Project Success/Failure
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Presentation to ISACA Governance Event 11 Sept 2009 on factors affecting Project Success/Failure referencing ISO38500, Project Management, Standish and the CHAOS Report, also Sauer et all, Cadbury and drawing on Peter Salmon's varied and extnesive personal experience
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Project Success/Failure
- 1. PROJECTSKey Issues in Success/FailureISACA Wellington Chapter Sept 11, 2009 Peter Salmon, C.A. Principal - Manning Charles & Associates Ltd.
- 2. 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. 2 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 3. 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 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd 3
- 4. Nature of Projects A project is a temporary endeavor undertaken to create a unique product, service, or result Source:- PMBOK Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd 4
- 5. Project outcomes vary Success Failure Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd 5 Source :- Getty Images / Stu Forster Source:- Ian Mackley DominionPost
- 6. Success is rare? 6 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 7. Or is it? 7 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 8. 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 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd 8
- 9. ISO 38500 Governance Model Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd 9 Source:ISO38500 Standard
- 10. Principles Responsibility Strategy Acquisition Performance Conformance Human Behavior 10 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 11. 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. 11 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 12. 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’. 12 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 13. Six Principles mapped to key project factors 13 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 14. Impact of governance 14 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd Source:Sauer, Gemino and Reich
- 15. Impact of governance 15 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd Source:Sauer, Gemino and Reich
- 16. Project Initiation + Planning - Common Issues 16 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 17. Project Initiation + Planning - Common Issues 17 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 18. 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 18 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 19. Key elements Leadership Entity Sponsor Project Common values, e.g. Integrity Openness Communication Resourcing People Training Time 19 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
- 20. Desired outcome 20 Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd Source: Ian Mackley/ Dominion Post
Notas do Editor
- Peter Salmon - the principal of Manning Charles & Associates Ltd. A senior executive with strong operational management experience, Peter’s past experience includes leading the Systems Integration practice for a major vendor in the South Pacific as well heading the Project Quality Office for the same company in the region.
- Insert the Project Lifecycle diagram
- Man on Moon, RWC bid, relate purchase of vegetables and why it is a project and how we all do projects regularly, structures, plan shopping list and comply with the governance model, illustrate how everyday tasks can fit the model and causes of success failureUse another definition from PMBOKKeywords in the definition are: temporary & unique outcome.* Temporary – It has definite beginning and end time. * Unique Product, Services or Results – One other important inherent characteristic of Projects is progressive elaboration. Progressive elaboration means developing in steps, and continuing by increments.
- People/leadership, thin line, resource, , unfortunately it would appear that in the IT world failure is more common than successGartner studies suggest that 75% of all US IT projects are considered to be failures by those responsible for initiating them. Standish Group 2009 report, US based, found that 31% of projects were cancelled outright and that the performance of 53% of the all projects was so worrying that they were challenged.Some questions that need to be answered in assessing whether a project is fundamentally a success or failure?Has the project satisfied the business requirements of the primary stakeholders?Were the deliverables produced on time and within budget (or as amended by agreed change control)?Do the business owners perceive the project to be successful?Has the project delivered the business value promised in the original case for doing it
- Increasingly controversial Chaos Report
- Sauer gives a completely different picture. Sauer used input from UK based PMs, Standish draws on US based executive perceptionsNevertheless it is not a pretty picture and why is it still happening
- Amongst other matters these are some of the factors that impact on success or failureTo my mind the success factors tend to suggest that governance has an impactPoor suucees rate, need for an effective framework
- The need for an overall frameworkThe foregoing fits within the ISO 38500 model.There is a need/pressureProjects along with operations fit within process, the whole requiring Principle 1: ResponsibilityIndividuals and groups within the organization understand and accept theirresponsibilities in respect of both supply of, and demand for IT. Those withresponsibility for actions also have the authority to perform those actions.Principle 2: StrategyThe organization’s business strategy takes into account the current and futurecapabilities of IT; the strategic plans for IT satisfy the current and ongoingneeds of the organization’s business strategy.Principle 3: AcquisitionIT acquisitions are made for valid reasons, on the basis of appropriate andongoing analysis, with clear and transparent decision making. There isappropriate balance between benefits, opportunities, costs, and risks, in boththe short term and the long term.Principle 4: PerformanceIT is fit for purpose in supporting the organization, providing the services, levelsof service and service quality required to meet current and future businessrequirements.Principle 5: ConformanceIT complies with all mandatory legislation and regulations. Policies andpractices are clearly defined, implemented and enforced.Principle 6: Human BehaviourIT policies, practices and decisions demonstrate respect for Human Behaviour,including the current and evolving needs of all the ‘people in the process’.Evaluate Direct MonitorNo framework perfect, but my experience suggests that it is likely to assist project/programme success and thus business success
- The 6 principles are clear and when we look briefly at them we begin to see how when applied they will impact the probability of success , especially in the Planning & Initiation phases.
- Underlying theme of values, people capability and experise in each of the principlesNot based on legal presciprion or one area, but all embracing
- Demonstrates how the framework can be used to provide guidance and how it fits.Perhaps not perfect mapping Can map principles mapped against key factors noted earlierAbsence of such structure will increase likelihood of failure Sauer re leadership increases risk and probablity of failureSauer re lack of alignment
- Research supports observations I have made over many years.
- Finally let us turn to the Initiation and planning stagesThese common issues reflect situation arising when Governance is not present for one reason or anotherWhen we look at the Initiation and Planning Stages what do we seeScope leads to changesPM changesSo how will apply a governance framework assistEvidence Sauer + ????Val IT
- Finally let us turn to the Initiation and planning stagesThese common issues reflect situation arising when Governance is not present for one reason or anotherWhen we look at the Initiation and Planning Stages what do we seeScope leads to changesPM changesSo how will apply a governance framework assistEvidence Sauer + ????Val IT