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2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business
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2009-02-18 - IASTED Innsbruck 2009 - Factors in project management influencing repeat business

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Overview of the softer skills affecting customer retention with large software development projects.

Overview of the softer skills affecting customer retention with large software development projects.

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  • Capability Maturity Modeling 27 juni 2000 Masterclass ICT Met name de laatste was een verrassing: medewerkers associeerden de kwaliteit van de spelling (iets dat ze wel konden meten) met de inhoudelijke kwaliteit van het document!
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    • 1. Factors in project management influencing repeat business IASTED SE 2009, Innsbruck Jaap van Ekris, Senior Consultant [email_address]
    • 2. The current state of the industry
      • Only 29% of all software development projects deliver what is promissed on time, within budget
      • Around 72% of all customers consider abandoning current IT suppliers due to dissatisfaction
      • Customers are cutting costs, software development projects are easy targets
      • How to survive as a software company ?
      • How to retain customers ?
    • 3. Retaining customers is a hard job
    • 4. Main focus of project leaders
    • 5. The right product on time on budget isn’t enough
      • Product is mediocre
      • Product is good (for fastfood)
      • Employees listen and verify order
      • Employees hardly speak local language
      • Pay upon delivery
      • Pay in advance
      • Employees interact and are friendly to customers
      • Customers structurally ignored due to (highly optimized) production process
      • Production is a front-office process, in sight of customer
      • Production is a back-office process, completely obfuscated
    • 6. What composes customer satisfaction Delivery Quality Product Quality Functionality
    • 7. Delivery quality?
      • Describes how the product was attained, instead of what was attained
      • Describes the “pain” or “investement” of running the product from the customers side
      • Contains a lot of “softer” factors, the human interactions during the project
      • Delivery Quality is an important factor for turning a
      • “ not dissatisfied” customer into a returning one
    • 8. What is delivery quality?
      • Doing what you get paid for is not enough (Tracey and Wiersma)
      • A lot of human factors (Paulk)
      • Motivated personnel (Heskett)
      • Surprising customers (Kotter)
      • Delighting customers (Berry)
      • Providing good service besides a perfect product (Kotler)
      • Exceeding in the supporting processes (Porter)
    • 9. A more manageable definition...
      • SERVQUAL, a model for delivery quality originating from the banking industry
      • SERVQUAL defines delivery quality as:
        • Reliability , The supplier keeps his promises;
        • Empathy , The supplier understands the industry, actively thinks about the solution for the specific customer;
        • Responsiveness , The supplier responds quickly to questions and change requests;
        • Knowledgeable acting , The supplier has a good reputation and shows its technical experience;
        • Tangibles , documents and materials look good.
      • Some published applications in the IT industry, but these were controversial
    • 10. Questions on using SERVQUAL in IT
      • Is SERVQUAL sound when it is used in the software development industry?
      • Is SERVQUAL complete when it is used in the software development industry?
    • 11. Case: A technically an exemplary project
      • Replacement of a highly safety critical system
      • The proces:
        • ISO9001 certified company
        • Proven reliability of the total system of 10 -4 , realized by using IEC61508 at a SIL-4 level
        • Prince2 ® , focused on frequent and open communication
      • Results:
        • Budget: fixed price
        • Delivery date: 2 weeks early
        • Functionality: proven 100% complete
        • Product quality: 100% according expectations
    • 12. Method of investigation
      • All teammembers at the customer cooperated in the investigation
      • Investigation consisted out of several steps
        • Initial structured interview covering functionality, product quality and delivery quality, focussing on need, expectations and percpetion
        • The most positive and most negative experience
        • Overall grade of the suppliers effort
    • 13. The results
      • NONE of the respondents would automatically buy from the supplier again
      • Some respondents even indicated to explicitly select a competitor when given a choice!
      • Respondents scored the suppliers’ efforts:
        • Average of 7,5 (out of 10)
        • Highest score 8
        • Lowest is a 6
      • These marks put the customer in the “zone of indifference”, as expected from the explicit statements about rebuy behavior
    • 14. Critical incidents identified
      • Not being involved with the customer
        • Not checking how the context of the system really works
        • Not much technical interaction between customer and supplier
        • No interest in seeing the old system really work (happens only twice a year)
      • Abundance of typo’s in critical design documents
        • Presence attributes to the feeling of a less than perfect review process
        • Not solving the typo’s when identified gave subjects the feeling they were not taken seriously
      • Resistance to design changes
        • Approach to risk management was contrary to customers approach
        • Taking technical decisions that are contrary to the “safety first” culture
    • 15. Important factors for satisfaction Area’s most contributing to respondents satisfaction Importance for satisfaction 1 st 2 nd 3 rd 4 th 5 th 6 th System functionality 4 1 1 Accuracy of system 1 2 1 Reliability of system 1 2 2 Reliability of supplier 1 1 Empathy of the supplier 1 1 Interoperability of the system 2 1 Responsiveness of the supplier 1 1 Security of the system 1 Tangibles 2 Response speed of the system 1
    • 16. Strenghts and weakenesses
      • SERVQUAL factors mentioned as a strong point of the supplier:
        • Reliability
        • Empathic behavior
        • Responsiveness
        • Tangibles
      • SERVQUAL factors mentioned as a weak point of the supplier:
        • Responsiveness
        • Empathic behavior
        • Knowledgeable acting
      • Conclusion : SERVQUAL provides a sound decomposition of delivery quality for the software development industry
    • 17. Critical incident attribution Mentioned in the CIT, but not attributed to any specific factor F Mentioned in the CIT, but not attributed to any specific factor E Attributed to Empathy D Attributed to Reliability C Mentioned in the interview, but not attributed to any specific factor B Mentioned in the CIT, but not attributed to any specific factor A Attribution Respondent Critical Incident : Resistance to design changes
    • 18. A new factor: Partnership
      • Distributed attribution and no attribution indicates at least one factor is missing
      • Several interviewed indicated they missed the trust in the decission making at the supplier: in the eyes of the customer, the supplier missed the “safety first philosophy”
      • Based on the interviews, we introduce Partnership: the supplier aims at constantly acting in the best interest of the customer, instead of merely fulfilling the short term contractual agreements.
      • Conclusion : SERVQUAL is not complete when used in the software development sector, it needs at least one extra factor
    • 19. Conclusions
      • Just a perfect product on time within budget does not help you retain your customers, it will only save you time in court
      • To retain customers, you have to:
        • Deliver what the customer needs, on time within budget
        • perform above expectations on more “softer” areas of project management:
          • Reliability/meeting agreements
          • Empathic behavior
          • Responsiveness
          • Knowledgeable acting
          • Visual appearance
          • Partnership
      • Question remains if SERVQUAL is complete now

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