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Project Success/Failure

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Presentation to ISACA Governance Event 11 Sept 2009 on factors affecting Project Success/Failure referencing ISO38500, Project Management, Standish and the CHAOS Report, also Sauer et all, Cadbury and …

Presentation to ISACA Governance Event 11 Sept 2009 on factors affecting Project Success/Failure referencing ISO38500, Project Management, Standish and the CHAOS Report, also Sauer et all, Cadbury and drawing on Peter Salmon's varied and extnesive personal experience

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  • Peter Salmon - the principal of Manning Charles & Associates Ltd. A senior executive with strong operational management experience, Peter’s past experience includes leading the Systems Integration practice for a major vendor in the South Pacific as well heading the Project Quality Office for the same company in the region.
  • Insert the Project Lifecycle diagram
  • Man on Moon, RWC bid, relate purchase of vegetables and why it is a project and how we all do projects regularly, structures, plan shopping list and comply with the governance model, illustrate how everyday tasks can fit the model and causes of success failureUse another definition from PMBOKKeywords in the definition are: temporary & unique outcome.* Temporary – It has definite beginning and end time. * Unique Product, Services or Results – One other important inherent characteristic of Projects is progressive elaboration. Progressive elaboration means developing in steps, and continuing by increments.
  • People/leadership, thin line, resource, , unfortunately it would appear that in the IT world failure is more common than successGartner studies suggest that 75% of all US IT projects are considered to be failures by those responsible for initiating them. Standish Group 2009 report, US based, found that 31% of projects were cancelled outright and that the performance of 53% of the all projects was so worrying that they were challenged.Some questions that need to be answered in assessing whether a project is fundamentally a success or failure?Has the project satisfied the business requirements of the primary stakeholders?Were the deliverables produced on time and within budget (or as amended by agreed change control)?Do the business owners perceive the project to be successful?Has the project delivered the business value promised in the original case for doing it
  • Increasingly controversial Chaos Report
  • Sauer gives a completely different picture. Sauer used input from UK based PMs, Standish draws on US based executive perceptionsNevertheless it is not a pretty picture and why is it still happening
  • Amongst other matters these are some of the factors that impact on success or failureTo my mind the success factors tend to suggest that governance has an impactPoor suucees rate, need for an effective framework
  • The need for an overall frameworkThe foregoing fits within the ISO 38500 model.There is a need/pressureProjects along with operations fit within process, the whole requiring Principle 1: ResponsibilityIndividuals and groups within the organization understand and accept theirresponsibilities in respect of both supply of, and demand for IT. Those withresponsibility for actions also have the authority to perform those actions.Principle 2: StrategyThe organization’s business strategy takes into account the current and futurecapabilities of IT; the strategic plans for IT satisfy the current and ongoingneeds of the organization’s business strategy.Principle 3: AcquisitionIT acquisitions are made for valid reasons, on the basis of appropriate andongoing analysis, with clear and transparent decision making. There isappropriate balance between benefits, opportunities, costs, and risks, in boththe short term and the long term.Principle 4: PerformanceIT is fit for purpose in supporting the organization, providing the services, levelsof service and service quality required to meet current and future businessrequirements.Principle 5: ConformanceIT complies with all mandatory legislation and regulations. Policies andpractices are clearly defined, implemented and enforced.Principle 6: Human BehaviourIT policies, practices and decisions demonstrate respect for Human Behaviour,including the current and evolving needs of all the ‘people in the process’.Evaluate Direct MonitorNo framework perfect, but my experience suggests that it is likely to assist project/programme success and thus business success
  • The 6 principles are clear and when we look briefly at them we begin to see how when applied they will impact the probability of success , especially in the Planning & Initiation phases.
  • Underlying theme of values, people capability and experise in each of the principlesNot based on legal presciprion or one area, but all embracing
  • Demonstrates how the framework can be used to provide guidance and how it fits.Perhaps not perfect mapping Can map principles mapped against key factors noted earlierAbsence of such structure will increase likelihood of failure Sauer re leadership increases risk and probablity of failureSauer re lack of alignment
  • Research supports observations I have made over many years.
  • Finally let us turn to the Initiation and planning stagesThese common issues reflect situation arising when Governance is not present for one reason or anotherWhen we look at the Initiation and Planning Stages what do we seeScope leads to changesPM changesSo how will apply a governance framework assistEvidence Sauer + ????Val IT
  • Finally let us turn to the Initiation and planning stagesThese common issues reflect situation arising when Governance is not present for one reason or anotherWhen we look at the Initiation and Planning Stages what do we seeScope leads to changesPM changesSo how will apply a governance framework assistEvidence Sauer + ????Val IT
  • Transcript

    • 1. PROJECTSKey Issues in Success/FailureISACA Wellington Chapter Sept 11, 2009
      Peter Salmon, C.A.
      Principal - Manning Charles & Associates Ltd.
    • 2. Important Notice – please make sure you read
      This notice applies to all materials and information available in this presentation.
      All information and materials are provided on an 'as is' basis and are not intended in any way to be comprehensive.
      Any reader making use of this material does so at his/her own risk and readers are advised to take independent professional advice before acting on any information or materials found here.
      Neither Peter Salmon nor Manning Charles & Associates Limited accepts any responsibility for, nor do they give any representations or warranties, express or implied, that any of the information and materials contained in this document and presentation are complete, accurate or free from errors or omissions.
      2
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 3. About this session
      We will consider:
      project success rates
      key issues associated with the success or failure of projects.
      the impact of governance as a means of enhancing prospects of success.
      in this regard the Initiation and Planning stages of the Project Lifecycle
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
      3
    • 4. Nature of Projects
      A project is a temporary endeavor undertaken to create a unique product, service, or result
      Source:- PMBOK
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
      4
    • 5. Project outcomes vary
      Success
      Failure
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
      5
      Source :- Getty Images / Stu Forster
      Source:- Ian Mackley
      DominionPost
    • 6. Success is rare?
      6
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 7. Or is it?
      7
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
    • 8. Some key defining factors
      Successful
      Strong, visible executive support
      Dedicated teams
      Alignment with vision
      Change impacts clear and known
      Accountability/Responsibility
      Change seen as an on-going process
      Metrics and incentives used to drive desired behaviours
      Undersell, over-deliver
      Everyone gets a win is the approach
      Unsuccessful
      Uncertain leadership
      Resource scarcity/competition
      Unclear goals, vision or strategy
      Opaque change impact
      No Accountability/Responsibility
      Change is episodic and event based
      Metrics and incentives non-aligned with desired behaviours
      Lots of “happy talk"
      Clear winners and losers
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
      8
    • 9. ISO 38500 Governance Model
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
      9
      Source:ISO38500 Standard
    • 10. Principles
      Responsibility
      Strategy
      Acquisition
      Performance
      Conformance
      Human Behavior
      10
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
    • 11. Principles - defined
      Principle 1: Responsibility
      Individuals and groups within the organization understand and accept their responsibilities in respect of both supply of, and demand for IT. Those with responsibility for actions also have the authority to perform those actions.
      Principle 2: Strategy
      The organization’s business strategy takes into account the current and future capabilities of IT; the strategic plans for IT satisfy the current and ongoing needs of the organization’s business strategy.
      Principle 3: Acquisition
      IT acquisitions are made for valid reasons, on the basis of appropriate and ongoing analysis, with clear and transparent decision making. There is appropriate balance between benefits, opportunities, costs, and risks, in both the short term and the long term.
      11
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 12. Principles defined
      Principle 4: Performance
      IT is fit for purpose in supporting the organization, providing the services, levels of service and service quality required to meet current and future business requirements.
      Principle 5: Conformance
      IT complies with all mandatory legislation and regulations. Policies and practices are clearly defined, implemented and enforced.
      Principle 6: Human Behaviour
      IT policies, practices and decisions demonstrate respect for Human Behaviour, including the current and evolving needs of all the ‘people in the process’.
      12
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 13. Six Principles mapped to key project factors
      13
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 14. Impact of governance
      14
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
      Source:Sauer, Gemino and Reich
    • 15. Impact of governance
      15
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
      Source:Sauer, Gemino and Reich
    • 16. Project Initiation + Planning - Common Issues
      16
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
    • 17. Project Initiation + Planning - Common Issues
      17
      Projects – Key Issues in Success/Failure © September 2009
      Peter M Salmon & Manning Charles & Associates Ltd
    • 18. OK, but what do we do?
      Implement a framework which
      Evaluates needs on an ongoing basis
      Ensures IT meets business objectives
      Monitors outcomes and adherence to policy, law etc
      Intent being to:-
      Reduce risk
      Ensure the informed use and deployment of IT
      Provide the information to enable objective evaluation of IT within the entity
      18
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 19. Key elements
      Leadership
      Entity
      Sponsor
      Project
      Common values, e.g.
      Integrity
      Openness
      Communication
      Resourcing
      People
      Training
      Time
      19
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
    • 20. Desired outcome
      20
      Projects – Key Issues in Success/Failure © September 2009 Peter M Salmon & Manning Charles & Associates Ltd
      Source: Ian Mackley/
      Dominion Post