sharpening the pencil on project …...months - kpmg 50% of projects fail to consistently achieve...

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SHARPENING THE PENCIL ON PROJECT MANAGEMENT Lynette van Reenen

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Page 1: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

SHARPENING THE PENCIL ON

PROJECT MANAGEMENT

Lynette van Reenen

Page 2: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

PROJECT MANAGER’S SAY WHAT?

https://www.youtube.com/watch?v=UBr3MM9_zd4

Page 3: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

IT PROGRAMMES ARE NOW SO LARGE AND COMPLEX IT CAN BRING

WHOLE COMPANIES DOWN

• Design finished in 2001 – difference in development software

• More than 12 months delay to market; 26% drop in share price

• Resignation of Noel Forgard

• Lord Chancellor’s Department

• Courts computer system • 328% over budget • 167m USD

• Implementation of an ERP system

• Cost more than $5 billion, 7 years to implement

• Project crashed and burned

Page 4: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

HIGH FAILURE RATE OF IT PROJECTS

Only 40% of projects meet

schedule, budget and

quality goals - IBM

65-85% of IT projects fail to meet

their objectives – Portland Business

Journal

70% of organizations have suffered at least

one project failure in the prior 12 months - KPMG

50% of projects fail to

consistently achieve what

they set out to achieve - KPMG

Failure rate of large implementation are 50% higher than small to mid size

projects - Gartner

Only 40% of projects meet

schedule, budget and

quality goals - IBM

Page 5: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

METHOD

Project Integration

Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality

Management

Project Human

Resource Management

Project Risk Management

Project Procurement Management

Project Stakeholder

Management

Page 6: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

LESSONS LEARNT FROM LARGE IT

PROJECT IMPLEMENTATIONS

• Project Scope Management – Requirements

– Tools / Technology

– Complexity

• Project Time Management – Estimates / Scheduling

• Project Human Resource Management – Staffing

• Project Integration Management – Plans and Controls

Page 7: SHARPENING THE PENCIL ON PROJECT …...months - KPMG 50% of projects fail to consistently achieve what they set out to achieve - KPMG Failure rate of large implementation are 50% higher

LESSONS LEARNT FROM LARGE IT

PROJECT IMPLEMENTATIONS

• Project Risk Management – Identify vs. Manage

• Project Stakeholder Management – Lack of direction

– Lack of commitment

– Lack of ownership

• Project Cost Management – No cost targets

– No cost measures

– Costing of changes