The influence of ground improvement with panels of overlapping lime-cement columns on the behavior of a braced excavation loaded to failure has been investigated using 3D numerical analyses and the results are compared with an experimental full-scale failure test. The analyses reveal that stress-induced strength anisotropy of lime-cement improved clay needs to be considered when the stress path for the actual field conditions differs from that in conventional laboratory testing. In addition to strength parameters, the modulus of deformation that is consistent with the actual encountered stress path is also needed for reasonable predictions.