Mitigating the Risk Factors of IT Project Failure. Vasant Raval and Rajesh Sharma April 26, 2017 Fifth Annual Workshop ISACA Omaha Chapter
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1 Mitigating the Risk Factors of IT Project Failure Vasant Raval and Rajesh Sharma April 26, 2017 Fifth Annual Workshop ISACA Omaha Chapter
2 Authors Vasant Raval, DBA, CISA, ACMA Professor of accountancy at Creighton University (Omaha, Nebraska, USA). He is the coauthor of two books on information systems and security, his areas of teaching and research interest include information security and corporate governance. Rajesh Sharma, Ph.D., CMMI Lead Appraiser, ITIL-F, Six Sigma Black Belt Chair, Quality Management Office (QMO) at Software Engineering Services. He has more than 19 years of experience establishing and managing a project management office (PMO), QMO, metrics program, and lead for independent verification and validation (IV&V) projects. As CMMI Lead Appraiser, he has performed appraisals, quality audits, process improvement and IV&V assessments. 2
3 Agenda Project Management (PM) Brief History PM Basics IT Project Success Rate Case Studies Causes of Project Failure Mitigating Risks Independent Oversight Summary Bibliography Questions 3
4 "Management is, above all, a practice where art, science, and craft meet. Henry Mintzberg 4
5 Project Management: History Mankind has been managing projects 6000 years or so. 5
6 Project Management: Basics Plan is developed and followed Team members commit to follow the plan Team members will execute the project following plan Deviations will be identified and corrected Project success is demonstrated by adherence to scope, budget, and schedule 6
7 PMI: Definitions Project A temporary endeavor undertaken to create a unique product, service or result Project Success PMBOK Guide- Fifth Edition Completion of the project within the triple constraints of time, cost and scope PMBOK Guide- Fifth Edition 7
8 Project Management: Triple Constraint 8
9 Project Management: Dimensions Time Management (schedule) Cost Management (budget) Scope Management Quality Human Resources Risks Procurement (contractors) Integration Communication Stakeholder Management 9
10 IT Project Success Rate* 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Failed Challenged Successful Successful 29% 35% 32% 37% 18% 19% Challenged 53% 46% 44% 42% 43% 52% Failed 18% 19% 24% 21% 39% 29% * The Standish Group International, Chaos Report
11 Anatomy of IT Projects Three subsystems Process (standard processes, planning, resources, deliverables) Context (system to be served) Content (system that serves) 11
12 "It's fine to celebrate success but it is more important to heed the lessons of failure." Bill Gates 12
13 Case A: In-effective PMO Observations Project planning and delivery subsystem slippage PMO failed to report accurate progress Causes Absence of mature and disciplined processes Absence of ownership and authority Differences in project management approaches Recommendations Clearly define roles and responsibilities Open participation Establish guidelines for decision-making 13
14 Case B: Delayed Decision- Making Observations PMO s and project managers marginalized Leadership decisions communicated using third party Lack of synchronization between vendor negotiations and project approval process Causes Disregard for agreed processes Input from team not valued/considered by leadership Governance structure narrowly defined Recommendations Establish change control board Establish contract change process Formalize governance structure 14
15 Case C: Immature Risk Management Observations Incomplete requirement definition and comprehension Missed commitments Causes Business requirements were lacking clarity, common understanding, completeness and quality Requirements Traceability poor Stakeholders do not understand their commitments Recommendations Establish formal requirements development and approval process Establish mature requirements management process Refine peer- review process 15
16 Causes of Project Failure Lack of senior management support or commitment Requirements and scope not formalized PM unable to effectively lead team Project communication is poor Wrong stakeholders engaged for requirements Absence of formal project plan and schedule Undefined project success criteria Team commitment is weak Key stakeholders are passive participants Team members do not have required knowledge/skills Resources constraints Absence of formal project monitoring and control 16
17 "I have not failed. I've just found 10,000 ways that won't work." Thomas A. Edison 17
18 Mitigating Risks: Outside the Box Definitions Project Management Project A collection of sustainable business value scheduled for realization Project Management 2.0 Definition of Project Success Achieving the desired business value within the bounds of competing constraints Project Management
19 Project Management: Triple Constraint 19
20 Project Management: Triple Constraint Traditional New/Out-of- the Box 20
21 Project Management: Dimensions Time Management (schedule) Cost Management (budget) Scope Management Quality Human Resources Risks Procurement (contractors) Integration Communication Stakeholder Management 21
22 Independent Oversight Internal Expanded and independent quality assurance External IT audits, appraisals, assessments 22
23 Summary Project management Standardized and mature processes and methodologies Team effort, leverage team members Look for warning signs and take corrective actions Combination of science and art Focus on business value 23
24 Trying to manage a project without project management is like trying to play a football game without a game plan. K. Tate 24
25 Bibliography Critical failure factors in information system projects; K.T. Yeo, International Journal of Project Management 20 (2002) Early Warning Signs in Complex Projects; Ole Jenny Klakegg, PhD, Terry Williams, PhD, Derek Walker, PhD, Bjorn, Andersen, PhD, Ole Morten Magnussen, PhD, PMI, Dec 2010 Towards Project Management 2.0; Raymond Levitt, Taylor & Francis, September 2011 Information Risks: Whose Business Are They?; IT Governance Institute, USA, 2005, p. 9 The Chaos Report; The Standish Group, 2015 Project Management Institute (PMI) 25
26 More Information Vasant Raval Rajesh Sharma 26
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