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Stop
   Blaming the
    Software
  Corporate Profiling for IT Project
              Success
Copyright © Sarah Runge 2009         sjrunge@itpsb.com www.itpsb.com


   “A man can fail many times, but he isn't a failure until he begins to blame
                               somebody else”

                            Author and Naturalist John Burroughs (1837-1921).
Preface
       “public relations people seem better than ever at helping to hide massively
         screwed-up corporate and governmental programming projects from
                               stockholders and citizens”

      Stephen Manes commenting on changes he’s observed over the past 25 years.
                     Full Disclosure, Stephen Manes, PCWorld, December 2008.


     Contents:
    “My approach to the research into this book comes from the perspective of pre-
    implementation planning analysis rather than the technical aspects of IT project
    implementation. It identifies what needs to be done within the organization pre-
    implementation to increase a project’s probability of success.”


                                                                                           1
1    The Global Landscape of Failed IT Projects
         “I don't know the key to success, but the key to failure is trying to please
                                       everybody”
                                                                              Bill Cosby

     Purpose:
     The first chapter sets the scene for failed IT projects and their impact on
     organizations and the economy in general.
     Contents:
     Organizations undertake IT projects for one or a combination of the following
     reasons: “Market Changes”, “Competitive Factors”, “Profitability Drivers” and
     “Customer Demand”.
     My findings from interviews with organizations that have undertaken IT
     projects that either failed or were challenged are described.
    “Small, medium and large organization alike lamented their “short-falls” that with
    hindsight became glaringly obvious. They all concurred that foresight into these
    areas could have been achieved if corporate profiling, as I described it to them,
    had been undertaken prior to them spending their hard earned money.”
7
2    The IT Project Crisis that Won’t Go Away
        “It has become appallingly obvious that our technology has exceeded our
                                      humanity”
                                                                   Albert Einstein

     Purpose:
     To create awareness of the many causes of failed IT projects and to introduce
     the concept of Corporate Profiling as a remedy.
     Content:
     The futile and mostly wildly incorrect blame that is leveled at those who are
     involved “after” investment decisions are made.
            “Ask yourself. How can there be so many vendors out there that are so
            incompetent in their areas of expertise? And why are there so many
            inadequate software packages? The answers are that they are not and
            there is not. QED. Although it’s easy to blame the software, in my
            studies and interviews with many companies that have suffered IT
            project failures, not once was the software itself to blame. And rarely if
            ever was the vendor incompetent. They were merely delivering what
            their customers, asked for.”
     How IT project disasters can be avoided once the leaders of organizations
     understand how they themselves in fact contribute to such failures.
            “Why do executives abdicate from their critical project decisions and
            responsibilities? You will be amazed at how many IT project disasters
            have come about simply because of what one or two people insisted was
            the correct course of action or who deemed their requirements to be
            accurate and comprehensive.”
     There is no point appointing the best project team to manage something that has
     not been adequately planned or if the organization is unprepared for the change.
    “Project Managers then become the project “fire fighters”. Project Managers do
    what they have been tasked to do by the organization.”
15
3   Insight, Foresight and Hindsight
                “Before everything else, getting ready is the secret of success”
                                                                             Henry Ford

    Purpose:
    To outline how senior executives themselves actually contribute to IT project
    failures.
    To introduce the concept that insight and foresight can significantly increase an
    IT project’s probability of success rather than being left with hard-won
    hindsight knowledge on the completion of a project when it is too late.
    Content:
    The following headers: “Starting with a Vision”, “That Dreaded Feeling” and
    “The Big Aha!” and the associated text should strike a cord with most readers.
    When the leaders of affected organizations finally realize the poor state of
    health of their IT projects, they tend to rationalize and blame their vendors or
    the software.
    Executive roles in bringing about IT project failures are emphasized.
            “In truth, the responsibility for under-delivered and over-budget IT
            projects lies predominantly with C-Level and senior executives,
            presidents and managers themselves.”
            “Top level decision makers who at their projects outset failed to profile
            their organizations in order to correctly identify organizational
            objectives, business needs, and sources for user and project
            requirements …”
            “Because the roles of senior executives are strategic and not operational,
            they simply do not have the necessary insight into the …”
    How insight, foresight and hindsight can increase the probability of an IT
    project’s success.
    “Organizational insight as well as hindsight from previous projects will provide
    the foresight for future implementations to be undertaken by the organization.
    Hindsight is only good provided people can learn from it.”
25
4   Scapegoating
        “A good scapegoat is nearly as welcome as a solution to the problem”
                                                                Author unknown


    Purpose:
    To discusss how and who will be the likely scapegoat candidates, and how
    organizations and vendors often set themselves up for IT project failures.
    Content:
    On the one hand organizations assume that all of their project requirements
    have been accurately and extensively collected and documented, and on the
    other hand vendors also assume that what their customer has documented fully
    describes what is required of the system.
           “Frequently both parties find out later rather than sooner that their
           project requirements are incomplete or incorrect. In the final analysis,
           irrespective of how failed projects are rationalized, heads will roll and
           scapegoats will be found.”
    Why organizations need scapegoats.
           “Someone or some third party (or parties) will be forced to shoulder the
           blame for corporate accountability to the organization and its
           stakeholders.”
35
5   Where and How IT Project Problems Begin


     “It is wise to direct your anger towards problems –- not people; to focus your
                            energies on answers –- not excuses”
                                                               William Arthur Ward


    Purpose:
    To analyze at what point in an IT implementation problems begin, what the
    contributing factors are and how these factors compound IT implementation
    problems.
    Content:
    An analysis of the causes for IT project failures indicates that poor pre-
    investment and pre-implementation decision making and planning are at the top
    of the list.
            “To understand the many possible reasons for IT implementations going
            askew, we need to review events at the inception of IT projects rather
            than analyzing problematic outcomes.”
    Decision making and accountability
            “If the pre-implementation decision making process is either not
            established or lacks structure and rigor, these decisions will be
            insubstantial with a lack of accountability for outcomes.”
    Requirements and input
            “The other major cause of IT implementation problems is incomplete
            business requirements and user input.”
    Compounding the Problem
    This discusses how IT project problems are compounded after organizations
    appoint their vendors and commence the implementation process. This often
    occurs without sufficient planning or requirements scoping.
            “The problem is compounded when vendors and service providers win
            the business.”
            “Project scope-creep is synonymous with over-budget and over-time
and if unchecked can result in a runaway project. This is usually an
indication of either inadequately sourced business or user requirements,
an IT driven rather than a business driven project or incrementalism.”
47
6   Factors Contributing to IT Project Failures
       “Most people spend more time and energy going around problems than in
                               trying to solve them”
                                                                   Henry Ford


    Purpose:
    To identify the factors, decisions and processes within an organization, how
    they contribute to IT project failures and what can be done to increase the
    probability of an IT project’s success.
    Content:
    Identify categories, disciplines and causal factors.
           “A common contributing factor for IT project failures is often due to
           disparate processes between an organization’s functions or departments
           and fragmented communications between executives, managers and the
           rest of the organization.”
    Organizational and Leadership factors that will increase the probability of an IT
    project’s success.
           “The majority of these causal factors indicate the absence of rigor in an
           organization’s pre-implementation decision making processes. These
           causal factors also reflect the lack of strategic project decisions being
           made by senior executives.”
55
7   Corporate Profiling
                “The beginning is the most important part of the work”
                                                                               Plato


    Purpose:
    To introduce the Corporate Profiling concept and how it benefits organizations,
    what its purpose is, what it identifies, what it can achieve and how it can
    significantly increase the chance of IT project success.
    Content:
    The three key principles of Corporate Profiling and why they are critical to the
    success of an IT project.
           “The three key principles of profiling, visibility, collaboration and
           accountability help to ensure that profiling accomplishes the following
           outcomes.”
    The purpose of Corporate Profiling.
           “Profiling will dramatically reduce the risk of an IT failure at the outset
           because it establishes a solid foundation of qualified, objective,
           comprehensive and accurate organizational information from the
           appropriate sources.”
    When should organizations undertake Corporate Profiling?
         “Corporate profiling is a relatively straightforward yet comprehensive
         process and is the first step to be undertaken before an organization even
         contemplates investing in an IT system.”
    How Corporate Profiling works and its role in helping to identify project
    requirements.
         “Unbundles an organization to provide visibility of all of its functions,
         departments and processes as well as its customers and suppliers that will
         impact, effect or need to be involved in the IT implementation.”
65
8   Unbundling the Organization


    “While intelligent people can often simplify the complex, a fool is more likely to
                                complicate the simple”
                                                                 Gerald W. Grumet



     ote: At this point the reader will have gained sufficient knowledge to start
    work on creating a corporate profile.
    Purpose:
    The purpose of this chapter is to begin the top down process of unbundling an
    organization into categories, functions, processes, the external value chain and
    also unbundling the pre-implementation process into disciplines.
    This is the first chapter that contains pivotal questions that will tease out the all
    important information that will deliver a complete corporate profile.
    Subsequent chapters further build on the corporate profile using this question
    and answer approach.
    Content:
    To begin the unbundling process, firstly the three major components of an
    organization must be identified.
           “Once an organization’s main components have been identified, it is
           easier to identify and understand the connectedness between an
           organization, management and IT. By further separating these
           components and their influencing factors, the many levels of complexity
           are also recognizable as well as the influence and impact that these
           components have on one another.”
    Following further unbundling of functions and processes, the reader starts to
    gain insight and visibility into the interconnected relationships and operations
    of an organization.
           “With visibility as to where and how departments, functions, processes
and people are interconnected, an organization’s links and relationships
       will become apparent.”
The reader can clearly see how corporate profiling delivers insight into and
understanding of an organization for project requirements and information
sources.
       “This will allow them to understand precisely how they will be
       impacted and what they need to do to adapt to the change. It will also
       assist with identifying precisely where their user requirements are to be
       obtained from.”
87
9    Decision Making


      “Informed decision-making comes from a long tradition of guessing and then
                        blaming others for inadequate results”
                                                                    Scott Adams


     Purpose:
     To bring order to the organization’s IT investment decision making process by
     enforcing accountability on appropriate parties.
     Content:
     I start by explaining the flaws and pitfalls of unstructured and under-analyzed
     decision making.
            “This step profiles the IT investment decision by identifying common
            reasons why organizations initiate IT Projects, how these decisions are
            made and who and what drives the decision making process.”
     I continue by describing how good decision making processes can be
     implemented to avoid these pitfalls.
            “By appointing a single person to be accountable for the overall
            decision, the quality of their input and analysis of the situation is more
            likely to be comprehensive and conclusive. This ensures that the final
            decision will be sound having been made objectively based on hard
            facts.”
     Decision making situations and common issues, which readers can easily relate
     to, reinforce the important concepts that are discussed and outlined here.
    “During the IT Investment decision making process, the Organization, Business
    and IT categories can easily become entangled and bogged down in a not-too-
    subtle tug-of-war with each hoping to improve their own position. This is a
    normal response and identifying each entity’s motivations and individual wants is
    critical to maintaining a common perspective during the vital strategic investment
    decision process.”
101
10   IT Risk and Governance


               “Government does not solve problems; it subsidizes them”
                                                                   Ronald Reagan


     Purpose:
     To make the reader aware that IT risk and governance issues must be addressed
     prior to making an IT investment decision. Even if an organization has
     implemented an IT governance framework, if it is not properly administered
     and managed then the IT project will remain at risk of failing.
     To create an ongoing robust framework for maintaining a constant vigil over
     current and future IT projects.
     Content:
     To discuss the concept of IT governance and risk, why it is essential when
     undertaking IT projects and how if it is correctly managed it will support the IT
     implementation.
            “IT Risk and governance is a multi-faceted and extensive process or
            framework around which organizations link IT and business strategies.
            It ensures that due process achieves the desired organizational goals and
            objectives and that appropriate success metrics are applied to ensure that
            IT projects achieve their stated business objectives.”
     Creating awareness of the importance of these measures.
            “IT risk and governance measures need to be rigorously applied so that
            they are permanently indoctrinated as part of an organization’s culture
            thereby making IT risk management a formal day to day function rather
            than an ad-hoc occurrence.”
     The impact of mismanaged or underutilized IT governance frameworks and risk
     mitigation measures are discussed.
            “It is surprising to find that many large organizations and government
            bodies that claim to have stringent IT Governance frameworks still have
            rogue, run-away or failed IT projects. These are just a few examples of
such organizations and references to their rogue projects.”
The book contains many examples and references to case studies that illustrate
the issues and topics discussed.
       “Nevertheless, when Sydney Water’s IT implementation went over
       budget by more than $80 million their response was to euthanize the
       project. Even so, the Vendor did not consider it a failed project but a
       “cancelled project” because at the time of cancellation the project was
       on track for delivery (totally ignoring the matter of the budget blow-
       out).”
115
11   Strategy and Success Metrics


      “However beautiful the strategy, you should occasionally look at the results”
                                                                Winston Churchill


     Purpose:
     Just as in the scientific method used for experimentation, it is equally important
     for IT project success measures to be established at the outset with clearly
     defined methods for interpreting outcomes that support an organizations
     strategy.
     Content:
     This is where the abovementioned purpose is emphasized.
            “As much as an organization’s strategy and objectives need to be clearly
            understood and articulated, so too do the success metrics that are
            applied to the IT implementation.”
     Project success metrics need to be decided at a project’s outset and aligned with
     a corporation and its business strategies.
            “A project’s success cannot be measured without first identifying what
            the primary target or objectives are. Before executing an IT investment
            decision an organization needs to decide on the metrics that the success
            of the IT project will be measured against.”
     Before commencing a project, organizations needs to decide and agree what (if
     any) project over-runs are justifiable in terms of budget and time, and to
     appoint an appropriate person as the “Project Euthanizer” who will be
     authorized to direct parties to execute that decision if and when the time comes.
            “Different people will also have differing views of what is an acceptable
            project over run. Therefore, organizations need to decide on these
            parameters at the outset and be prepared to take action for specific
            legitimate reasons to renegotiate the parameters.”
129
12   Communications and Gathering Requirements


     “Start with good people, lay out the rules, communicate with your employees,
     motivate them and reward them. If you do all those things effectively, you can't
                                         miss”
                                                                        Lee Iacocca


     Purpose:
     Communicating and gathering accurate requirements from the correct sources
     may appear to be an obvious and straightforward process. However, this aspect
     of an IT project is probably the highest single contributing factor to IT project
     failures. The purpose of this chapter therefore is to provide the reader with a
     comprehensive formal approach to ensuring that rigor and accuracy is enforced
     when gathering requirements and communicating project information.
     Content:
     This is where the abovementioned purpose is described.
            “A common misconception about IT project failures is that they are
            primarily due to IT mismanagement, poor hardware and software
            selection or poor project management skills. This is seldom the case.
            With very few exceptions, the major cause of IT project failures is
            attributable to a lack of effective communications between senior
            executives, IT and the rest of the organization.”
     The parties to be involved in project communications need to be carefully
     identified and their responsibilities made clear at the outset.
            “To ensure that the organization is well prepared for its proposed IT
            implementation, it must ensure that effective, open, honest and multi-
            directional communications takes place between the critical components
            that have causal interconnected relationships with the respective
            parties.”
     This section of the chapter brings the reader’s attention to situations that can
     arise if communication channels, project information and requirement sources
are not correctly identified at the outset.
        “It then becomes highly probable that critical project information will
        be hidden because key informal or indirect sources of information that
        can contribute a wealth of input to the project are not identified.”
This illustrates the importance of peer-level communications to ensure that
support for the IT investment decision and the project itself is secured and
maintained.
        “A lack of sideways (peer-level) communications and collaboration
        between these parties will cause support for the project to wane. Where
        people feel isolated or are excluded from the project’s decisions, they
        will turn their attention elsewhere and their support will be lost.”
Through the organizations corporate profile, pertinent parties are identified who
will become the primary communication sources and to accurately identify who
needs to receive what information.
        “Having profiled the organizations top level decision makers and
        primary sources for project communications, the second task is to
        identify the recipients of these communications.”
The section deals with external parties that may impact or be affected by the
project. They are often inadvertently excluded from project communications
and requirements sourcing and the final production system is therefore at risk of
not satisfying their needs and business requirements.
        “These external parties need to be profiled for user and project
        requirements and to also be included in project communications since
        they could impact the outcome of a project in terms of requirements or
        support.”
Excluding employees based on inferior or subordinate positions can cost the
project dearly.
        “This is the reason why an organization must establish clear, honest and
        open communications with its employees encouraging their input and
        feedback. Users at the grassroots level of an organization are often
        closer to its customers than is assumed.”
Formal communication channels are vital to ensure that communications,
actions and decisions are recorded and are carried out as intended.
       “The departments, functions, executives and users that will be impacted
       by the change need to be identified for specific communications in order
       to obtain their input. Project communications at this level needs to be
       top-down and bottom-up with an effective formal mechanism in place to
       give, receive and manage feedback and also to solicit input.”
153
13   Gaining Support for the Project


                           quot;Lead, follow, or get out of the wayquot;
                                                                      Thomas Paine


     Purpose:
     To highlight the importance and the impact of securing and sustaining
     executive, stakeholder and user support for the IT investment decision and for
     the project. The critical role of managements factors and how they influence
     user support and adoption of the final production system.
     Content:
     The importance of gaining organization-wide support for the investment
     decision and the project.
            “The decision to invest in a new IT system must have full executive,
            management and stakeholder support as well as the support of the entire
            organization and users that will be affected.”
     When management and project decisions are made in isolation they will often
     not be fully supported by the parties that will be impacted.
            “As correct as it may be for senior management to make IT investment
            decisions, they still need to ensure that they have the full support of
            their management teams and staff. Therefore, before making the final
            investment decision, all appropriate managers need to be identified to
            ensure that they do in fact support the project.”
     The critical role that user involvement plays in supporting the project is
     emphasized.
            “Soliciting and including user input to formulate system requirements at
            the project’s inception will therefore ensure that a user-friendly and
            fully functional system that satisfies their requirements is delivered. It
            will also ensure that “user ownership” is established early on in the
            project”
Highlights once again the point that full executive and management support
must be secured and that the relevant parties need to be involved in the decision
making process. If users perceive that management does not support the project
then their support will also be lost.
        “If users “perceive” that management’s attitude and support for the
        system is weak, or if management fails to secure their involvement at
        the outset, end user support for the system will diminish as will their
        desire to utilize and fully adopt the system.”
165
14   Managing Change


       “The world hates change, yet it is the only thing that has brought progress”
                                                                    Charles Kettering


     Purpose:
     Idenfiying and overcoming various types of organizational resistance that can
     occur with IT change and how to manage and minimize resistance. To
     introduce basic change frameworks and processes.
     Content:
     Executives don’t always factor in the significant role that resistance to change
     can have on their projects and organizations because their decision process
     excludes critical parties and people.
            “They reason that there should be no resistance to its execution because
            the benefits that the new IT system will deliver to the organization, its
            employees and users far outweigh any temporary discomfort that may
            be experienced during the transition.”
     There are good and bad approaches to managing resistance to change, each of
     which is explained.
            “If resistance to change persists, an organization can “command” the
            change. However, it is better to firstly secure support from the majority
            of the organization or to ensure that some of the change resisters have
            been converted into change supporters.”
     Identifying the informal power plays that can occur within an organization and
     the roles that they have in identifying resistance and support for change.
            “Even though these supportive individuals are reliant on those self-
            appointed parties in order to function, they do not enjoy or benefit from
            the social transaction. They will therefore welcome the opportunity to
            be released from such dependencies. In fact they are likely to relish the
            demise of these self-appointed power holders.”
The reader will recognize the list of symptoms such as the example below.
       “Dead Wood – these are people who have been with an organization for
       many years and perform their tasks extremely well. They are reluctant to
       share their hard-won knowledge fearing a loss of power, control and
       security when their power-base of knowledge becomes obsolete.”
Managing change and the science of Change Management require specific
skills. This function must be managed by a vigilant expert or team of experts.
       “Being proficient and diligent at administering change frameworks and
       processes requires a high level of expertise and hands-on experience that
       not all organizations possess, (let alone managers having sufficient time
       to ensure that the change process is properly adhered to and
       monitored).”
Popular change models and processes and how they can be adapted to suit
various situations are discussed.
       “Lewin’s “Unfreezing, Moving, Refreezing” model starts off by
       unfreezing the organization for the changes ahead. This is done by
       unfreezing the current situation or status quo and identifying change
       resistance components. This is based upon the notion that the two
       opposing force fields, (a) resistance and (b) support for change, need to
       be identified and addressed.”
183
15   Solution and Vendor Selection Framework


                  quot;Facts do not cease to exist because they are ignoredquot;
                                                                     Aldous Huxley


     Purpose:
     To understand that vendor and solution selection is another critical decision
     process requiring management’s full attention. Considering that vendors and
     their solutions will reamain part of the organization into the future,
     organizations need to be rigorous about their needs being based on the
     organizations full requirements rather than what a few people decide is needed.
     Content:
     Vendor selection can be complicated by over-zealous sales people and the high
     stakes involved. The reader’s attention is drawn to objective business-oriented
     factors to be considered in ther selection process.
             “A vendor must always be selected based on their core business being in
             the system, service or technology that they are proposing.”
     There are many common strategies for vendor selection and some of the
     potential pitfalls are highlighted.
             “Mandating a single source supplier to minimize the number of vendor
             relationships an organization needs to manage is a common practice but
             it can also be a costly mistake.”
     A real world example of the unfortunate consequences of an incorrect vendor
     selection is analyzed. Throughout the book the reader is presented with
     examples and case studies that they can easily relate to.
             “During my interview with a large telecommunications organization it
             became     apparent    that   incorrect   vendor    selection,   lack   of
             communications and inaccurate requirements were prevalent in one of
             their IT projects”
     Necessary and much needed vendor supplied system training can be
inadvertently omitted from the full cost of a solution. The long term benefits of
wise investments in vendor training is highlighted.
       “Although training may appear to be excessively expensive, training
       users to operate and use the system proficiently will pay dividends when
       it comes to user adoption.”
All too often a vendor’s superior knowledge in their IT product category causes
organizations to delegate responsibilities and decisions to them. These decision
must remain in-house otherwise the vendor will have control of the project.
       “The following caveats need to be established and rigorously adhered to
       in order to ensure that an organization manages its project and vendors
       and not the other way around.”
The reader may not be aware of the benefits of appointing a VMO to assist in
vendor selection and management.
       “Alternatively if the budget allows, one may appoint a VMO (Vendor
       Management Organization) to manage and control vendors and to assist
       with the IT investment decision. Considering that VMO’s interact with
       IT vendors regularly and have a strong current knowledge of vendors
       and their solutions, they are often better placed to negotiate pricing,
       quality, vendor commitment, expertise and to select a solution that’s
       aligned with business initiatives.”
The reader needs to be aware of the changing vendor landscape which (through
acquisitions) may cause vendors’ capabilities to alter dramatically in a very
short time-frame.
       “Since many vendors have diversified their product and service
       offerings by bundling consulting services with hardware and software,
       (for example HP’s merger with EDS), a more thorough knowledge of
       technology to address an organization’s requirements is required when
       making an IT investment.”
197
16   Training and Development


       “Folklore and rumor are inadequate means of spreading information about
                           how to use a computer system”
                                                                 John Gustafson


     Purpose:
     The critical role of adequate system and process training and development and
     how it impacts on successful user adoption of the sytem.
     Content:
     The importance of training gap analysis, adequate training investment and
     follow-up confirmation of training outcomes is emphasised.
            “In order to increase the probability of an IT implementation
            succeeding, these three critical training issues must be fully addressed:”
     An unfortunate and all too common result of inadequate training is poor user
     adoption of a perfectly good system.
            “These are critical factors that can result in a lack of user adoption
            thereby creating a technology mismatch whereby the new system is
            viewed as a ‘white elephant’.”
     The reader will relate to examples given that underscore the issues that are
     explained.
            “As an example the telecommunications organization mentioned earlier,
            implemented a sales system but omitted to provide their staff with cross
            selling and up-selling sales skills resulting in them not achieving the
            results that they expected from the system.”
205
17   Succeeding at Corporate Profiling


     “You can have brilliant ideas, but if you can't get them across, your ideas won't
                                   get you anywhere”
                                                                         Lee Iacocca


     Purpose:
     The framework and processes are summarized and clarified.
     Content:
     The diagram below and the contents of this chapter should be referred to prior
     to initiating a project which is the moment that contracts are signed and
     commitments made.




            “This final chapter summarized the profiling concepts that have been
            covered to create a conceptual framework for an organization’s current
            and future IT projects”
     The following is the essence of corporate profiling.
            “The    three   key   principles   of   corporate   profiling,   Visibility,
            Collaboration and Accountability underpin the three integral elements
            of the Pre-investment IT Project Framework namely Dissect
(unbundling),    Analyze     (Announce,     Ask      and   Answer),   Decide
       (Document and Do).
Hopefully the reader will see the “common sense” approach in the many
examples that I use to illustrate the points that I make.
       “For example, deciding on which vendors will be requested to submit
       proposals is more likely to be correct where those accountable for
       gathering the requirements at the outset are made accountable for this
       task”
213
18     otable IT Project Failures


      “Failure is not a single, cataclysmic event. You don't fail overnight. Instead,
                failure is a few errors in judgment, repeated every day”
                                                                            Jim Rohn


     Purpose:
     Two well documented project failures that the reader is likely to relate to.
     Content:
     Microsoft Windows® Vista is a highly controversial example of a failed project
            “Microsoft’s dominance with Windows Vista and its successor versions
            of Windows is unlikely to falter. Any other project that did not have
            such support or so much at stake would almost certainly have been
            euthanized because of (a) the massive budget blow-out, (b) repeated
            missed deadlines and most importantly (c) not meeting customer
            expectations.”
     Palm Inc. over-committed and did not deliver on promises made. In fact they
     actually have finally surprised the pundits with their recent announcement of
     their Web/OS and the Palm Pre. The big question is whether Palm will survive
     and speculation of a takeover is rife in the industry.
            “The project that was conceived to deliver Cobalt was intended to
            maintain PalmOne’s market leadership position through the support of
            this community. This external value chain of software developers was
            vital to their success and had they profiled and disciplined their
            organization to not only heed but support this value chain their fortunes
            may not have waned as they have.”
223
19   Epilogue


     “The men who try to do something and fail are infinitely better than those who
                           try to do nothing and succeed”
                                                                        Lloyd Jones


     Purpose:
     A discussion on the status quo and why the changes that I recommend are
     needed in order to minimize the incidence of IT project failures.
     Content:
     The consequence of not applying Corporate profiling.
            “Even with proven project management methodologies in use, it’s sad to
            see that there is no end in sight to failed corporate IT projects and the
            extraordinary waste of time, money and resources mostly with
            disastrous outcomes. The careers of good people fall by the wayside and
            the reputations of sound companies are tarnished not to mention the
            losses to shareholders”
     Reminding the reader of the root causes of IT Project failures.
            “The key issue that is at the heart of IT project failures is simply a lack
            of accountability by chief or senior executives for their IT investment
            and pre-implementation planning process decisions.”
     Thinking outside the scope of the book to impress on the reader the broad scope
     of similar issues in other types of projects.
            “Consider the Airbus 380 that experienced major holdups because
            wiring looms did not fit correctly. It then becomes immediately clear
            that project failures are not the exclusive domain of IT and that projects
            of any description can suffer from the same fate for the same common
            reasons when corporate profiling is not undertaken”
                                                                                          229
                                           Index

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Minimize IT Project Failures!

  • 1. Stop Blaming the Software Corporate Profiling for IT Project Success Copyright © Sarah Runge 2009 sjrunge@itpsb.com www.itpsb.com “A man can fail many times, but he isn't a failure until he begins to blame somebody else” Author and Naturalist John Burroughs (1837-1921).
  • 2. Preface “public relations people seem better than ever at helping to hide massively screwed-up corporate and governmental programming projects from stockholders and citizens” Stephen Manes commenting on changes he’s observed over the past 25 years. Full Disclosure, Stephen Manes, PCWorld, December 2008. Contents: “My approach to the research into this book comes from the perspective of pre- implementation planning analysis rather than the technical aspects of IT project implementation. It identifies what needs to be done within the organization pre- implementation to increase a project’s probability of success.” 1 1 The Global Landscape of Failed IT Projects “I don't know the key to success, but the key to failure is trying to please everybody” Bill Cosby Purpose: The first chapter sets the scene for failed IT projects and their impact on organizations and the economy in general. Contents: Organizations undertake IT projects for one or a combination of the following reasons: “Market Changes”, “Competitive Factors”, “Profitability Drivers” and “Customer Demand”. My findings from interviews with organizations that have undertaken IT projects that either failed or were challenged are described. “Small, medium and large organization alike lamented their “short-falls” that with hindsight became glaringly obvious. They all concurred that foresight into these areas could have been achieved if corporate profiling, as I described it to them, had been undertaken prior to them spending their hard earned money.”
  • 3. 7 2 The IT Project Crisis that Won’t Go Away “It has become appallingly obvious that our technology has exceeded our humanity” Albert Einstein Purpose: To create awareness of the many causes of failed IT projects and to introduce the concept of Corporate Profiling as a remedy. Content: The futile and mostly wildly incorrect blame that is leveled at those who are involved “after” investment decisions are made. “Ask yourself. How can there be so many vendors out there that are so incompetent in their areas of expertise? And why are there so many inadequate software packages? The answers are that they are not and there is not. QED. Although it’s easy to blame the software, in my studies and interviews with many companies that have suffered IT project failures, not once was the software itself to blame. And rarely if ever was the vendor incompetent. They were merely delivering what their customers, asked for.” How IT project disasters can be avoided once the leaders of organizations understand how they themselves in fact contribute to such failures. “Why do executives abdicate from their critical project decisions and responsibilities? You will be amazed at how many IT project disasters have come about simply because of what one or two people insisted was the correct course of action or who deemed their requirements to be accurate and comprehensive.” There is no point appointing the best project team to manage something that has not been adequately planned or if the organization is unprepared for the change. “Project Managers then become the project “fire fighters”. Project Managers do what they have been tasked to do by the organization.”
  • 4. 15 3 Insight, Foresight and Hindsight “Before everything else, getting ready is the secret of success” Henry Ford Purpose: To outline how senior executives themselves actually contribute to IT project failures. To introduce the concept that insight and foresight can significantly increase an IT project’s probability of success rather than being left with hard-won hindsight knowledge on the completion of a project when it is too late. Content: The following headers: “Starting with a Vision”, “That Dreaded Feeling” and “The Big Aha!” and the associated text should strike a cord with most readers. When the leaders of affected organizations finally realize the poor state of health of their IT projects, they tend to rationalize and blame their vendors or the software. Executive roles in bringing about IT project failures are emphasized. “In truth, the responsibility for under-delivered and over-budget IT projects lies predominantly with C-Level and senior executives, presidents and managers themselves.” “Top level decision makers who at their projects outset failed to profile their organizations in order to correctly identify organizational objectives, business needs, and sources for user and project requirements …” “Because the roles of senior executives are strategic and not operational, they simply do not have the necessary insight into the …” How insight, foresight and hindsight can increase the probability of an IT project’s success. “Organizational insight as well as hindsight from previous projects will provide the foresight for future implementations to be undertaken by the organization. Hindsight is only good provided people can learn from it.”
  • 5. 25 4 Scapegoating “A good scapegoat is nearly as welcome as a solution to the problem” Author unknown Purpose: To discusss how and who will be the likely scapegoat candidates, and how organizations and vendors often set themselves up for IT project failures. Content: On the one hand organizations assume that all of their project requirements have been accurately and extensively collected and documented, and on the other hand vendors also assume that what their customer has documented fully describes what is required of the system. “Frequently both parties find out later rather than sooner that their project requirements are incomplete or incorrect. In the final analysis, irrespective of how failed projects are rationalized, heads will roll and scapegoats will be found.” Why organizations need scapegoats. “Someone or some third party (or parties) will be forced to shoulder the blame for corporate accountability to the organization and its stakeholders.”
  • 6. 35 5 Where and How IT Project Problems Begin “It is wise to direct your anger towards problems –- not people; to focus your energies on answers –- not excuses” William Arthur Ward Purpose: To analyze at what point in an IT implementation problems begin, what the contributing factors are and how these factors compound IT implementation problems. Content: An analysis of the causes for IT project failures indicates that poor pre- investment and pre-implementation decision making and planning are at the top of the list. “To understand the many possible reasons for IT implementations going askew, we need to review events at the inception of IT projects rather than analyzing problematic outcomes.” Decision making and accountability “If the pre-implementation decision making process is either not established or lacks structure and rigor, these decisions will be insubstantial with a lack of accountability for outcomes.” Requirements and input “The other major cause of IT implementation problems is incomplete business requirements and user input.” Compounding the Problem This discusses how IT project problems are compounded after organizations appoint their vendors and commence the implementation process. This often occurs without sufficient planning or requirements scoping. “The problem is compounded when vendors and service providers win the business.” “Project scope-creep is synonymous with over-budget and over-time
  • 7. and if unchecked can result in a runaway project. This is usually an indication of either inadequately sourced business or user requirements, an IT driven rather than a business driven project or incrementalism.”
  • 8. 47 6 Factors Contributing to IT Project Failures “Most people spend more time and energy going around problems than in trying to solve them” Henry Ford Purpose: To identify the factors, decisions and processes within an organization, how they contribute to IT project failures and what can be done to increase the probability of an IT project’s success. Content: Identify categories, disciplines and causal factors. “A common contributing factor for IT project failures is often due to disparate processes between an organization’s functions or departments and fragmented communications between executives, managers and the rest of the organization.” Organizational and Leadership factors that will increase the probability of an IT project’s success. “The majority of these causal factors indicate the absence of rigor in an organization’s pre-implementation decision making processes. These causal factors also reflect the lack of strategic project decisions being made by senior executives.”
  • 9. 55 7 Corporate Profiling “The beginning is the most important part of the work” Plato Purpose: To introduce the Corporate Profiling concept and how it benefits organizations, what its purpose is, what it identifies, what it can achieve and how it can significantly increase the chance of IT project success. Content: The three key principles of Corporate Profiling and why they are critical to the success of an IT project. “The three key principles of profiling, visibility, collaboration and accountability help to ensure that profiling accomplishes the following outcomes.” The purpose of Corporate Profiling. “Profiling will dramatically reduce the risk of an IT failure at the outset because it establishes a solid foundation of qualified, objective, comprehensive and accurate organizational information from the appropriate sources.” When should organizations undertake Corporate Profiling? “Corporate profiling is a relatively straightforward yet comprehensive process and is the first step to be undertaken before an organization even contemplates investing in an IT system.” How Corporate Profiling works and its role in helping to identify project requirements. “Unbundles an organization to provide visibility of all of its functions, departments and processes as well as its customers and suppliers that will impact, effect or need to be involved in the IT implementation.”
  • 10. 65 8 Unbundling the Organization “While intelligent people can often simplify the complex, a fool is more likely to complicate the simple” Gerald W. Grumet ote: At this point the reader will have gained sufficient knowledge to start work on creating a corporate profile. Purpose: The purpose of this chapter is to begin the top down process of unbundling an organization into categories, functions, processes, the external value chain and also unbundling the pre-implementation process into disciplines. This is the first chapter that contains pivotal questions that will tease out the all important information that will deliver a complete corporate profile. Subsequent chapters further build on the corporate profile using this question and answer approach. Content: To begin the unbundling process, firstly the three major components of an organization must be identified. “Once an organization’s main components have been identified, it is easier to identify and understand the connectedness between an organization, management and IT. By further separating these components and their influencing factors, the many levels of complexity are also recognizable as well as the influence and impact that these components have on one another.” Following further unbundling of functions and processes, the reader starts to gain insight and visibility into the interconnected relationships and operations of an organization. “With visibility as to where and how departments, functions, processes
  • 11. and people are interconnected, an organization’s links and relationships will become apparent.” The reader can clearly see how corporate profiling delivers insight into and understanding of an organization for project requirements and information sources. “This will allow them to understand precisely how they will be impacted and what they need to do to adapt to the change. It will also assist with identifying precisely where their user requirements are to be obtained from.”
  • 12. 87 9 Decision Making “Informed decision-making comes from a long tradition of guessing and then blaming others for inadequate results” Scott Adams Purpose: To bring order to the organization’s IT investment decision making process by enforcing accountability on appropriate parties. Content: I start by explaining the flaws and pitfalls of unstructured and under-analyzed decision making. “This step profiles the IT investment decision by identifying common reasons why organizations initiate IT Projects, how these decisions are made and who and what drives the decision making process.” I continue by describing how good decision making processes can be implemented to avoid these pitfalls. “By appointing a single person to be accountable for the overall decision, the quality of their input and analysis of the situation is more likely to be comprehensive and conclusive. This ensures that the final decision will be sound having been made objectively based on hard facts.” Decision making situations and common issues, which readers can easily relate to, reinforce the important concepts that are discussed and outlined here. “During the IT Investment decision making process, the Organization, Business and IT categories can easily become entangled and bogged down in a not-too- subtle tug-of-war with each hoping to improve their own position. This is a normal response and identifying each entity’s motivations and individual wants is critical to maintaining a common perspective during the vital strategic investment decision process.”
  • 13. 101 10 IT Risk and Governance “Government does not solve problems; it subsidizes them” Ronald Reagan Purpose: To make the reader aware that IT risk and governance issues must be addressed prior to making an IT investment decision. Even if an organization has implemented an IT governance framework, if it is not properly administered and managed then the IT project will remain at risk of failing. To create an ongoing robust framework for maintaining a constant vigil over current and future IT projects. Content: To discuss the concept of IT governance and risk, why it is essential when undertaking IT projects and how if it is correctly managed it will support the IT implementation. “IT Risk and governance is a multi-faceted and extensive process or framework around which organizations link IT and business strategies. It ensures that due process achieves the desired organizational goals and objectives and that appropriate success metrics are applied to ensure that IT projects achieve their stated business objectives.” Creating awareness of the importance of these measures. “IT risk and governance measures need to be rigorously applied so that they are permanently indoctrinated as part of an organization’s culture thereby making IT risk management a formal day to day function rather than an ad-hoc occurrence.” The impact of mismanaged or underutilized IT governance frameworks and risk mitigation measures are discussed. “It is surprising to find that many large organizations and government bodies that claim to have stringent IT Governance frameworks still have rogue, run-away or failed IT projects. These are just a few examples of
  • 14. such organizations and references to their rogue projects.” The book contains many examples and references to case studies that illustrate the issues and topics discussed. “Nevertheless, when Sydney Water’s IT implementation went over budget by more than $80 million their response was to euthanize the project. Even so, the Vendor did not consider it a failed project but a “cancelled project” because at the time of cancellation the project was on track for delivery (totally ignoring the matter of the budget blow- out).”
  • 15. 115 11 Strategy and Success Metrics “However beautiful the strategy, you should occasionally look at the results” Winston Churchill Purpose: Just as in the scientific method used for experimentation, it is equally important for IT project success measures to be established at the outset with clearly defined methods for interpreting outcomes that support an organizations strategy. Content: This is where the abovementioned purpose is emphasized. “As much as an organization’s strategy and objectives need to be clearly understood and articulated, so too do the success metrics that are applied to the IT implementation.” Project success metrics need to be decided at a project’s outset and aligned with a corporation and its business strategies. “A project’s success cannot be measured without first identifying what the primary target or objectives are. Before executing an IT investment decision an organization needs to decide on the metrics that the success of the IT project will be measured against.” Before commencing a project, organizations needs to decide and agree what (if any) project over-runs are justifiable in terms of budget and time, and to appoint an appropriate person as the “Project Euthanizer” who will be authorized to direct parties to execute that decision if and when the time comes. “Different people will also have differing views of what is an acceptable project over run. Therefore, organizations need to decide on these parameters at the outset and be prepared to take action for specific legitimate reasons to renegotiate the parameters.”
  • 16. 129 12 Communications and Gathering Requirements “Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can't miss” Lee Iacocca Purpose: Communicating and gathering accurate requirements from the correct sources may appear to be an obvious and straightforward process. However, this aspect of an IT project is probably the highest single contributing factor to IT project failures. The purpose of this chapter therefore is to provide the reader with a comprehensive formal approach to ensuring that rigor and accuracy is enforced when gathering requirements and communicating project information. Content: This is where the abovementioned purpose is described. “A common misconception about IT project failures is that they are primarily due to IT mismanagement, poor hardware and software selection or poor project management skills. This is seldom the case. With very few exceptions, the major cause of IT project failures is attributable to a lack of effective communications between senior executives, IT and the rest of the organization.” The parties to be involved in project communications need to be carefully identified and their responsibilities made clear at the outset. “To ensure that the organization is well prepared for its proposed IT implementation, it must ensure that effective, open, honest and multi- directional communications takes place between the critical components that have causal interconnected relationships with the respective parties.” This section of the chapter brings the reader’s attention to situations that can arise if communication channels, project information and requirement sources
  • 17. are not correctly identified at the outset. “It then becomes highly probable that critical project information will be hidden because key informal or indirect sources of information that can contribute a wealth of input to the project are not identified.” This illustrates the importance of peer-level communications to ensure that support for the IT investment decision and the project itself is secured and maintained. “A lack of sideways (peer-level) communications and collaboration between these parties will cause support for the project to wane. Where people feel isolated or are excluded from the project’s decisions, they will turn their attention elsewhere and their support will be lost.” Through the organizations corporate profile, pertinent parties are identified who will become the primary communication sources and to accurately identify who needs to receive what information. “Having profiled the organizations top level decision makers and primary sources for project communications, the second task is to identify the recipients of these communications.” The section deals with external parties that may impact or be affected by the project. They are often inadvertently excluded from project communications and requirements sourcing and the final production system is therefore at risk of not satisfying their needs and business requirements. “These external parties need to be profiled for user and project requirements and to also be included in project communications since they could impact the outcome of a project in terms of requirements or support.” Excluding employees based on inferior or subordinate positions can cost the project dearly. “This is the reason why an organization must establish clear, honest and open communications with its employees encouraging their input and feedback. Users at the grassroots level of an organization are often closer to its customers than is assumed.”
  • 18. Formal communication channels are vital to ensure that communications, actions and decisions are recorded and are carried out as intended. “The departments, functions, executives and users that will be impacted by the change need to be identified for specific communications in order to obtain their input. Project communications at this level needs to be top-down and bottom-up with an effective formal mechanism in place to give, receive and manage feedback and also to solicit input.”
  • 19. 153 13 Gaining Support for the Project quot;Lead, follow, or get out of the wayquot; Thomas Paine Purpose: To highlight the importance and the impact of securing and sustaining executive, stakeholder and user support for the IT investment decision and for the project. The critical role of managements factors and how they influence user support and adoption of the final production system. Content: The importance of gaining organization-wide support for the investment decision and the project. “The decision to invest in a new IT system must have full executive, management and stakeholder support as well as the support of the entire organization and users that will be affected.” When management and project decisions are made in isolation they will often not be fully supported by the parties that will be impacted. “As correct as it may be for senior management to make IT investment decisions, they still need to ensure that they have the full support of their management teams and staff. Therefore, before making the final investment decision, all appropriate managers need to be identified to ensure that they do in fact support the project.” The critical role that user involvement plays in supporting the project is emphasized. “Soliciting and including user input to formulate system requirements at the project’s inception will therefore ensure that a user-friendly and fully functional system that satisfies their requirements is delivered. It will also ensure that “user ownership” is established early on in the project”
  • 20. Highlights once again the point that full executive and management support must be secured and that the relevant parties need to be involved in the decision making process. If users perceive that management does not support the project then their support will also be lost. “If users “perceive” that management’s attitude and support for the system is weak, or if management fails to secure their involvement at the outset, end user support for the system will diminish as will their desire to utilize and fully adopt the system.”
  • 21. 165 14 Managing Change “The world hates change, yet it is the only thing that has brought progress” Charles Kettering Purpose: Idenfiying and overcoming various types of organizational resistance that can occur with IT change and how to manage and minimize resistance. To introduce basic change frameworks and processes. Content: Executives don’t always factor in the significant role that resistance to change can have on their projects and organizations because their decision process excludes critical parties and people. “They reason that there should be no resistance to its execution because the benefits that the new IT system will deliver to the organization, its employees and users far outweigh any temporary discomfort that may be experienced during the transition.” There are good and bad approaches to managing resistance to change, each of which is explained. “If resistance to change persists, an organization can “command” the change. However, it is better to firstly secure support from the majority of the organization or to ensure that some of the change resisters have been converted into change supporters.” Identifying the informal power plays that can occur within an organization and the roles that they have in identifying resistance and support for change. “Even though these supportive individuals are reliant on those self- appointed parties in order to function, they do not enjoy or benefit from the social transaction. They will therefore welcome the opportunity to be released from such dependencies. In fact they are likely to relish the demise of these self-appointed power holders.”
  • 22. The reader will recognize the list of symptoms such as the example below. “Dead Wood – these are people who have been with an organization for many years and perform their tasks extremely well. They are reluctant to share their hard-won knowledge fearing a loss of power, control and security when their power-base of knowledge becomes obsolete.” Managing change and the science of Change Management require specific skills. This function must be managed by a vigilant expert or team of experts. “Being proficient and diligent at administering change frameworks and processes requires a high level of expertise and hands-on experience that not all organizations possess, (let alone managers having sufficient time to ensure that the change process is properly adhered to and monitored).” Popular change models and processes and how they can be adapted to suit various situations are discussed. “Lewin’s “Unfreezing, Moving, Refreezing” model starts off by unfreezing the organization for the changes ahead. This is done by unfreezing the current situation or status quo and identifying change resistance components. This is based upon the notion that the two opposing force fields, (a) resistance and (b) support for change, need to be identified and addressed.”
  • 23. 183 15 Solution and Vendor Selection Framework quot;Facts do not cease to exist because they are ignoredquot; Aldous Huxley Purpose: To understand that vendor and solution selection is another critical decision process requiring management’s full attention. Considering that vendors and their solutions will reamain part of the organization into the future, organizations need to be rigorous about their needs being based on the organizations full requirements rather than what a few people decide is needed. Content: Vendor selection can be complicated by over-zealous sales people and the high stakes involved. The reader’s attention is drawn to objective business-oriented factors to be considered in ther selection process. “A vendor must always be selected based on their core business being in the system, service or technology that they are proposing.” There are many common strategies for vendor selection and some of the potential pitfalls are highlighted. “Mandating a single source supplier to minimize the number of vendor relationships an organization needs to manage is a common practice but it can also be a costly mistake.” A real world example of the unfortunate consequences of an incorrect vendor selection is analyzed. Throughout the book the reader is presented with examples and case studies that they can easily relate to. “During my interview with a large telecommunications organization it became apparent that incorrect vendor selection, lack of communications and inaccurate requirements were prevalent in one of their IT projects” Necessary and much needed vendor supplied system training can be
  • 24. inadvertently omitted from the full cost of a solution. The long term benefits of wise investments in vendor training is highlighted. “Although training may appear to be excessively expensive, training users to operate and use the system proficiently will pay dividends when it comes to user adoption.” All too often a vendor’s superior knowledge in their IT product category causes organizations to delegate responsibilities and decisions to them. These decision must remain in-house otherwise the vendor will have control of the project. “The following caveats need to be established and rigorously adhered to in order to ensure that an organization manages its project and vendors and not the other way around.” The reader may not be aware of the benefits of appointing a VMO to assist in vendor selection and management. “Alternatively if the budget allows, one may appoint a VMO (Vendor Management Organization) to manage and control vendors and to assist with the IT investment decision. Considering that VMO’s interact with IT vendors regularly and have a strong current knowledge of vendors and their solutions, they are often better placed to negotiate pricing, quality, vendor commitment, expertise and to select a solution that’s aligned with business initiatives.” The reader needs to be aware of the changing vendor landscape which (through acquisitions) may cause vendors’ capabilities to alter dramatically in a very short time-frame. “Since many vendors have diversified their product and service offerings by bundling consulting services with hardware and software, (for example HP’s merger with EDS), a more thorough knowledge of technology to address an organization’s requirements is required when making an IT investment.”
  • 25. 197 16 Training and Development “Folklore and rumor are inadequate means of spreading information about how to use a computer system” John Gustafson Purpose: The critical role of adequate system and process training and development and how it impacts on successful user adoption of the sytem. Content: The importance of training gap analysis, adequate training investment and follow-up confirmation of training outcomes is emphasised. “In order to increase the probability of an IT implementation succeeding, these three critical training issues must be fully addressed:” An unfortunate and all too common result of inadequate training is poor user adoption of a perfectly good system. “These are critical factors that can result in a lack of user adoption thereby creating a technology mismatch whereby the new system is viewed as a ‘white elephant’.” The reader will relate to examples given that underscore the issues that are explained. “As an example the telecommunications organization mentioned earlier, implemented a sales system but omitted to provide their staff with cross selling and up-selling sales skills resulting in them not achieving the results that they expected from the system.”
  • 26. 205 17 Succeeding at Corporate Profiling “You can have brilliant ideas, but if you can't get them across, your ideas won't get you anywhere” Lee Iacocca Purpose: The framework and processes are summarized and clarified. Content: The diagram below and the contents of this chapter should be referred to prior to initiating a project which is the moment that contracts are signed and commitments made. “This final chapter summarized the profiling concepts that have been covered to create a conceptual framework for an organization’s current and future IT projects” The following is the essence of corporate profiling. “The three key principles of corporate profiling, Visibility, Collaboration and Accountability underpin the three integral elements of the Pre-investment IT Project Framework namely Dissect
  • 27. (unbundling), Analyze (Announce, Ask and Answer), Decide (Document and Do). Hopefully the reader will see the “common sense” approach in the many examples that I use to illustrate the points that I make. “For example, deciding on which vendors will be requested to submit proposals is more likely to be correct where those accountable for gathering the requirements at the outset are made accountable for this task”
  • 28. 213 18 otable IT Project Failures “Failure is not a single, cataclysmic event. You don't fail overnight. Instead, failure is a few errors in judgment, repeated every day” Jim Rohn Purpose: Two well documented project failures that the reader is likely to relate to. Content: Microsoft Windows® Vista is a highly controversial example of a failed project “Microsoft’s dominance with Windows Vista and its successor versions of Windows is unlikely to falter. Any other project that did not have such support or so much at stake would almost certainly have been euthanized because of (a) the massive budget blow-out, (b) repeated missed deadlines and most importantly (c) not meeting customer expectations.” Palm Inc. over-committed and did not deliver on promises made. In fact they actually have finally surprised the pundits with their recent announcement of their Web/OS and the Palm Pre. The big question is whether Palm will survive and speculation of a takeover is rife in the industry. “The project that was conceived to deliver Cobalt was intended to maintain PalmOne’s market leadership position through the support of this community. This external value chain of software developers was vital to their success and had they profiled and disciplined their organization to not only heed but support this value chain their fortunes may not have waned as they have.”
  • 29. 223 19 Epilogue “The men who try to do something and fail are infinitely better than those who try to do nothing and succeed” Lloyd Jones Purpose: A discussion on the status quo and why the changes that I recommend are needed in order to minimize the incidence of IT project failures. Content: The consequence of not applying Corporate profiling. “Even with proven project management methodologies in use, it’s sad to see that there is no end in sight to failed corporate IT projects and the extraordinary waste of time, money and resources mostly with disastrous outcomes. The careers of good people fall by the wayside and the reputations of sound companies are tarnished not to mention the losses to shareholders” Reminding the reader of the root causes of IT Project failures. “The key issue that is at the heart of IT project failures is simply a lack of accountability by chief or senior executives for their IT investment and pre-implementation planning process decisions.” Thinking outside the scope of the book to impress on the reader the broad scope of similar issues in other types of projects. “Consider the Airbus 380 that experienced major holdups because wiring looms did not fit correctly. It then becomes immediately clear that project failures are not the exclusive domain of IT and that projects of any description can suffer from the same fate for the same common reasons when corporate profiling is not undertaken” 229 Index