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Week 9: IT governance and funding
 

Week 9: IT governance and funding

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Slide deck for week 9 of the course Technology in the Public Sector, Northwestern University, Summer 2012

Slide deck for week 9 of the course Technology in the Public Sector, Northwestern University, Summer 2012

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    Week 9: IT governance and funding Week 9: IT governance and funding Presentation Transcript

    • Week 9: IT Governance and Funding  Technology  in  the  Public  Sector  Northwestern  University  MPPA  490  Summer  2012  -­‐  Greg  Wass   1
    • Outline¤  Why do public sector IT projects fail?¤  What is IT governance? ¤  Project portfolio ¤  Business case / ROI ¤  Project tracking / QA / IV&V¤  Funding and accounting for IT projects ¤  Capital vs. operating ¤  Bonding ¤  GASB 34 2
    • Whydoprojectsfail? 3
    • IT project fails ¤  A U.S. survey of IT projects conducted by the Standish Group (2001) found that success rates varied from 59% in the retail sector to 32% in the financial sector, 27% in manufacturing and 18% in government. ¤  The British Computer Society (2004) found that 84% of U.K. public sector projects resulted in failure of some sort. ¤  The IRS managed “a string of project failures that cost taxpayers $50 billion a year — roughly as much as the yearly net profit of the entire computer industry.” ** Source: Geoffrey James, “IT Fiascoes and How to Avoid Them,” Datamation, November 1997 4
    • What do we mean by fail? ¤  Never finishes installation—project abandoned ¤  Installed but rejected by users and removed ¤  In place, being used, but with workarounds ¤  In place, but causing problems ¤  In place, but reducing productivity ¤  In place and being used as intended, but took much longer to implement and cost much more than budgetedSource: John Cuddeback, “Why Do (Many) Health IT Projects Fail?,” Georgetown University, 2007 5
    • Why do projects fail? 6
    • More critical failure factorsSource: Shaun Goldfinch, “Pessimism, Computer Failure, and Information Systems Development in the PublicSector,” Public Administration Review, Volume 67, Issue 5, pages 917–929, September|October 2007 7
    • Still more…Source: Shaun Goldfinch, “Pessimism, Computer Failure, and Information Systems Development in the PublicSector,” Public Administration Review, Volume 67, Issue 5, pages 917–929, September|October 2007 8
    • How do projects succeed? 9
    • þ Critical success factors1.  Executive sponsorship2.  IT governance3.  Business needs / requirements4.  Planning / design phase5.  Project management6.  Funding 10
    • CSF #7: Decrease project size ¤  Decrease the complexity of individual projects ¤  Decrease project durations, reducing exposure to change ¤  Improve the quality of the estimates ¤  Reduce the amount of each project “wager” ¤  Facilitate cancelling or restarting efforts that get off track without undermining the credibility of the larger initiative ¤  Simplify vendor managementSource: Payson Hall, “A Losing Gamble with IT Projects,” Cutter IT Journal, December 2003 11
    • Executive leadership stylesSource: David Feeny, “Public Sector Projects: Set Up to Fail?,” OECD Public Management Service, 2001 12
    • Executive leadership stylesSource: David Feeny, “Public Sector Projects: Set Up to Fail?,” OECD Public Management Service, 2001 13
    • IT governanceSource: David Feeny, “Public Sector Projects: Set Up to Fail?,” OECD Public Management Service, 2001 14
    • IT governance: example 15
    • Project portfolio analysis¤  Project capacity¤  Projects list¤  Prioritization / ranking / criticality¤  Continuous review 16
    • Project portfolio matrix 17
    • Business case / ROI¤  Project charter / project description ¤  Scope ¤  Estimated cost ¤  Ongoing cost ¤  Benefits, tangible and intangible¤  Business case¤  Return on investment analysis¤  Hurdle rate, break-even point 18
    • Business caseSource: Amanda Brown, “Breakthrough or Burden?,” accessed 8/10/12 at http://www.charitiesdirect.com/caritas-magazine/breakthrough-or-burden-548.html 19
    • Project tracking / QA / IV&V¤  Periodic (quarterly? weekly?) reporting on project status¤  Scope / schedule / budget¤  Public vs. internal reporting¤  Quality assurance consultant¤  Independent validation and verification¤  Program management office 20
    • Program management office 21
    • PMO: example 22
    • IT governance/PMO checkpoints 23
    • Deliverables, reviews, sign-offsSource: Amanda Brown, “Breakthrough or Burden?,” accessed 8/10/12 at http://www.charitiesdirect.com/caritas-magazine/breakthrough-or-burden-548.html 24
    • IT project budgeting¤  Large vs. small projects¤  Applications vs. infrastructure investments - strategy¤  Capital vs. operating expenditures¤  Useful life¤  Project governance¤  Constraints¤  Criticality to the organization vs. cost and risk (portfolio) 25