technology project failure - ukzn extended learning (pty) ltd
TRANSCRIPT
Technology Project
Failure:
How Strategic Projects
Affect Organisational
Performance
© B2HA ICT Advisory (Pty) Ltd
Facilitated by: Marlon Moodley
MD, B2HA ICT Advisory (Pty) Ltd
©
Brief Outline for the Webinar
Introduction
Topic outline & discussion
Governance imperatives &
some guidance
©
Introduction – B2HA
Across a
wide range
of industries
Unique to
the work
we’ve done
Effective solutions
from key
experience and
perspective
Back 2 Health
Africa
Healthy Board =
Healthy
Company
Inspired by ‘The
Lion King’ … a story of
governance
Infinite
Possibilities
©
Introduction – Marlon Moodley
©
Webinar Topic
Technology Project Failure:
How Strategic Projects Affect Organisational
Performance
The promise and peril of technology projects
Where does it go wrong?
How to address the problem areas
Some guidance
Experience Perspective Solution
The Promise &
Peril with
Technology
Projects
©
The Foregone Conclusion About Technology
“The benefits of technology
are real …
but not inevitable.” Tom Davenport
©
The Promise …
Operational efficiencies
Cost reductions
Better quality of information to decision-makers
Improved customer service
Improved availability & reliability of systems
Integration across the business
Etc.
©
Failure on all Large Technology Projects
Source: BCG & Standish Group, CHAOS Report
60% to 75% of projects are
either stopped
or
the project
persists and end
up with
incomplete
functionality
(ie. implemented
and works badly)
90%
failure rate on
first time
implementation
of the project
©
Failure on all Large Technology Projects
60% to 75% of projects are
either stopped
or
the project
persists and end
up with
incomplete
functionality
(ie. implemented
and works badly)
90%
failure rate on
first time
implementation
of the project
Abandoned or
under-deliver
against
expectations Outright failure
on the first
attempt
©
Failure on all Large Technology Projects
Your approach
will determine
the likelihood of
success
Often it entails a
sensible
approach …
… and a proper
understanding of
what’s being done
If you want
to win a
horse race –
first you must
invest in a
good horse
By doing it
cheaply and
rushing the work
you get what
you pay for …
©
So What Does ‘Cheap’ Mean?
Cutting Costs
(Lowest Bidder) Cutting Corners
(Timelines,
testing, etc.)
Investing in
the wrong
system Poor buy-in and
communication
(Poor provision
for soft skills)
Poor quality
implementation
partners
Doing the
project for the
wrong reason
(A bad start)
©
Notable Pear-Shaped projects
A few examples of failures or problematic
rollouts:
o Woolworths – Australia (in-house system to
SAP)
o Harmony Gold (CA to Oracle EBS)
o Revlon (Oracle & MS-Dynamics AX to SAP)
o MG-Rover (Unipart system to Caterpillar
Logistics’ SAP system)
o BMW (Supply chain via SAP)
©
Notable Pear-Shaped projects
Experience Perspective Solution
Where Does It
Go Wrong?
©
Systems Failures – ‘People’ Issues
Most of the problems are generally “People” issues:
o Poor leadership & commitment from the top
o Lack of active participation from key role players
and lack of ownership by the organisation
o Poor planning & design
o Poor communications and training within the
organisation
o Rushing the implementation
©
Systems Failures – ‘People’ Issues
Most of the problems are generally “People” issues:
o Poor quality implementation partner
o Seeing the system as ‘an IT system’ and not as
a business tool
o Ineffective governance mechanisms – project
steering committees lose momentum or
problematic from the start
o Scope creep when key business areas join the
project late of when new functionality is added
on that was not agreed upfront
©
Buying The System Then Changing It
Business Unit / Area / Region
Business Unit / Area / Region
Process 1 – e.g. Financial
Process 2 – e.g. Supply Chain
Process 3 – e.g. Human Capital
Process 1 – e.g. Financial
Process 2 – e.g. Supply Chain
Process 3 – e.g. Human Capital
Customisation creates chaos
(avoid the “C” word!)
Standardisation of processes
(ie. design processes to fit the
system
Experience Perspective Solution
A Closer
Look At The
Problems
©
Problematic Approach – Mindset
Worrying language to look out for:
“We’ve seen the system we want
..”
“It does everything we require …”
“It’s easy to customise to our
business …”
©
Problematic Approach – Worrying Language
“IT is too technical – the systems
people must get it done…”
“User training must be kept to a
minimum … we don’t have time
or budget …”
©
Problematic Approach – Worrying Language
“We used System X at a previous
company. It’s the right one to use
here too!”
“We’ve chosen the system to go
with! Get everyone on-board!”
©
Problematic Approach
Inexperienced Project Teams
Lack of Engagement from Key
Stakeholders
Requirements Unclear or Too Complex
Relative to the Business’s Needs
©
Problematic Approach
Insufficient Attention to Major Risks
Insufficient Attention to Change
Management and training
o A new technology will introduce
change to your people and external
customers
o Many won’t be ready for it and
experience frustration when it
happens
©
Problematic Approach
Poor Project Planning and Project
Management
Insufficient Testing prior to going live
Experience Perspective Solution
Some
Guidance:
Prevention is
Better Than
Cure
©
A “Prevention” Mindset
Bear in mind: For large systems (e.g. ERP)
failure rates still as high as 82%!
“You don’t get bad systems anymore –
just poor implementations”
With any good implementation the hard
work is done upfront
Prevention is not just cost-effective it’s far
less painful
©
Do The Hard Yards Upfront
It’s better to go slow and plan and design well:
Rushing creates urgency but causes
problem
The organisation must drive the agenda –
not the vendors
This is not an IT system – it is a business tool that
integrates the organisation better
©
Do The Hard Yards Upfront
Manage expectations:
Be realistic about timelines –
Don’t give optimistic outlooks to appease key
stakeholders (board members, etc.)
Be upfront about all key issues: Timelines, costs,
potential delays, etc.
Rule of thumb: Triple the original timeline and
double the budget figure to arrive at the realistic
cost of the system
©
Customisation – Root Cause
Avoid customisation as far a possible!
Don’t tailor the system for your
business rather tailor your processes
to extract maximum benefit from
the system;
Most widely used business rules are
built in anyway;
Most reports are built in (2000+
reports available) and you can use
in-built report builders if required …
©
Systems Development Lifecycles (SDLC)
Don’t allow systems to
atrophy before you
finally change to new
technology
Stay ahead of the
curve and have
crucial conversations
well in advance
Talk to your vendors
early!
©
SDLC – Ongoing Priorities and Big Picture Mindset
©
SDLC & Project Methodology
©
Technology changes
constantly
Failure occurs when
neglect sets in
If not done properly – will sink a project!
“Soft” Issues: Of all areas the
“people” issues of Change
Management, Training and
Communication are
most neglected
Short-cuts: Testing is usually neglected or under-resourced due to tight deadlines and/or budgetary
constraints and often ends up affecting system rollout and
project costs
Insist that this
be reviewed!
Insist that this be reviewed!
Experience Perspective Solution
Thank
You
Q & A
Contact us
Venouasha Bahadur
Tel : +27 31 260 8870
Cell : +27 81 422 3369
Email : [email protected]
www.ukznextendedlearning.com
Sindiswa Ndlovu
Tel : +27 31 260 3796
Cell : +27 64 961 5611
Email : [email protected]
Experience Perspective Solution
Contact B2HA:
+27 11 084 1100
www.b2ha.co.za
[email protected] | +27 (0) 11 084 1100
| Ground Floor, 35 Ferguson Road, Illovo, Sandton,
Johannesburg | www.b2ha.co.za
© B2HA ICT Advisory (Pty) Ltd
Sindiswa Ndlovu
Tel : +27 31 260 3796
Cell : +27 64 961 5611
Email : [email protected]
Venouasha Bahadur
Tel : +27 31 260 8870
Cell : +27 81 422 3369
Email : [email protected]
www.ukznextendedlearning.com