There are almost as many reasons for project failures as there are failed projects, but the success rate for business initiatives has been given a boost with the advent of project management. Most carriers no longer turn over business projects to IT professionals who know the technology but not the business. The importance of making projects successful can be seen in the amount of money carriers are spending on new projects. In its most recent survey of CIOs and CTOs, research group Celent found 31 percent of budgets for large carriers in 2006 was spent on new projects, with an even more impressive 42 percent spent by midtier carriers on projects.

The lack of a clear project strategy is an easy trap for companies to fall into when it comes to project planning, contends Norm Buckwalter, managing advisor, innovation and planning, with Accident Fund Insurance Company of America. "It's challenging for any organization to shift its focus from day-to-day tactical issues to long-term strategic goals for the company," he says. "All of us can get absorbed in tactical demands for our customers and our internal staff because these are tangible, important, and right in front of us."

When it comes to managing projects, the factors that affect cost and schedule are fairly common across most industries, comments David Seaver, managing director of the information technology practice for PRICE Systems, a consultant group that estimates and analyzes the effort, schedule, and cost of projects. "The things that impact the cost of IT don't change when you go from business area to business area, and they don't change that much when you go from COBOL technology to JAVA and browser based," he says. "They still are fairly consistent."