Where is the line between ambition and madness in a project?
Dedicated to the management of one company, where I worked for a probationary period and received feedback – you are too good for us.
Where is the line between ambition and madness in a project? This is a question that both new and experienced project managers often face. Ambitious goals can inspire teams and move the company to new heights, but if these goals exceed realistic capabilities and ignore objective constraints, the project can be in jeopardy and become an example of “crazy” management.
Definition of ambition in project activities
Ambition is the desire for a high level of achievement that exceeds standard expectations. In the context of project management, this means setting goals that are beyond the company's current capabilities, but with the right strategy and resources can be achieved. Ambitious projects aim to achieve significant breakthroughs, create innovations and gain competitive advantages. They require maximum involvement, responsibility and the ability to adapt to change from the team and manager.
Ambition in a project can be seen as a challenge that requires:
higher quality standards;
greater level of participant involvement;
non-standard solutions;
risk preparedness.
For example, projects related to the launch of new technology products are often characterized by ambition. Developers strive not only to satisfy current customer needs, but also to anticipate future market demands by offering revolutionary solutions.
However, in pursuit of ambition, it is important to consider resources, timelines, budget and potential risks. Without this, ambition can easily develop into insanity – a state in which the project's goals become unrealistic and their achievement impossible without serious losses for the company and the team.
Madness in a project: when ambition becomes a threat
Insanity in project management is the extreme level of ambition, when the desire to achieve something great goes beyond common sense. In such projects, management ignores objective constraints such as budget, time and team capabilities. This can lead to chaos, missed deadlines, cost overruns and ultimately project failure.
Examples of crazy projects can be found in history. One notable example is the construction of Theranos, which promised a revolution in medical testing but ended up being a scam. The project was so ambitious that it promised what was impossible with current technology, but despite this, investors invested huge sums without realizing the real risks.
Measurable Indicators of Ambition and Insanity
To distinguish ambitious projects from crazy ones, it is necessary to have clear and measurable indicators that will help assess the degree of risk and the feasibility of set goals. Here are some key parameters you can use to determine the line between ambitious and crazy.
1. Project deadlines
Ambition: The project has a tight deadline that requires high team performance. However, these deadlines remain realistic and can be achieved by optimizing processes and using advanced technologies. For example, if a project was originally estimated to last 12 months but was reduced to 9 months, this could be considered an ambitious goal.
Madness: Deadlines become so tight that meeting them becomes impossible without constant rework and damage to the quality of work. For example, if a project that was originally scheduled to last 12 months is reduced to 6 months without changing the scope of work or accounting for resources, this is an example of insanity.
Measurable indicators:
Deviation of deadlines from the initial estimate by more than 20% is considered a dangerous signal.
The likelihood of risks associated with failure to meet deadlines increases by 30-50% when the schedule changes by more than 15%.
2. Project budget
Ambition: The project requires significant investment, but the budget was carefully calculated taking into account possible risks and the need to reserve funds for unforeseen expenses. For example, if a project involves costs that exceed original estimates by 10-15%, but cost control measures are taken into account, this can be considered an ambitious but manageable situation.
Madness: The project budget turns out to be underestimated and does not take into account real needs. For example, if a project requires the implementation of complex technologies, but the budget is calculated with minimal costs, this can lead to constant overspending and underfunding. If a project goes over budget by more than 30%, this is a clear sign of crazy management.
Measurable indicators:
A budget deviation from the initial estimate by more than 25-30% without providing additional sources of financing is a critical signal.
The likelihood of risks of budget overruns increases by 40-60% when the estimate deviates by more than 20%.
3. Risk management
Ambition: The project involves risks, but they are carefully assessed and an action plan is developed for each risk. For example, when launching a new product on the market, possible changes in legislation, market fluctuations and other external factors that may affect the project are envisaged. An ambitious project does not exclude risks, but it is prepared for their occurrence.
Madness: Risks are either ignored or underestimated. If a project involves many unknown factors that could negatively impact its execution, but no risk management measures are taken, it becomes an example of a crazy project. For example, if a project involving the development of an innovative product does not anticipate delays in the delivery of equipment, this can lead to catastrophic consequences.
Measurable indicators:
If the probability of key risks occurring exceeds 20%, and measures to minimize them have not been developed, this is a sign of high risks.
Projects with a risk probability greater than 30% become extremely vulnerable and require significant control measures.
4. Team management
Ambition: In ambitious projects, the team works to the limit of its capabilities, but at the same time it is provided with all the necessary resources, training and support. The project manager must ensure the balance between work tasks and employee recovery, ensuring conditions for effective work.
Madness: In crazy projects, the team is overloaded with tasks, does not have enough time to rest, and employees are required to perform extra tasks without taking into account their capabilities. For example, if a team of 5 people has to complete a job designed for 10 people, this leads to employee burnout and poor quality of work.
Measurable indicators:
If the team's workload exceeds the initial estimate by more than 20%, the likelihood of burnout and decreased productivity increases by 50%.
When the volume of work increases by 30% or more without increasing staff or project completion time, the risks of not achieving goals increase several times.
5. Expected results
Ambition: Expectations from the project are high, but they are justified by an analysis of the market and the capabilities of the team. For example, if a project aims to achieve 20% sales growth, this may be an ambitious but realistic goal if the appropriate strategies are in place.
Madness: Expectations from the project are too high and not supported by real data. For example, if a project expects to double sales within 6 months without taking into account market conditions and company resources, this may lead to unrealized expectations and project failure.
Measurable indicators:
If the deviation from the planned results exceeds 25%, this is a signal that expectations may be too high.
The probability of project failure if it deviates from real possibilities by more than 30% doubles.
Examples from real practice
1. Elon Musk's Hyperloop project
This project has become a symbol of ambition in modern engineering. The idea of creating a vacuum train that can reach speeds of up to 1200 km/h is fascinating and inspiring. However, the project faces enormous technological and financial difficulties. Some experts believe that current technologies do not allow the project to be implemented in full.
Deviation of deadlines: The project was originally planned to be implemented over a period of 10 years, but now the implementation deadlines have been postponed indefinitely.
Budget: According to recent estimates, the Hyperloop budget could exceed initial estimates by 50-70%, which puts the project at risk.
This example shows how ambitious ideas can turn into madness if real possibilities and limitations are not taken into account.
2. Development of the first iPhone
Apple, under the leadership of Steve Jobs, implemented one of the most ambitious projects in the history of the IT industry. The creation of the iPhone was a revolutionary step that changed the smartphone market. However, this project also included many risks associated with new technologies and tight deadlines.
Deviation of deadlines: The project was originally planned for 24 months but was completed in 18 months, which was made possible by effective team and risk management.
Budget: Despite the fact that the project budget was increased by 10%, the company was able to implement the project without significant deviations from the plan.
This example demonstrates how ambitious projects can be successful if risks and resources are managed correctly.
Conclusion
There is a fine line between ambition and madness in a project. Ambitious projects can be inspiring and deliver significant achievements, but they also require careful planning, risk management and a realistic assessment of opportunities. Madness begins where project goals become impossible to achieve and risks become ignored.
It is important for project managers to be able to recognize this line and use measurable indicators to assess the level of ambition. This will allow you not only to avoid failures, but also to create successful projects that will benefit the company and inspire teams to new achievements.
