twelve risks to enterprise software projects—and what to do about them
DESCRIPTION
Every large software project is unique—each with its own complex array of challenges. When projects get into trouble, however, they often exhibit similar patterns, and succumb to risks that could have been anticipated and prevented—or detected sooner and managed better. Common responses to the problems—blaming, deferring action, or outright denial—only make things worse. Payson Hall reviews a dozen patterns he has observed over and over again on troubled projects during his thirty-year career: trouble with subcontractors, challenges with project sponsors, friction within the team, perils of interfacing with adjacent systems, issues with data cleansing and conversion, and more. Payson shares the tools he uses to help identify the symptoms of common risks, reduce the likelihood of risks occurring, facilitate early detection of problems, and establish a foundation for helpful responses when problems arise. This session is designed for project managers, team leaders, project sponsors, and anyone responsible for building or rolling out large enterprise systems.TRANSCRIPT
12 Risks to Enterprise Software Projects
(And What to Do about Them)
Payson Hall, Consulting Project ManagerCatalysis Group, Inc.
1
Target AudienceSession most useful if you develop:
• Large systems that interact with other production systems
• Systems that replace existing systems
• Production system (migrations) for new environments
• (Bonus): Build Public Sector systems
2
What’s In This For You?Every large project is unique, BUT...
• Often face similar challenges
• When succumbing to challenges, projects exhibit common patterns
• Patterns can be mapped to risks
• Addressing these risks improves your chances of success
3
Who Am I?
• Wrote my first computer game 1975
• Professional IT career began 1980
• Software start-up 1982-1986
• BS CS 1986
• Systems Integrator 1986-1991 (PW & IBM)
• Independent IT & PM consultant since 1991
4
GoalA facilitated conversation
• Share patterns of trouble I’ve observed on large, very large, very very large, very...
• Enable you to anticipate and avoid problems; or
• Better recognize and mitigate them
5
Approach
• Frame patterns as risks
• Present risks
• Discuss measures to
• Avoid the risk
• Reduce the impact
• Improve early warning
6
Agenda
1. Quick risk tutorial
2. For Risk = 1 to 12
Review Risk
Discuss examples
Explore remedies
3. End
4. Q&A - Close7
Risk TutorialWhat is a “Risk”?
• PMBOK® Guide - 4th Edition:“An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives”
• Best definition ever (IMO): “Uncertainty that matters” - David Hillson
8
Describing a RiskA well-formed risk generally follows one of two templates:
If <thing that may happen> then <consequence> might be the result
<Statement of existing situation> may lead to <consequence>
9
Risk Management1. Identify Risks (Write them up)
2. Analyze Risks (Decide how much you care)
3. Plan Responses (Describe what to do)
4. Document (Risks & your decisions)
5. Communicate (Risks & confirm decisions)
6. Monitor (Keep watching - Repeat 1..5)
10
Identify Risks
• History with similar projects
• Input from SMEs regarding current project
• Critical Path
• Precious Resources
• Key Milestones
• External Dependencies
• Undocumented/Incorrect Assumptions11
Analyze RisksDetails exceed our time together (see article for more information), but it is helpful to think of risk in three dimensions:
• Probability - How likely is this?
• Impact - How bad will it be?
• Difficulty of timely detection - Will we see this coming or be blind-sided?
12
Plan Responses
• A pretty list of risks is useless
• Using the list to guide actions is helpful
• Decrease probability
• Decrease impact
• Improve ability to detect
13
DocumentLeave an audit trail of
• What was identified
• How significant you thought it was
• What you propose doing about it
14
Communicate
• Keep project sponsors informed
• PM & team recommend, sponsor decides
• Only sponsor can decide a risk is “acceptable”
15
MonitorOngoing process of: identifying new risks, (re-)analyzing identified risks, plan responses, documenting, communicating, and responding to risks that occur
16
Common error:
“Doing risk management” at the start, then putting results on the shelf - like
“eating once and for all”
Twelve RisksFor Risk = 1 to 12
Review Risk
Discuss examples
Explore remedies
End
17
Your Input Here
Risk 1: PerspectiveIf team loses perspective on the role and motives of our systems integration vendor it can make effective change management more difficult
18
What & Why
19
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
20
Risk 2: ConversionThe difficulty & complexity of data conversion and data cleansing make it difficult to estimate and could delay the project
21
What & Why
22
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
23
Risk 3: Tight ScheduleIf the schedule is very aggressive and highly optimized, this may amplify the consequences of other risks that occur on schedule, budget, and scope/quality
24
Task A
Task
B
Task A
Task B
25
Assume Task A & B equally likely to finish:• Early• On Time• Late
How likely that Task C starts late?
5/9 = 55%
What & Why
Task C
Early
LateOn Time
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
26
Risk 4: Org ChangeThe scope of organizational change required to implement the system is difficult to estimate and could jeopardize successful implementation if not fully addressed
27
What & Why
28
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
29
Risk 5: InterfacesThe scope of existing interfaces may make implementation complex and require close coordination and synchronization with adjacent systems that could disproportionately impact schedule
30
What & Why
31
New New
Legacy Legacy
Before After
A
B C
A
B
C
Magic Magic
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
32
Risk 6: ResourcesResource constraints may make the project schedule extremely sensitive to staff downtime and turnover
33
What & Why
34
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
35
Risk 7: New TechDuring the project new technologies will emerge that could positively or negatively affect project cost or duration and product quality and functionality
36
What & Why
37
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
38
Risk 8: ContextDuring the project the sponsoring organization may experience changes in priorities or goals that will result in changes to the project goals and constraints
39
The World
What & Why
40
Organization
Project
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
41
Risk 9: RequirementsDuring the project the requirements may evolve and require changes to the project scope, schedule or resources
42
What & Why
43
0
250
500
750
1000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
7808008208408608809009209409609801000
220200180160140120100806040200
Requirements Rate of Change 2% per Month?
Changed Original
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
44
Risk 10: ImplementationThe complexity of go-live may be difficult to estimate and manage and may result in a need to “un-implement” (back out) the system one or more times
45
What & Why
46
Production
Development
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
47
Risk 11: PacingThe long duration of the project may result in the team and the supporting organizations misperceiving project urgency that could result in schedule delays
48
What & Why
49
18 Month Project (Month 1)
S F
Welcome aboard! Looking forward to working with you all. We will be procuring a new facility for the project team while we select a product and vendor.
Hope to have the RFP out by the end of next month. Keep your fingers crossed!
50
18 Month Project (Month 2)
Great work team! We’ve narrowed facility search to 3 locations & everyone enjoyed the tours. Final selection
this week. Hope to start moving next month. RFP release delayed two weeks by legal review. We will be
just settling into our new digs when RFP goes out. Boxes for packing will be distributed next week.
Potluck when RFP released.
S F
51
18 Month Project (Month 3)
Final facility selection complete, but phones and such won’t be hooked up for another two weeks. Move
date to be determined, but don’t unpack anything you don’t have to. RFP finally back from legal and should go out in a week or so. Looking forward to the potluck.
We are a behind schedule, but things should settle down after the move.
S F
52
18 Month Project (Month 4)
RFP released! Potluck was a hit! Mary promises to post the recipe for her tuna casserole in the break
room when we get moved. Moving to new facility next month.
S F
53
18 Month Project (Month 5)
Settling in to our beautiful new facility. Team still unpacking boxes and setting up furniture. Tech support promises that the LAN and printers should be set up
next week. More vendor questions than we anticipated with the RFP, working to get an addendum
out this month so that we can get vendor final proposals next month.
S F
54
18 Month Project (Month 6)
Legal had a few issues with the addendum, but it should go out next week. All systems up and running. I think
it’s time for an office warming potluck! There is definitely light at the end of the tunnel. Thanks for all your hard work with the addendum and getting the
office settled.
S F
55
18 Month Project (Month 7)
Proposals are due next month. After a brief transition period, I will be turning project management duties over to Mary Smith. It has been a pleasure working
with you all and I wish you best of luck on the project.
S F
56
18 Month Project (Month 8)
I want to the thank the team for making me feel so welcome. Vendor selection is complete and legal is finalizing a contract so that vendor staff can start work. We hope the vendor will be on site next
month...
S F
57
18 Month Project (Month 9)
Legal promises there are just a few more contract details and then the vendor should be able to start
after the holidays...
S F
58
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
59
Risk 12: MomentumThe organizational commitment to a project of this magnitude can lead to a sense of inevitability and momentum that may cloud judgement regarding whether we could continue the project in the face of evidence to the contrary
60
What & Why
61
What to do?
• Reduce Probability
• Reduce Impact
• Reduce Difficulty of Timely Detection
62
The Last Slide
• Q & A
• Questions Later?
Payson [email protected]
Twitter: @paysonhall
Thank you! 63