Why 70% of software projects fail and how to make yours succeed

16 July 2025

At Blue Wren we have seen firsthand how the right software can transform a business.

But we also know the harsh reality that most software projects don’t deliver on their promise.

According to the long standing and well-known Standish Group CHAOS Report, only around 30% of software projects are truly successful, delivered on time, on budget, and with all required features (Standish Group, 2015). More recent statistics are equally damaging. In 2023, 31% of software projects were cancelled before completion, while over 50% ran over budget by nearly 190% (Zipdo, 2023).

These aren’t just numbers. They represent missed opportunities, wasted budgets, and damaged reputations.

Why do so many software projects fail?

There’s no single reason for this problem. Common factors include:

• Poor requirements gathering – The number one cause of failure, responsible for over 39% of cases
• Inadequate planning – Rushing in without a realistic roadmap
• Communication breakdowns – Cited in 57% of failures, these gaps lead to confusion and conflict
• Scope creep – Uncontrolled changes and unclear objectives derail projects
• Lack of executive support– Without senior buy-in, teams struggle for direction and resources
• Insufficient testing – Nearly 29% of failures trace back to poor quality assurance practices.

Even when companies recognise their processes are inefficient, resistance to change can become a major barrier. Employees may fear losing control or doubt the promised benefits. As Kotter (1996) points out, without a deliberate change management strategy, organisations often see disengagement and poor adoption that can cause even good software to fail.

How to succeed: our 20-point checklist

We believe successful software projects don’t happen by chance. They are built on careful planning, clear communication, rigorous testing, and strong leadership.

Here’s our practical checklist to help you prepare for success:

Download the Checklist

1. Document existing processes

Capture current workflows so you know what the software is replacing or improving.

2. Define what success looks like

Set clear, specific outcomes such as reduced errors, faster processing, or increased revenue. (see our blog: How a simple process map can improve your business)

3. Ensure executive sponsorship

Confirm that leadership is committed and will remove obstacles.

4. Form a cross-functional project team

Include people from all departments affected by the change.

5. Set up project governance

Define roles, responsibilities, and decision-making processes. (see our blog: Our 4-step process for software delivery)

6. Write clear, validated requirements

Ensure requirements are complete, agreed upon, and understood.

7. Engage stakeholders throughout

Maintain regular input and feedback from all key groups.

8. Plan for change management

Address resistance before it occurs with communication and training.

9. Develop realistic test scenarios

Ensure tests reflect real use cases and expected outcomes.

10. Provide targeted training

Tailor training to specific user roles and needs.

11. Plan and test data migration

Map, clean, and verify all data before moving to the new system.

12. Verify system integrations

Ensure reliable connections to existing tools and databases.

13. Identify and manage risks

Document risks and mitigation plans early.

14. Set a realistic timeline and budget

Include contingency for unforeseen issues.

15. Establish a clear communication plan

Define who needs to know what, when, and how.

16. Plan for post-launch support

Allocate resources for helpdesk, maintenance, and troubleshooting.

17. Assign change champions

Identify staff who will promote adoption within their teams.

18. Support continuous improvement

Plan for future updates based on user feedback and evolving needs.

19. Avoid unnecessary complexity

Keep solutions as simple as possible to aid adoption and maintenance. (see our blog: What is MVP?)

20. Build in flexibility

Allow for adjustments as understanding and requirements evolve. (see our blog: Scrum vs Waterfall: Q&A with a team that made the switch)

Software implementation is hard, but it doesn’t have to fail

We know that success requires more than code. It demands understanding your processes, engaging your people, and delivering reliable, user-friendly tools.

If you’re planning a software project and want to do it right, contact us to learn how we can help.

References

Standish Group. (2015). CHAOS Report 2015
Kotter, J. P. (1996). Leading Change. Harvard Business Review Press
Zipdo. (2023). Essential Software Project Failure Statistics

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