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ACCA Strategic Professional · Strategic Business Leader · Leading and managing projects

Halden Logistics completed a new warehouse management system on the agreed date and within the approved budget, and it met every technical specification. Six months later, warehouse staff rarely use its main features and the expected reduction in order-processing costs has not occurred. Which assessment of the project is most appropriate?

The project was a project management success but not a project success. Time, cost and specification targets were met, but project success depends on achieving the intended business benefits. Low usage and no cost saving mean the benefits were not realised, so delivering to specification alone does not make the project successful.

  1. AIt was a project management success but not a project success, because the intended benefits were not realisedCorrect
  2. BIt was both a project management success and a project success, because time, cost and quality targets were met
  3. CIt was a project failure only because the project manager did not use a recognised methodology
  4. DIt was a project success because the system works technically as specified

Explanation

Project management success is judged on the delivery constraints of time, cost and quality, which were met. Project success is judged on whether the business benefits and objectives were achieved, and here the cost reduction did not happen because the system is not used. The option claiming overall success confuses output delivery with benefit realisation.

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