1. When Bad Things Happen
to Good Projects
MTP4030
Tuesday, 2:45 p.m.
Tim Salaver
Dana Software, Inc.
September 23, 2003 Copyright © 2003 H. James Harrington and Tim Salaver, Dana Software, Inc. 1

2. Project – One Definition
 Temporary endeavor
undertaken to create a unique
product or service
 Project Management is the
“application of knowledge, skills,
tools, and technology to project
activities in order to meet or
exceed stakeholders needs and
expectations from a project.”
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
2 September 23, So

3. Project – Another Definition
 A never-ending cycle of stress,
failure, mismanaged
expectations that satisfies no
one and wastes time and
resources.
 Project Management – it can’t
be done!!! An oxymoron!!!
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
3 September 23, So

4. Project Happens
The Standish Group International reports:
 “Corporate America spends more than $275
billion/year on Application Software Development
Projects, many of which fail due to lack of skilled
project management.
 Only 26% of projects were successful (on-time/on-
budget)
 26% of projects will cost 189% of their original
estimate
 40% of all IT projects fail or are canceled
 $74 billion spent by US firms on cancelled projects
each year
 Over 60% of the projects do not produce the
projected R.O.I.
 Project Management sets the standard for poor
quality
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
4 September 23, So

5. “…the average cycle time for IT
projects are 27 weeks. The ones
that are cancelled are cancelled
after 14 weeks; at that point in
time they are 52% complete.
Many of the project teams know
that the project is likely to fail 6
weeks before it is cancelled.”
Wall Street Journal
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
5 September 23, So

6. “In a 4-year period an application
development organization of 100
developers can expect to spend
more than $10 million on
cancelled contracts.”
The Gartner Group
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
6 September 23, So

7. The Hubble Bubble
$1.5 million blunder which found in the first 6
months of operation:
 Deformed mirror
 Two out of six memory banks failed
 Flopping solar-energy panels
 The velocity measurement system failed
 Chemistry of celestial objects systems
failed
 Three gyroscopes failed
 Four tons of repair parts costing $100’s of
millions were sent into space
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
7 September 23, So

8. Why Projects Fail
 Failure to adhere to committed
schedule caused by
 Variances
 Exceptions
 Poor planning
 Delays
 Scope Creep
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
8 September 23, So

9. Why Projects Fail
 Poor resource utilization
 Proper skills not available when they are
needed on the project
 The time of the individuals was not used
wisely
 Unable to locate the right skills within
the organization
 The best people were not assigned to
the most critical jobs
 Misalignment of skills and assignments
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
9 September 23, So

10. Why Projects Fail
 Project Portfolio not managed
correctly
 The wrong projects selected
 The wrong resources were
assigned to the projects
 High risk projects were not
identified
 Poor control over
interdependencies between
projects
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
10September 23, So

11. Why Projects Fail
 Loss of intellectual
capital/knowledge capital
 Lack of the means to transfer
knowledge from past projects to
future projects
 People leave the organization or
are assigned to other activities
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
11September 23, So

12. Why Projects Fail
 Change not accepted
 User community is unprepared
 Resistance crops up in
undelivered tasks and unmet
milestones
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
12September 23, So

13. What is a Good Project?
 Aligned to the vision of the
corporation
 Project has clear objective to
improve processes
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
13September 23, So

14. Twelve Steps to Enterprise
Alignment
1. Determine Vision
2. Define Mission
3. Develop Strategies
4. Set Goals
5. Plan Business Portfolio
6. Establish Policies and Procedures
7. Create Processes and Activities
8. Assign Resources and Assets
9. Build Products and Services
10. Fulfill Customer Needs
11. Drive Operational Excellence
12. Communicate Results
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
14September 23, So

15. Project Management
Body of Knowledge (PMBOK)
 Integration Management
 Scope Management
 Time Management
 Cost Management
 Quality Management
 Human Resource Management
 Communication Management
 Risk Management
 Procurement Management
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
15September 23, So

16. The Missing Piece
 Organizational Change
Management (OCM)
 The people side of the project
 Prepares the people affected by
the project to accept and, when
required, to become committed to
the change and often even look
forward to it.
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
16September 23, So

17. OCM
 Define the level of resistance to
change and prepare a plan to
offset resistance
 Define roles and responsibilities
 Develop competencies
 Establish burning platform
 Transform the user community
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
17September 23, So

18. S.T.A.R.S.
 Scope
 Tasks
 Acceptance
 Resources
 Schedule
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
18September 23, So

19. Project Collaboration
Web • Email • Voice • FAX • Chat • Wireless
• On-demand
collaboration
configuration
Multi-media Integration • Multi-source
encapsulation of
business information
Messaging Manager • Instant and self-
managed customer and
Portal Manager partner portals
Configurator
Analyzer
• Inter and Intra
enterprise availability
Central Repository
• Fully instrumented
collaborations with built-
Knowledge Manager in reporting
• Integration with
Collaboration Engine enterprise
communication systems
and applications
Application & Doc I/F • Scalable to Fortune 100
and global portal levels
XML • SOAP • EAI • API’s • ODBC
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
19September 23, So

20. Project Resource Center • Engagement is
monitored by key
stakeholders
• Full project financials are
available on-line
• Customer and
consultant resources
Hosted project teams (hoteling concept) work in optimal
workspaces
Project 1 Project 2 Project 3 • Project infrastructure
available on day-1 with
no delays
• Collaboration
technology allows off-
site development
Consultant Pool • Consultants are
Dedicated and optimized across
Shared projects
Resources • Customer resources
optimize their time
working on project
Hosted project environments • Instant deployment
• No project disruption
due to infrastructure
• Complete life-cycle
support
• Production migration
Dev Test StageUpgrade DR and disaster recovery
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
20September 23, So

21. Project Infrastructure Hosting
Customer Premises (or their own co-lo)
Production server is a “node” of the
overall grid for ease of image
management and overall software
deployment.
Hosting Facility Image
factory
holds all
applications
and system
software.
Specific
server
Server grid accommodates multiple
images are
environments with the same
built by the
infrastructure. Automation facilitates
factory.
deployment and reconfiguration with
minimal effort.
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
21September 23, So

22. Service Delivery Model
New Install
Demo Testing Production
and and and
Evaluation Training Support
Configuration Conversion
and and
Development Staging
Software is Testing and training Final
hosted and environments are production
available for created on the fly environment is
customer to try and available to created at
immediately for a customer customer’s
period of time site with
copy/paste
Target image is Data conversion
operation
loaded and project environments
resulting in no
starts. No and final stage
delays
environment environment are
delays of any kind. available
immediately
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
22September 23, So

23. Service Delivery Model
Installed Base
Production Upgrade
and Disaster Conversion
Support Recovery &
Staging
Development Upgrade
and Evaluation &
Test Testing
Software is A DR environment New
supported in can be made environment
desired available is created to
customer synchronized with stage
environment production migration to
Dev/test environment new software
environment is version
Vendor upgrades
hosted and can be are made
easily changed available to
based on customer via
customer needs. evaluation
All customer environment
images are
stored.
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
23September 23, So

24. “The best time to stop a project
that you don’t know is going to be
successful is when you start it.”
John Carrow
CIO, Unisys Corporation
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
24September 23, So

25. Contact Information
Tim Salaver
tsalaver@danasoftwareinc.com
SVP, Chief Products Officer
Dana Software, Inc
381 Stockton Ave
San Jose, CA 95126
(408) 279-3838 Main
(408) 535-4337 Office
www.danasoftwareinc.com
Dr. H. James Harrington
hjh@harrington-institute.com
CEO
Harrington Institute
16080 Camino del Cerro, #100
Los Gatos, CA 95032
(408) 358-2476
www.harrington-institute.com
Copyright © 2003 H. James Harrington and Tim Salaver, Dana200
25September 23, So