Download - IT Project Management
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IT Project Management
Critical success and failure factors in IT project management: getting IT right
GP Dhillon, PhDAssociate Professor of ISSchool of Business, VCU
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uStandish Group findings
26% of all software projects fail (There are other findings that suggest a 70% failure rate!)
46% of the projects experience cost and schedule overruns or significantly reduced functionality
Over the years the project completion rate has improved because companies have trended towards smaller, more manageable projects - NOT because of improved management techniques
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uFindings from various organizations
Organization Business Consensus view of success/failure
Dunn and Bradstreet Plc Business information Moderate successsupplier
Esso UK Plc Petrochemicals SuccessFlorida Power and Light Power generation/ High success
distributionKimberly Clarke Paper based products High success
supplier Kraft General Foods FMCG supplier Moderate successNational Westminster Bank Plc Retail banking UnsuccessNorwich Union Plc Insurance UnsuccessSmith and Nephew Plc Healthcare products SuccessPowerGen Plc Power generation UnsuccessVickers Shipbuilding & Shipbuilding & UnsuccessEngineering Plc EngineeringWaterford Wedgwood Plc High value pottery Unsuccess
and china
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HighSuccess
Success
ModerateSuccess
Unsuccess
- initiation of the SIS in the context of the need for business change - allocation of
responsibility for benefit delivery
- involvement in implementation as well as planning/ evaluation
Understanding ofstakeholder intent,existence of anorganizationalchange method &willingness toinvest in strategicbenefits - differentEvaluation emphasis
Comprehensiveapproach to BenefitManagement initiatedin the planned phaseinvolving an understanding of stakeholder intent and a strong business involvement & emphasis
Planned approachappreciating stakeholderintent, method, outputand Implementation rolesof IS/IT & Business
Role of Senior Executive
The McGolpin study
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uSignificant factors determining success or failure - a
GenericThe degree to which a change methodology had
been adopted and used on projects The degree of active involvement of the senior
executive across the lifecycle of the projectThe extent to which the strategic and financial
benefits were measured and evaluatedThe existence of a proper benefits management
process
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uSignificant factors determining success or failure - b
Contextual factors determining success or failureSignificant high success factors: Senior IS/IT
manager on board; CEO driven change management program; A change method used on the project; willingness to invest in strategic benefits
The difference between a highly successful and a successful project resides in the contextual factors identified above
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uSignificant factors determining success or failure - c
Significant patterns and relationships determining success Combination of a planning approach and benefits
management were significant factors in determining success - but not if done independently
Combination that appears to be lest significant: evaluation and implementation; evaluate and benefits management; planning and context; evaluation and context; implementation and context.
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uOverall conclusions - a
Context is particularly important in explaining the difference between ‘high success’ projects and ‘success’ projects. Planning and evaluation also appear to be significant in explaining the difference between ‘high success’ and ‘success’
Benefits management is the most important phase which explains the difference between ‘success’ projects and ‘moderate success’ projects
Planning and implementation are the most important phases in explaining the difference between ‘moderate success’ projects and ‘unsuccess’ projects
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uOverall conclusions - b
Significant factors related to ‘unsuccess’ projects– The lifecycle role of the senior executive (low)
– The implementation role of the business (ill defined)
– The implementation role of IS/IT (ultimate accountability and responsibility should not be with the IS/IT function)
– The planning approach (lack of a business led approach
– The planning method (predominance of IS/IT function)
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uOverall conclusions - c
Significant factors related to ‘moderate success’ projects– The life cycle role of senior executive
– The benefits management process
– The benefit plans
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uOverall conclusions - d
Significant factors related to ‘success’ projects– The organizational change method
– The strategic benefits (understanding the potential of IS/IT)
– The evaluation emphasis (understanding of the financial benefits)
– The evaluation stage (examination of the merits of the business case)
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Organizational IT impacts
IT Project management – getting it right
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IT enabledimprovement
Businesschange
BenefitsManagement
RiskManagement
Positive outcomes
Negative outcomes
Businessimprovement
needed
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uIS Project management is … managing episodes along the change curve
Launch ofan initiative
Perceptionsor
Performance
Time
+
_
Despair/Frustration
Better than before
Highexpectation/Denial
Blame others
Blame self
Minor improvement
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uOutcomes of IS investment
Unexpected Expected
Neg
ativ
eP
osit
ive
Eff
ect
of o
utc
ome
Predictability of outcome
Achieve by goodmanagement
Investment justification
Recognize &minimize
Price worth paying
Identify, exploit &learn from
Opportunityrealization “bonus”
Understand &avoid
Nasty surprises
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uObjectives in getting value
Achieve by goodmanagement
Identify, exploit &
learn from
Understand &avoid
Recognize &minimize
Unexpected Expected
Neg
ativ
eP
osit
ive
Eff
ect
of o
utc
ome
Predictability of outcome
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uHow...
Achieve by goodmanagement
Risk Management
BenefitsManagement
CostManagement
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uBenefits management – the fried egg analogy
IT SystemFew benefits
on its own
Businesschange
Most benefitsTraining
Some benefits
IT responsibility
Businessresponsibility
IT & Businessresponsibility
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uDimensions of benefits management
Benefits realization plan
Have we achieved the benefits?if not - why not - further actions?
What further benefits can we now get?
Why dowe want
improvements?
Whatimprovementsdo we want /could we get?
Where willthey occur?
Who isresponsible
for theirdelivery?
What changesare needed toobtain them?
How & whencan changes
be made?
Who will beaffected by
the changes?
Measurement and evaluation
Pla
nnin
g &
effe
ctin
g bu
sine
ss c
hang
es
How can wemeasure them?
Can wequantify them?
What is thefinancialvalue?
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uChange
AffinityInitiatives
Support
Initiatives
ParallelInitiatives
InhibitorInitiatives
The relationship between these change initiatives and process changes is critical
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uRisk types
Outcome risks
Operational risks
Process risks
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uRisk management: classification
Inherent risks
Planning needed
Can be assessed
and predicted
Strategic High Potential
Key Operational Support
Outcome: highOperational: lowProcess: low
What risk?
Outcome: lowOperational: highProcess: medium
Outcome: lowOperational: lowProcess: high
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uTypical concerns
Strategic High Potential
Outcome risks
Opportunity & financial
risks?
Lack of strategic framework: poor business understandingConflicts of strategy and problems of coordinationIT supplier problemsPoor management of changeSenior management not involvedLarge and complex projects; too many stakeholdersRigid methodology and strict budgetary controls
Key Operational Support
Operationalrisks
Process based risks
Too much faith in the ‘technical fix’Use of technology for its novelty valuePoor technical skills in the development teamInexperienced staffLarge and complex projects; too many stakeholdersPoor testing proceduresPoor implementationLack of technical standards
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uGeneric CSFs for different applications
Strategic High Potential
Key Operational Support
TimeQuality
Cost
Time
QualityCost
Time
Quality
Cost
R & D projects
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uRisk management: core strategies
Strategic High Potential
Key Operational Support
CONFIGURE COMMUNICATE
CONTROL CONSTRAIN
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uRisk management: directions - 1
Strategic High Potential
Business andcorporate risks
Opportunity &financial
risks
Key Operational Support
Operationalrisks
Process based risks
Con
trol
lab
leU
nco
ntr
olla
ble
Predictable Unpredictable
No problem -carry out plans
Practice quick response to manage as
events unfold
Emphasis forecastingand thus
“steer around” these events
Develop a contingency
planning system
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uRisk management: directions -2
History
Context(external)
Context(internal)
Businessprocesses
Content
RiskOutcomes
Context oriented risk assessment
Strategic High Potential
Business andcorporate risks
Key Operational Support
Operationalrisks
Process based risks
Opportunity &financial
risks