cult of wasteful projects by järvenpää & kankare

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Cult of Wasteful Projects Tapio Järvenpää & Ilkka Kankare

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We keep reading headline stories of grand transformation programs, especially in the field of IT, that go horrificly wrong, and end up as embarrassing, incredibly expensive megafailures.Who is to blame? We all are. The anonymous, everyday underperformance that has become a new global standard in program management. How to fix it?

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Page 1: Cult of wasteful projects by Järvenpää & Kankare

Cult of Wasteful ProjectsTapio Järvenpää & Ilkka Kankare

Page 2: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

IntroductionThe problemThe causeThe solutions

Contents

Page 3: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Page 4: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

IntroductionThe problemThe causeThe solutions

Contents

Page 5: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

UK National Health Service (NHS) National Programme for IT (2002 )

System abandoned - costs are still piling up

Page 6: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Conclusions of the UK Public Accounts Committee

http://www.publications.parliament.uk/pa/cm201314/cmselect/cmpubacc/294/29404.htm

There were also failures -to understand the complexity of the tasks, -to recognise the difficulties of persuading NHS trusts to take new systems that had been procured nationally, and -to get people to operate the systems effectively even when they were adopted.“

“Launched in 2002, the National Programme was designed to reform the way that the NHS in England uses information. The benefits include financial savings, efficiency gains and wider benefits to society …”

“…two-thirds of the £10.7 billion of total forecast benefits were still to be realised in March 2012.”

Shortcomings included - poor negotiating capability,

resulting in deals with - poor value for money- weak programme

management and oversight.

Page 7: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

The 1st governance model of PALKO-program didn’t work. It took the program 4 years to figure out the model needed to be streamlined…

PALKO program reported here. All committees above it, plus those depicted on the other diagram,

were setting expectations to PALKO.Where is the project? It did not fit this

organizational diagram…

Page 8: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Project targets vs Line of Command targets (invisible resistance, inertia)

Here is your project.What are your chances to make a change in Rolling

Mills department?

Important project

Page 9: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

The headline stories of major failures are the tip of an icebergThe real problem? The anonymous, everyday underperformance

Headline stories of megafailures

Why don’t we hear about these? Most programs manage to keep it private Most failures are not ugly/sexy/political enough Big programs failing is not news anymore

Bubbling under the surface,

the mass of megafailures

Why don’t we care about this? We live it everyday, consider it normal It’s the industry standard; risky to break We don’t want to see real, viable options

The makings of megafailures MASSIVE, ANONYMOUS, EVERYDAY

UNDER-PERFORMANCEmissing deadlines, budget overruns

poor value for moneyroutines, frustration, burnout

Huge overruns in time & money. Why? Exceptional challenges, show-stopper surprises Unique circumstances, extreme complexity Unimaginable unprofessionalism

Page 10: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

The Religion of Moloch in Bertrand Russell’s “A Free Man's Worship” (1903)

Page 11: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

IntroductionThe problemThe causeThe solutions

Contents

Page 12: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

The cause? Our mistakes

Jekyll & Hyde

Page 13: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Spending lots of money in the beginning is like…

Licenses, hardware, tools ... So many things of everything and lots of them. Paid in advance compared to benefitting from project’s results. Like so many traditional ERP projects.

Let’s say you want to improve order-to-cash performance: less inventory, shorter throughput and better responsiveness to customer demand.And you start a traditional ERP Project.Do you see the paradox?

Page 14: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Change program communications are constantly neglectedEither it’s really bad, or there’s just not enough of it

WRONGmessage

timeaudience

mediaNO

interaction integration

innovationinspiration

interest

RESULT?confusion ignoranceresistance

And much more...criticism

Page 15: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Are you, your team, program or organization learning? Second loop learning through critical reassessment?

Second loop

First loop

Zero loop

REASSESS

Page 16: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Are you, your team, program or organization learning? Second loop learning through critical reassessment?

Second loop

First loop

Zero loop

REASSESS

most programs are stuck on

zero loop =

no learning happens

Page 17: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

IntroductionThe problemThe causeThe solutions

Contents

Page 18: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

R2O: 12 steps to better projects

steer

benefit

impact

simplify

be agile

reuse

interact

energize engage

self-assess

learn

oil

Page 19: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

ReTHINK: Deliver benefits early

Page 20: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

ReWORK: Turn communications into interaction

be RELEVANTintegrate innovate

inspired agents

RESULT? The organization turns intoactive subject of change

active audience

journeydialogue

be EXCITING

HOW? SoMeGamifyCollaborateAnd so on...

Page 21: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

ORIENT: Invest in learning

The bigger the project the more there is to learn.

Apprentice – journeyman – master craftsman, a centuries old process of knowledge sharing. And it is still very useful because some people know how to do the stuff and some don’t - yet.

How’s the training program of your project? By when each of the apprentices should be able to advance and present their master pieces?

Page 22: Cult of wasteful projects by Järvenpää & Kankare

Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013

Get in touch Find Moolok in media

Ilkka [email protected]@gmail.comTel: +358-50-337-9549

Tapio Järvenpää[email protected] Tel: +358 40 199 0836@Tapsa_Jpaa

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