Project termination doesn't equal project failure

One of the most frequently cited software project statistics comes from the Standish Group's 1995 Chaos report (http://www.standishgroup.com/visitor/ chaos.htm): "A staggering 31.1 percent of [software] projects will be canceled before they ever get completed." The Chaos report, and numerous documents citing it, label these canceled projects as "failed" and imply that all 31.1 percent of them were canceled because of poor software management. This implication is both false and hazardous. It is false because, particularly in an era of rapid change, a lot of software projects are properly started, well managed, and properly terminated before completion because their original assumptions have changed. It is hazardous because it often leaves software managers with the following temptation: "It's becoming clear that continuing this project will waste company resources. I should probably have the project canceled now, but that would make me the manager of a failed project and wreck my career. I'll be better off if I say nothing, keep the project going, and look for a new project to transfer to." To counter this train of thought, the author reviews the main sources of project termination determined in the Chaos report, and estimates how likely each termination source applies to a well- or poorly managed project.