When a software project stumbles—or ultimately fails—it can have a range of negative consequences, from lost and unrecoverable resources to a blow to team morale. It can be tempting to blame a failed project on “external” factors such as budget constraints, leadership indifference or even a tough economy, but in most cases, it’s one or more missteps on the part of key project players that are usually to blame.
Knowing some of the issues that often plague software projects can help business leaders, project managers and dev teams avoid mistakes and fumbles and, instead, plan and build a product that not only achieves a solid ROI, but also delights end users. Below, members of Forbes Technology Council discuss some of the reasons software projects falter and how teams can do a better job at planning and execution.
1. Misalignment Among Stakeholders
Having misaligned stakeholders (business, developers and users) leads to wasted effort and project failure. Unclear requirements, changing expectations and poor communication are common. To fix this, build a shared understanding through continuous communication and collaboration. Use regular meetings, workshops, feedback sessions and accessible documentation to ensure everyone is on the same page. – Akshay Rawat, Checkr Pay, a subsidiary of Checkr
2. Lack Of Needed Technical Expertise
The common thread linking almost all project failures is a lack of planning and a failure to establish the basic technical foundations. Unrealistic deadlines and unclear objectives have a role to play, but if you don’t have the correct technical expertise from the outset—especially at the coding level—any project quickly becomes unsustainable once you attempt to scale it up. – Hugo Farinha, Virtuoso QA
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3. A Poor User Experience
Many software projects fail because they miss the mark with end users. HR software is a prime example—it may check all the boxes in terms of functionality but still feel clunky to use. Project managers and dev teams can avoid this by collaborating with skilled designers and UX researchers, who prototype ideas and test them with users before coding. Just a few testing sessions can reveal so much! – Cheryl Johnson, Betterworks
4. A Disconnect Between Tech And Business Teams
A common reason software projects fail is a disconnect between technical teams and business stakeholders. Tech leaders should prioritize complex features first to create proofs of concept and identify potential mistakes. Choosing the right architecture, technology stack and experienced service providers is essential. Allowing time for internal and external reviews ensures alignment and improves project outcomes. – Jyothish R, AIMLEAP
5. Poor Requirements Gathering
One common reason software projects fail is poor requirements gathering, which leads to misaligned expectations and scope creep. Project managers and development teams can avoid this by engaging stakeholders early, documenting requirements clearly, adopting Agile methods and validating requirements regularly to ensure alignment throughout development. – Rochelle Thielen, Traject Data
6. Inadequate Planning And Scoping
Inadequate planning and scoping can cause projects to fail. Neglecting to carefully carry out these steps causes misunderstandings about requirements, objectives and timelines. This also leads to “scope creep,” with resources and budget exceeding the project’s initial goals. At the beginning of any project, it’s crucial for all stakeholders to be realistic about what is required to reach the desired outcome. – Pranay Ahlawat, Commvault
7. Failure To Define And Develop An MVP
Failing to understand stakeholders’ needs and to plan, refine and create a minimum viable product can lead to project failures. Instead of focusing on delivering the entire product, develop an MVP. This will allow early customers to validate the product and provide feedback, leading to early gains and enabling development teams to use Agile processes to convert the MVP into an incremental development plan. – Anoop Gupta, Capital One
8. Being Overly Focused On Technical Details
Software products are designed and built to solve customer problems. Too often, engineering and product teams become focused on technical details and lose sight of the customer’s core problem. The “why” behind the solution is always more important than the “what” or the “how.” By developing empathy and fully understanding the customer’s pain points, teams are better positioned for success. – Venkat Viswanathan, Okta
9. Failure To Fully Understand The Customer
Dev teams need to “live” their customers—truly understand their daily lives and how they will live with the product on a daily basis. Often, dev teams design products or features to match what they think is needed or “cool,” and they miss the details of what’s really needed and how to integrate the product smoothly into the daily lives of their customers. – Dor Skuler, Intuition Robotics
10. Scope Creep
Scope creep leads to missed deadlines and frustrated stakeholders and can tank projects. To prevent it, clearly define the scope up front, set expectations and secure early buy-in for handling new ideas. Focus on a true MVP with Agile iterations. Designate someone to manage scope firmly yet tactfully, and consider using AI-driven workflows to keep projects on track. – Paul Peloquin, Thumbscore
11. Communication Gaps And Unclear Expectations
The primary reasons I have seen software projects fail are communication gaps and a lack of clarity when setting expectations with stakeholders and teams. Assertiveness is needed on a daily basis; however, reactiveness often prevails, which stresses timelines, efforts and budgets and, in some cases, impacts the quality of the outcome. – Devang Pandya, Tredence
12. Lack Of A Shared Vision And KPIs
A lack of business alignment and adoption is one of the critical reasons for the failure of software projects. The IT team should be aligned with the overall business vision and objectives. It’s essential for everyone to share the same key performance indicators. – Manash Saha, Foxconn EV Systems
13. Multiple Teams Focused On Their Own Priorities
Software projects often rely on multiple product and platform teams, each with its own priorities and roadmaps. A common reason for project failure is a shift in various priorities, leading to roadmap changes that disrupt progress. – Ashraf Karim, Cisco
14. Too Many Developers
The No. 1 reason for project failures is a combination of unclear decisions and distance from real customers. Teams should be built to be one project, one developer. It is very rare that a project needs more than one developer, especially with AI tools like GitHub, Copilot and Cursor. When a project team includes more than one developer, there are often delays in decisions, leading to delivery failures. – Madhavan Malolan Chetlur, CreatorOS Inc.
15. Building Something Nobody Wants Or Needs
The majority of products fail because the team builds something nobody wants or needs. It is crucial to be customer-centric—work backward from the customer. Instead of directly investing hours in building, it is better to invest upfront hours talking to customers, doing user experience research, analyzing data or talking with salespeople to get a grasp of what the customer is trying to get done. – Carlos Lau, Kurios
16. Lack Of A Formal Change-Control Process
Scope creep and inadequate requirements management lead to failed projects. Here’s how project managers and development teams can address this: Implement a formal change-control process. Document all requested changes and assess their impact before approval. Practice iterative requirements gathering, and break requirements into smaller, manageable chunks. Finally, maintain regular communication. – Leo Cunningham, Owkin
17. A Lack Of Realistic Feedback
One of the main reasons internet projects fail is the lack of access or response to the kind of feedback only reality can provide. When teams launch projects, they are often driven by their belief in the brilliance of their concept, but it’s important to always remember that any idea is just a subjective perception of something. – Stan Kos, YouMatch
18. Letting ‘Perfect’ Be The Enemy Of ‘Good’
Don’t let perfection stand in the way of progress. Launching an imperfect product early allows you to gather user feedback sooner and iterate effectively, ensuring your solution adapts to real needs. Waiting too long for a “perfect” product risks missing the market or investing too heavily in features that will likely still require refinement down the line. – Rohan Sriram, Plaid
19. Failing To Engage Stakeholders At Each Stage Of The SDLC
A lack of stakeholder engagement at each stage of the development cycle leads to misalignment of expectations and is one of the most common reasons software projects fail. To mitigate this, project managers should identify the appropriate stakeholders early to gain alignment on vision and maintain their involvement throughout the application development process. The development team should conduct iterative demos and user acceptance testing for new features being built. – Aparna Achanta, IBM
20. Never Saying ‘No’
Scope creep is one of the common reasons software projects fail. While a project may be outlined well when initiated, with time, there is often a tendency to modify requirements based on business feedback or because the original scope definition was ambiguous, leading to reinterpretation. A good project manager should be able to handle this situation in a firm but pragmatic manner. Saying “no” can go a long way. – Harini Gopalakrishnan, Snowflake
