Project failure in information sytems development continues to plague organizations. A lack of intrinsic and extrinsic rewards for developers may be a cause of such failure. A survey instrument was created using existing project success scales and items based on structured interviews with 12 IS project managers. Two hundred two members of the Project Management Institute completed the survey. After rigorous validation, path analysis (an extension of multiple regression that simultaneously tests more complex relationships) showed that use of intrinsic rewards predicted client satisfaction and perceived quality (but not on-time and within-budget implementation success), whereas use of extrinsic rewards predicted implementation success (but not satisfaction or quality). Future researchers might investigate reasons for these complementary findings. Managers might use the findings in efforts to improve information systems project success.

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The failure rate of information systems development projects is alarmingly high. Because this problem has endured for three decades, many IS professionals have accepted failure as inevitable. The magnitude of some of the failures is particularly unsettling. In fact, many projects -called runaway projectscontinue long after any hope of successful completion has vanished. This research in progress will attempt to answer two questions. First, "Why do IS development projects fail?" The research will investigate the project manager's roles of planning, organizing, controlling, and leading to determine their impact on project failure. Also, agency theory will be used to investigate methods for motivating and compensating developers.The second question is, "Why are runaway IS projects allowed to continue?" This research will examine why funding continues for runaway projects long after successful completion is unlikely. Researchers have suggested that the escalation of commitment by the project manager may be a cause. This research will use agency theory to investigate that suggestion.A survey of IS project managers will collect data to test hypotheses about the questions. Results should help researchers and practitioners better understand and reduce failure rates.

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