There have been a lot of business books published analyzing why it is that various corporate projects fail. But what about all those projects that never even start? Whether it's paying for data center upgrades, building a new online store or expanding the call center, most big companies have some sort of internal review process for new initiatives; making it past that gauntlet of executives to get the needed signatures can be daunting. It should be easy: if the revenue/savings are greater than the expense then "yes", if not, "no". But nothing, nothing, nothing is easy when you present to the board. So for everybody trying to rustle up internal funding for just such a corporate venture you should take a look at common reasons (some taken from actual meeting minutes) projects are rejected.
1a. Too expensive
Detail: The expense of the project is greater than the potential revenue or cost savings.
1b. Too expensive
Detail: While the expense of the project is less than the potential revenue or cost savings, the board doesn't like the look of that number. It looks big. Come back when it looks smaller. Or more round.
1c. Too expensive
Detail: While the expense of the project is less than the potential revenue, everyone on the board knows you made up those revenue numbers at the last minute and no one believes them.
2a. Too inexpensive
Detail: Why are you wasting the board's time with this project? Just buy the damn computer using the normal purchasing process.
2b. Too inexpensive
Detail: While the potential revenue seems enormous compared to the minimal expense, the board feels that it can't possibly be a high priority project if it costs so little.
3. Not our core business
Detail: While it sounds like a great project, this isn't our core business. You shouldn't sell shoes if you're not a shoe store. Yes, I know your project has nothing to do with shoes. That was a metaphor.
4. Too many high priority projects
Detail: The guy before you presented a much more exciting project, and we don't want to start two projects of this magnitude at once.
5. Nine women can't have a baby in one month
Detail: Self-explanatory
Further detail for those who don't take the board's word as gospel: While the project looks appealing, you're trying to build an entire new business process in two months by throwing money at it, but even if you hire 100 people there is a limit to how many resources will be effective at solving the problem.
6. Rome wasn't built in a day
Detail: See number 5.
7. This is how our business has always been done and we're not going to change it now, a.k.a. the crotchety-old-man rejection.
Detail: Self-explanatory.
8. Wait until the senior board member retires
Detail: Self-explanatory
9. No Good Reason
Detail: The board doesn't have to justify itself to anyone.
10. ROI form improperly filed
Detail: Yes, the board is rejecting a high-revenue, low-cost project because of paperwork. The paperwork is for the greater good. Without paperwork there would be chaos. Chaos!
11. History of Failure
Detail: All your projects fail, so no more new projects until you get the last one to start generating revenue. Additionally, for your own welfare you probably don't want to remind us about past failures by proposing more projects.
12. Good Money After Bad
Detail: This isn't actually a new project, it's a subtle way of getting more money for a previous project which apparently costs twice what you said it would cost. We don't want to throw good money after bad. The actual project cost is this new cost plus the money you've already spent, which is too much. Stop trying to fool us.
13. Meta-Rejection
Detail: How come you keep proposing new projects to us? Because we keep rejecting them? We probably had good reasons. Next!
14. De Facto Rejection
Detail: We'd have to start this project immediately to make it successful and we can't make up our minds that quickly. Instead we're going to keep pushing off a decision until the project goes away by itself.
15. Sick of hearing so many projects
Detail: It's been a long day, can't we hear this project proposal at the next meeting? All in favor? Aye! See you next month.
There are, of course, many, many other reasons projects are rejected, but this list should help you get started. Good luck!
