Prevention and Intervention Strategies for Distressed Projects: The Case of Designated Projects in Ethiopia

Abstract

In all possible rational thinking, project success is every company’s aspiration. Yet projects are hardly trouble-free, no matter how feasible their plans are. Since projects are planned in a forecasted future working environment, unforeseen circumstances are sure to materialize. These unforeseen, but happening, circumstances cause variations between the planned and actual performances of projects, which eventually lead to distressed project conditions. Nevertheless, all projects do not get distressed for the same cause. Causes of project distress are enormous. They may be internal or external, within the reach of the project team or beyond, controllable or uncontrollable. But discovering causes of project distress is one thing; and preventing the distress is another. Project outcomes are consequences of decisions, not coincidences of circumstances. However, despite all efforts, if a project is judged to be distressed, a project intervention attempt that aimed to find out the very causes for the distressed condition should immediately be initiated. Subsequently, the prevailing state of the project has to be carefully investigated to enable the project team to plan efficient and effective way out strategies. In brief, no matter whatsoever the cause is, the project team should always do everything possible to reinstate the project with the minimum possible cost and effort. Yet the cheapest of all is prevention. Intervention, which occurs once the project has been deemed to be in distress, is very expensive. In general, there are two types of strategies for dealing with distressed projects. Every project that becomes distressed was once not in distress. Hence, there are possibilities of minimizing the likelihood of projects becoming distressed if the appropriate prevention strategies are put in place. On the other hand, in the face of best efforts, prevention strategies might not work due to prevailing conditions that are beyond control, and projects may still become distressed. If this happens, intervention strategies can be applied to reinstate the project. Yet intervention strategies should be carefully planned as all distressed projects do not necessarily call for the same intervention strategy. Intervention strategies need to be designed based on critical analysis of the project’s current state of affairs. The right remedy for the right problem!!