Transcript
Page 1: Project Success/Failure

Manning Charles & Associates Limited

PROJECTSKey Issues in Success/FailureISACA Wellington Chapter Sept 11, 2009

Peter Salmon, C.A.

Principal - Manning Charles & Associates Ltd.

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Important Notice – please make sure you read

• This notice applies to all materials and information available in this presentation.

• All information and materials are provided on an 'as is' basis and are not intended in any way to be comprehensive.

• Any reader making use of this material does so at his/her own risk and readers are advised to take independent professional advice before acting on any information or materials found here.

• Neither Peter Salmon nor Manning Charles & Associates Limited accepts any responsibility for, nor do they give any representations or warranties, express or implied, that any of the information and materials contained in this document and presentation are complete, accurate or free from errors or omissions.

2Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd

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About this session

We will consider:• project success rates• key issues associated with the

success or failure of projects. • the impact of governance as a

means of enhancing prospects of success.

• in this regard the Initiation and Planning stages of the Project Lifecycle

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Project Life-cycle

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Nature of Projects

• A project is a temporary endeavor undertaken to create a unique product, service, or result

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Source:- PMBOK

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Project outcomes vary

Success Failure

Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd

5Source :- Getty Images / Stu Forster

Source:- Ian MackleyDominionPost

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Success is rare?

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Or is it?

Sauer et al Standish

Budget overshot 13% 43%

Schedule overshot 20% 82%

Scope under delivery 7% 48%

Overall success 67% 33%

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Some key defining factors

Successful• Strong, visible executive support• Dedicated teams• Alignment with vision• Change impacts clear and known• Accountability/Responsibility• Change seen as an on-going process• Metrics and incentives used to drive

desired behaviours• Undersell, over-deliver• Everyone gets a win is the approach

Unsuccessful• Uncertain leadership• Resource scarcity/competition• Unclear goals, vision or strategy• Opaque change impact• No Accountability/Responsibility• Change is episodic and event based• Metrics and incentives non-aligned

with desired behaviours• Lots of “happy talk"• Clear winners and losers

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ISO 38500 Governance Model

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Source:ISO38500 Standard

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Principles

1. Responsibility

2. Strategy

3. Acquisition

4. Performance

5. Conformance

6. Human Behavior

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Principles - defined

• Principle 1: Responsibility– Individuals and groups within the organization understand and

accept their responsibilities in respect of both supply of, and demand for IT. Those with responsibility for actions also have the authority to perform those actions.

• Principle 2: Strategy– The organization’s business strategy takes into account the current

and future capabilities of IT; the strategic plans for IT satisfy the current and ongoing needs of the organization’s business strategy.

• Principle 3: Acquisition– IT acquisitions are made for valid reasons, on the basis of

appropriate and ongoing analysis, with clear and transparent decision making. There is appropriate balance between benefits, opportunities, costs, and risks, in both the short term and the long term.

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Principles defined

• Principle 4: Performance– IT is fit for purpose in supporting the organization, providing the

services, levels of service and service quality required to meet current and future business requirements.

• Principle 5: Conformance– IT complies with all mandatory legislation and regulations. Policies

and practices are clearly defined, implemented and enforced.• Principle 6: Human Behaviour

– IT policies, practices and decisions demonstrate respect for Human Behaviour, including the current and evolving needs of all the ‘people in the process’.

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Six Principles mapped to key project factors

Positive Negative

Strong, visible executive support 1 Uncertain leadership 1

Dedicated teams 1,6 Resource scarcity/competition 1,6

Alignment with vision 2,4 Unclear goals, vision or strategy 2,4

Change impacts clear and known 3 Opaque change impact 3

Accountability/Responsibility 1,3 No Accountability/Responsibility 1,3

Change seen as an on-going process

4 Change is episodic and event based 4

Metrics and incentives used to drive desired behaviours

6 Metrics and incentives non-aligned with desired behaviours

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Undersell, over-deliver 4 Lots of “happy talk” 4

Everyone gets a win is the approach 6 Clear winners and losers 6

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Impact of governance

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Source:Sauer, Gemino and Reich

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Impact of governance

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Source:Sauer, Gemino and Reich

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Project Initiation + Planning - Common Issues

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Issue Principle

Unclear or unconvincing business case 1,2,3Insufficient attention to stakeholders and their needs 1,3Failure to manage expectations 1,2,6Insufficient or non-existent approval process 1,3,5Poor definition of project scope and objectives 1,4,6People not dedicated to project; 1,4Trying to balance too many different priorities, 1, Project team members lack experience and the required skills 4,6Insufficient time or money given to project 1,3

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Project Initiation + Planning - Common Issues

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Issue Principle

Inadequate project status reporting/visibility 1,2,3Lack of senior management/executive support 1Project sponsors not 100% committed to the objectives 1,6Team lacks authority or decision making ability 1,6Insufficient and/or over-optimistic planning, poor estimating 1,4,6Long or unrealistic timescales; forcing project end dates ; 1,2,3,Lack of thoroughness and diligence in the project startup phases 1, 3,4

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OK, but what do we do?

• Implement a framework which– Evaluates needs on an ongoing basis– Ensures IT meets business objectives– Monitors outcomes and adherence to policy, law etc

• Intent being to:-– Reduce risk– Ensure the informed use and deployment of IT– Provide the information to enable objective evaluation of IT

within the entity

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Key elements

• Leadership– Entity– Sponsor– Project

• Common values, e.g.– Integrity– Openness– Communication

• Resourcing– People– Training– Time

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Desired outcome

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Source: Ian Mackley/Dominion Post


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