To Dream the Impossible Dream Managing Successful IT

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 l 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? l Planning and Managing issues l Lessons learned from successful projects l Implementation-Specific Issues l 3

IS Failure Statistics Standish’s 1995 CHAOS Report 31% canceled before completion $81 billion “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 5

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

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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 l Measuring Completion l Estimation - Lack of prior history l Estimation - Resource planning & $$ l Estimation - 4 th power rule l Estimation - impact of new technology l Project Requirements l 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 l Scheduling l Scope Management l Expectation Management l 21

Managing Motivation of IS Professionals Top 8 motivators (vs. Hertzberg) Computer Professionals “Real People” Achievement Possibility for Growth Recognition Work itself Recognition Responsibility Advancement Supervision, technical Salary Responsibility Possibility for Growth #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 l 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 • • • 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

Communication Model Sender Messag e CHANNEL Receiver

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

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

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

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

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

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

Champions of Change Personality Characteristics l Self Confident l Persistent Leadership Bhvr l Energetic l Expresses captivating vision l Risk prone l Pursues unconventional action plans l Develops others’ potential l 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? Superiors Communication Networks PERSONAL ATTRIBUTES • • • Age Education Experience Beliefs/Values Willingness to take Risk Subordinates Peers Family Friends Other. . . SUBJECTIVE NORM BEHAVIOR INTENTION BEHAVIOR ATTITUDE Relative Advantage Compatibility Ease of Use Trialability Tangible Results Image

Why do people do what they do? Voluntariness SUBJECTIVE NORM BEHAVIOR INTENTION ATTITUDE BEHAVIOR

Why do people do what they do? Superiors Communication Networks PERSONAL ATTRIBUTES • • • Age Education Experience Beliefs/Values Willingness to take Risk Subordinates Peers Family Friends Other. . . Voluntariness SUBJECTIVE NORM BEHAVIOR INTENTION BEHAVIOR ATTITUDE Relative Advantage Compatibility Ease of Use Trialability Tangible Results Image

Achieving success in IS Projects Obstacles to success: l l 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 l Champion l Effective Change management l Best Practices l 47

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