of clear, effective communication among stakeholders, team members, and clients can lead to misunderstandings, delayed decisions, and ultimately, project failure.

Inadequate Requirements

Often, project specifications are either too vague or incomplete. This ambiguity can result in a final product that does not meet the needs of the end-users.

Lack of User Involvement

Ignoring the needs and feedback of the end-users during the project can result in a product that is misaligned with market needs.

Technical Debt

Cutting corners in coding or design and/or project management might save time initially but usually leads to more work in the long term , as these issues need to be resolved later.

Overconfidence

Underestimating the complexity of a project or overestimating the team's capabilities can set the project on a path to failure from the outset.

Launching the project at a time when the market or the organization is not ready can doom even a well-executed project.

Resource Constraints

the worst one, the final conclusion: running out of time, money, or manpower can halt a project in its tracks.

My suggestions

To avoid the pitfalls highlighted in these case studies, consider the following recommendations:

Effective Planning: Ensure the project scope is well-defined and agreed upon by all stakeholders.

Clear Communication: Establish robust communication channels and protocols.

Continuous Risk Assessment: Regularly update your risk assessments and have contingency plans in place.

Remember, the goal is not to blame but to learn. As Project management giant Harold Kerzner once said:

Project management is not about managing projects but about managing expectations.

Understanding the reasons behind failures helps us set realistic expectations and equips us to manage future projects better.

Literature and more info

- Project Management Institute (PMI)

- Scrum Training

- Risk Management Guidelines

Gustavo’s The Business Automator is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

project failure case study in malaysia

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project failure case study in malaysia

The Malaysian Lawyer

Latest updates on malaysian law, top 5 construction cases in malaysia for 2020.

project failure case study in malaysia

Our guest author, Kevin Wong , writes on the top 5 construction cases in Malaysia for 2020. The areas covered include when does time run for the calculation of liquidated damages, the Controller of Housing, and cases on the Construction Industry Payment and Adjudication Act 2012 (CIPAA).

#1: Sri Damansara – Court of Appeal Answers When Does LAD Start to Run?

( Sri Damansara Sdn Bhd v Voon Kuan Chien & Anor [2020] 4 MLJ 265; [2020] 5 CLJ 619, COA with the grounds of judgment dated 5 March 2020 )

Judges: Hasnah Mohammed Hashim JCA, Kamaludin Md Said JCA, and Lee Swee Seng JCA (delivering the judgment of the court)

Why is this case important?

This case concerns homebuyers as to whether the calculation of liquidated and ascertained damages (LAD) on late delivery of vacant possession should be calculated from the date of payment of booking fee or the date of the sale and purchase agreement (SPA).

In this case, the Tribunal for Homebuyer Claims (Tribunal) originally decided in favour of the homebuyer. LAD was calculated from the date of payment of the booking fee to the date of delivery of vacant possession. The developer had argued that the calculation should have been from the date of the SPA.

Dissatisfied, the developer applied for judicial review against the Tribunal’s decision. The High Court also agreed with the homebuyer’s basis of calculation from the date of booking fee. The developer then appealed to the Court of Appeal.

In this case, the Court of Appeal departed from two previous Court of Appeal decisions finding calculation was to run from the date of the SPA:

GJH Avenue Sdn Bhd v Tribunal Tuntutan Pembeli Rumah, Kementerian Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan & Ors [2019] MLJU 861 and PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Ors [2019] MLJU 2067.

Instead, the Court of Appeal affirmed the High Court’s decision that the calculation was to run from the booking fee. The Court of Appeal held that the Housing Development (Control and Licensing) Act 1966 (HDA) is a social piece of legislation designed to protect the homebuyers who are in a more vulnerable position because of the inequality of bargaining power.

Further, the Court of Appeal did not appear to apply a consistent approach. In this case, the Court stated that the collection of any booking fee is strictly prohibited under the HDA. On the other hand, the Court allowed the date of the booking fee to be used for the computation of LAD. A decision from the Federal Court would be welcomed to put to rest the conflicting Court of Appeal decisions and the issues concerning the booking fee and the HDA.

#2: Alvin Leong Wai Kuan – High Court Decides that There is Retrospective Effect of Ang Ming Lee  Decision

( Alvin Leong Wai Kuan & Ors v Menteri Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan & Ors And Other Applications [2020] 10 MLJ 689; [2020] 6 CLJ 55, HC with the grounds of judgment dated 20 March 2020 )

Judge : Wong Kian Kheong J

Why is the case important?

This case addressed to issue whether the Federal Court’s recent decision of Ang Ming Lee & Ors v. Menteri Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan & Anor And Other Appeals [2020] 1 MLJ 281; [2020] 1 CLJ 162 ( Ang Ming Lee ) has retrospective effect.

In Ang Ming Lee , the Federal Court essentially decided that the Controller of Housing has no powers to grant any extension to a developer to complete the development.

In this case, the Controller of Housing granted the developer an extension of delivery of vacant possession to 54 months. The developer appealed to the Minister of Housing and Local Government (Minister). The Minister extended the period to 59 months (Decision).

Aggrieved by the Decision of the Minister, the purchasers filed judicial review applications to quash the Decision. Riding on Ang Ming Lee, the High Court allowed the purchasers’ judicial review applications.

The High Court made four points:

First , Regulation 12 of Housing Development (Control and Licensing) Regulations 1989 provides that the Minister’s decision “ shall be final and shall not be questioned in any court ”. This part of the regulation is invalid as it ousted the Court’s judicial power.

Second , even though these applications were filed before Ang Ming Lee , the judgment in Ang Ming Lee has retrospective effect and applies to the current applications. It is also in the interest of homebuyers for the judgment in Ang Ming Lee to be given retrospective effect.

Third , the Controller and the Minister cannot extend the time beyond the 36 months prescribed in Schedule H of the Housing Development (Control and Licensing) Act 1966.

Fourth , the homebuyers are entitled to claim for liquidated and ascertained damages based on the 36 months.

This case cements the rights of homebuyers to claim liquidated and ascertained damages for delivery beyond the statutory limit 24 or 36 months and potentially open the floodgates for more homebuyers to challenge to the Controller and Minister’s decisions to extend the time beyond the statutory limit.

#3: Maju Holdings Sdn Bhd – High Court Decides Whether an Adjudication Decision Can be a Disputed Debt

( Maju Holdings Sdn Bhd v Spring Energy Sdn Bhd [2020] MLJU 1196, HC with the grounds of judgment dated 21 August 2020 )

Judge : Ong Chee Kwan JC

Prior to this decision, the High Court in ASM Development (KL) Sdn Bhd v Econpile (M) Sdn Bhd [2020] MLJU 282 ( ASM ) held that an enforced adjudication decision can still be treated as a disputed debt. This is because an adjudication decision is only of temporary finality. The present case departed from ASM.

In this case, the Defendant commenced adjudication proceedings against the Plaintiff and was successful. Thereafter, the Defendant successfully applied to enforce the adjudication decision. The Defendant then issued a statutory notice of demand. The Plaintiff applied to restrain the Defendant from presenting a winding up petition.

First, the High Court allowed the Plaintiff’s application on the basis that the court was satisfied that the cross-claims by the Defendant is more than the statutory demand amount. Second, the High Court also held that an enforced adjudication decision is an undisputed debt. This decision is directly in conflict with ASM .

ASM is currently on appeal. A decision from the appellate courts is warranted to solidify the nature of an enforced adjudication decision registered pursuant to section 28 of CIPAA.

#4: Multazam Development Sdn Bhd – High Court Decision on the Nature of an Adjudication Order

( Multazam Development Sdn Bhd v Felda Global Ventures Plantations (M) Sdn Bhd [2020] 11 MLJU 606, HC with the grounds of judgment dated 15 May 2020 )

Judge : Lim Chong Fong J

This is the first decision to determine the nature of an order (not decision) made by an adjudicator in relation to costs awarded from the withdrawal of adjudication proceedings under CIPAA.

In this case, Multazam (Plaintiff) withdrew its adjudication proceedings against Felda (Defendant) when the proceedings were in progress. The parties could not agree on the quantum of the cost of withdrawal. The adjudicator determined the amount to be borne by the Plaintiff. Dissatisfied, the Plaintiff made an application to the High Court to, among others, set aside the order made by the adjudicator.

After hearing the application, the High Court remitted the issue on legal cost back to the adjudicator for reconsideration. Upon reconsideration, the adjudicator reaffirmed his previous order. The Plaintiff made another application to the High Court to set aside the revised order leading to the present case.

First , the High Court held that there is no provision in the CIPAA which permits an appeal or even the setting aside of a cost order made by an adjudicator.

Second , the High Court highlighted that the Plaintiff’s complaint was in substance an appeal against the adjudication order.

Third , the High Court could not entertain the Plaintiff’s complaint as the High Court has not been statutorily clothed with the jurisdiction power to do so.

This decision seals the finality of an order made by an adjudicator. Also, it serves as a timely reminder for a party who intends to initiate adjudication proceedings to bear in mind that an adjudication order (akin to a direction from the court) is not appealable and cannot be set aside.

#5: Spring Energy Sdn Bhd – Sessions Court Decides on Alternative Speedy Resolution for Contractors

( Spring Energy Sdn Bhd v Maju Holdings Sdn Bhd [2020] MLJU 902 , SESSC with the grounds of judgment dated 1 July 2020 )

Judges : Zulqarnain Bin Hassan

Since coming into effect in April 2014, CIPAA has been a salvation for the construction industry to resolve payment-related disputes. However, the adjudication lifeline came to a halt from March 2020 to November 2020. During that period, there was no director of the Asian International Arbitration Centre (AIAC) to appoint adjudicators. This decision is useful in setting out an alternative to CIPAA as it has the effect of resolving payment disputes in the construction industry speedily.

In this case, Spring Energy (Plaintiff) commenced an action against Maju Holdings (Defendant) for sums due and owing pursuant to Payment Certificates No. 22 and No. 23. The Plaintiff successfully obtained a summary judgment. The Sessions Court held that, among others, the Plaintiff had proved a clear-cut case against the Defendant as the payment certificates issued contained the elements of clarity, finality and incontrovertibility. The issuance of payment certificates amounted to an admission by the Defendant and that the Plaintiff was entitled to the payments.

The adjudication process is back on track with the appointment the director of the AIAC on 1 December 2020. However, this decision opens up more options for contractors (where an arbitration clause does not govern their contracts) to resolve their payment disputes swiftly.

project failure case study in malaysia

Kevin Wong is the partner in the Construction and Energy practice of Khong Partnership . He has experience in the entire range of dispute resolution processes including adjudication, litigation and arbitration.

Read the rest of the series:

  • Top 5 Company Law Cases in Malaysia for 2020
  • Top 5 Tax Cases in Malaysia for 2020
  • Top 5 Restructuring and Insolvency Cases in Malaysia for 2020
  • Top 5 Arbitration Cases in Malaysia for 2020

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CILISOS – Current Issues Tambah Pedas!

CILISOS – Current Issues Tambah Pedas!

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6 most EPIC FAIL (and deadly) Malaysian constructions

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Malaysia is an up-and-coming country, with skyscrapers, malls, and roads flung across the entire cityscape. However, some say this first-world infrastructure means nothing in the face of third world mentality .

We at CILISOS  would like to remain optimistic about Malaysians. We might be kiasu a bit when it comes to lining up for toys la, but we’re good in the overall sense. What’s not good however, is that some buildings we’ve built are crumbling, despite the fact that they should last longer than us.

But before we start on the list, we just want you to know that any humour in this article is just for the sake of prose, okay? There’s nothing funny about tragedies and death. Now that we’ve got that out of the way, come, let us take you on a journey through our darker histories, from just relatively expensive, to unfortunately, most fatal .

6. Terengganu stadium collapses, June 2009 (and AGAIN, in February 2013)

Stadium got slipped a roofie.

Stadium got slipped a roofie. Photo credit: alamakademik.wordpress.com

The first thing people think about when looking at a stadium is the marvel of spectator sports and the frenzy of the crowd. Have you ever watched a match where the cheers were so loud that they threatened to bring the roof down? Well thank God there wasn’t a crowd when the  Sultan Mizan Zainal Abidin Stadium’s roof collapsed , literally.

In June 2009, the stadium’s east wing took a dive (oh wow soccer puns), and fortunately, no one was present. After what has got to be the longest clean-up ,  the roof collapsed again . A beam fell during repairs and removal, and this time, the workers kena. Boh song lor, to say the least.

Sekali kena gigit, dua kali malu. Photo credit: merdekaonline.com

Sekali kena gigit, dua kali malu… not. Photo credit: merdekaonline.com

Misfortune: 5 locals injured (whew), no fatalities.

Resolution: Wan Manan Wan Ali was charged in 2011, but acquitted in 2014

Cost Tally: RM 292 million stadium costs, approximately RM25 million damages

5. Penang second bridge collapse, June 2013

Is it even safe for the rescue team to be up there? Photo credit: straitstimes.com

Is it even safe for the rescue team to be up there? Photo credit: straitstimes.com

So your friend on Facebook shows of their latest Penang trip, and what updates do you see? That’s right. Food, glorious food . In fact, so many people go there to makan CKT that they  need another road to the island to alleviate the traffic .

And in June 2013 (why are all these things happening in June?), a part of that second bridge fell . The Kelisa and its driver parked beneath didn’t stand a chance 🙁 Again, it was caused by negligence during construction . As an expert put it:

“The scaffolding must be able to withstand the superstructure and horizontal loads as well as the additional hydraulic pressure of fresh cement. It takes five hours for the concrete to harden before it can carry its own weight. Before that, it relies on the scaffolding to hold it in place.” –  Dr Mahyuddin Ramli, The Star

With our limited construction knowledge, we still find constructions like these over a road that’s open to public quite the dodgy, as depicted in the photo below.

project failure case study in malaysia

The aforementioned dodgy-ness. Photo credit: starproperty.my

Misfortune: 1 killed ( A Malay ex-policeman ), 3 injured

Resolution: Chan Kah Heen from Cergas Murni Sdn Bhd got a RM50,000 fine, while Abdul Raub Razalim from Giga Engineering and Construction Sdn Bhd received a RM35,000 fine.

Tally:  Bridge estimated at RM 152 million

4. Jaya shopping mall collapse, May 2009

project failure case study in malaysia

Yes, it was that old. Photo credit: skyscrapercity.com

Not to be the bearer of bad news, but if you have memories of shopping in Jaya Supermarket ,  you’re most probably old. Perhaps it was the lack of shopping malls, or maybe its location was just that  ong , but Jaya was the top choice of mall-dwellers besides Atria and The Mall .

This time, the problem wasn’t construction, but from demolition works .  Specific reasons of the failure were unreleased to the public , and despite the contractors submitting their reports for investigation, the public was left in the dark regarding further development.

There was also the hoo-haa about the contractors not getting approval from the Department of Safety and Health (DOSH), while holding the green light from MPPJ . And then there were accusations of contractors using explosives, which they denied and countered balik   that the demolitions code in Malaysia was self-regulated. Very messy la, in essence.

The unfortunate aftermath. Photo credit: salazs.blogspot.com

The unfortunate aftermath. Photo credit: salazs.blogspot.com

Misfortune : 7 dead Indonesian workers , unconfirmed injuries.

Resolution : Yap Choon Wai from CW Yap Sdn Bhd, and Jason Hee Kok Hing from Lian Hup Earth Work and Construction Sdn Bhd were charged with failing to meet safety standards. No updates since.

Tally: Unconfirmed, though technically the building was slated for demolitions.

3. Train shenanigans, March & May 2013, August & December 2014

What the MRT project should turn out to be like. Photo credit: propertyhub.com.my

Artist’s impression, though we doubt it’ll be this unpopulated. Photo credit: propertyhub.com.my

Now this is the  kecoh  one. It’s the one that caused much furore, and it was also the inspiration for this article. The reason why it irked Malaysians was the fact that it happened on the roads that people take to work everyday . The other reason was that there were multiple cases linked to the MRT/LRT saga.

Surely, you’d expect the authorities to be extra-kao-tambah-extra  careful, what with the construction zones stretching all along the busiest roads in the Klang Valley, right? Or do we need to be careful ourselves as well?

onedoesnot

… and not worry their socks off about something falling on them.

First case, March 2013,  equipment in transit fell and crushed two cars  in Subang Jaya . This brought to light how the average cari makan  commute was going to change. Barely given enough time to recover, Malaysians were subject to yet   another scare, when initial news reports believed that the tragedy involving a falling beam—which crushed a restaurant worker and his employer—“was for use in the MRT project.”

After that came the Kota Damansara incident , where a 300 tonne beam crushed three people .This was the straw that broke the camel’s back where MRT was concerned ,causing MRT CEO Datuk Wira Azhar to resign .  MRT rejected his resignation however, as he actually did oversee progress throughout the construction.

mrt-beam

The 300-tonne beam in the Kota Damansara case. We know it’s a bit untasteful, but i you look closely, you’ll see its horrified face. Can. Not. Unsee. Photo credit: thestar.com.my

Misfortune : 7 total deaths (5 Bangladeshi, two locals), unconfirmed injures.

Resolution : Besides Datuk Wira Azhar’s resignation, the only other action was our  Prime Minster’s call for a probe.

Tally :  Total damages for both lines unknown.

2. Penang Jetty tragedy, July 1988

No smart captions here. It was just tragic. Photo credit: tankiasu.wordpress.com

No suitable captions here. It was just tragic. Photo credit: tankiasu.wordpress.com

The Sultan Abdul Halim ferry terminal tragedy is lesser-known among the young ‘uns, despite it being the talk of the town for weeks on end after its happening. Don’t believe us about it being a well-known incident? Ask the older generation about the 1988 disaster and they’ll tell you all about it, despite not having the social media grapevine of today.

Where construction was concerned, it was not a planning fail la per se. It was more of a ‘ perfect storm ‘ situation. Not a real storm, but the combination of circumstances that aggravated a situation drastically.

First of all, there was a freak crowd of 10,000 people  due to the clash between two celebrations: the St Anne’s Feast in Bukit Mertajam and a rare Kwan Yin Goddess festival in George Town. All the passengers were on the pier’s second storey—the one below was meant for cars. The pier, not built to withstand such a weight, crumbled under the stress.

Passengers that survived the fall had to avoid being crushed by the debris, and find a way out of that death trap. Surprisingly, grandfather stories provide more information than the internet  (results barely made half of the first page) regarding this issue, but that doesn’t make it any less tragic.

Part of the crowd at the pier. Photo credit: tankiasu.wordpress.com

The day’s events shown on a television documentary. Photo credit: tankiasu.wordpress.com

Misfortune : 32 killed, 1,634 injured

Resolution : None, crowd’s impatience highlighted

Tally : Unmentioned

1. Highland Towers collapse, December 1993

The Highland Towers tragedy. Photo credit: hulukelang.com

The collapsed Tower One. Photo credit: hulukelang.com

Aaand this is the big one , and we bet ugaiz saw it coming. December 11, 1993, a date etched into many Malaysians’ minds, mainly because it was one of the most horrific collapses the country—actually, you could even make that the world—has ever seen.

It was so devastating that it made this person’s list of the world’s top 10 building collapses . It also prompted aid from Singapore, France, Japan, UK, and US.

The abandoned remains. Photo credit: thestar.com.my

The abandoned remains. Photo credit: thestar.com.my

Another ‘perfect storm’ incident , factors like the installation of pipes under the building’s grounds (which would burst), the clearing of trees nearby, and a crazy 10-day downpour of rain all congealed into one big landslide, causing one of three towers to crash.

Eerily, rescue teams reported knocks and cries for help even seven days into recovery efforts. Now, the remaining towers stand as a stark reminder of our history, with people reportedly going to the grounds to look for  hantus .

MPAJ had full immunity on claims. Photo credit: mavrkyprojectphoto.blogspot.com/

MPAJ had full immunity on claims. Photo credit: mavrkyprojectphoto.blogspot.com/

Misfortune : 48 deaths

Resolution : Dropped civil charges against  10 parties, including the Selangor government and the Ampang Jaya Municipal council

Tally : RM 52 million out of court settlement

We can do better than this.

The perfect photo for this paragraph. Photo credit: hugolim.com

Perfect photo for the next paragraph. Photo credit: hugolim.com

Yes. Nobody wants tragedies to happen, but even in the face of disaster it’s always important to remember what we have. We have our KL Tower  and the Petronas Twin Towers as the country’s architectural landmarks. Also, we’re willing to bet that more foreigners have been up the towers than ugaiz  right? Don’t lie.

And we also have the SMART tunnel , which is one of its kind in the world. We even have a documentary episode dedicated to this feat of engineering alone.

Road by day, flood alleviator by rainfall. Photo credit: cdn.visualnews.com

Traffic alleviator by day, flood alleviator by rainfall. Photo credit: cdn.visualnews.com

Also, don’t think countries with huge advancements in infrastructure don’t go through the same thing. South Korea, a country with streaming videos in buses instead of the pre-loaded ads in our Rapid KL counterparts, have had   a couple  great disasters as well (to be fair, the first was caused by snow). Even countries like Canada have had their share of casualties when a shopping mall’s roof collapsed .

So despite the best technologies and methodologies, misfortunes can still occur. However, what worries us is a lack of consequence to those in charge. Aside from Azhar, who resigned for the LRT misfortunes, many of the other cases remained unsettled. Given the mount of deaths resulting (particularly for the poor migrant workers), it indicates that people can, in fact, get away with murder.

For us here at CILISOS, we believe that’s the real tragedy in all this. Yes buildings will fall, and yes, people will get injured, but the percentage of migrants that make up the headcount is unsettling at best. This is why we wrote an article last year highlighting the three Bangladeshi men who were crushed in the MRT accident . Cos it’s easy sometimes to see them as workers, and not men.

Where buildings are concerned, it’s probably safe to say that we shouldn’t cut corners, because buildings man, they bide their time. You might get away with shoddy work for a few years, but they will definitely come back to haunt you.

project failure case study in malaysia

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project failure case study in malaysia

10 Failed Projects: Examples and How You Can Avoid Making the Same Mistakes

project failure businesses examples

Looking at these famous failed projects examples through the lens of a project manager , we can learn how to spot issues before they have a chance to derail our plans — and avoid our own project failures in the future.

From Betamax to Crystal Pepsi, here are some high-profile projects that didn’t turn out as planned.

In this failed projects guide you will discover:

  • Ten famous projects that failed
  • Five ways to spot project failures before they happen
  • Frequently asked questions

10. Sony Betamax

betamax failure

Sony launched its cassette recording device known as Betamax in the mid-1970s. It lost the battle for market share to JVC’s VHS technology, but Sony didn’t stop making Betamax tapes until 2016. In the age of online streaming, very few us realized it was still in production.

Lessons learned:

The story of Betamax has become nearly synonymous with failed marketing because while it was innovative and hit the market before its competition did, other products proved to be cheaper and better.

The lesson learned here is that project management doesn’t end when a project is launched, or a campaign has run its course. To stop your idea from hitting the ashpile of failed projects, remember to keep analyzing, and evaluating your products. That way, they can maintain their velocity and continue to benefit your bottom line.

9. New Coke

project failure

After testing a new recipe on 200,000 subjects and finding that people preferred it over the traditional version, Coca-Cola unveiled New Coke in 1985. That sounds like a safe move, right? Wrong.

Product loyalty and old-fashioned habit got in the way and people didn’t buy New Coke as expected, costing the company $4 million in development and a loss of $30 million in back stocked product it couldn’t sell and becoming one of the most famous failed project case studies in history.

While Coca-Cola certainly did market research, they missed the mark when it comes to assessing customer motivations. Customer input is imperative in development and for your project to be successful, you need to ensure you have a way to gather comprehensive customer insight that gives accurate and realistic information.

8. Polaroid Instant Home Movies

polaroid instant home movie failure

With the Polavision you could record video, develop it in a matter of minutes, and then watch it immediately! It was groundbreaking at the time, but the two-and-a-half-minute time limit, lack of sound, and the fact that you couldn’t watch the videos on your regular TV meant this project lasted just two years .

The Polavision was revolutionary, but Polaroid dropped the ball when they failed to stay abreast of developing marketing needs. When you keep your finger on the pulse of your market, you’re ready to innovate to meet its needs and avoid project failure.

7. Crystal Pepsi

project failure

Crystal Pepsi was a hit at first, and people were excited about the new version of an old favorite. But people soon lost interest and the novelty wore off, making it impossible for Crystal Pepsi to gain a strong market share.

David Novak was the COO of PepsiCo during the project and didn’t listen when bottlers told him the Crystal Pepsi flavor wasn’t quite right. “I learned there that you have to recognize that when people are bringing up issues, they might be right,” he later said .

6. McDonald's Arch Deluxe Burger

project failure

In 1996, McDonald’s put more than $150 million into advertising — more than it had ever spent on an ad campaign — for its new Arch Deluxe Burger, only to find out its customers weren’t interested in the more grown-up, sophisticated menu option.

This is another case that highlights the importance of letting customer data drive product strategy. If McDonald’s had a more accurate picture of what its customers wanted, it could have saved millions in advertising and resources.

A great way to stay on top of data is to choose a handful of key metrics to track , make sure your tools can accurately track them in as close to real-time as possible, and then always strategize based on the numbers.

5. Apple Lisa

project failure

Lisa, the first desktop with a mouse, cost $10,000 (almost $24,000 today) and had just 1 MB of RAM. Consumers weren’t as interested as Apple anticipated, and it was a case of overpromising and under-delivering , as the 1983 ads — featuring Kevin Costner — depicted the Lisa as much more than it really was.

Transparency matters. It may feel like a buzzword you hear all the time, but there’s no better way to describe the lesson learned here other than to say that Apple was not transparent enough about the Lisa.

We no longer live in an age where you can falsify the capabilities of a product because social media makes it easier for the truth to come out and word of mouth will eventually catch up to — and destroy — projects that lack transparency

4. Levi Type 1 Jeans

project failure

While we don’t know what Levi’s project management processes are like, one way to avoid confusion is to improve internal communications so the final product has a clear message and is easily understood by end-users.

To stop your project becoming a failure case study, avoid email and spreadsheets and instead, try an operational system of record to communicate, get status updates, and track document versions.

3. IBM PCjr

project faliure

IBM released its PCjr in 1983 in an attempt to attract home computer users, but the PCjr offered fewer features than its competitors and was twice as expensive as an Atari or Commodore. After customers complained about the low-quality keyboard, IBM offered an alternative, which had its own issues, and couldn’t revive interest in the PCjr

IBM had the right approach when it listened to users and provided what they were asking for: a new keyboard. Unfortunately, its response wasn’t quite enough because the product was low quality and didn’t help improve users’ experience with the PCjr.

When you listen to your market, especially in times of crisis, it’s imperative that you hit it out of the park with your response in a way that not only saves your project but inspires even more brand loyalty with extremely satisfied customers.

2. The DeLorean DMC-12

project failure

Even the futuristic shape, gull-wing doors, and gold-plated models weren’t enough to save the DeLorean DMC-12, which experienced problems throughout production, giving it a rough start.

Then, John DeLorean, the company’s founder, was arrested in 1982 on drug trafficking charges he incurred while trying to raise money to save the business. Even though he was found not guilty, it was too late for the Marty McFly-famous car.

This one is still playing out but is a great example of leveraging nostalgia and coming back bigger and better. Or in this case, faster and more powerful.

In 2016, a new DeLorean was announced and then delayed due to some legal issues. However, things are back on track for an early 2019 release with an updated interior, more powerful engine, and faster speeds. In some cases, a do-over can tap into a niche market and bring a project back from the brink of failure for a successful refresh.

1. The Ford Edsel

project failure

The Ford Edsel is the perfect example of the importance of speed to market and how even a major brand and product can fail if a project loses velocity. Things like poor communication, inaccurate deadlines, and out-of-touch project managers can majorly slow a project down, to the point that it’s no longer relevant or valuable.

Robert Kelly , services solution executive, global accounts at Lenovo and project management expert explained the importance of maintaining an accurate project schedule: “Even with the best planning and collaboration, things happen. Make sure your project schedule reflects the actual and current reality of the project.”

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Five ways to spot project failures before they happen.

When you read about project management failure case studies like these, it’s hard to see how the creatives and strategists who hatched the plans dropped the ball.

While the market is unpredictable and hindsight is always 20/20, there are a few common factors in failed projects that we can all learn from.

1. Low interest

People stop showing up for meetings. Stakeholders stop participating or giving timely feedback. Tasks stop getting completed on time. All of these are signs that interest in a project is flagging.

How to stop it: Keep communications as up to date as possible. Track all assignments. Hold all assignees accountable . If stakeholders stop caring about a project, hold a sit-down to determine the current perceived value of your project to the organization.

2. Poor communication

The team doesn't know when things are getting done, what's not getting done, or why it's not getting done. The project lead isn't communicating changes to the rest of the team. When communications do go out, they are either late or inaccurate.

How to stop it: While email and spreadsheets are okay for getting basic information out, they tend to be slower and more cumbersome than the typical fast-moving team needs. Consider purchasing tools like Adobe Workfront that automate communications as much as possible.

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3. Lack of velocity

Assignments are long past due, stalled on the approval of an elusive stakeholder. Maybe team members are spending more and more time on other projects. At any rate, contrary to your best projected completion dates, your project has come to a full stop.

How to stop it: See the solution to lack of interest. Accountability is especially key here. Ensure that everyone is aware of their assignments and their due dates and then press them to meet them. If stakeholders are holding a project up, call them, if possible, to find out if there are any issues.

4. A “no bad news” environment

Individual reports in meetings are especially rosy and don't match the chaos that seems to be engulfing a project. Staff members avoid questions asking for progress updates and project leaders seem to be in the dark about why tasks are being done late, or not at all.

How to stop it: Let numbers rule. Your team should be guided by a handful of key metrics that you can track, such as on-time delivery rate. And then make sure your tools can accurately track those metrics in as close to real time as possible.

project management failure examples

5. Scope creep

The project starts to barely resemble the requirements as they were given at its outset. Timelines have stretched beyond the original projections. The phrase, "You know what would be really cool would be if we added ________," is uttered during the review and approval phase. This is scope creep — and you need to avoid it.

How to stop it: Use an airtight requirements gathering process before the project starts. In fact, don't even allow the project to start until you, your team, your stakeholders, and your requestor are all on the same page. And then treat that requirements doc like a binding contract.

In the end, the best way to avoid project failure (and embarrassing flops) is to stay one step ahead of your project and keep safeguards like these in place, so you can quickly pivot, producing a successful outcome regardless of what obstacles may arise.

Frequently asked questions about project failures.

What is a failed project?

A project can be seen as a failure when it doesn’t achieve its objectives. This doesn’t just mean overall goals – a failed project could be something that went overbudget, over deadline or lost the support of its staff and stakeholders. By thoroughly planning your project and monitoring from start to finish, you can help ensure your project is a success.

What can we learn from a failed project?

Plenty! The main thing to take away is that these projects fell mainly because of poor communication along the way. Setting up your projects to automate as much of your communication as possible is key, and having everyone aware of certain key metrics will ensure positivity and morale is always high.

How do I recover from a failed project?

Having one failed project does not mean your company or idea is a failure. Learn from the mistakes made in the project that failed and start from the beginning, making those all-important changes along the way.

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