Case Study: Project Failure Analysis $-$ The New CRM System Implementation

Background:

ABC Tech, a mid$-$sized software development company, embarked on a project to implement a new Customer Relationship Management $($CRM$)$ system. The goal was to streamline operations, enhance customer interactions, and improve sales forecasting. The project was expected to take $12$ months and cost $\backslash (\backslash$$ $500,000\backslash ).$ However, after $8$ months of development and significant investment, the project was still far from completion, and the initial goals had not been met. The system was not functional, and stakeholders were becoming increasingly frustrated with the project's slow progress and lack of results. The leadership team called for an urgent analysis to identify the root causes of the project's failure.

Key Data Points:

$-$ Project Timeline: $8$ months past due $($originally $12$ months$).$

$-$ Budget: $\backslash (\backslash$$ $500,000\backslash )($with an additional $\backslash (\backslash$$ $250,000\backslash )$ overrun$).$

$-$ Stakeholder Engagement: Regular meetings with little follow$-$up$.$

$-$ Project Status: The system was still in the design phase.

$-$ Team Structure: The project team consisted of developers, business analysts, and product managers, but many team members were part$-$time and also responsible for other duties.

Key Issues:

$1.$ Delayed Timelines: Despite being $8$ months past the original deadline, the project was nowhere near completion.

$2.$ Budget Overrun: The original budget of $\backslash (\backslash$$ $500,000\backslash )$ was exceeded by an additional $\backslash$$$250,000.$

$3.$ Stakeholder Frustration: There was increasing dissatisfaction from both internal stakeholders $($e$.$g$.,$ sales and customer service teams$)$ and external stakeholders $($e$.$g$.,$ customers, project sponsors$).$

$4.$ Unclear Requirements: The project team faced frequent changes in the requirements, leading to confusion and delays.

$5.$ Poor Communication: There was a lack of regular communication between the development team, the project manager, and other departments.

Task:

Using the $\backslash (\backslash$mathbf$\{5\}\backslash )$ Why$\text{'}$s$,$ a Fishbone Diagram, $\backslash$& Decision Tree Analysis perform a Root Cause Analysis $($RCA$)$ to identify the reasons behind the failure of the CRM system project. Then, propose potential solutions to address these root causes.