5 Ways to Save a Failing Project

Not every project can be successful, but losing a project always comes at a high cost in both time and resources. Although sometimes the best course is to stop work, you shouldn't do that without putting up a fight. If you see that a project is failing, instead of immediately declaring its termination, first think about what can be done to save it. Of course, there are many reasons projects fail, but there are also many ways to save them. Here we provide 5 tips on what you can do to save a failing project and make it valuable for your organization.

1. Frame the Problem as a Problem

Don't sugarcoat it: a failing project is a problem. The first step is to acknowledge that fact. The second step is to diagnose what problem you are facing. This is what cognitive psychologists call problem framing.
By definition, a problem is a situation in which you have A) an initial state (where your project currently is), B) a final state (exit from the project), C) a set of obstacles preventing the state change (the conditions that have put you in the current situation), and D) a set of possible behaviors that can help you overcome these obstacles.
A problem is considered well-structured if you have clearly defined the four elements above. Conversely, if at least one element is missing, it is an unstructured problem.
Well-structured problems are more likely to be solved because by defining each element, you are already building a strategy. Unfortunately, most problems are not as structured as we would like.
In some cases, key information may be missing; in others, certain information may be assumed to be more or less important than it actually is. Instead of making a premature decision, you need to assess the situation as objectively as possible.

Sometimes saving a project can seem impossible. This often happens when you focus on the end goal. It's like trying to lose weight — losing a few kilograms seems more likely than losing a hundred kilograms. But if you do it piece by piece, breaking the weight loss strategy into manageable components, the final goal becomes more achievable and realistic.
Instead of giving up, try to present the team's problem as a series of small steps. This is called climbing the mountain.
Think of a climber trying to reach the summit of Everest. They focus not on the summit, but on the path ahead. Climbers are tacticians; they constantly make decisions about which route to take. They know that some routes are safer than others, even if they take more time or require stepping back from the mountain.

And that's okay. If you end up closer to the summit (or in a place that helps you get closer to it), it's all good. Take this lesson to heart and apply it to your project. Ask yourself what the immediate obstacle is, solve it, and then look for the next obstacle.
A longer path may cause a delay in the schedule, but it's an acceptable loss when the alternative is abandoning the project entirely.

2. Reorganize the Team

Sometimes the team's skill set simply doesn't match the nature of the project, even if the team has successfully handled tasks in the past. Perhaps their methodology isn't yielding the expected results. Maybe they lack technical skills. Or maybe they don't have the right leadership for this project.
Be that as it may, restructuring the team is a solution, but it shouldn't be taken lightly. Although restructuring doesn't necessarily mean firing (despite the bad reputation of that word), it entails a change in team dynamics that could do more harm than good.

Restructuring can mean anything: bringing in fresh blood, redistributing workload, changing leadership, or even downsizing. How do you restructure a team?
This is a complex question because different problems require different forms of restructuring. To make a decision, you need to diagnose the situation and try to find the fundamental issues underlying the failing project. Methods like the Ishikawa "fishbone" diagram — cause-and-effect diagrams that help identify the root cause of events — are excellent tools to help you better understand the situation.
Still, one general piece of advice: rely on your team and interview them. The people closest to the project have an insider perspective that can help you see problems in a different light. They will help you identify the problem and find possible solutions. Find a balance between what you see from the outside and what they think is happening.

Restructuring is always a risk. Depending on the individual, adapting to a new workflow can be challenging. If you decide to restructure, make sure employees understand why it's happening and try to make the process as gradual as possible. You should also consider short-term solutions, such as bringing in outside experts.  They can help fill the gaps.

3. Consult an Expert

However, a full team restructuring may not be necessary if a few key changes can get the project back on track. Sometimes an expert can help a team that is struggling with a project.
A consultant can be invaluable when the team lacks the skills and knowledge to achieve project goals. A consultant can share their expertise and experience, streamline the team's workflow, and help them develop and expand their skills.

If the team is struggling to adapt to new technologies or constantly has questions about the nature of the business, it's a clear sign that you should consider hiring a consultant.
Unlike restructuring, hiring a consultant is a relatively harmless solution because its impact on team dynamics is usually not as significant. A consultant's work typically lasts a relatively short time, as the more the team grows, the less they need them. They can train on a specific tool or offer new ideas based on their experience in your market. For example, there may be a step you've always done simply because your organization has done it for decades. A consultant can help you see that it's unnecessary.
If the team needs a consultant's help for an extended period, consider investing — in the long run, restructuring may be a better solution.

4. Outsource the Project

Sometimes you just need to know when to stop — and no, we don't mean killing the project, but handing it over to someone else. Outsourcing is a powerful solution that can help steer the project back on track.
It's okay to admit that sometimes a team isn't up to the task. As we've said, even the best teams can encounter projects that are beyond their capabilities. In such cases, it's best to seek help from external specialists.

There are two options for solving this problem: either the two teams work together (which is certainly the best scenario), or the entire project is outsourced. The latter model is best for projects where you lack time, resources, and/or specialization.
If you plan to outsource, make sure the new team has enough time to interview the previous team and analyze what has already been done. This transition period is extremely important because it will make the work easier in the long run.
Yes, outsourcing takes time, but thanks to modern technology, including advanced AI-based forecasting models, outsourcing companies can form a team from their candidates in record time to take over your project.

5. Be Prepared for Anything

Signs of a failing project can be spotted before it becomes unwieldy: small delays, lack of communication, lack of clarity, delivery errors. All of these can indicate that things aren't going as well as hoped.
Create contingency plans from the start, maintain constant communication with the team, and start solving problems before they become full-blown. The best way to save a failing project is to prevent it from reaching the point where it needs saving.
Of course, we can't always predict every worst-case scenario. For example, businesses couldn't foresee a pandemic and how it would affect their operations. But signs of change could still be observed, such as the growth of digital commerce and the steady decline of brick-and-mortar stores. That's the kind of scenario you can plan for so that if things take a turn for the worse (like store closures due to a catastrophic pandemic), you can pivot your strategy to a digital approach.

Reviving a Project: Summary

Indeed, not every project is worth saving. And in some cases, no matter how hard you try, you won't be able to breathe new life into failing initiatives. But in many cases, you might abandon projects that could have been saved. When you do the necessary work and apply your problem-solving skills and strategies, you may well find that a project you thought was a waste of time and resources ultimately becomes successful.