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IT failure: A shameful story

By | March 9, 2010, 5:11pm PST

Summary: A sad story that reminds me why studying IT failures is so important.

Vinnie Mirchandani wrote a blog post that reminded me why studying IT failures is important. Please read this story carefully:

[O]ne of the darkest moments in my career came a few years ago when I was visiting the chief executive of a well-known institution. They were about to start an ERP project but he might as well have been a man headed for the gallows. Head hung low - all he could talk about how much of an overrun he needed to prepare his organization for. And his project had not even started. I felt sick - never felt so un-proud of my chosen profession. I could not give him much hope that his pessimism was unjustified. Even after the experience of hundreds of thousands of ERP and other enterprise projects, they fail at alarmingly high rates.

Is there any other industry where we routinely accept 30-70 percent rates of failure? If you can think of one, please let me know.

[Photo from iStockphoto.]

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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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I Agree Completely
Cardhu 12th Mar 2010
So everyone has one choice - be part of the solution, or remain part of the problem.

And there are proven better ways. We have discussed some of them before.
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Maybe you're looking at it from the wrong angle
AllKnowingAllSeeing Updated - 9th Mar 2010
Is there any other industry where we routinely expect 130-170 percent rates of sucsess?

What I've learned is that too many companies set unrealistic expectations from the start, like they don't fully understand what software is capable, of doing, and what it can't do.

They just assume it can do it all right out of the gate.

It's like taking a trip: the best way to get to the end of the trip is to understand where you want to be in the end. It really won't work that well if you decide halfway thru the trip. You've wasted too much time and money at that point.
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Sales set them up for disaster
nhudd 10th Mar 2010
If what you say is true, "too many companies set
unrealistic expectations from the start, like they
don't fully understand what software is capable,
of doing, and what it can't do," then the
responsibility still falls upon the solution
provider as they are the ones who sold them those
expectations in the first place. Companies don't
just invent those expectations out of nowhere.
0 Votes
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Sales silo symptom!
karen.nash0830@... 10th Mar 2010
If Sales peddled an unrealistic product to the customer, this is a symptom of an organizational silo structure with poor cross-functional flow of information. This is a critical flaw that affects the corporate, business, and operational levels of the business. If not corrected, the organization will not survive.
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It might be just institutional
mrdelurk@... 10th Mar 2010
I know a multi-billion $ company (not my small one, luckily) which
tries to get *every* business, *every* bid, because it makes them look
good on paper to shareholders, or whomever... or perhaps the
salespeople get fat bonuses for any contract they bring in, I'm not
sure what their hangup is.

So they do totally mindless things, like, bid $$$,$$$ projects for $1,
and so on. Then once the guys on the ground are faced with the
reality how they can't do a $$$,$$$ project from $1, it becomes a
"field problem". Everything is a "field problem". They could as well be
called The Field Problem Co. I've been watching them for 3 years
doing this, they are still one of the biggest names in the business. It
totally boggles my mind how they manage to stay in business
behaving so, but somehow they do. So as far as unrealistic sales... it
may be some kind of new corporate thing, I don't know.
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Agree It is Institutional
Zippidy Doo Dah 10th Mar 2010
As a Network Engineer for a major IT provider, I can tell you that it certainly is institutional. mrdelurk is dead on. Instead of under promising and over-delivering, I constantly see my organization do the exact opposite. Sales say what they need to to make the sale, and project managers and lines of business are clueless as to how to make it happen. Not their faults, just everyone using archaic swim lanes and no communication between those who sell it and those who do it.
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Lab Research
s-f@... 10th Mar 2010
This is the type of failure rate (if not greater) you would expect doing experimental work in a lab. Most experiments are failures. This is acceptable because we are learning on the fly, and we learn as much from failure as from success.

I want to say something like 9 out of 10 small businesses fail with in 5 years. These are all just big experiments.
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not lab research
vmirchan 10th Mar 2010
most of these are routine projects that vendor and SI proposals boast they have done hundreds of times +/-- 15%. Should be a science not an art or a lab project
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RE: IT failure: A shameful story
gwhite93101 10th Mar 2010
Where's the story? Is it seriously just that blurb you took from
someone else's blog? Is that the shameful part of this story?
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RE: IT failure: A shameful story
knudson 10th Mar 2010
After 40 years in IT I agree, I've seen many projects fail, sometimes (many) they should fail, or not have been started.
Feature creep, grandiose plans, midstreem changes.
2 LARGE projects I worked on that were very successful had almost none of those, and with managements support. We had a baseline foundation to build and that was it. While we were building this the BAs were out looking at what we would do next, but until WE blessed the core NO changes were allowed.
Then IT workers w/o understanding of the business, w/o understanding ALL of the technology they were using (great programmers that don't understand the network and the project fails because it's too slow, helped rescue on of these).
Then the Ego of IT workers and managements use of the cheapest labor and/or we're behind schedule throw more bodies at it.
One of those two projects the team actually moved off site so we could not even be bothered by business making request.
One we had each member of the team spend time as a user, sitting at terminals(yes it was a while ago) doing the work of the people that would use the system. They understood their goals much better and were able to conversion with the users on their level.
AND in both cases management that looked at the business requests and decided which made sense, good ROI and which were 'WANTS vs. NEEDS'.
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No sacred cows
Peter Kretzman 10th Mar 2010
Yes, the rate of IT failure is utterly shameful. And yes, it must be
addressed, and I think that this blog and others, including mine, quite
consistently delve into the myriad causes and potential initiatives that
will lessen the likelihood of failure.

But no, I don't think the failure rate is all that unusual compared to
other industries that create incredibly complex products and where
user acceptance is a major part of determining actual success. I've seen
skyscrapers erected in my city that came in late, over budget, and then
had enormous occupancy problems -- and that's in a long-understood
industry that isn't evolving nearly as rapidly as information technology.

And can you imagine a skyscraper being constructed where the head
customer (read: CEO) declares that the stated timeline is unacceptable
and it needs to take no longer than a month to build, with all parts of
scope left intact? Or where he says to ignore the building code,
because it's just a lot of bureaucracy? Or where he decides halfway
through that the skyscraper needs to be twenty stories taller than
originally designed? Or that there's no need to plan the move-in,
because people can just carry their stuff over to the new building?

I exaggerate to make my point, of course, but only a little: I've
encountered exactly such cases with major IT projects.

In short, IT projects will probably never be cut-and-dry -- or if they
are, then they're probably not innovative enough to make a difference.
Blame goes all around, but blaming is old-school thinking. I say we
stop obsessing about who's to blame, and instead focus our attention,
with no sacred cows, on specific tactical and strategic initiatives that
will mitigate the multiple root causes that have been identified for
years now.
0 Votes
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I Agree Completely
Cardhu 12th Mar 2010
So everyone has one choice - be part of the solution, or remain part of the problem.

And there are proven better ways. We have discussed some of them before.
0 Votes
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Baseball?
pfyearwood 10th Mar 2010
I don't know if this is considered an industry but what about baseball? A batter can fail 60+% of the time and still make huge amounts of money each year. Anything over .300 is Hall of Fame material.

Paul
0 Votes
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In its first 50 years, any product - grand pianos, cars, you
name it - sucked utterly. It was only after an entire
generation (or more) of people wasted a lot of time of their
lives (often involuntarily) making those more reliable and
user-friendlier, that they became the products we take
granted today.

Our generation is the computer-afflicted one. We are the
ones saddled with the first generation of electronic
computers. We are the ones losing untold hours to stupid
design choices that will hopefully gradually vanish. With
time and work, computers will gradually become self-
healing, CPU changes won't obsolete all the software one
already acquired, copy protection will become a thing of
the past with public utility-like software distribution
methods, etc.

Whether you admit or not, your life is now wasted in
horrendous amounts to bad computer design. Example?
Sure. As soon as I take a SCSI card in my hand, I know it
won't work from the first. Or the second. Or the fifth.
Maybe I'll get everything right from the tenth try. Why do I
even need SCSI? Because no affordable tape backup device
sports FireWire, yet. Another dumb computer design
choice. I could go on forever with these. The gist of all of
this: ours is the computer-afflicted generation. Hopefully
our descendants will have it easier.
0 Votes
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RE: IT failure: A shameful story
John73 10th Mar 2010
New airplane development. Look at Airbus, delayed by years and several models canceled in development. Boeing has the same issues.
0 Votes
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overreaching
vmirchan 10th Mar 2010
these are run of the mill implementation projects that the consultants brag in their proposals they have done hundreds of times - not complex aviation or other ugly computer design challenges...
0 Votes
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RE: IT failure: A shameful story
maxthegold 10th Mar 2010
Your final question is easy to answer, Political promises.
0 Votes
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RE: IT failure: A shameful story
razmanmz@... 10th Mar 2010
I hardly encounter project failures that are due to technical reasons. Most of us know the project failed because of us human. Both vendor and customer are to be blamed for this issue. As long as humans exist, politics exist, self interest exists, greed exists hence project keeps failing.
0 Votes
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Please explain
shim_marom@... 11th Mar 2010
Please explain where you got the 30-70 ratio from? if you are using the Standish Chaos report as a reference you're using an unreliable source.

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