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IT PROJECT MANAGEMENT : INFAMOUS FAILURES, CLASSIC MISTAKES, OMARI CRAWFORD, MATTHEW GLENN, MARCUS THOMAS INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
IT PROJECT MANAGEMENT:INFAMOUS FAILURES, CLASSIC MISTAKES,AND BEST PRACTICES
OMARI CRAWFORD, MATTHEW GLENN, MARCUS THOMASINFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Many ORGANIZATIONS CONDUCT RETROSPECTIVES AFTER A FAILURE TO AVOID FUTURE DISASTERS.
An individual retrospective tells a unique story, but more insight can be gained by examining multiple retrospectives.
99 retrospectives across across 74 organizations were used to conduct this research. From this research many common mistakes and best practices can be extracted for better project management.
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
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“INNOVATE” PROJECT (2001)This project aimed to create a real-time global network to link over 30,000 stores in 121 countries to headquarters by Intranet.
It would have given executives a bird’s eye view of the entire system at any minute of the day.
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
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AN EPIC ‘MC-FAILURE’At cost estimates of over $1 billion, Innovate was the most expensive information technology project in McDonalds’s history. Innovate project failed before it even got off the ground.
McDonalds wrote off $170 million in the 2002 and Innovate was cancelled.
INFAMOUS FAILURESMCDONALDS
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
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WHY INNOVATE FAILED?Scope Management: $1 billion would have only covered the first 5 years of design and implementation. Millions more would need to be spent to maintaining the system.
Linking all 30,000+ locations via broadband was impossible
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WHY INNOVATE FAILED?Implementation: Attempted to go company wide in a one fell swoop or big bang approach.
Acceptance: Franchisees reluctant to accept after “Made For You” system in 1998 slowed service. Senior executives also had a lack of IT knowledge.
Experience: No prior experience in large scale software implementation.
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
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TAKEAWAYS• Project should have been broken down into manageable chunks.
• Hired a project manager with large-scale software implementation expertise
• Eased concerns and discomfort of Senior Management and Franchisees
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INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Classic Mistakes
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
CLASSIC MISTAKESDEFINED
Definition• “Ineffective project management practices that were identified so often, by so many people, with such predictable, negative results that they deserve to be called “classic mistakes.”-Steve McConell
Failure is generally rooted in errors by project mangers and is rarely attributed to chance.
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
CLASSIC MISTAKES4 Categories of Mistakes
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
People IT Human Capital
ProcessManagement Processes and Technical Methodologies
ProductProduct Size and Product Characteristics
TechnologyUse and Misuse of Modern Technology
People
• Undermined Motivation• Capabilities of the individual team members/ the
working relationship among the team members• Leaders failure to take action to deal with a problem
employee
• Adding people to a late project
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Process
• Wasted time in the “Fuzzy Front End”• Underestimating and producing overly optimistic
schedules
• Insufficient Risk Management
• Contract Failure
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Product
• Requirements Gold-Plating• Feature Creep• Developer Gold-Plating• Research Oriented Development
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Technology
• Silver-bullet syndrome
• Overestimated savings from new tools or methods
• Switching tools in the middle of a project
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
A Meta-Retrospective of 99 IT Projects
Overview• 502 Masters level Mgmt Info Systems students were assigned to complete
retrospectives on completed IT projects of various magnitude.
• The IT projects were assessed under the following criteria:1. Project Context and Description2. Project Timeline3. Lessons Learned (What Went Right vs. What Went Wrong)4. Recommendations for the Future5. Evaluation of Success/Failure
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Case Findings
1. The majority of the classic mistakes were categorized as either process or people mistakes.
2. Scope Creep did not make the top ten list3. The Top 3 Mistakes occurred in about 50% of all the
projects examined.
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Summary
Project mangers should closely examine past mistakes to determine which are the most common and search for patterns that will help them avoid repeating these mistakes.
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
BEST PRACTICES
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
• One of the best advantages of uncovering what went wrong in projects studied is to discover what went right.
• Properly used methods, tools, and techniques can help organizations avoid the classic mistakes from occurring in the first place.
WIN WITHIN DEFEAT
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
• The Estimation and Scheduling Process consists of:• Sizing or scoping the project• Estimating the Effort and Time Required• Developing a Calendar
How to Avoid Poor Estimating and/or Scheduling
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
1.Fewer Mistakes 2.Better Budgeting3.Less Overtime 4.More Credibility for the Project Team5.Less Schedule Pressure6.Less Staff Turnover
Accurate Estimates Will Include
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Standish Group’s longitudinal findings show that:The IT field is betting somewhat better at estimating cost but worse at estimating time.
In 1994, the average cost overrun was 180%. The average dropped to 43% by 2003.
In 2000, average time overruns reached a low of 63% but have increased significantly to 82%.
The Current Pattern
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
• Using Developer-Based Estimates• A modified Delphi Approach• Historical Data• Algorithms• Estimation Software• Estimate-Convergence Graphs
How To Improve Estimating and Scheduling?
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
1. Time Box Development
2. Creating a Work Break Down Structure
3. Retrospectives to Capture Actual Size, Effort, and Time
4. A Project Management Office
4 Valuable Approaches to Improving Project Estimation and Scheduling
Cone of uncertainty
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
INEFFECTIVE STAKEHOLDER MANAGEMENT IS THE 2ND LARGEST CAUSE OF PROJECT FAILURE1. Using a Stakeholder worksheets and assessment graphs
2. Communication Plans
3. Creation of a Project Management Office
4. Portfolio Management
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
How to Avoid Insufficient Risk Management
“WITH GREATER POWER COMES
GREATER RESPONSIBILITY”
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
The Process of Risk Management• Risk Identification• Analysis• Prioritization• Risk-Management • Planning• Resolution• Monitoring
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Best Practice For Avoiding RiskUse a Risk Table
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
How to Avoid Insufficient Planning • Comprehensive Project Charter
• Clearly Defined Project Governance
• Portfolio Management
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
How to Avoid Short changing Quality Assurance• Agile Development• Joint Application Design Sessions• Automated Testing Tools• Daily Build-and Smoke Tests
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
Get The Right Person For the Job
“One of the key problems during the development phase of the project was the relatively low skill level of the programmers assigned to the project. The weak programming skills caused schedule lapses, poor quality, and eventually caused changes in personnel.”
Reoccurring and Common IssuesReduction in face-to-face meetings
Time-Zone BarriersLanguage and Cultural Issues
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
WHO’S PAYING FOR THIS?• A project must have the “Right” Sponsor.
That means that a project must have a sponsor who will be with the project from the beginning, and managing the relationship throughout the life of the project.
BUT SOME CHANGE CAN BE BETTER
• “There were CEOs on calls all the time. Nobody wanted to be written up in the ‘Wall Street Journal.’ That was what motivated people to change. Fear that the stock price would get hammered and fear that they would lose too much business.”
INFAMOUS FAILURES, CLASSIC MISTAKES AND BEST PRACTICES
