ASSESSMENT OF SUCCESS AND FAILURE OF A PROJECT AS A WAY TO INCREASE THE EFFICIENCY OF MODERN ORGANIZATION ACTIVITY
This article is devoted to a problem of project success and failure assessment. The purpose of the work is to analyse the existing approaches to the assessment of project results, and to identify potential benefits that an organization obtains in the process of project success or failure determination. Theoretical aspects of a project management in the field of the project result assessment are analysed to achieve the aim of the study. The concept of project success and failure is presented from the point of view of the development of a project management. The traditional and modern understanding of project success and failure is determined in the article. The traditional approach estimates project results from the point of view of triple restriction for the project: terms, budget and quality. Modern approach estimates any project according to a multiple combination of various restrictions. Two approaches to the evaluation of a project have been developed by the authors based on the scientific literature review. They are binary and flexible approaches. A binary approach estimates the project results on the basis of traditional constrains: to follow the constrains means the project success, otherwise at least one restriction is not observed the project will fail. A flexible approach takes into account both traditional and additional restrictions determined by managers and interested parties of a project. For all that the project success or failure is determined on the basis of ranged restriction according to their importance (restriction priority). Practical application of the approaches to project success or failure determination is examined in the case studies that allow demonstrate scientific and practical value of the results obtained by the authors as well as the specific character of both binary and flexible approaches in the field of project management. In particular the above mentioned approaches were applied to the building and commission of the fifth terminal at Heathrow and the project of Donald Trump’s electioneering. After the analysis of the case studies the disadvantages of the binary approach and the adaptability of the flexible one to project success and failure have been revealed, that is very important in the current environment instability. Moreover, the advantages of the flexible approach are the assessment of project results according to different restriction priorities and the ability to assess the project success and failure simultaneously. This fact allows determine the best and worst practices within a particular project. Expertise and realisation of a huge number of projects permits an organisation to gain the experience, to standardize the management processes, to decrease costs, and as a result, to become more competitive. The application of the authors’ approach in complex increases the efficiency of an organisation management. Further the authors are intended to develop a multi-factors model for a project assessment considering the interested parties and project restriction priorities conferring a value for each restriction. In future it will allow ranging the project restriction from the point of view of their importance.