Project Management Examples: Success Stories Case Studies, and Examples

Project management failures are part of most projects. The key is to learn from past failures and track projects closely to get back on track when things go awry. 

1. Citibank Interest Payment Failure
Citibank intended to make a $7.8 million interest payment to creditors of its client Revlon. Instead, the company paid $900 million because of errors due to aging software. Citibank's employees set up a transaction as if they were paying off the entire loan to calculate the interest correctly, then check numerous boxes to deliver the majority of the sum to an internal Citibank account. Three different people signed off on this transaction, most of which wasn't due to creditors until 2023, but the Citibank employees didn’t check all the proper boxes. Creditors kept more than $500 million of the payment. A judge ruled that they didn't have to return the money because he said it was not believable that one of the largest and most sophisticated financial institutions on earth could make such a mistake. 

• Takeaway: The big lesson is to modernize your software and user interfaces, so employees can perform their duties in a streamlined, logical fashion. Remember: You might suffer less when you make mistakes if people aren't angry enough to take advantage of those errors.

2. J.C. Penney Rebrand Failure
Ron Johnson, who has a successful branding track record, took over as J.C. Penney's CEO in 2011. Johnson's "cheap chic" rebranding for Target was enormously successful, as was his previous work with Apple to generate its outstanding and consistent brand experience. Defying expectations, Johnson's rebrand for Penney's was a dismal failure. His goal was to revitalize the chain by making "hip" changes. He wanted to shake things up at the company by doing away with sales and coupons, nixing some of the legacy merchandise, and modernizing the store’s physical layout. It failed miserably. Revenues dropped from an already low level, and after 17 months, Johnson was out.

• Takeaway: No matter how cool or innovative a new brand concept seems, robust market research is mandatory. J.C. Penney's poor financial state forced Johnson to act too quickly. As such, he failed to align the likes and dislikes of J.C. Penney's loyal existing customer base with new tactics. That's not to say the change involved in rebranding has to be totally at the mercy of your customers' extant preferences. When a brand has long-standing customer favorite factors such as discounts and coupons, it may be best to roll out changes slowly rather than all at once to acclimate existing customers to a new direction.

3. McDonald's Arch Deluxe Burger
The fast food giant put an unprecedented $150 million into advertising for the Arch Deluxe Burger, only to discover its customers weren't interested in the sophisticated, ”gourmet” menu option. Mistakes include marketing to a new, disinterested Gen X demographic while neglecting the brand's core audience, overpricing the burger to cover the additional costs it took to create, and franchisee disinterest. 

• Takeaway: The message is to never ignore your buying base and pick the right metrics when you start and run a project. If McDonald's had a more accurate picture of what its customers wanted and conducted more testing with existing customers, the company could have saved its money, resources, and reputation. 

4. Dyson Electric Car
James Dyson spent a small fortune – more than $600 million – on a seven-seat electric car with a 600-mile range. Then Dyson scrapped it before the prototype ever hit the road. Electric vehicles are costly, and the battery, battery management, electronics, and cooling system are much more expensive than an internal combustion engine. Tesla — hailed as a success by many — has burned through $19 billion of investor cash and is still not profitable. It turned out that each Dyson would have had to fetch roughly $183 million to break even. 

• Takeaway: The British government wants to ban sales of all fossil-fuel cars by 2035, so Dyson shifted its focus. The company continues to work on solid-state battery manufacturing. Solid-state batteries are the key to making electric vehicles functional and desirable. Highly efficient, as well as smaller and lighter than ion batteries, solid-state batteries generate less heat and are easier to recycle. Dyson says he could return to electric vehicle production when commercial and financial circumstances change.

5. Coca-Cola and New Coke
The company tested New Coke with 200,000 consumers. Most people who tried it preferred New Coke over the traditional product. Based on that information, Coca-Cola launched New Coke in 1985. But the new product did not sell, and product loyalty and people’s old-fashioned habits got in the way. The cost to the company was $30 million in unsellable backstock and $4 million lost to development. New Coke remains one of the most famous failures in marketing history.

• Takeaway: While Coca-Cola researched the market, it missed the mark when assessing the power of brand loyalty. Understanding customers is imperative in product development. Ensure your information is comprehensive and those insights are realistic and accurate.