To Dream the Impossible Dream:To Dream the Impossible Dream:Managing Successful IT ProjectsManaging Successful IT Projects

Ken Wiens, KGW Consultants LtdMimi Hurt, MI2 Consulting Ltd

Portions courtesy of Qualitative Software Management and Fissure Corporation

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Overview 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

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AgendaAgenda

Are IS projects Unique?Planning and Managing issuesLessons learned from successful projectsImplementation-Specific Issues

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IS Failure StatisticsIS Failure Statistics

Standish’s 1995 CHAOS Report31% canceled before completion

$81billion “waste” predicted for 1995

53% 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

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Challenges Inherent in IS ProjectsChallenges Inherent in IS Projects

Planning & EstimatingManaging: Tracking & ControllingConstruction: Completion & IntegrationImplementation:

Training & Change Mgt.

Test

SupportQA

MonitorControl

Train

EstimatePlan

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Planning:Planning: Risk Analysis Risk Analysis

P = PoliticalIs there political support for the system? Is there a champion?

E = EconomicCan we afford it?

T = TechnicalDo we have the technology? Do we understand the technology? Does it fit with

our existing systems / technology?

O = OrganizationalDoes it fit with our culture? Our strategies and objectives?

O = OperationalDoes it fit with the way we do things?

L = LegalAre there any legal or contractual implications we need to consider?

(E.g. unions, gov’t regulations)

S = ScheduleCan we do it in time? What are impacts of missed deadlines?

Identify your mental models for the following:

Size

Effort

Size

Schedule

Schedule

Quality

Schedule

Effort

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Planning & EstimatingPlanning & 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

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Planning & EstimatingPlanning & 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%?

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Planning & EstimatingPlanning & Estimating

Deciding What to doMeasuring CompletionEstimation - Lack of prior historyEstimation - Resource planning & $$Estimation - 4th power ruleEstimation - impact of new technologyProject Requirements

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Planning & EstimatingPlanning & 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

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0.0

2.0

4.0

6.0

8.0

10.0

12.0

% of Total Effort

Rqmts.

System Size

Requirements Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

% of Total Effort

Hi Level Design Detailed Design

Design Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

% of Total Effort

Coding

Coding Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

0.0

5.0

10.0

15.0

20.0

25.0

% of Total Effort

Integration

Integration Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

% of Total Effort

Testing

Testing Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

% of Total Effort

Document

Documentation Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

% of Total Effort

Management

Management Effort

20 KLOC

30 KLOC

40 KLOC

50 KLOC

75 KLOC

125 KLOC

ManagingManaging

Team BuildingSchedulingScope ManagementExpectation Management

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ManagingManaging

Motivation of IS ProfessionalsTop 8 motivators (vs. Hertzberg)

Possibility for GrowthResponsibility

SalarySupervision, technical

AdvancementAdvancement

ResponsibilityRecognition

Work itselfWork itself

RecognitionPossibility for Growth

AchievementAchievement

“Real People”Computer Professionals

#10 Salary22

Achieving SuccessAchieving 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

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Achieving SuccessAchieving 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.

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Achieving SuccessAchieving 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

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Achieving SuccessAchieving 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

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Achieving SuccessAchieving 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

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Achieving SuccessAchieving 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

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Achieving SuccessAchieving 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

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Sender

Receiver

Message

CHANNEL

Communication Model

Achieving Success: Achieving Success: IS Project Risk FactorsIS 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

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Achieving SuccessAchieving Success

• Addressing Organizational & Cultural Change Management

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Why Do People Resist Change?Why Do People Resist Change?

Social inertia (In)Ability to change Power Maybe the change is not

valuable…

How Do People Resist Change?How Do People Resist Change?

Public debate Benign neglect Resource diversions Inappropriate staffing Problem expansion Sabotage

How Do We Cope with Resistance to Change?How Do We Cope with Resistance to Change?

TrainingSelling of Idea

– Champions of innovation

Coercion (last resort?)

What Makes Training Effective?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 IssuesOther 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

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IS vs Non-IS Personnel as trainers…..IS vs Non-IS Personnel as trainers…..

Differences in personalities, motivations, backgrounds, education, use of language, objectives, priorities…..

Implications for Training???

Champions of ChangeChampions of ChangePersonality 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?Why do people do what they do?

RelativeAdvantage

Compati-bility

Ease ofUse

Trial-ability

TangibleResults

CommunicationNetworks

PERSONALATTRIBUTES

• Age• Education• Experience• Beliefs/Values• Willingness to

take Risk

BEHAVIOR

SUBJECTIVENORM

ATTITUDE

BEHAVIORINTENTION

SuperiorsSubordi-

nates Peers Family Other...Friends

Image

Why do people do what they do?Why do people do what they do?

Voluntari-ness

BEHAVIOR

SUBJECTIVENORM

ATTITUDE

BEHAVIORINTENTION

Why do people do what they do?Why do people do what they do?

BEHAVIOR

SUBJECTIVENORM

ATTITUDE

BEHAVIORINTENTION

CommunicationNetworks

PERSONALATTRIBUTES

• Age• Education• Experience• Beliefs/Values• Willingness to

take Risk

SuperiorsSubordi-

nates Peers Family Other...Friends

RelativeAdvantage

Compati-bility

Ease ofUse

Trial-ability

ImageTangibleResults

Voluntari-ness

Achieving success in IS Projects 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

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5 Areas Most Likely to Result in Budget Overruns5 Areas Most Likely to Result in Budget Overruns (in (in ERP Projects…)ERP Projects…)

$ Training$ Integration & Testing$ Data Conversion$ Data Analysis$ Getting Rid of Your Consultants

CIO Enterprise, Jan 15, 1998

Necessary Project Management Necessary Project Management Success FactorsSuccess Factors

VisionChampionEffective Change management Best Practices

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SummarySummary

Discussed differences between IS and Non-IS projects

Examined challenges in the areas of Planning and Managing IS projects

Looked at a few best practicesIntroduced some useful models IS projects are different than other types of

projects, but IS project management issues are the same…

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