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Practical Resolutions Inc. Toronto, Canada Norman Schutz T: (416) 941-8257 C: (416) 706-1511 Your Project World in.

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Presentation on theme: "Practical Resolutions Inc. Toronto, Canada Norman Schutz T: (416) 941-8257 C: (416) 706-1511 Your Project World in."— Presentation transcript:

1 Practical Resolutions Inc. Toronto, Canada Norman Schutz norman.schutz@practicalresolutions.ca T: (416) 941-8257 C: (416) 706-1511 Your Project World in 2012

2 AGENDA  Today  IT Dispute Resolution-Options Available  Early Dispute Resolution  The Road Ahead-Moving Forward

3 Today...In the “new” economy, all work is project work. And you are your projects!...... -Tom Peters

4 Today  Current Operating Environment & Expectations  Rise of IT Consumerism: End User Influence on Corporate IT  Game Changing expectations... IT investments & project approvals require clear ROI  Involvement of CFO &/CEO in budget approvals up 15% -past year Gartner 2011

5 IT Dispute Resolution  Current Dispute Resolution Practices  Escalation Process-Contract/SOW  Risk of dispute escalates exponentially with increase in project duration, business scope, cost, number of stakeholders, solution complexity, ability of new team to gel quickly  Influence over solution outcomes of Day to Day Stakeholders decreases over time

6 IT Dispute Resolution Key Challenge: of Current Practices.Many risks not identifiable or predictable at the outset of an IT engagement ability to mitigate risks through standard conventional means i.e. due diligence or contract negotiation limited.. this inevitably-sets the stage for conflicts and disputes arising with no predetermined options available to resolve these issues..so contract escalation process kicks in......

7 IT Dispute Resolution Most Frequently Used Solutions. In IT Today... Binding Arbitration: Outcome unpredictable..costs vary depending on prep work...process itself can be done quickly vs litigation option Litigation..”Winner takes all” Average costs start at $ 000’s Prep work time consuming, disruptive to day to day business....?? over 70% of litigation usually settle before trial Are These The Best Options? What can we learn ??

8 There are three truths my truth, your truth, and the truth... Chinese Proverb

9 IT Dispute Resolution Resolving IT Conflicts & Disputes via ADR-Key Differences Facilitation and Mediation  Interest based focused on disputant’s underlying interests and immediate needs  Established process led by independent Mediator appointed by all participants  Participants create and agree on solution true win/win  “Without Prejudice” IMPORTANT guarantees confidentiality of information exchanged in negotiations can not be disclosed elsewhere including future legal actions etc

10 IT Dispute Resolution Resolving IT Conflicts & Disputes through ADR Facilitation and Mediation  Cost effective:.. Mediation: $x,000’s Litigation: $x00,000  Effort: Mediation: Day(s) Litigation: Months- /Year(s)  Higher degree of predictability of outcome: 80% of mediation and facilitations reach a resolution of issues....  “Measurable ROI” for decision process

11 IT Dispute Resolution  Facilitation-Key Benefits & Uses  Facilitator engages team in identifying root causes of project disputes and the collaborative design and implementation of solutions to them  Can be made available at the outset of a vendor project to streamline contract negotiation process to enable start and deployment of resources in a timely manner  Project Management Captures and deals with potential issues..Dispute Avoidance..Reduce Rework risk

12 IT Dispute Resolution  Facilitation  Ideal solution for identifying gaps between multi-sourced vendor arrangements before they become issues  Complements ITIL and IT Service Management processes  Facilitator should be independent party with process and subject matter expertise in issues at hand for optimal results  “Insurance Policy” coverage in place to use when needed  Claimed to provide the Highest return for time invested of all dispute resolution processes....proviso need the right team chemistry– all driving to same outcome----

13 IT Dispute Resolution  Mediation  Benefits similar to Facilitation  Usually used whenc onflict has escalated into formal dispute  Mediator works with all parties in developing a solution to the dispute at hand  Mediator should have process training industry expertise for maximum benefit (time and $)  Some courts now mandating Mediation before litigation (Europe/US/Ontario-Toronto..)

14 IT Dispute Resolution Arbitration  “Remedy Based” focused on legal rights  Each side presents their position... decision then made by arbitrator based on merits of case legal remedy etc  Can be more cost and time effective than other legal options  Binding and non Binding options

15 Change It is not the strongest of the species that survives nor the most intelligent but the one most responsive to change. -Charles Darwin

16  A majority of ICT projects will experience conflicts at some point during their duration  Risk increases with complexity, size, number of participants and duration...minimize risk by identifying issues early and start to resolve them in a timely manner..(when key decision makers still available)  Creative solutions not driven by $ restitution Early Dispute Resolution Benefits Based on the Following Assumptions

17  Early Dispute Resolution Solutions Concept evolved from desire to pro-actively deal with issues earlier reducing project dispute costs ($ & time)  Range of Options available... Best choice dependent on size, complexity and budget...pre contract negotiation stage best time to decide  Stakeholder “buy-in” is key- Early Dispute Resolution

18 Facilitated Work Sessions  None of us is as smart as all of us Ken Blanchard Early Dispute Resolution

19 Case Study: IT Development Project Project Challenges  Project participants lack a common project vision and do not agree roles and responsibilities  Project loses momentum shortly after start key staff distracted by other events  Change management weak in process and frequent in occurrence Early Dispute Resolution

20 Solution: Facilitated Work Shop Format  Structured meetings with specific goals and objectives  Participatory meeting focused on discussion and decisions  All those vested in project in attendance-no rain checks! Facilitated Work Sessions

21 Benefits: Facilitated Work Session  Measurable Benefits to costs average is 5:1 Ratio  Common Benefits: Reduced effort and scope creep -5-15 %  Initial project plan phases more productive total time saved 30-40% more traditional method  PRI Evolve methodology enhances group collaboration Early Dispute Resolution

22 Partnering –Facilitated Work Sessions  Not the sales-oriented “partnering” commonly found in IT project plans and proposals...but a formal partnering relationship..  PRI Facilitator using Evolve creates mutual agreement and commitment transparency.  Best use: Strategic projects, multi party and dependencies Early Dispute Resolution

23 Avoid Distractions & Focus on what is Important

24 Creative Leaders embrace the ambiguity of change and the challenge of adapting their organizations to the new realities of their marketplace The Road Ahead

25 Facilitated Work Sessions Best Results obtained in:  Change Management Disputes (Internal/External)  Value Proposition Fall-out  Risk Management Issues (Delivery Performance/Solution Relevance/Lifespan The Road Ahead

26  Project Management (Working Sessions, Communication/Capability Issues)  Contract Negotiations( New /Early Re-Negotiation)  Partnering Initiatives (not the “sales "version of this)  ) The Road Ahead

27 ..” Sooner...Faster..Smarter”...... Considering the expectations of your business partners, suppliers and customers...Is this the right time for a different approach in avoiding technology conflicts and resolving disputes? The Road Ahead

28 Questions  Questions  Case Study Examples


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