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Early warnings: The IT project failure dilemma (part 2)

By | March 30, 2010, 8:59am PDT

Summary: CIO and project turnaround expert, Peter Kretzman, discusses a practical solution to methodically identify and prevent causes of failed IT projects.

NOTE: Also read part 1 of this two-part series.

Research tells us that 30- and 70-percent of IT projects fail in some important way, leading to global economic waste totaling perhaps trillions of dollars. These statistics highlight the lack of an effective industry-wide early warning system to prevent failure.

CIO hired gun and project turnaround specialist, Peter Kretzman, tackled failure prediction in an important article that is republished here as a guest post. CIO Magazine calls Peter, “a 25-year IT and online veteran, [who] shares thoughts on focusing product and application development as well as enhancing and maintaining world-class operations. He also points out that many departments survive by hiding inefficiencies, oversights and missed opportunities.”

In part 1, Peter laments the difficulty associated with predicting which projects will succeed or become challenged.

Part 2 (reprinted below) describes solutions to the challenge of detecting early warning signs that may cause trouble on IT projects.

In this guest post, Peter analyzes a practical solution to the IT project failure dilemma.

=============

Wouldn’t it be great if there were some kind of codified, external measurement/evaluation tool that could methodically identify the kinds of disconnects that even well-led projects can fall prey to?

One that could pinpoint where the true risk areas are as the project evolves, and help people take targeted action ahead of time to address those problem spots?

That’s why I got so excited in a recent conversation with well-known IT failure expert Michael Krigsman, CEO of Asuret, a company that sells “technology-backed services”. He gave me a look at their forthcoming product, an impressively slick, well-engineered tool that in my view promises to provide exactly that kind of benefit: identifying where and why a project might fail in terms of some of those people/best practices aspects, before it actually does.

In a nutshell, Asuret facilitates a cross-sectional analysis of project participants and stakeholders as the project proceeds. By aggregating the answers to its carefully crafted questions and constructing a number of easy-overview summary charts, the tool then displays astonishingly insightful visual breakdowns that let you pinpoint major disconnects, such as between stakeholder groups and IT, or between actual project-specific and industry-best practices.

Let’s look at an example of what it shows you.

By mapping aggregated analysis results onto charted dimensions of importance and vulnerability, and slicing these charts by department, you can see at a glance in the chart below that there’s a disconnect: e.g., that executives think that the business case for the project has high vulnerability, while the IT participants view it as having low vulnerability. Early warning sign! And certainly better (more methodical, more aggregated) than relying solely on what you’ve heard Joe grumbling about in the lunchroom.

In the example, the disconnect looms large: look at the darker circle (representing the participants’ responses to questions regarding the project’s business case) and its different location on the two grids shown below:

This all sounds simple in this brief description, perhaps, but taken as a whole, Asuret’s methodical implementation and targeted, useful results are nothing short of groundbreaking. Perhaps other companies provide a similar product, but I don’t know of any. And frankly, I can’t imagine a better-designed or more perfectly suited product as Asuret to address the issues raised in this post.

I’m really looking forward to hearing more as they deploy and hone their product, because I can think of any number of large projects I’ve been on where this approach would have been revealing and useful.

It’s maybe not the ever-hoped-for holy grail, but it promises to be a small piece of it: an extension of our ability to see things before they happen. If Will Rogers had been an IT guy, I think he would have been excited too.

=============

Thank you to Peter Kretzman for permission to reprint this guest blog post. Disclosure: I am CEO of Asuret, however Peter Kretzman is an independent observer with no affiliation whatsoever to Asuret.

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Topics

Michael Krigsman is a recognized authority on the causes and prevention of IT failures.

Disclosure

Michael Krigsman

Michael Krigsman writes and speaks about technology in a manner that most observers consider to be fair and balanced. Michael believes that writing about IT failures, which often have complex causes, creates a unique obligation to be reasonable and accurate in both reporting and analysis.

Michael maintains active personal and professional relationships with enterprise technology buyers, vendors, analyst firms (or individual analysts), consultants, and system integrators. As CEO of Asuret, Michael sells and delivers paid services to members of these same groups.

Vendors regularly reimburse Michael's out-of-pocket travel expenses to attend industry conferences and events. Conference organizers frequently waive entry fees when Michael attends industry events. Michael often speaks at industry conferences and events.

He is a member of the Enterprise Irregulars, a loose association of consultants, investors, industry representatives, analysts, and users of enterprise software.

For daily updates on Michael's activities, follow him on Twitter.

Biography

Michael Krigsman

Michael Krigsman is CEO of Asuret, Inc., a consulting company dedicated to reducing technology implementation failures. Asuret's suite of software tools improve the success rate of enterprise software deployments by quantifying and measuring governance issues that cause most project failures. Michael led the research effort underlying Asuret's model of collective intelligence and its practical application to reducing IT failures in consulting environments. He is a recognized authority on the causes and prevention of IT failures and is frequently quoted in the press on IT project and related CIO issues. He is considered an enterprise software industry "influencer" and provides advice to technology buyers, vendors, and services firms.

Previously, Michael served as CEO of Cambridge Publications, which develops tools and processes for software implementations and related business practice automation projects. Michael has been involved with hundreds of software development projects, for companies ranging from small startups to Fortune 500 organizations. Michael graduated with an M.B.A. from Boston University and a B.A. from Bard College. He is a Board member of the America's Cup Hall of Fame and the Herreshoff Marine Museum in Bristol, RI.

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Human psychology
Roger Ramjet 2nd Apr 2010
is ALWAYS ignored in these assessments. Hand waving and "you know" statements glossing over the differences in personality doom this process as much as any other factor. Management and techies actually think DIFFERENTLY - and associate differently.

No one wants to face this situation because it's "soft science" - and thus subjective. There's no easy-to-use software product that can handle this for you. It takes humans relating to humans to understand the dynamics of the group. It also takes a model for human personality that is useful.

Myers-Briggs is a good model to use for this. The book "Please Understand Me" by Keirsey and Bates is a good starting point. I could write much more on this but I need to log off . . .
0 Votes
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It Failures
David Chassels 31st Mar 2010
Michael
I sent posted this to the original article by Peter Kretzman thought you might be interested?

I think the title "CTO/CIO" highlights the core issue. The CTO is about delivery technologies CIO is about creation and use of business information. They are quite different skill sets.

The business application working with people who create all source information is about business logic. This is where historically the tools have largely failed to deliver as they were componentized and designed to be used by technical people who are often remote from users so the disconnect does indeed loom large. But business logic never really changes - unlike the delivery mechanisms (think of the pony express is now the internet?). With this in mind a UK company Procession set about trying to solve the "IT" problem which would remove the need for programmers to build custom applications reflecting exactly what the business user wanted and supporting constant change.

In 2008 Bill Gates said ?Most code that?s written today is procedural code. And there?s been this holy grail of development forever, which is that you shouldn?t have to write so much code,? Gates said. ?We?re investing very heavily to say that customization of applications, the dream, the quest, we call it, should take a tenth as much code as it takes today.? ?You should be able to do things on a declarative basis,? ?We?re not here yet saying that [a declarative language has] happened and you should write a ton less procedural code, but that's the direction the industry is going,? Gates said. ?And, despite the fact that it?s taken longer than people expected, we really believe in it. It?s something that will change software development?

Gates is right and it is exactly what Procession delivered some10 years earlier
Using such advanced tools is the real answer to closing that disconnect and eliminating business software failure. Good methodologies in project management can reduce risk of failure but no substitute for using such tools as described by Gates and now available.
0 Votes
+ -
trilllions!?
RobertFolkerts 31st Mar 2010
If executives think that a project has a predicted
value of V and cost of C, but the actual value of the
project is V+W and the actual cost of the project C+D,
what would you call the 'waste'? We will assume that
V>C since the project was approved. If C+D > V+W,
then the project costs more than it is worth. So
either the W is negative (meaning the project wasn't
worth as much as anticipated) or there were cost
overruns (D).

Do you say that D is the waste? If so, you don't give
the project any intrinsic value. But then, you never
should have done it.

Do you say that D-W is waste if it is negative, since
that is the variance from expectations.

Or do you say that C+D-V-W is waste if it is negative,
since an omniscient planner would not have started the
project in the first place.

It all seems to depend upon your initial expectations.
0 Votes
+ -
Human psychology
Roger Ramjet 2nd Apr 2010
is ALWAYS ignored in these assessments. Hand waving and "you know" statements glossing over the differences in personality doom this process as much as any other factor. Management and techies actually think DIFFERENTLY - and associate differently.

No one wants to face this situation because it's "soft science" - and thus subjective. There's no easy-to-use software product that can handle this for you. It takes humans relating to humans to understand the dynamics of the group. It also takes a model for human personality that is useful.

Myers-Briggs is a good model to use for this. The book "Please Understand Me" by Keirsey and Bates is a good starting point. I could write much more on this but I need to log off . . .

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