Why Most IT Projects Fail
How Projects Really Work1/21/2013
How the customer explained it1/21/2013
How the project leader understood it1/21/2013
How the analyst designed it1/21/2013
How the programmer wrote it1/21/2013
How the business consultant described it1/21/2013
How the project was documented 1/21/2013
How much the project cost1/21/2013
What the customer really needed1/21/2013
1995 – The CHAOS ReportFirst comprehensive study on success and  failure of software projects  – Conducted by The Standish...
Classifications• “Successful”  – On time, on budget, all features• “Challenged”  – Completed but over-budget, over time es...
Result of first study - 1994 data          Successful          16%        Canceled                     31%          Challe...
Reasons for Challenged/Canceled, 1994Lack of User               Unrealistic Time Frames  Involvement                      ...
Reasons for Success, 1994   User Involvement            Smaller Project   Executive                    Milestones    Ma...
How Are Big IT Projects Run?IT is left to IT   Lack of involvement by stakeholdersMatrix organizations   People not dedica...
How Are Big IT Projects Run?Big, upfront requirements  Stakeholders will ask for the moon  Documentation so voluminous tha...
The Problem with “Waterfall”Mistakes are hard to find in early stagesChange becomes more expensive in later stages
CHAOS Results, 94 - 08                          1994          1996     1998   2000    2002      2004      2006   2008     ...
1994      1996          1998          2000          2002     2004   2006   2008Successful   16%       27%           26%   ...
Reasons for Success, 04 - 08• User involvement     • Project manager• Executive              expertise  management support...
What is Agile?Family of methodologies that  advocate “lightweight” and  “human” software development  processes  – Extreme...
What is Agile?Emphasis on   Customer satisfaction   Job satisfaction   Removal of things that do not contribute to above1/...
What is Agile?Culture   Values and attitude of people involved are just as    important as processesAutomation for Quick F...
Agile Adoption, Forrester 2009                Waterfall                13%        Agile        35%          Iterative     ...
Aspects of Software Development• Project             - No one methodology  Management            covers all aspects• Engin...
Some Agile PracticesInterdisciplinary, co-located teams  Ex. Qwest Communications projectShort iterations  Deliver working...
Some Agile PracticesContinuous Integration  Automatically build and deploy entire system   multiple times a day, running a...
Are Agile Practices the Answer?                NOMany organizations have adopted Agile       practices with poor results
Are Agile Practices the Answer? Beware of the hype surrounding Agile
Why Agile Fails• Culture of mistrust• Performance measures not aligned towards  collaboration• Capability of personnel• Ag...
Improving the Success Rate• No silver bullets  – Slow and steady changes  – Each company is different• Changing not just p...
Improving the Success Rate• Focused, multidisciplinary, co-located teams  – Avoid matrix organization  – IT is too importa...
The Agile ManifestoWe are uncovering better ways of developing software  by doing it and helping others do it. Through thi...
Agile at Orange & BronzeBeen doing Agile since its foundation in 2005  Before it became mainstreamWeve tried different met...
Some of Our ClientsSoftware Development          Training & Coaching                       Both
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Why Most IT Projects Fail

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Calen Legaspi, Orange and Bronze CEO, talks about how IT projects work, what causes delays and failures, and how Agile software development can be one solution to make IT projects successful.

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Why Most IT Projects Fail

  1. 1. Why Most IT Projects Fail
  2. 2. How Projects Really Work1/21/2013
  3. 3. How the customer explained it1/21/2013
  4. 4. How the project leader understood it1/21/2013
  5. 5. How the analyst designed it1/21/2013
  6. 6. How the programmer wrote it1/21/2013
  7. 7. How the business consultant described it1/21/2013
  8. 8. How the project was documented 1/21/2013
  9. 9. How much the project cost1/21/2013
  10. 10. What the customer really needed1/21/2013
  11. 11. 1995 – The CHAOS ReportFirst comprehensive study on success and failure of software projects – Conducted by The Standish Group – Updated roughly every two yearsSurvey of IT executive managers – large and small businesses – various industries • inc. banking, securities, manufacturing, retail, wholeale, health care, insurance, services and government
  12. 12. Classifications• “Successful” – On time, on budget, all features• “Challenged” – Completed but over-budget, over time estimate, missing features• “Impaired” – Canceled
  13. 13. Result of first study - 1994 data Successful 16% Canceled 31% Challenged 53%
  14. 14. Reasons for Challenged/Canceled, 1994Lack of User Unrealistic Time Frames Involvement Lack of PlanningIncomplete Requirements Project No Longer NeededChanging Requirements Lack of ResourcesLack of Executive Support Lack of Competence with Technology UsedUnrealistic Expectations
  15. 15. Reasons for Success, 1994 User Involvement  Smaller Project Executive Milestones Management Support  Competent Staff Clear Statement of  Ownership Requirements  Clear Vision & Proper Planning Objectives Realistic Expectations  Hard-Working, Focused Staff
  16. 16. How Are Big IT Projects Run?IT is left to IT Lack of involvement by stakeholdersMatrix organizations People not dedicated & focused Accountability is to department head, not project lead Poor communication • No co-location • Simple issues take a long time to resolve
  17. 17. How Are Big IT Projects Run?Big, upfront requirements Stakeholders will ask for the moon Documentation so voluminous that often inconsistent & conflicting • Thick documentation = false sense of confidenceBusiness outcomes poorly/not defined Lack of measurable, observable criteria for success despite voluminous requirements documentation • Ex. cost reduction targets, customer satisfaction, market share, process handling time
  18. 18. The Problem with “Waterfall”Mistakes are hard to find in early stagesChange becomes more expensive in later stages
  19. 19. CHAOS Results, 94 - 08 1994 1996 1998 2000 2002 2004 2006 2008 Successful 16% 27% 26% 28% 34% 29% 35% 32% Challenged 53% 33% 46% 49% 51% 53% 46% 44% Canceled 31% 40% 28% 23% 15% 18% 19% 24%60%50%40%30%20%10% 0% 1994 1996 1998 2000 2002 2004 2006 2008
  20. 20. 1994 1996 1998 2000 2002 2004 2006 2008Successful 16% 27% 26% 28% 34% 29% 35% 32%Challenge d 53% 33% 46% 49% 51% 53% 46% 44% 60% 50% 40%Canceled 30% 31% 40% 28% 23% 15% 18% 19% 24% 20% 10% 0% 1994 1996 1998 2000 2002 2004 2006 2008
  21. 21. Reasons for Success, 04 - 08• User involvement • Project manager• Executive expertise management support • Financial management• Clear business • Skilled resources objectives • Formal methodology• Optimizing scope • Standard tools and• Agile process methodology
  22. 22. What is Agile?Family of methodologies that advocate “lightweight” and “human” software development processes – Extreme Programming (XP), Scrum, Kanban, Lean, Crystal, Agile Unified Process...Coined in 2001 by the creators of similar methodologies reacting to “heavyweight” methodologies – “heavyweight”: too much work that does not contribute to successful software project 1/21/2013
  23. 23. What is Agile?Emphasis on Customer satisfaction Job satisfaction Removal of things that do not contribute to above1/21/2013
  24. 24. What is Agile?Culture Values and attitude of people involved are just as important as processesAutomation for Quick Feedback Automated tests, code quality metrics, acceptance criteria, automated build & deployment...1/21/2013
  25. 25. Agile Adoption, Forrester 2009 Waterfall 13% Agile 35% Iterative 21% No Formal Process 31%
  26. 26. Aspects of Software Development• Project - No one methodology Management covers all aspects• Engineering - No one methodology• Business Analysis covers all situations• Quality Assurance• User Experience• Others...
  27. 27. Some Agile PracticesInterdisciplinary, co-located teams Ex. Qwest Communications projectShort iterations Deliver working systems for customer feedbackTest-Driven Development Define success before you build, down to the smallest unit
  28. 28. Some Agile PracticesContinuous Integration Automatically build and deploy entire system multiple times a day, running automated tests and other quality toolsRefactoring Constantly improving code design to make it easy to accommodate changeDevOps Integrate development and operations into a seamless, automated practice
  29. 29. Are Agile Practices the Answer? NOMany organizations have adopted Agile practices with poor results
  30. 30. Are Agile Practices the Answer? Beware of the hype surrounding Agile
  31. 31. Why Agile Fails• Culture of mistrust• Performance measures not aligned towards collaboration• Capability of personnel• Agile authors and consultants that preach silver bullets & snake oil – Example... “leaderless teams”... what?
  32. 32. Improving the Success Rate• No silver bullets – Slow and steady changes – Each company is different• Changing not just practices, but also culture and performance measures – Align towards collaboration • Ex: Reward overall project success, not just specific department deliverables• Smaller project scopes, measurable outcomes
  33. 33. Improving the Success Rate• Focused, multidisciplinary, co-located teams – Avoid matrix organization – IT is too important to leave to IT!• Teams with end-to-end responsibility – Requirements definition, design, development, testing, deployment, and business results• Did I say no silver bullets? – Experienced, pragmatic coaches can help
  34. 34. The Agile ManifestoWe are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:Individuals and interactions over processes and toolsWorking software over comprehensive documentationCustomer collaboration over contract negotiationResponding to change over following a planThat is, while there is value in the items on the right, we value the items on the left more.1/21/2013
  35. 35. Agile at Orange & BronzeBeen doing Agile since its foundation in 2005 Before it became mainstreamWeve tried different methodologies and practices XP, Scrum, Kanban, Lean... Not all practices work in all conditionsThe first to offer training & coaching in Agile methodologies and practices Scrum, TDD, Agile Business Analysis, Agile QA, etc Trainers/coaches are seasoned practitionersOfficers & architects speak at Agile conferences here and abroad 1/21/2013
  36. 36. Some of Our ClientsSoftware Development Training & Coaching Both

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