Troubled Projects: Rescue or Terminate?
The perilous journey no Project Manager escapes
Project managers, by nature, are optimistic, sometimes delusionally optimistic. But there comes a moment when the optimism cracks. It becomes painfully clear that the project is in troubled waters, heading for a crash, and failure is no longer hypothetical but rather inevitable.
Failed, Failing, or Just Troubled?
A failed project is the easiest to define. It’s one that simply doesn’t deliver, eitheron it’s project management criteria (time, cost, scope) or business outcomes (ROI, value, strategic objectives).
If the project blows its budget, misses its timeline, and delivers only a fraction of its scope → failure is obvious.
But even projects that look successful on paper because they are delivered on time, within budget, and to scope can still ultimately fail if they don’t deliver value or ROI.
This is where success and failure get murky. A project might be labeled a “success” internally because the status report is green, while the business quietly wonders why the promised benefits never showed up.
But the purpose of this post isn’t to debate the philosophy of success versus failure. It’s to focus on the danger zone in between:
Troubled projects → These are drifting toward failure but still salvageable. With corrective action, realignment, or stronger governance, they can be turned around. These are the projects worth rescuing.
Failing projects → These are already in critical condition. Recovery would require open-heart surgery: major resets, leadership intervention, sometimes tearing down and rebuilding. The obviously uncomfortable question that must be asked: is it already too late?
The real challenge for organizations, and especially for Project Managers, is navigating these murky waters. Determining whether a project has drifted past the point of no return, or whether corrective action can bring it safely back to shore without wasting money, time, and credibility. That’s the test of leadership.
The True Cost of Ignoring Trouble
For decades, research has painted a grim picture. The old “80% of projects fail” stat gets tossed around for a reason. It reflected real dysfunction in delivery. Even today, the numbers aren’t flattering:
Only about a third of projects are delivered on time and on budget.
A 2024 PMI study noted that nearly half of all strategic initiatives miss their original goals.
And even in cutting-edge areas like AI, most projects don’t deliver meaningful ROI. One survey showed that only 1 in 10 AI initiatives actually generates financial return.
That’s not just wasted money. It’s delayed business value, eroded trust in leadership, and burned-out teams who feel like they’re working hard with nothing to show for it.
Often, troubled projects are left to their own devices too long before intervention is applied. Perhaps this is the case because nobody wants to be the one to say “we’re failing.”
Why Projects Get Troubled
Projects don’t just fail out of the blue. The road to disaster usually starts with small drifts that turn into aimless wandering. Leaders hesitate to act, because they’re asleep at the wheel, they don’t know how to steer, or they simply wait too long.
The patterns vary by industry and geography, but the root causes show up almost everywhere:
Leadership disengagement or misalignment. When sponsors disappear or executives pull in different directions, the project loses oxygen. Without active and aligned leadership, teams are left making decisions they’re not empowered to make.
Fuzzy or shifting requirements. A project that starts without clarity is already limping. Add in a cycle of constantly changing scope with no reset, and the project becomes a moving target no one can hit.
Unrealistic expectations baked in from the start. Over-promised timelines, underfunded budgets, and optimistic resourcing create a reality where failure is inevitable. This isn’t poor execution, it’s bad setup.
Team morale, capacity, and capability. Burnout, high turnover, or a lack of the right skills can quietly erode a project’s ability to deliver. A fatigued team can keep things afloat for a while but cracks eventually show.
Governance gaps. Sometimes the PMO or steering body is in place but powerless. They track status but they don’t shaping decisions. Without effective governance, issues pile up instead of getting resolved.
These signs of trouble make most sense within the context of the project. In a startup, speed kills clarity. In government, process smothers momentum. In some regions, escalation is seen as leadership; in others, it’s seen as failure. Trouble doesn’t always look the same, but the effects rhyme.
The Red Flags Leaders Miss
Troubled projects don’t hide their issues, they wave them like a flag. The problem is, people stop paying attention. Here are ones I see over and over:
Milestones keep slipping, or worse, nobody even looks at the plan anymore. The schedule gets printed once, then gathers dust in a binder.
Stakeholders go quiet. Even project managers stop raising risks. The room turns into a chorus of “yes men” while real issues go unspoken.
Lack of control. Requirements shift daily but nothing is tracked, nothing is approved, and everyone pretends it’s still the same project.
Status reporting drifts. Think of the classic software project: 20%… 60%… 80%… 90%… 91%… 92%… 93%… then somehow back to 80%. Numbers that move but never tell the truth.
The iron triangle turns to Play-Doh. Cost, scope, and schedule aren’t fixed anymore, they’re bent, twisted, and reshaped until they mean nothing.
Team members and partners go off-script. Contributors start drifting from scope or commitments, and no one reins them in until it’s too late.
Decisions stall. Issues bounce between meetings with no clear owner. Approvals take weeks, escalations loop, and momentum dies a little every day.
By the time these red flags pile up, the project isn’t just troubled, it’s screaming for help.
What Leaders Can Actually Do
This is the point where leadership shows itself. Troubled projects don’t fix themselves, they need someone willing to face reality and act.
If You’re Rescuing:
Reset expectations. Be honest about what’s achievable now, not what was promised six months ago.
Re-engage leadership. Get your sponsor back in the game and demand visible commitment.
Focus the team. Strip away distractions, clarify priorities, and connect the work back to value.
Lock change control. No more “moving targets.” Every adjustment gets tracked and owned.
If You’re Terminating:
Call it clean. Don’t let a slow bleed waste resources. Say it directly: this project stops here.
Protect the people. Capture lessons without blame, and redeploy your best talent quickly.
Control the narrative. Failure kills credibility only if it’s hidden or spun. A clear explanation builds trust.
The Real Lesson Learned
The reality is some projects won’t succeed, and that’s okay. The real, lasting failure isn’t hitting trouble, it’s ignoring it. Leaders earn trust by facing it head-on, taking corrective action when it’s possible, and making the hard call to close when it’s not. What matters most is learning, moving forward, and not letting yesterday’s failure poison tomorrow’s opportunities.
Where We Go From Here
This week, I’ll share stories of projects saved, projects shut down, and the PMO’s role in making those tough calls. Sometimes the bravest leadership move isn’t to rescue a project, it’s to stop it.
👉 Your turn: What’s the earliest red flag you’ve ever spotted on a project?