Project success and product success are distinct concepts, yet they are often confused by the general public and even within the project management community.

Recently, the Project Management Institute (PMI) suggested redefining project success as “delivering value that justifies the effort and cost”. This indicates a blending of project success with product success.

Before delving into the differences, let’s clarify what is meant by “product delivery project.” Not every project qualifies as a product delivery project, although some do. Once a product is delivered for production, it may require maintenance, enhancements, transfer, and eventually decommissioning. These tasks can be executed through project delivery, but it’s not always necessary. Therefore, we have categories such as product delivery projects, product enhancement projects, and other project types. We’ll revisit this classification in a future post to examine how project delivery methods align with the product lifecycle and product success.

In this context, “product” should be understood broadly; it can refer to a service, event, or more.

While there are clear correlations between project and product success, a project can be deemed successful even if the product is not. Consider a simple case:

A business launched an ambitious project to open a café in the city centre. The planning and execution were exceptional, and the café initially delivered benefits beyond expectations. However, due to an unforeseen COVID-19 lockdown, the business had to close the café and declare bankruptcy.

Conversely, there are cases where a product can thrive even if the delivery project fails to meet time, cost, and quality benchmarks.

The construction of the Sydney Opera House serves as a notable example: the project faced failures in all three dimensions. However, the product itself, which has become an Australian icon, has provided such significant benefits that the project’s shortcomings are now overlooked. The project initiator, Joe Cahill, the Premier of New South Wales, wisely recognised that some projects fail because they either never commenced or were halted by opposition. Facing personal health issues (he was battling cancer) and a challenging political landscape, Cahill instructed his office to begin construction and “make such progress that no one who succeeds me can stop this.” And it worked.

Not all products yield such substantial benefits. The success of many products is closely tied to the effectiveness of the project delivery. Three key factors of project delivery generally influence product success: delivery cost, delivery time, and product features. For certain products, cost may be the most critical factor; for others, timely delivery may be essential, while some require a balance among time, cost, and scope.  

The project delivery team must recognise how changes within a project can impact product success, not just project success. Additionally, project initiators/sponsors should continually assess expected project outcomes in light of project progress and evolving project and product risk profiles.

A project cancellation does not inherently indicate poor planning or execution; circumstances may have simply shifted.

In conclusion, while project and product success are interconnected, the relationship between them could be complex. Project initiators and the project delivery team must understand how they are related in each case to be sure that project decisions drive product success, not project success.