To Dream the Impossible Dream: Managing Successful IT Projects Ken Wiens, KGW Consultants Ltd Mimi Hurt, MI 2 Consulting Ltd Portions courtesy of Qualitative Software Management and Fissure Corporation 1

Overview Approach & Objectives of Session – Differentiate IS projects from other Project Management disciplines – Highlight the challenges of IS project Management – Illustrate why many IS projects fail – Discuss best-practices as observed from successful IS projects 2

Agenda Are IS projects Unique? Planning and Managing issues Lessons learned from successful projects Implementation-Specific Issues 3

Introduction IS failure rates – Do IS project fail more than other projects? Are IS Projects Unique? – Are different skills required for IS projects? Are IS Projects one project or many? OR IS projects are different than other types of projects, but IS project management issues are the same… but perhaps a bit trickier….. Let’s see! 4

IS Failure Statistics Standish’s 1995 CHAOS Report 31% canceled before completion $81billion “waste” predicted for % exceed budget by 189% (KPMG report running over schedule biggest problem) $60 billion spent on projects which were significantly over time, over budget Only 16% on time, on budget (worse in large companies) Those implemented have substantially less functionality than originally planned 5

Challenges Inherent in IS Projects Planning & Estimating Managing: Tracking & Controlling Construction: Completion & Integration Implementation: Training & Change Mgt. Test Support QA Monitor Control Train Estimate Plan 6

Planning: Risk Analysis P = Political Is there political support for the system? Is there a champion? E = Economic Can we afford it? T = Technical Do we have the technology? Do we understand the technology? Does it fit with our existing systems / technology? O = Organizational Does it fit with our culture? Our strategies and objectives? O = Operational Does it fit with the way we do things? L = Legal Are there any legal or contractual implications we need to consider? (E.g. unions, gov’t regulations) S = Schedule Can we do it in time? What are impacts of missed deadlines?

Identify your mental models for the following: Size Effort Size Schedule Quality Schedule Effort

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Planning & Estimating “Estimation is concerned with the prediction of uncertainties. It is more dignified than fortune telling, though not always more accurate” Bannatan American Defense Contractor 10

Planning & Estimating American Defense Contractor – Which was the correct estimate? – What good is the estimate when it is so heavily influenced by who performed the work? – Is developer motivation a factor? – How can you manage a project budget if you can be off by 100%? 11

Planning & Estimating Deciding What to do Measuring Completion Estimation - Lack of prior history Estimation - Resource planning & $$ Estimation - 4th power rule Estimation - impact of new technology Project Requirements 12

Planning & Estimating The Classic “Estimation pits” we fall into: – Not understanding the “Soft” dynamics of overtime – Not understanding the dynamics of quality and project schedule – Not understanding the dynamics between size of product, size of staff, and quality – Under estimating final product size and not adjusting cost and schedule estimates after size growth has been realized – Not taking uncertainty into account in the estimates 13

Managing Team Building Scheduling Scope Management Expectation Management 21

Managing Motivation of IS Professionals Top 8 motivators (vs. Hertzberg) Possibility for GrowthResponsibility SalarySupervision, technical Advancement ResponsibilityRecognition Work itself RecognitionPossibility for Growth Achievement “Real People”Computer Professionals #10 Salary 22

Achieving Success Planning  Automated tools to assist in estimating  High degree of accuracy – focus on requirements, development, release and warranty. Implementation still not well defined  Tools for requirements definition becoming popular 23

Achieving Success Managing – “Best Practices” Make aggressive use of corporate IS “roadblock” departments (architectural review teams, PMO, technical blueprint design, change management boards, etc.) Pay strict attention to process Attack the slightest hint of small problems at the earliest indication that they exist. 24

Achieving Success Managing – “Best Practices” Select an Appropriate Steering Committee Make sure members are true stakeholders - not appointees Members must be proactive, and empowered to make decisions 25

Achieving Success Managing – “Best Practices” Select an Appropriate Project Team Don’t just accept assigned resources Select members based on appropriate skills, commitment levels and credibility 26

Achieving Success Managing – “Best Practices” Build the team - make them better Take the time up front to engage the full team and build relationships – often done with team leads, often forgotten with team members – especially important with geographically dispersed teams 27

Achieving Success Managing – “Best Practices” Recognize Project Management as a discipline Full time endeavour. Knowledge of technical tools and programming experience is of limited value in IS project management Requires IS and Management experience to be successful 28

Achieving Success Managing – “Best Practices” Communicate, Communicate, Communicate The project manager must be dedicated to this activity. The shot gun approach will not work. Carefully define and communicate team members project roles, responsibilities, expected behaviours and “team member” role 29

Sender Receiver Message CHANNEL Communication Model

Achieving Success: IS Project Risk Factors Lack of top mgt. commitment to the project Failure to gain user commitment Misunderstanding the requirements Lack of adequate user involvement Failure to manage end user expectations Changing scope / objectives Lack of req’d knowledge/skills in the project personnel Lack of frozen requirements Introduction of new technology Insufficient / inappropriate staffing Conflict between user departments 31

Achieving Success Addressing Organizational & Cultural Change Management 32

Why Do People Resist Change? Û Social inertia Û (In)Ability to change Û Power Û Maybe the change is not valuable…

How Do People Resist Change? ã Public debate ã Benign neglect ã Resource diversions ã Inappropriate staffing ã Problem expansion ã Sabotage

How Do We Cope with Resistance to Change? Training Selling of Idea – Champions of innovation Coercion (last resort?)

What Makes Training Effective? Prior planning – Identify what needs to be learned, how will results be evaluated Most appropriate method given needs, e.g. instructor-led vs. self-study Effective trainers – sympathetic, knowledgeable, high communication skills, applied approach, organized approach

Other Training Issues Determine user job requirements Determine specific training needs Evaluate training resources Develop training program – retention of knowledge, e.g. between training and when use knowledge Implement training program – Scheduling, location, timing and backfill issues Evaluate training outcomes 37

IS vs Non-IS Personnel as trainers….. Differences in personalities, motivations, backgrounds, education, use of language, objectives, priorities….. Implications for Training???

Champions of Change Personality Characteristics Self Confident Persistent Energetic Risk prone Leadership Bhvr Expresses captivating vision Pursues unconventional action plans Develops others’ potential Gives recognition Career Experience Long tenure in org Middle mgt position Decision Making authority In-depth knowledge of industry Experience in many divisions & locations 39

Why do people do what they do? Relative Advantage Compati- bility Ease of Use Trial- ability Tangible Results Communication Networks PERSONAL ATTRIBUTES Age Education Experience Beliefs/Values Willingness to take Risk BEHAVIOR SUBJECTIVE NORM ATTITUDE BEHAVIOR INTENTION Superiors Subordi- nates PeersFamilyOther...Friends Image

Why do people do what they do? BEHAVIOR SUBJECTIVE NORM ATTITUDE BEHAVIOR INTENTION Theory of Reasoned Action Superiors Subordi- nates PeersFamilyOther...Friends ???

Subjective Norm: What we think others expect us to do weighted by: Our willingness to comply with their expectation Sum of ( expectation (i) * weight (i) ) i-j where i - j represents the relevant reference groups 41

Why do people do what they do? Voluntari- ness BEHAVIOR SUBJECTIVE NORM ATTITUDE BEHAVIOR INTENTION

Why do people do what they do? BEHAVIOR SUBJECTIVE NORM ATTITUDE BEHAVIOR INTENTION Communication Networks PERSONAL ATTRIBUTES Age Education Experience Beliefs/Values Willingness to take Risk Superiors Subordi- nates PeersFamilyOther...Friends Relative Advantage Compati- bility Ease of Use Trial- ability Image Tangible Results Voluntari- ness

Achieving success in IS Projects Obstacles to success: Failure to establish metrics Inadequately resourcing implementation and post-implementation stages Inadequately addressing resistance to change Ignoring management reporting requirements 45

5 Areas Most Likely to Result in Budget Overruns (in ERP Projects…) $ Training $ Integration & Testing $ Data Conversion $ Data Analysis $ Getting Rid of Your Consultants CIO Enterprise, Jan 15, 1998

Necessary Project Management Success Factors Vision Champion Effective Change management Best Practices 47

Summary Discussed differences between IS and Non-IS projects Examined challenges in the areas of Planning and Managing IS projects Looked at a few best practices Introduced some useful models IS projects are different than other types of projects, but IS project management issues are the same… 48