sustainable business models based on data blinklane project doctor big it projects often become big...
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Sustainable business models based on data
BLINKLANE
Project Doctor
Big IT projects often become big disasters, seemingly running forever and consuming an
endless stream of resources without satisfactory results. This phenomenon is also known as ‘project escalation’. Project Doctor
helps to prevent, detect or stop project escalation.
IS BLINKLANE’S PROJECT DOCTOR RELEVANT?
Many organizations cope with long running IT projects (or programs) that do not deliver. While these projects don’t seem to lead to the desired outcome, they are subject to circumstances in which stopping or redirecting is not an option. The projects thus consume more and more resources without results, creating even more motivation to continue and invest more, hoping that what has been lost will somehow be recovered. This phenomenon of increasing commitment to a project’s failing course of action is called project escalation.
The problems with escalating IT projects loom largest in the public sector, as public projects are generally much larger than private sector projects. To illustrate: within a given timeframe, 100 large private sector organizations spent 1,7 billion euros on approximately 6000 projects, while the state government spent 4,2 billion euros on 73 projects (Verhoef, 2008). The 2012 CHAOS results show that no more than
39% of all IT projects are successful (delivered on time, on budget, with required features and functions); 43% were challenged (late, over budget, and/or with less than the required features and functions); and 18% failed (cancelled prior to completion or delivered and never used).
The yearly CHAOS reports show that IT projects are complex undertakings that have a high risk of problematic realization.
CAN BLINKLANE’S PROJECT DOCTOR HELP?
THREE PROJECT DOCTOR SERVICES
In-project independent reviewing Even if steps to prevent escalation have been taken in advance, new circumstances can lead to project escalation. Frequent and independent reviews are a proved manner to monitor this. Is the project still on track to the intended destination? If necessary, adjustments are made.
Project de-escalation If a project has already escalated, but the organization is unable to end the project, Project Doctor helps to stop further exceeding of the budget and to reap the benefits of achieved results. The project is terminated in a responsible manner. After project termination, a post-project review is possible to reflect and learn.
Pre-project assessment and recommendations Before the project starts, the risk of its escalation is determined and recommendations are made on how to reduce it.
Level of
(p
ote
nti
al)
escala
tion
costs
low
hig
h
Level of retrievable value
low high
DOES BLINKLANE’S PROJECT DOCTOR ACHIEVE?
Depending on the service applied, Project Doctor results in:
Project pre-assessment & in-
project reviewing
A completed project within agreed budget, or termination of the project with minimal resources lost.
Completion or termination of the escalated project within a limited additional budget.
Project de-escalation
THE FUNDAMENT OF THE PROJECT DOCTOR SERVICES The Project Doctor services are based on extensive PhD research on the project escalation processes in multiple large IT projects and programs, across different organisations and time periods. The research and its findings are published by Maastricht University in the dissertation ‘Understanding E-government Project Escalation’ by Niels Groen.
SPACES Zuidas, Barbara Strozzilaan 101 | 1083 HN Amsterdam
T +31(0) 20 4080860 | [email protected] | www.blinklane.com
BlinkLane Consulting is an advisory firm that was founded in 2007. It has its origin in IT Management, focusing on improving the value of IT. In our life span, we have evolved together with our clients. We continuously innovate our services to keep delivering the value to our clients to deal with today’s challenges.
Our focus is on the following 4 themes:
• Business Agility• Business & IT Fusion• Business Model Innovation• Strategic Sourcing
Our purpose: “to succeed beyond ambition”.
Our mission: As a leading advisory on business model innovation and technology management, we strive to have a significant and meaningful impact on organizations we work with.
We are committed to:• Introduce creativity and thought leadership• Establish expert communities and valuable
relationships• Inspire, engage and develop exceptional people• Succeed together with passion and trust
GET IN TOUCH FOR MORE INFORMATIONGONiels [email protected]+31611645943
Florentine [email protected]+31621500478