Failed Project Management Program

Firstly: Cases in which the project is considered stalled:

1. Inability to pay the financial dues of the suppliers and merchants dealing with the project for a period of two consecutive months.

2. If the project is forced to sell one of its fixed assets to obtain liquidity.

3. If the actual losses of the project are equivalent to 75% of its capital, with successive losses

4. Delay in paying the obligations arising from the project to banks or others

5. The apparent disturbance in the financial position, which appears in the financial statements of the project

6. Cessation of the activity

Secondly:  the Procedures for managing and troubled project:

1. Determine the causes of default

1.1. Most of the obstacles are due to the unconsidered decision to implement the project. Most of entrepreneurs start their projects without preparing the right feasibility study, or the preparation of an unprofessional feasibility study carried out by unqualified people or companies that only care about making money, and the business owner seeks to save money by relying on those who are not qualified to prepare the study.

 Overcoming this problem requires relying on management functions, especially proper planning, as studies have shown that one minute of planning kills 4 hours in implementation, which is the second function of management.

5.1. The inability of the project to adapt and cope with the market changes and the surrounding technological changes and the absence of qualification and training of workers commensurate with the changes.

6.1. Poor financing either due to poor estimates of costs and capital in the economic feasibility study or the absence of funding sources, which is reflected in the ability to finance the project requirements and operational work.

7.1. Changing customer tastes, which is reflected in the demand for the project’s product, and here comes the role of flexibility in responding to changes in tastes by following up on the market and its changes.

8.1. Reasons due to the overall economy, especially high inflation rates, which weaken purchasing power and reduce demand for products in general

9.1. The emergence of new competitors for the project who are financially strong and have extensive experience and high efficiency

Thirdly:  Handling project failures

1.2. The first treatment steps begin with studying and analyzing the current situation of the project. The experts review all records and documents of the project and its financial statements and conduct appropriate financial analysis using all tools of horizontal and vertical analysis and analysis of financial ratios to find out the financial status of the project diagnose problems and evaluate performance levels financial.

2.2. Re-prepare the feasibility study for the project again and compare the results with the results of the financial analysis of the current situation.

3.2. Reconsider the promotion and marketing policies followed and modify them according to the requirements of the project.

4.2. Rehabilitation and training of human resources in the project and equipping them to carry out operational work with high efficiency.

5.2. Re-study and analyze competitors and identify their strengths and weaknesses.

5.6. Create a research and development function to follow up on all developments surrounding the project and work on the permanent and continuous modernization and development of work mechanisms and strategies, raising the level of efficiency and quality, and achieving the competitive advantage of the product.

At the end, it can be said that the lack of funding is not the reason for the failure of projects in the Arab region in particular. Rather the lack of awareness and the absence of a culture of investment and the search for the cheapest means, starting from the economic feasibility study, through the adoption of efficient promotion and marketing policies, leading to the absence of research and development to face the big changes in the market and in technology.