Binus Business Review, 7(2), August 2016, 163-169 P-ISSN: 2087-1228

DOI: 10.21512/bbr.v7i2.1586 E-ISSN: 2476-9050

UNDERSTANDING THE MEANING OF “PROJECT SUCCESS”

Goparaju Purna Sudhakar

Faculty Member, The ICFAI University Group,

Plot# 65, 3rd Floor, Nagarjuna Hills, Panjagutta, Hyderabad, Telangana, 500082, India
[email protected]

Received: 18th May 2016/ Revised: 13th June 2016/ Accepted: 19th August 2016

How to Cite: Sudhakar, G.P. (2016). Understanding the Meaning of “Project Success”.
Binus Business Review, 7(2), 163-169. http://dx.doi.org/10.21512/bbr.v7i2.1586

ABSTRACT

Fortune 500 organizations are executing their tasks using projects. Project management is the area of concentration
across the world. Different stakeholders have a different perspective about project success. The meaning of project
success has been explained in this paper. In addition, the Project Critical Success Factors (CSFs) are mentioned.
The research of Standish Group on project success and project success metrics is presented. Earlier research on the
meaning of project success and project critical success factors is highlighted. The works of Jeffery K. Pinto and
Dennis P. Slevin, David and Adam, DeLone and McLean, and The Standish Group Research will be discussed in
this paper. The methodology includes secondary research based on literature view of prominent empirical studies
and the literature reviews by making note of findings and observations from those studies. The initial literature
collected leads to further search of articles based on their references. The research findings indicate that the top
of the most success factors for many projects include project objective, top management commitment, competent
project team and user involvement.

Keywords: project success, Critical Success Factors (CSFs), software projects

INTRODUCTION product is a success (Shojaie et al., 2016).

People say that a project is successful as far
Billions of global IT spending is becoming as project management is concerned if the project is
waste or failure because of several reasons (Krigsman, complete within time, within the given budget and
2012). If the people issues are kept aside, project meets the customer requirements with the specified
management is one among the critical areas which may quality (Bodicha, 2015). Similarly, there are various
make a project success or failure. The main research parameters based on which people consider project
questions are when people say a project is successful, product is successful. Different stakeholders of the
and what the success factors for any project are. These project such as project manager, team members, senior
become research questions because there are different management, functional managers, CEO, directors,
perspectives, opinions, and practices to these questions suppliers, vendors, customers and third parties have
in the literature. This research problem is addressed a different perspective on project success (Ramos
using the secondary research with several steps. First, & Mota, 2016). For example, a project which is
keywords are identified related to the research problem. considered as successful by senior management may
Then, the literature review based on the keywords are not be considered as successful by team members.
gathered using scholarly articles available over the This is because the team has worked extra hours
Internet. The theoretical studies which give inputs to and weekend as well (Project Management, 2016).
the problems in the questions include Haleem et al. Similarly, a project considered as a success by a
(2013), Holgeid and Thompson (2013), Mian (2105), project team may not be considered as a success by
and Goff (2011). A project is considered a success if the customer. This is because the project is delayed by
the project management is a success and the project 20% and the costs go out of the track by 30%. Thus

Copyright©2016 163
different stakeholders interpret the project success
differently (Beleiu et al., 2015). This paper highlights
those meanings.
The results of the research should provide the
critical success factors of the project and important
success factors for the project. The benefits of this
research include the application of these success
factors to the projects can increase the success rate of
the projects in organizations. Also, it can reduce the Figure 1 Project Success
failures and challenges to the projects such as schedule
overruns and cost overruns. The paper is organized as
next section presents research methodology, followed
by project success factors, then the Standish group
research and project success metrics, results and
discussion.

METHODS
The objective of the study is to find out the
meaning of project success by considering various
parameters/factors of projects. The factors impacting
project success are identified to understand the
meaning of project success. This is done using the
literature review by secondary research. The tools such
as Google, Google Scholar, DOAJ, ResearchGate.net,
and Academia.edu are used to find the literature of
Figure 2 Factors Impacting Project Management Success
the topics identified. The keywords used to search the
reference articles include “Project Success”, “Critical
Success Factors”, “Critical Failure Factors”, “Product
Project team factors which give impact to the
Success”, and “Project Success Metrics”.
success of the project include project coordinators and
The success factors and critical success factors
team members, their skills and competencies. While,
mentioned in the literature review section of the articles
resources such as hardware, software, machinery,
and the findings sections of the articles are considered.
tools, and components used in the project execution
The outcomes of empirical studies and the factors
and planning have an impact on project success. Next,
identified in those empirical studies are observed and
environment factors include external environment such
noted down. The references mentioned in the initial
as political, social, economic, legal, regulatory, and
round of literature collected became search sources
financial environments of the project which will affect
for further literature. Systematic literature review
the project success. Then, project manager skills like
method is followed in gathering the related articles.
communication, leadership, persuasion, negotiation,
Those specific factors are mentioned in the results and
influencing, motivating, directing, decision-making,
discussion section. Next section discusses the results
problem-solving skills also influence project success.
and discussion.
Moreover, organizational environment such as
organizational culture, organizational structure,
RESULTS AND DISCUSSIONS organizational processes, organizational goals
and objectives, top management support, senior
The various success factors are identified using management commitment, organizational reputation,
the keywords. In addition, the relationships between organizational climate, organizational policies, and
the identified factors are observed and presented in this procedures affect project success. Last, technical
paper. Project success can be represented in Figure 1. factors give impact to project success with its factors
Project management success depends on many like hardware factors, response times, access methods,
factors as shown in Figure 2. Besides, product success the speed of devices, the accuracy of the output,
depends on technology success and the process success usability, accessibility, troubleshooting, etc.
as well (Klongpayabal & Thawesaengskulthai, 2014). The meaning of project success includes project
According to figure 2, the factors such as project team success factors, project success criteria (Masrom
(Taherdoost & Keshavarzsaleh, 2015), resources et al., 2015), project success measures (Satankar
(Wang et al., 2015), environment, project manager & Jain, 2015), project success metrics and project
skills, organizational environment (Taherdoost success outcome evaluations. The presence of project
& Keshavarzsaleh, 2015) and technical factors success factors for project increases the probability
(Taherdoost & Keshavarzsaleh, 2015) affect the of success of the project (Lech, 2016). Similarly,
project success in organizations. there are certain critical success factors for projects.

164 Binus Business Review, Vol. 7 No. 2, August 2016, 164-169

The presence of these factors is mandatory. Project commitment, organizational reputation, financial
success can be measured using different techniques. situation, customer relationship management, vendor
Some organizations take the customer satisfaction relationship management, employee satisfaction levels,
surveys (Ellis, 2015). Some organizations use senior employee turnover, and attrition rates also have the
management or project manager feedback (Harwardt, influence in project success. There are environmental
2016). Some conducts team project surveys. While the factors which affect project success like financial
others measure the success of the project in financial markets, stock exchanges, GDP, economic growth rate,
terms (Parisi & Rossi, 2015). Therefore, it can find the fiscal situation in the country, financial reserves,
out the cost deviance, schedule deviance and quality relationship with banks and financial institutions,
deviance of the project to measure the project success. relationship with governmental regulatory bodies, the
While, some organizations may take the user ratings political situation in the country. Moreover, the legal
for the project. Thus, different measures are used to situation in the country, the legal framework in foreign
check the project success. Next section, it discusses lands in case of international projects, expatriate
the earlier research done regarding project success payments, relocations, the societal background of
factors. Other factors regarding the project success the organization, demographic background of the
include team communication, team cooperation, team founders, etc. can also have impact on project success
coordination, team cohesion, team conflicts, team are also a part of environmental factors . This research
climate, team productivity, and team performance. also indicates that the educational background, age, a
These factors impact the success of the project in demographic background such as geography, ethnicity,
many domains. This is shown in Figure 3. Team skills income levels, qualifications, and networking also have
and competencies also take part in project success an impact on the financial success of the organizations.
(BMG Research, 2014). Innovation is also a distinguishing factor
between the successful project and unsuccessful
project (Mian, 2015). Organizational culture,
individual skills, and creativity affect innovation in
organizations. Innovation gives impact to project
productivity and performance. Thus, innovation is
also a success factor for projects.
Technical factors which have some effects on
the project success irrespective of the domain consist
of machine return times, processing times, access
times, troubleshooting, availability of technology,
feasibility of implementation, cost of technology,
commercialization of technology, technology transfer
issues, understanding technology, availability of
Figure 3 Impact of Team Processes on Project Success skilled manpower in that specific technology and
training the team members on technology related
products. In the case of software, mobile and digital
Similarly, some conflicts impact the project technologies, hardware, software, firmware and
success (Prieto-Remόn, 2015). The conflicts such middleware technologies also take part in project
as relationship conflicts, task conflicts, and process success. Moreover, innovation is also an important
conflicts affect the team cohesion. Team cohesion, factor. Even though technology is important, the
in turn, impacts the team performance positively or majority of the projects fail due to people related
negatively based on the type of conflict (Lunenburg reasons (Holgeid & Thompson, 2013). Hence, soft
& Lunenburg, 2015). The task conflict creating task factors should be carefully considered by the project
cohesion is positively correlated to the project success. team to make the project success.
However, the relationship conflict creating social Different researchers such as Pinto and Slevin,
cohesion is negatively correlated to the project success. David and Adam, DeLone and McLean, and the
The process conflict at the beginning of the project is Standish Group Research have brought different
good for the project, and the process conflict at the factors related to the success of projects. Realistic time
end of the project can hamper the project progress. and cost estimations are among the critical success
The project manager behavior has an impact on team factors for software projects. Pinto and Slevin (1987)
processes and team behavior (Goff, 2011). The team have studied the critical success factors in effective
behavior has also got the effect on project manager in project implementation. According to them, the critical
the project success. success factors for the effective project implementation
Organizational factors including organizational include project mission, top management support,
structure, reporting hierarchies, organizational project schedule/plan, client consultation, personnel
strategy, organizational principles, procedures and (recruitment, selection, training), technical tasks, client
policies, organizational culture, and organizational acceptance, monitoring and feedback, communication,
values have an impact on project success. The CEO, and troubleshooting. The project mission is nothing
top management behavior, senior management but the project goal or objective. There should be sync

Understanding The Meaning of “Project Success” (Goparaju Purna Sudhakar) 165

among team members on project mission. Otherwise user involvement, good planning and estimations,
different individuals go in different directions. good leadership and team member’s technical skills.
Next, Shenhar and Wideman (1996) have Next, Verner et al. (2005) have studied the effect
studied the linking between the project success of requirements engineering on project success.
criteria and project type. Frese (2003) explains that the Differently, according to DeMarco and Lister
meaning of project success and failure. Sofian (2003), (2003), good effort and schedule estimates have a
in a research report, has given the project success huge effect on project success. Meanwhile, politic,
about organizational roles and capabilities and project legality, culture, technic, management, economic,
manager’s skills and capabilities. Parsons (2004) has environment, society, corruption, and physic are the
given the framework for categorizing the important critical success factors for international development
project variables. Moreover, Marshall (2007) has project management as stated by Kwak (2002).
studied the contribution of earned value management According to Reel (1999), software systems
to the project success on contracted efforts. In the development is very complex and unrealistic deadlines
research conducted by Baccarini and Collins (2003), lead to project failures. While Amberg and Wiener
the critical success factors for the projects are identified (2006) have studied the critical success factors for
as follows with decreasing order of importance as offshore software development projects from German
given by the respondents of their study. There are Perspective. Then, according to Gido and Clements
project understanding, competent project team, (1999), project success consists of four components
communication, realistic time and cost estimates, such as budget, time, performance (quality and utility),
adequate project control, client involvement, risk and customer satisfaction. Next section discusses the
management, resources, team work, project planning, Standish Group research on project success factors.
top management support, stakeholder involvement, According to Standish Group (2001), in 1994
project managers authority, external factors and, only 16% of the projects met the criteria for success,
problem-solving. i.e. completed within budget, within time and all the
In Marshall’s study and Pinto and Slevin’s features originally specified. In 2001, 28% of the
study about project understanding or project mission projects became successful according to Standish
or project objective or project goal, they identify the group research. In 2009, 32% of the project completed
top of the most critical success factor for projects. successfully on-time, within budget. Year on year
The absence of this factor may lead to project failure. project success rate is slowly growing across the
Baccarini (1999) has summarized project success as: world because of the maturity of project management
Project Success = Project Management Success + discipline. However, the challenges faced by projects
Project Product Success. and the project failures are in billions of dollars.
Project Management Success is focused on According to Standish Group (2001), the ten success
the dimensions of ‘within time’, ‘within budget’ and factors for software projects identified by the original
‘according to the requirements’ (Westhuizen et al., CHAOS study are executive support, involved
2005). According to DeLone and McLean (1992), the user, experienced project manager, clear business
project product success depends on the following six objectives, minimized scope, standard software
dimensions. There are system quality, information infrastructure, firm basic requirements, reliable time
quality, information use, user satisfaction, individual estimates, reliable cost estimates, and other factors.
impact, and organizational impact. DeLone and As the years go on, Standish research indicates
McLean (1992) have also explained four aspects which that there is an increase in project success percentage
can be incorporated into a success project model. It year on year. However, there are deviations such as
consists of simplicity, acceptability, the similarity of increases and decreases in project success percentages
intention, reusability. in consecutive years. The standard deviation of these
According to Crowston et al. (2003), Information percentage variances is not much. In next section, it
systems, success is one of the most widely used discusses the project success metrics. These metrics
dependent variables in information systems research. are widely used in industry and research community.
Then, according to Verner and Evanco (2000), there According to Willard (2005), the metrics for
is an effect of estimation practices on the success or project management success are project time, project
failure of software development practices. They have cost, project accuracy (specifications met), changing
studied the impact of estimation practices on project requests, quality, and safety (if applicable). Moreover,
success or failure. the metrics for project success include benefits to the
According to Haughey (2014), a good project organization, stakeholder satisfaction, user satisfaction,
plan should have a valid and realistic time scale solving problems project, unintentional improvement,
with accurate cost estimates. Moreover, Willard processes, and procedures. Similarly the metrics
(2005) has expressed that project management has for business success consist of cost savings, return
traditionally viewed as success or failure based on on investment, return on expectations, competitive
three metrics. They are on time, on the budget, and advantage, enhanced productivity, opportunities in
meets specifications. the future, expanding or improving core competency,
According to Attarzadeh and Ow (2008), real-time processing or real-time reports, reducing
the factors which cause the project success include paper work, increased flexibility, customer service

166 Binus Business Review, Vol. 7 No. 2, August 2016, 164-169

improvements, resource management improvements, is successful.
reducing manual processes, building external linkages, Top management factors such as top
empowerment, etc. management commitment, top management support,
For example, in the case of a software project, providing resources, quality orientation, setting goals
a project success metrics can be collected at different and objectives are also factors of success in projects.
stages of software development life cycle. For example, Without top management support and dedication, a
metrics can be defined at requirements (Haleem et project may not be successful. It has to be in all phases
al., 2013), analysis, design, coding and testing stages of the project. For example, if the top management
of a software project. The example of metrics are drops their support in the middle of the project, the
related to the number of requirements implemented project may not be successful. Next, organizational
in a week, number of requirement errors, number factors such as organizational structure, organizational
of requirements implemented in a phase, number of culture (Stare, 2011), organizational principles,
pages of the design document, number of diagrams in procedures and values, reporting hierarchies, business
design, number of design defects, number of sources processes, organizational reputation, organizational
lines of code implemented per week, number of lines financial stability, organizational internal and external
of code a software component has taken, number of environment such as social, politic, economic and legal
test cases developed, number of test cases executed per factors impact the project success in organizations.
week, number of test cases failed, number of defects Further, this research can be extended using an
found per week, number of defects propagated to next empirical study to find out the impact of individual
level of testing, and number of defects fixed. These factors on project success. The statistical techniques
are sample metrics which can be used in measuring such as correlation and regression can be used to
the success of software projects. Meanwhile, for the find out the strength of the relationship between
project, return on investment, customer satisfaction the dependent variable, of project success and the
ratings, cost overruns, schedule overruns, quality independent variables. The project success can be
deviations, product call backs, and a number of support measured in financial terms or stakeholder perspective
calls received can be success metrics. terms. Thus, the impact of the relationships can be
According to Pinto and Slevin (1987), and observed.
Baccarini and Collins (2003), project understanding
and clear objectives are critical success factors. While,
based on Standish Group (2001) and Pinto and Slevin
CONCLUSIONS
(1987), top management support is one among the
The project success has become a concern for
critical success factors. Then, according to Pinto and
the industry. Because of the invisibility, complexity,
Slevin (1987), and Baccarini and Collins (2003),
and flexibility of software projects, the success rate
communication is also critical success factor.
of software projects is just 32% (Standish Group
The research indicates that the top most success
Report, 2009). Hence, there is a need for the study
factors for the project include project objective or
about project success and finding out the critical
mission, top management commitment, competent
success factors of projects globally. This need has
project team and user involvement. Meanwhile,
been stressed in this paper. It is evident from the work
measuring project success regarding cost, time and
of Gido and Clements (1999) that project quality and
quality are the traditional approaches. Generally,
project performance are related. Hence, people need to
project success includes project management success
concentrate quality angle for the projects to make them
and project success. The broad factors affecting project
successful. For the success of the project, organizations
management success include project team, project
have to concentrate on team, organization, project
resources, environment, organizational environment,
management, product, environment, resources and
technical factors and project manager skills. Project
related technical factors.
manager skills, in turn, impact the project success.
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