When IT projects go wrong, they don’t just create inefficiencies—they create headlines, financial chaos, and a loss of public trust. The U.S. doesn’t have to look far for a case study: across the Atlantic, the UK’s Post Office is a sobering example of what happens when critical IT initiatives are mishandled.
Though the Post Office’s troubles may seem far removed, they highlight a universal truth: great IT project managers are difference makers.
Billions Lost Through Mismanaged IT Project Management
The UK government has committed $500 million in public funds to replace the Post Office’s long-troubled Horizon IT system. This follows a string of high-profile failures that have collectively cost taxpayers billions of dollars.
Here’s just a sample of the fallout:
- A $12.6 million payout to IBM after an aborted Horizon replacement project in 2015.
- A $35 million loss on a shelved plan to migrate from a datacenter to the cloud.
- Weekly costs exceeding $100,000 for contracted engineers who sat idle due to project delays.
- Compensation payouts of $5,000 or $3,500 per person following a data breach caused by basic human error in a website upgrade.
And these are just the quantifiable costs. There’s no line item for reputational damage, stakeholder frustration, or the trauma experienced by sub postmasters falsely accused due to faulty systems.
What Went Wrong?
According to the Post Office’s own leadership, the decision to build the New Branch IT (NBIT) system in-house without the right expertise was a major contributor to the program’s collapse. Budgets ballooned from $225 million to $1.4 billion, and deadlines slipped by five years. Projects were launched without realistic assessments of complexity. Contractors were hired before clear deliverables were defined. Data migration was halted midstream. In short: the basics of project governance were ignored.
The PMO Difference
Strong IT project managers could have changed the story. Here’s how:
1. Risk Assessment and Stakeholder Alignment
A seasoned IT project manager ensures that risks are identified early and stakeholders are informed. In the Post Office case, the misalignment between technology ambitions and on-the-ground realities led to scope creep and project paralysis.
2. Vendor and Resource Oversight
Paying vendors millions to “walk away” is a symptom of weak oversight. Great PMs hold vendors accountable with performance benchmarks, deliverable milestones, and contract flexibility that protects the organization.
3. Effective Communication and Documentation
The Post Office’s data breach stemmed from a failure to manage sensitive information during a website update. A competent IT Project Management team would’ve enforced documentation and version control best practices, reducing the chance of such a costly mistake.
4. Change Management
From cloud migrations to system upgrades, change must be guided—not assumed. An experienced IT Project Manager facilitates smooth transitions through structured training, support planning, and cross-department collaboration.
The Bottom Line for Hiring IT Project Managers
You don’t need to manage a national postal service to feel the pain of failed IT initiatives. Even mid-sized businesses can bleed tens of thousands per week on mismanaged projects. When you factor in the cost of lost productivity, customer dissatisfaction, and reputation damage, the investment in a high-caliber IT project manager pays for itself many times over.
At PMO Partners, we specialize in placing proven IT project managers who drive transformation with clarity, control, and confidence. Whether you’re rolling out enterprise systems, moving to the cloud, or launching digital products, don’t leave project success to chance.
Let’s talk about how we can help you.