Why IT Projects Fail, and What You Can Do Differently

Avoiding the most common pitfalls that derail technology initiatives in growing businesses

In the world of mid-sized business, technology is often the engine of growth. You scope a project, select a vendor, and invest significant resources, expecting a clear return. Too often, the result is a cycle of unexpected costs, delayed timelines, and frustrated teams.

At Koltiv, we believe technology should simplify your life, not make it more complicated. Having spent over four decades as a trusted IT partner to small-to-mid sized businesses in the United States, we’ve seen that the most expensive failures are rarely caused by the software itself. Instead, they stem from a lack of alignment with the human experience.

The Reality: Most IT Projects Underperform

Data from McKinsey indicates that 45% of IT projects exceed their budgets, while 56% deliver less value than originally promised. For mid-sized businesses, especially in high-stakes industries like Agriculture and Manufacturing, these setbacks are more than just line items on a spreadsheet. They represent missed opportunities to modernize and stay competitive.

The Most Common Reasons IT Projects Fail

We have identified five recurring reasons why technology projects underperform. Recognizing these patterns is the first step toward building a more resilient infrastructure.

1. Starting with Tools Instead of Goals

Many organizations chase trendy products or specific features without defining the actual problem they are trying to solve. When a project lacks a clear "why," stakeholders often disengage, and the final solution fails to drive meaningful business outcomes. That’s why before we start discussing platforms or features, we ask key questions about what matters to your organization. Are you trying to save time? Improve security? Enable remote work? Increase automation?

2. Skipping the Discovery Phase

Entering a complex project without a thorough audit of your current environment is like building a house without checking the soil. At Koltiv, we prioritize deep discovery to identify gaps, dependencies, and risks before they become costly emergencies.

3. The Communication Gap

Technical vendors frequently speak a language that does not translate well across departments. If your executive leadership and front-line users are not aligned on expectations, you can expect internal resistance and eventual rework. We address this by assigning a dedicated project lead who works as your single point of contact and translates technical language into business terms so everyone is on the same page.

4. Absence of an Internal Champion

Projects without a dedicated internal leader tend to stall when quick decisions are required. Successful initiatives require a project champion who understands the internal culture and keeps the team focused on the timeline. We’ll help you identify that person who keeps the project moving and represents your organization throughout the engagement.

5. Ignoring "Day 91"

Many providers treat the go-live date as the finish line. This often leaves businesses without the necessary training, documentation, or long-term support needed to actually adopt the new technology. At Koltiv, we view deployment as the halfway point of a partnership and include:

• Post-implementation support
• User training
• Documentation
• Success check-ins
• Performance review sessions

What Successful IT Implementation Looks Like in Practice: The Ag Retailer’s Transformation

We recently partnered with a mid-sized Ag Retailer who had a thriving business, but their technology was a patchwork of disconnected systems. They had an aging IBM Power System for back-office operations and a series of manual spreadsheets for field data.

Before calling us, they almost invested six figures in a new "all-in-one" off-the-shelf software package. The vendor promised it would solve everything, but our discovery process revealed a critical flaw: the new tool couldn't "talk" to their existing inventory data. If they had moved forward, they would have ended up with a $100,000 "shiny box" that actually created more manual data entry for their team.

The Koltiv Way: Implementing a Connected System

Instead of a generic replacement, we acted as their guide to break down data silos.

• Step 1: Modernizing the Core. We didn't scrap their reliable IBM Power System. We modernized it, ensuring it was secure and optimized for their peak season.
• Step 2: The Custom Bridge. Our app development team built a custom mobile dashboard. This tool pulled real-time inventory from the IBM system and pushed it directly to the field reps' tablets.
• Step 3: "Day 91" Support. We continue to provide 24/7 live human support based in the U.S. to ensure every field rep feels confident using the new tech.

The Business Outcome

• Efficiency: Field reps saved hours per week previously spent on manual data reconciliation.
• Peace of Mind: Leadership now has real-time visibility into inventory, allowing them to make faster, data-driven decisions during their busiest months.
• Ownership: By transferring the technical risk to Koltiv, the General Manager could stop "firefighting" IT issues and get back to growing the co-op.

Budgeting and Timelines: What to Expect

Here’s how we help reduce the two biggest anxieties about IT projects: cost and schedule.

Transparent Pricing

We scope and price based on real needs, not ballpark guesses. If your needs change mid-project, we’ll clearly communicate how that impacts price and delivery before any surprise shows up on your invoice.

Realistic Timelines

We don’t overpromise to win your business. We give realistic schedules, built with buffer time and contingency planning. If we can’t hit a deadline, we’ll tell you early, not after it passes.

Metrics That Matter

To ensure ROI, we measure:

• Project completion vs. initial scope
• Post-launch ticket volume (should decrease)
• End-user satisfaction
• Adoption rates for new tools or processes
• Business performance impact (e.g., time saved, errors reduced)

We also build in reporting mechanisms so your leadership team can monitor progress and outcomes in real time.

Questions to Ask Any IT Project Partner

Before you say yes to a new IT initiative, ask:

1. How do you scope and plan projects?
2. How do you ensure alignment with business goals?
3. What post-launch support is included?
4. Can we meet the project team before signing?
5. What’s your approach if a project starts to go off track?

If a provider can’t answer these clearly, it’s a red flag. At Koltiv, we welcome these questions because the more you know, the more confident you’ll feel throughout the process.

Ready to Run a Project That Delivers?

Here’s how to get started:

1. Book a project discovery call to audit your current environment.
2. Receive a roadmap that aligns with your specific business outcomes.
3. Partner with a team that values ownership and stays accountable at every step.