Why 59% of tech projects fail (and the governance framework that prevents it)
I’ve been working with charities and membership bodies on digital transformation for years now, and there’s a statistic that keeps me awake at night: according to McKinsey, only 59% of IT projects are completed within budget, 47% on time, and just 44% deliver their intended benefits.
That means more than half of tech projects either fail completely or leave organisations worse off than when they started. Given the financial pressures our sector faces, we simply can’t afford those odds.
Last month, I had the privilege of interviewing Camilla Field from Church Army about their ongoing CRM transformation. What struck me wasn’t just their success in navigating these treacherous waters—it was how they’ve systematically addressed the many factors that typically causes projects to fail.
The brutal truth about project failure
After supporting dozens of digital transformations, I’ve seen the same patterns repeat:
Budget blowouts happen because organisations focus on the obvious implementation costs while ignoring data migration, testing, training, and integration expenses.
Timeline slippage occur when internal resource requirements are underestimated. I’ve watched internal project managers try to juggle full-time project responsibilities alongside their day jobs—it never ends well.
Benefit realisation failures stem from poor governance and scope creep. Without clear objectives and decision-making processes, projects drift from their original purpose until nobody remembers what success looks like.
What Church Army got right
Watching Camilla navigate their transformation has been like seeing a masterclass in project governance. They’ve created a framework that addresses each potential risk systematically.
Honest budget planning Rather than pretending they could define exact costs upfront, Church Army established what Camilla calls a “placeholder budget”—a realistic ceiling that acknowledged costs would evolve as requirements became clearer.
“We knew that we needed to do a CRM. And so, therefore, that was where budget was going to be directed,” Camilla explained. “But until you actually start really going down the process of capturing your needs and honing in on what the CRM is going to look and feel like, it’s very hard to fine tune the budget.”
This approach eliminated the fantasy budgeting that kills so many projects. They planned for the hidden costs—data migration, extensive testing, integration development—that catch most organisations off-guard.
Realistic resource allocation Church Army made a crucial decision early on: Camilla would project manage full-time, and other digital initiatives would be paused or shared.
“The recognition really was, well, if we’re doing this, then from a budget and resourcing perspective, other things would have to give,” she reflected.
This level of honesty about capacity is rare. Most organisations try to run transformations alongside business-as-usual without acknowledging the impossible mathematics involved.
Robust governance structure Here’s where Church Army really shines. They established:
- Project Initiation Document clearly defining objectives, roles, and success criteria
- RAID log tracking risks from day one with clear ownership and mitigation plans
- Regular project boards bringing stakeholders together for decision-making and budget oversight
- Communications plan ensuring geographic dispersion didn’t prevent engagement
The governance framework that works
Based on Church Army’s approach and my experience across the sector, here’s the governance framework that prevents project failure:
Leadership commitment (not just support)
Your project sponsor must have authority to make decisions and allocate resources. If they’re constantly checking with others or can’t commit budget, your project is already in trouble.
Realistic resource planning
Calculate the true time commitment required, If you can’t free up that capacity, delay the project. Running a transformation on borrowed time is a recipe for disaster.
Honest budget conversations
Start with a ceiling you can genuinely afford, not what you hope it might cost. Include:
- Implementation partner costs (the obvious bit)
- Data audit and migration work
- Testing and user acceptance costs
- Integration development (both sides)
- Training and change management time
- Annual licensing and running costs
- 15-20% contingency for scope evolution
Controlled scope management
Your Project Initiation Document should be a sacred text. Any changes require formal approval and budget impact assessment. I’ve seen too many projects derailed by “quick additions” that weren’t quick or small.
Regular governance rhythms
Monthly project boards aren’t optional—they’re essential. These meetings review progress, make decisions, and keep everyone aligned on priorities and trade-offs.
The independence advantage
There’s another factor in Church Army’s success that’s worth highlighting: they worked with independent advisors throughout the process.
As Camilla puts it: “As a client, you’re the paying customer. This was a very significant financial investment, so you want to ensure you’re getting your money’s worth.”
Having independent support means having someone whose only interest is your success, not selling you more technology or services. We helped Church Army challenge assumptions, question vendor proposals, and maintain focus on their objectives rather than getting distracted by shiny features.
Making the 44% who succeed
The statistics don’t have to be destiny. Church Army is proving that with honest planning, robust governance, and realistic expectations, organisations can deliver transformations that genuinely improve their impact.
The key insight? Project success isn’t about having unlimited resources or perfect conditions—it’s about honest conversations, realistic planning, and disciplined execution.
If you’re contemplating a digital transformation, don’t just hope you’ll be in the successful minority. Build the governance framework that makes success inevitable.
What’s your experience with charity and membership tech projects? Have you seen these failure patterns, or discovered other governance approaches that work? I’d love to hear your thoughts.
Joyce Harmon is Head of Client Services at Heart Square, an independent consultancy working exclusively with charities and membership organisations. She has supported digital transformations across the sector for over a decade.
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