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How do you handle a project that's behind schedule and over budget?

Project recovery is a different skill set than steady-state delivery. Steps in order:

1. Acknowledge reality. Don't sugarcoat. Status reports that say "on track" when the project isn't lose trust faster than honest red status.

2. Diagnose the cause. Common patterns:

  • Scope creep — requirements grew without proportional resources.
  • Underestimation — original estimate was unrealistic.
  • Resource issues — team smaller than planned, key people unavailable, junior team.
  • Technical complexity — surprises in integration or migration.
  • Stakeholder churn — key stakeholders changing midstream.
  • Quality debt — defects piling up; team spending more time fixing than building.
  • Process dysfunction — bad rituals, poor communication.

Each cause has different remediation; mis-diagnosis wastes recovery effort.

3. Re-baseline the project. Don't try to recover by working harder; replan formally:

  • New timeline.
  • New budget.
  • Re-prioritised scope (typically reduced).
  • Updated risk register.

4. Cut scope ruthlessly. Identify must-have for go-live vs nice-to-have. Defer nice-to-haves to Phase 2. Be candid: "we'll go live with feature A, B, C and add D, E, F in Phase 2."

5. Add capacity strategically. "Throwing bodies at the problem" usually backfires (Brooks's Law). Instead: pair experienced devs with the team for unblocking, not for raw output.

6. Tighten governance. Daily standups instead of weekly. Hourly Slack updates on blockers. Change control on every new ask.

7. Communicate aggressively. Sponsor weekly check-ins. Stakeholder transparency on the recovery plan. Demonstrate progress with each milestone.

8. Address team morale. Recovery projects burn people out. Acknowledge that, give people breaks, celebrate small wins.

9. Establish quality gates. Stop the bleeding from defects: pair-programming, code review, automated tests. Slowing down to fix defects beats accumulating more.

10. Plan for the post-mortem. What lessons can the team carry forward? Cement them so the next project doesn't repeat.

Common pitfalls:

  • Hiding bad news from leadership. Surfaces worse later.
  • Making heroic commitments to "catch up". Sets up further failure.
  • Blaming individuals. Almost always systemic.
  • Skipping retrospectives. Same patterns recur on the next project.

A senior consultant's value in recovery is the willingness to say "this isn't working" and lead the team through honest replanning. It's harder than running a healthy project.

Why this answer works

Senior consulting. The 10-step recovery and the "don't hide bad news" honesty are mature consulting.

Follow-ups to expect

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