Where is the line between ambition and insanity in a project? / Hebrew
Dedicated to the management of one company where I served a probationary period and received feedback – you are very good for us.
Where is the line between ambition and insanity in a project? This is a question that is often faced by both beginners and experienced project managers. Ambitious goals can inspire teams and drive a company to new heights, but if these goals go beyond real capabilities and ignore objective constraints, the project can be at risk of failure and become an example of “crazy” management.
Contents
- 0.1 Determination of ambition in project activity
- 0.2 Design Madness: When Ambition Becomes Threat
- 0.3 Measurable indicators of ambition and madness
- 1 1. Terms of implementation of the project
- 2 2. Project budget
- 3 3. Risk management
- 4 4. Team management
- 5 5. Expected results
- 6 1. Elon Musk’s Hyperloop project
- 7 2. Development of the first iPhone
Determination of ambition in project activity
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 are aimed at significant breakthroughs, creation of innovations and obtaining competitive advantages. They require maximum involvement, responsibility and ability to adapt to changes from the team and the manager.
Ambition in the project can be seen as a challenge that requires:
-
higher quality standards;
-
higher level of involvement of participants;
-
non-standard solutions;
-
willingness to take risks.
For example, projects related to the launch of new technological products are often characterized by ambition. Developers strive both to meet the current needs of customers and to anticipate future market demands by offering revolutionary solutions.
However, in the pursuit of ambition, it is important to consider resources, timelines, budget and potential risks. Without it, ambition can easily turn into insanity—a state in which project goals become unrealistic and their achievement impossible without serious losses to the company and the team.
Design Madness: When Ambition Becomes Threat
Insanity in project management is the extreme degree of ambition, when the desire to achieve something big 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 of the clear examples is the construction of the company Theranos, which promised a revolution in medical tests, but as a result turned out to be a scam. The project was so ambitious that it promised the impossible with current technology, but despite this, investors invested huge sums without realizing the real risks.
Measurable indicators of ambition and madness
To distinguish ambitious projects from crazy ones, it is necessary to have clear and measurable indicators that will help to assess the degree of risk and the realization of the set goals. Here are some key parameters you can use to determine the line between ambition and insanity.
1. Terms of implementation of the project
Ambition: The project has tight deadlines that require high team performance. Nevertheless, these deadlines remain realistic and can be achieved if processes are optimized and advanced technologies are used. For example, if a project was originally estimated to last 12 months but was shortened to 9 months, this may be considered an ambitious goal.
Madness: Deadlines become so tight that meeting them becomes impossible without constant revisions and compromising the quality of work. For example, if a project that was originally scheduled for 12 months is shortened to 6 months without changing the scope of work and accounting for resources, this is an example of insanity.
Measured indicators:
-
A deviation of terms from the initial estimate of more than 20% is considered a dangerous signal.
-
The probability of risks associated with non-compliance with deadlines increases by 30-50% for changes in the schedule by more than 15%.
2. Project budget
Ambition: The project requires significant investment, but the budget has been carefully calculated taking into account possible risks and the need to reserve funds for unforeseen expenses. For example, if the project involves costs that exceed initial estimates by 10-15%, but at the same time cost control measures are taken into account, this can be considered an ambitious but manageable situation.
Madness: The project budget turns out to be understated 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%, it is a clear sign of insane management.
Measured indicators:
-
Deviation of the budget from the initial estimate by more than 25-30% without providing additional sources of funding is a critical signal.
-
The risk of overspending the budget increases by 40-60% when the estimate deviates by more than 20%.
3. Risk management
Ambition: The project includes risks, but they are carefully assessed and an action plan is developed for each risk. For example, during the launch of a new product on the market, possible changes in legislation, fluctuations in the market and other external factors that may affect the project are foreseen. An ambitious project does not exclude risks, but is ready for their occurrence.
Madness: Risks are either ignored or underestimated If a project includes many unknown factors that can negatively affect its performance, but no risk management measures are taken, it becomes an example of a crazy project. For example, if a project related to the development of an innovative product does not foresee a delay in the supply of equipment, this can lead to catastrophic consequences.
Measured indicators:
-
If the probability of occurrence of key risks exceeds 20%, and measures to minimize them are not developed, this is a sign of high risks.
-
Projects with a risk probability of more than 30% become extremely vulnerable and require significant control measures.
4. Team management
Ambition: In ambitious projects, the team works at the limit of its capabilities, but at the same time it is provided with all the necessary resources, training and support.
Madness: In frantic projects, the team is overloaded with tasks, does not have enough time for rest, and employees are asked to perform extra-normative tasks without taking into account their capabilities. For example, if a team of 5 people has to do a job designed for 10 people, this leads to employee burnout and a decrease in the quality of work.
Measured 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 is increased by 30% or more without increasing the staff or project execution time, the risks of not achieving the goals increase several times.
5. Expected results
Ambition: Expectations for the project are high, but they are justified by an analysis of the market and the capabilities of the team. For example, if the project involves achieving a 20% increase in sales, this can be an ambitious but realistic goal if the appropriate strategies are in place.
Madness: Expectations from the project are inflated and not supported by real data For example, if the project involves doubling sales within 6 months without taking into account market conditions and company resources, this may lead to unrealized expectations and the failure of the project.
Measured indicators:
-
If the deviation from planned results exceeds 25%, this is a signal that expectations may be overstated.
-
The probability of project failure when it deviates from real possibilities by more than 30% doubles.
Examples from real practice
1. Elon Musk’s Hyperloop project
This project became a symbol of ambition in modern engineering. The idea of creating a vacuum train that can reach speeds of up to 1,200 km/h is exciting and inspiring. However, the project faces enormous technological and financial difficulties. Some experts believe that current technologies do not allow to implement the project in full.
-
Deviation of terms: initially the project was planned for implementation within 10 years, but now the implementation dates are being postponed indefinitely
-
Budget: according to recent estimates, the Hyperloop budget may exceed initial estimates by 50-70%, putting the project in jeopardy
This example shows how ambitious ideas can turn into madness if real possibilities and constraints 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 involved many risks associated with new technologies and tight deadlines.
-
Deviation of terms: the project was originally planned for 24 months, but was completed in 18 months, 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 properly managed.
Conclusion
The line between ambition and madness in the project is thin. Ambitious projects can inspire and bring significant achievements, but require careful planning, risk management and a realistic assessment of opportunities. Madness begins where project goals go unrealized and risks are ignored.
It is important for project managers to be able to recognize this edge and use measurable indicators to assess the level of ambition. This will allow not only to avoid failures, but also to create successful projects that will benefit the company and inspire teams to new achievements.