Predictive project analytics: Will your project be successful?
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Predictive project analytics: Will your project be successful?

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We may not often ask ourselves whether our project will succeed for fear of the answer. But 63 percent of projects either fail or struggle to meet their budget or completion objectives. The more ...

We may not often ask ourselves whether our project will succeed for fear of the answer. But 63 percent of projects either fail or struggle to meet their budget or completion objectives. The more complex the project, the more likely it is to fail. A recent, high-profile example of this was the roll-out of the U.S. government’s healthcare.gov program. While the government acted quickly to fix major problems with the website, the glitch led many Americans to delay their decision to join the program and turned many others off altogether. Several factors contributed to the website’s failure, including incorrectly forecasting the performance requirements, not giving sufficient time for appropriate testing and underestimating the complexity of the project. The same shortcomings doom other projects, too.

To avoid making similar mistakes, leading organizations need to identify in advance which projects are more likely to end badly and how to give them the best shot at success. Predictive project analytics, or PPA, is a new approach that leverages advanced analytics to evaluate a given project’s likelihood of success. Read how it works and how it can help your organization.

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Predictive project analytics: Will your project be successful? Presentation Transcript

  • 1. Predictive Project Analytics Will your project be successful?
  • 2. Corporate executives work hard to effectively manage major capital or IT projects… Yet despite their inherent strategic importance, these very projects frequently experience cost overruns, run late or fail entirely…
  • 3. Research shows that More than of companies have experienced project failure. And that’s not all… 60%
  • 4. of projects were cancelled prior to being delivered or were never used of projects were either challenged or failed 21% 63%
  • 5. of projects were over budget were delivered late 46% 71%
  • 6. And the more complex the project, the greater the likelihood of failure Projects between $1 million and $3 million have a chance of success, 34% while those that are $10+ million have just a likelihood of success. 7%
  • 7. The reasons for project failure are diverse • Poorly defined requirements • Lack of access to specialist resources • Competing priorities • Constant pressure to deliver more quickly at lower cost
  • 8. And the consequences of failure can be severe • Significant unforeseen costs • Operational failures • Regulatory non-compliance with penalties • Customer dissatisfaction • Loss of competitive advantage or market share When a complex project loses, the business loses.
  • 9. Given the potential severity of these repercussions, leading organizations have searched for ways to keep their projects on track. And virtually no capabilities existed to help organizations identify in advance which projects will fail and how to get them back on track…
  • 10. Until now.
  • 11. Predictive Project Analytics (PPA) is a project risk assessment methodology that provides foresight on potential project risks and where immediate fixes for in-flight projects and programs (at any stage of the lifecycle) should be implemented to mitigate risk.
  • 12. Benefits Compares current performance levels against predicted required levels. Helps pinpoint specific gaps and missing controls in 17 different areas, such as budgeting, scheduling, risk management and team capabilities.
  • 13. Inherent risk and complexity assessment Interviews and structured document review Predictive analytic project review Analysis and synthesis Reporting 1 2 3 4 5 Here’s how it works Our five-stage predictive analytic methodology lets us assess your project team capabilities, predict your project’s required maturity levels and clearly identify ways to manage project risk and control costs.
  • 14. Inherent risk and complexity assessment We begin by performing a detailed assessment of your project’s risk and complexity to determine the level of controls and governance you need to have in place to deliver a successful project. Inherent risk and complexity assessment Interviews and structured document review Predictive analytic project review Analysis and synthesis Reporting 1 2 3 4 5
  • 15. Interviews and structured document review This assessment is augmented by a series of interviews with key project team members and stakeholders, and further bolstered by a review of core project artefacts, such as plans, reports and logs. Inherent risk and complexity assessment Interviews and structured document review Predictive analytic project review Analysis and synthesis Reporting 1 2 3 4 5
  • 16. Next, we enter all this background information into our predictive project analytic capability, which produces a correlation between project complexity, controls and success using a database of thousands of projects, and then we incorporate an effective assessment of softer factors such as leadership and decision-making. Predictive analytic project review Inherent risk and complexity assessment Interviews and structured document review Predictive analytic project review Analysis and synthesis Reporting 1 2 3 4 5
  • 17. Analysis and synthesis By aggregating the outputs from our structured, experiential review and our predictive analytic capability, we gain a broad, deep view of your key unmitigated project risks and identify specific control/governance improvements that can help you achieve a successful outcome. Inherent risk and complexity assessment Interviews and structured document review Predictive analytic project review Analysis and synthesis Reporting 1 2 3 4 5
  • 18. Reporting Finally, you receive the findings in the format of your choice. Our objective is to avoid clichéd project commentary. Instead, our reports provide practical recommendations and prioritized actions that allow you to immediately address or avert specific identified project risks. Use ongoing reporting and dashboards to help manage your project throughout its lifecycle Inherent risk and complexity assessment Interviews and structured document review Predictive analytic project review Analysis and synthesis Reporting 1 2 3 4 5
  • 19. Rein in project risk at any stage of the project lifecycle No matter when you leverage predictive project analytics, you position your organization to: • Gain an objective overview of risks and identify how to close the gaps • Enhance project outcomes by prioritizing actions most likely to help you succeed • Minimize financial, productivity and reputation- based losses by improving project oversight • Drive greater organizational efficiency
  • 20. The next level of project risk management The PPA database provides objective data, not opinion. It’s a benchmarked process that can clearly indicate where your project is missing controls and where it might go off the rails. If you have a critical project in process or in the planning stage, Deloitte’s Predictive Project Analytics capability can help your organization achieve success by objectively determining and mitigating the agents of failure.
  • 21. Read the full report here. Gabriel Rodriguez Global Leader, Partner Angela Moch Senior Manager To learn more about Predictive Project Analytics, contact us at deloitteanalytics@deloitte.ca
  • 22. www.deloitte.ca Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © Deloitte LLP and affiliated entities. Designed and produced by the Deloitte Design Studio, Canada. 14-0097T