HBR On Leadership
Why Most Projects Fail—And How to Achieve Better Outcomes
HBR On Leadership
•February 18, 2026•25 min
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HBR On Leadership•Feb 18, 2026
Why It Matters
As more work moves into the project economy, the cost of failed initiatives—wasted resources, missed opportunities, and demoralized teams—grows dramatically. Understanding how to design, govern, and support projects can boost organizational agility, drive better financial performance, and help companies stay competitive in an increasingly project‑driven market.
Key Takeaways
- •Senior leaders' limited time drives high project failure rates
- •Project work now dominates over traditional operational efficiency
- •Effective sponsorship requires executives dedicating half‑day weekly
- •Project managers must own outcomes, not just schedules
- •Prioritize top five projects and use volunteer teams
Pulse Analysis
The modern "project economy" now accounts for trillions of dollars and millions of jobs, yet only about 35% of initiatives succeed. This shift from a century‑old focus on operational efficiency to rapid, change‑driven work means organizations must treat every effort to innovate as a project. Leaders who treat projects as peripheral tasks see higher failure rates, while those who embed project thinking into strategy reap faster benefits. Understanding this macro transition clarifies why senior sponsorship has become the single most critical success factor.
Research highlighted by Antonio Nieto‑Rodriguez shows that many executives lack the competencies and time required for effective sponsorship. A half‑day per week of focused attention, rather than a few scattered hours, dramatically improves outcomes. Moreover, traditional project managers have clung to process‑centric metrics—on‑time, on‑budget, on‑scope—while neglecting real‑world benefits. Shifting accountability toward delivering measurable value, whether financial, social, or sustainability‑based, aligns project teams with business goals and restores credibility to the discipline.
Practically, companies should identify their five most strategic projects, extract dedicated talent from day‑to‑day operations, and form volunteer‑driven teams motivated by purpose rather than rigid business cases. This approach balances the need for operational stability with the agility required for rapid innovation. As the gig economy matures, firms can supplement internal expertise with freelancers, but the core strategy remains: prioritize, sponsor actively, and empower project managers to own outcomes. Executives who master these practices will turn the project economy from a source of risk into a sustainable engine for growth.
Episode Description
Companies of every size in every industry and part of the world are basing more of their work around projects. And yet research shows that nearly two-thirds of those efforts fail. Antonio Nieto-Rodriguez, who has studied projects and project management for decades, explains how we can do better. He offers advice on the right way to frame projects, how to structure organizations around them, and pitfalls to avoid. Nieto-Rodriguez is the author of the Harvard Business Review Project Management Handbook and author of the article “The Project Economy Has Arrived.”
Show Notes
February 18, 2026
Companies of every size in every industry and part of the world are basing more of their work around projects. And yet research shows that nearly two-thirds of those efforts fail. Antonio Nieto-Rodriguez, who has studied projects and project management for decades, explains how we can do better. He offers advice on the right way to frame projects, how to structure organizations around them, and pitfalls to avoid. Nieto-Rodriguez is the author of the Harvard Business Review Project Management Handbook and author of the article “The Project Economy Has Arrived.”
**Key episode topics include:**project management, operations strategy, organizational change
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Listen to the original HBR IdeaCast episode: The Future of Work Is Projects—So You’ve Got to Get Them Right
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