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Correct Answer: a project with significant overrunning of cost and/or schedule.
a "runaway project" refers to a project that significantly exceeds its planned budget and timeline. this term highlights a scenario where the project is no longer under the control of the project manager, leading to escalating costs and delays that surpass initial estimates. often, this situation arises from various factors including poor project management, unforeseen obstacles, or failure to adhere to the project's scope and objectives.
the primary characteristic of a runaway project is its inability to stay within the set boundaries of cost and schedule. this overshooting of limits is not just by marginal figures but often by substantial margins, which can jeopardize the overall success and viability of the project. runaway projects can drain resources, lower team morale, and damage the reputation of the organization handling the project.
runaway projects often stem from several root causes:
1. **poor planning:** inadequate or unrealistic project planning can set the stage for a project to go off-track. this includes underestimating the time and resources required or failing to anticipate potential risks and complications.
2. **lack of control and monitoring:** effective project management involves regular monitoring and controlling of all aspects of the project. a lack of these activities can allow projects to deviate significantly from their intended course without timely detection or intervention.
3. **scope creep:** this occurs when the project’s scope expands without proper control, often due to additional demands or changes from stakeholders that are not adequately managed.
identifying a project as "runaway" is critical because it signals the need for immediate corrective actions to bring the project back on track. this might involve revising the project plan, enhancing communication and oversight, re-allocating resources, or in some cases, redefining project goals and deliverables.
ultimately, the ability to manage and rectify a runaway project depends significantly on the project manager's skills in leadership, negotiation, and problem-solving. effective project managers recognize the signs of a project going astray early and employ appropriate strategies to mitigate risks and guide the project towards its successful completion. failure to control a runaway project not only leads to financial losses but also affects the overall strategic objectives of the organization.
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