Open-access journal article · 2023
Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods
International Journal of Information Technology Project Management, 14(1), pp. 1–24 · Published
Summary
Strang and Vajjhala (2023) analyzed big data on about 17,430 US government IT projects to identify the indicators most strongly associated with IT project failure, using random forest machine learning followed by post-hoc logistic regression in a pragmatic recursive mixed-methods design. The random forest identified seven failure indicators with 81% recall, an F1 score of 0.798 and a ROC area of 0.849. The logistic regression (McFadden r2 = 0.267) confirmed project manager experience, project budget and outsourced versus in-house project managers as significant predictors of failure.
Practical implication. For sponsors and decision makers, project manager experience was the most important predictor of IT project success in about 17,430 US government IT projects: more experience was associated with avoiding failure.
- The Problem
- Thousands of IT projects fail every year, yet the indicators most strongly associated with failure have not been mined systematically from large project datasets.
- The Methodology
- Pragmatic recursive mixed-methods design on U.S. Government Accountability Office big data (about 17,430 IT projects): structured data cleaning, random forest classification of project breach/failure, and post-hoc logistic regression in SPSS.
- The Core Finding
- Random forest analysis of about 17,430 US government IT projects identified seven failure indicators with 79.9% precision, 81% recall and a ROC area of 0.849. Post-hoc logistic regression confirmed project manager experience, project budget and outsourced versus in-house project managers as significant predictors of failure.
- The Citation
- Strang, K. D., & Vajjhala, N. R. (2023). Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods. International Journal of Information Technology Project Management, 14(1), 1–24. https://doi.org/10.4018/IJITPM.317221
The summary, key findings, methods, implications and relevance notes on this page are this website’s own description of the paper, written from the published abstract and text. The official abstract and citation details are given further down.
Key findings
- Finding 1. The study analyzed big data on an estimated 17,430 U.S. government IT-related projects (cutoff 31 December 2019) sourced via the U.S. Government Accountability Office, with a binary breach/failure outcome.
- Finding 2. A random forest machine learning model with 94 trees and 4 predictors per split achieved an average precision of 0.799, recall of 0.810, F1 score of 0.798 and ROC area of 0.849 in classifying IT project failure.
- Finding 3. Seven feature indicators exceeded the authors' node-purity cutoff of 0.02: PM experience (0.063), contract versus in-house PM (0.058), line of business (0.048), remote work allowed (0.032), PM contract/salary (0.031), project budget (0.025) and PM certification (0.024).
- Finding 4. A post-hoc logistic regression on the seven machine-learning features was statistically significant (AIC = 67.068, BIC = 87.068, χ2 = 76.287, p < .001) with a McFadden r2 effect size of 0.267 (27%).
- Finding 5. Project manager experience was the most important predictor of IT project success (beta = −1.441, z = −9.434, Wald = 88.996, p < .001): more years of experience were associated with avoiding project failure.
- Finding 6. Projects with higher budgets were more likely to end in a breach (failure) condition (beta = 0.744, Wald = 21.651, p < .001), and in-house rather than outsourced project managers were more likely to have breached projects (beta = 0.869, Wald = 135.224, p < .001).
- Finding 7. Project manager salary/contract value (p = 0.278) and project manager certification (p = 0.591) had no significant impact on IT project breach versus success outcomes.
Source: Strang & Vajjhala (2023), International Journal of Information Technology Project Management, 14(1), pp. 1–24. DOI: 10.4018/IJITPM.317221
The study in detail
What question does this paper answer?
Can machine learning explain why thousands of IT projects failed by mining hundreds of big data attributes, and which indicators are most likely associated with IT project failure?
What did the study find, in detail?
Applying random forest machine learning to big data on about 17,430 U.S. government IT-related projects, the authors identified seven failure indicators with 79.9% precision, 81% recall, an F1 score of 0.798 and a ROC area of 0.849. A post-hoc logistic regression on those seven features was significant (χ2 = 76.287, p < .001, McFadden r2 = 0.267), confirming project manager experience, project budget and outsourced versus in-house project managers as significant predictors.
Why does it matter?
Roughly half of IT-related projects fail and earlier studies of success factors left 88–98% of the variation unexplained. The study shows that a pragmatic mixed-methods sequence — machine learning first, followed by logistic regression — can pull useful failure indicators out of messy project big data, and the authors urge researchers to use actual organizational project metrics rather than surveys of opinion.
This study is part of the evidence overview What predicts IT project failure and success? Evidence on project managers, bias and team transparency from machine learning and experiments
Methods and data
| Research question | Can machine learning explain why thousands of IT projects failed, and what are the most likely indicators of IT project failure? |
|---|---|
| Design | Pragmatic, recursive mixed-methods design: structured programming (object-oriented Visual Basic) to clean big data, random forest machine learning, then post-hoc logistic regression in SPSS v. 25. |
| Data | Big data from the U.S. Government Accountability Office covering close to a million records, filtered to IT-related (largely military) projects up to 31 December 2019; an estimated 17,430 projects. |
| Methods | Random forest (94 trees, 4 predictors per split) with a binary breach/failure outcome; feature importance by node purity; logistic regression on the top 7 features. |
| Main result | Random forest: precision 0.799, recall 0.810, F1 0.798, ROC area 0.849; logistic regression: McFadden r2 = 0.267, with PM experience, budget and outsourced/in-house significant. |
| Implication | More project manager experience is associated with avoiding failure; researchers should mine actual project performance data with machine learning rather than rely on surveys. |
| Citation | Strang & Vajjhala (2023) · DOI 10.4018/IJITPM.317221 |
Definitions and key terms
- Random forest
- An ensemble machine learning technique that builds many decision trees and combines their votes to classify cases, here IT projects as failed (breached) or successful. — as used in Strang & Vajjhala (2023)
- Node purity
- In random forest, the increase in node purity measures a feature's importance, which the authors liken to the change in r2 effect size when a factor is added to a regression model. — as used in Strang & Vajjhala (2023)
- ROC area (ROCa)
- The area under the Receiver Operating Characteristic curve, estimating how well the model's classifications separate the two outcome classes; also called AUC. — as used in Strang & Vajjhala (2023)
Abstract
The literature revealed approximately 50% of IT-related projects around the world fail, which must frustrate a sponsor or decision maker since their ability to forecast success is statistically about the same as guessing with a random coin toss. Nonetheless, some project success/failure factors have been identified, but often the effect sizes were statistically negligible. A pragmatic mixed methods recursive approach was applied, using structured programming, machine learning (ML), and statistical software to mine a large data source for probable project success/failure indicators. Seven feature indicators were detected from ML, producing an accuracy of 79.9%, a recall rate of 81%, an F1 score of 0.798, and a ROCa of 0.849. A post-hoc regression model confirmed three indicators were significant with a 27% effect size. The contributions made to the body of knowledge included: A conceptual model comparing ML methods by artificial intelligence capability and research decision making goal, a mixed methods recursive pragmatic research design, application of the random forest ML technique with post hoc statistical methods, and a preliminary list of IT project failure indicators analyzed from big data.
Abstract as published in International Journal of Information Technology Project Management under a Creative Commons licence.
Keywords: Big Data; Information Technology; Machine Learning; Model; Prediction; Project Failure; Project Management; Random Forest
Limitations and open questions
- The big data were messy, with alphanumeric codes, corrupted fields and missing or null values, requiring extensive cleaning with object-oriented Visual Basic before analysis.
- The very high share of male project managers (94%) would cause statistical skew of the model.
- The 'remote allowed' feature could not be tested in the logistic regression because it contained too many missing or null values, and comparative importance scores were not available from the regression due to data irregularity.
- Line of business was an internal defense industry code that could not be further interpreted.
- The study took place in the U.S.; the authors call for studies from other countries and for replication with other machine learning techniques.
Open questions
- Do the failure indicators replicate outside the U.S. and with other machine learning techniques, using project performance records rather than surveys?
Open questions from the evidence overview Project management and project success.
Practical implications
- For a sponsor or decision maker forecasting IT project success, more years of project manager experience were associated with avoiding project failure (beta = −1.441, z = −9.434, p < .001).
- For a sponsor or decision maker, higher-budget US government IT projects were more likely to end in a breach (failure) condition, and in-house rather than outsourced project managers were more likely to have breached projects.
- For a sponsor or decision maker, project manager salary/contract value (p = 0.278) and project manager certification (p = 0.591) had no significant impact on IT project breach versus success outcomes.
- The authors urge researchers to use actual organizational project metrics rather than surveys of opinion; the study shows that machine learning followed by logistic regression can pull useful failure indicators out of messy project big data.
Drawn from Strang & Vajjhala (2023), International Journal of Information Technology Project Management, 14(1), pp. 1–24.
When this research may be relevant
This article may be relevant to literature searches on IT project failure prediction, machine learning in project management, project manager experience and budget as success factors, government and defence IT programme performance, and mixed-methods designs that combine random forest feature importance with inferential statistics.
Research topics addressed: machine learning; random forest; project failure; IT project management; big data; mixed methods; logistic regression; project success factors; project manager experience; U.S. government projects; defense projects; data mining; predictive analytics
How to cite
- APA 7
- Strang, K. D., & Vajjhala, N. R. (2023). Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods. International Journal of Information Technology Project Management, 14(1), 1–24. https://doi.org/10.4018/IJITPM.317221
- MLA 9
- Strang, Kenneth David, and Narasimha Rao Vajjhala. “Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods.” International Journal of Information Technology Project Management, vol. 14, no. 1, 2023, pp. 1–24. https://doi.org/10.4018/IJITPM.317221.
- IEEE
- K. D. Strang and N. R. Vajjhala, “Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods,” International Journal of Information Technology Project Management, vol. 14, no. 1, pp. 1–24, Feb. 2023, doi: 10.4018/IJITPM.317221.
BibTeX
@article{strang2023machine,
title = {Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods},
author = {Strang, Kenneth David and Vajjhala, Narasimha Rao},
journal = {International Journal of Information Technology Project Management},
volume = {14},
number = {1},
pages = {1--24},
year = {2023},
publisher = {IGI Global},
doi = {10.4018/IJITPM.317221},
url = {https://doi.org/10.4018/IJITPM.317221}
}RIS
TY - JOUR TI - Mining Project Failure Indicators From Big Data Using Machine Learning Mixed Methods AU - Strang, Kenneth David AU - Vajjhala, Narasimha Rao JO - International Journal of Information Technology Project Management PY - 2023 DA - 2023/02/03 VL - 14 IS - 1 SP - 1 EP - 24 PB - IGI Global DO - 10.4018/IJITPM.317221 UR - https://www.narasimharao.net/research/machine-learning-it-project-failure-indicators-big-data/ LA - en ER -
Links and files
Related work
Related work: the literature this study cites
The study cites the Standish Group’s 2009 figure that only 32% of U.S. government projects were successful[1], and large empirical studies of defense and public procurement projects: Eckerd and Snider analysed 1,073 Department of Defense projects and found no significant correlation between contractor factors such as experience, PM certification, age or gender and cost variance or breach[2]; Borbath and colleagues examined 14,836 contractor projects and none of their hypotheses were supported[3]; and Ghossein and colleagues reported a 50% failure rate across 59,816 European Union public procurement projects, with small effect sizes[4]. Strang’s logistic regression of 2,692 defense IT projects found several significant individual and organizational factors, yet they accounted for only 12% of the variance in outcomes[5]. A UN agency survey by Saadé and colleagues identified engagement, education and experience factors[6]. The authors compare their random forest metrics with Han, Lung and Ajila’s software defect prediction study, which reported a random forest ROC of 0.844[7], and they draw on Pospieszny and colleagues’ argument that machine learning on historical data can reduce technical, psychological and political bias in project estimates[8]. On certification, the study cites prior work: Catanio and colleagues found no difference between certified and uncertified PMs in scope, time and cost management[9], and Nazeer and Marnewick are cited among studies finding no certification effect on project success[10].
- [1] Standish-Group. (2009). Chaos Summary 2009: The 10 Laws of CHAOS. University of Chicago. https://www.classes.cs.uchicago.edu/archive/2014/fall/51210-1/required.reading/Standish.Group.Chaos.2009.pdf
- [2] Eckerd, A., & Snider, K. (2017). Does the program manager matter? New public management and defense acquisition. American Review of Public Administration, 47(1), 36–57. https://doi.org/10.1177/0275074015596376
- [3] Borbath, M., Blessner, P., & Olson, B. (2019). An empirical approach to the evaluation of defence contractor performance. International Journal of Logistics Research and Applications, 22(2), 138–153. https://doi.org/10.1080/13675567.2018.1497148
- [4] Ghossein, T., Islam, A. M., & Saliola, F. (2018). Public procurement and the private business sector: Evidence from firm-level data. In K. V. Thai, P. J. Salia, & F. A. Mwakibinga (Eds.), Global public procurement: Theories and practices (pp. 21–55). Springer. https://doi.org/10.1596/1813-9450-8575
- [5] Strang, K. D. (2021). Which organizational and individual factors predict success versus failure in procurement projects. International Journal of Information Technology Project Management, 12(3), 19–39. https://doi.org/10.4018/IJITPM.2021070102
- [6] Saadé, R. G., Dong, H., & Wan, H. (2015). Factors of project manager success. Interdisciplinary Journal of Information, Knowledge, and Management, 10(1), 63–80. https://doi.org/10.28945/2265
- [7] Han, W., Lung, C.-H., & Ajila, S. (2016). Using source code and process metrics for defect prediction - A case study of three algorithms and dimensionality reduction. Journal of Software, 11(9), 883–902. https://doi.org/10.17706/jsw.11.9.883-902
- [8] Pospieszny, P., Czarnacka-Chrobot, B., & Kobylinski, A. (2018). An effective approach for software project effort and duration estimation with machine learning algorithms. Journal of Systems and Software, 137(2), 184–196. https://doi.org/10.1016/j.jss.2017.11.066
- [9] Catanio, J. T., Armstrong, G., & Tucker, J. (2013). The effects of project management certification on the triple constraint. International Journal of Information Technology Project Management, 42(1), 31–41. https://doi.org/10.4018/ijitpm.2013100106
- [10] Nazeer, J., & Marnewick, C. (2018). Investing in project management certification: Do organisations get their moneys worth? Information Technology Management, 19(1), 51–74. https://doi.org/10.1007/s10799-017-0275-y
From the evidence overview What predicts IT project failure and success? Evidence on project managers, bias and team transparency from machine learning and experiments, which cites only works that appear in the studies’ own reference lists. This is a selection, not the full reference list of Strang & Vajjhala (2023).
Related research
Related publications on project management and project success
Across 439 successful US government IT projects with 1,230 features, linear regression outperformed random forest and SVM in predicting project manager commitment tenure.
Supervised machine learning on 439 successful US government IT projects showed linear regression best predicted project manager commitment tenure (r² = 0.238), with line of business, experience, network collaboration tools and cross-industry team membership as the strongest features — supporting an association between higher commitment and project success.
Team members’ willingness to disclose their past performance evaluations during procurement significantly improved project success after controlling for budget, end-user community size and certification, roughly doubling the explained variance in project success from 9.6% to 18.8%.
A 400% bonus incentive significantly lowered 16 experienced IT project managers’ likelihood of cancelling a failing project (from 3.438 to 2.438 on a 1–5 scale; p = .005, Cohen’s d = 0.826).
In a controlled experiment with 24 experienced US project managers, a biasing incentive significantly lowered decision quality, and certification and risk competency were the only individual factors significantly related to good decisions (rho = 0.549 to 0.712).