Cult of Wasteful Projects
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We keep reading headline stories of grand transformation programs, especially in the field of IT, that go horrificly wrong, and end up as embarrassing, incredibly expensive megafailures.Who is to blame? We all are. The anonymous, everyday underperformance that has become a new global standard in program management. How to fix it?
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Cult of Wasteful Projects
- 1. Cult of Wasteful Projects Tapio Järvenpää & Ilkka Kankare
- 2. Contents Introduction The problem The cause The solutions Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 3. Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 4. Contents Introduction The problem The cause The solutions Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 5. UK National Health Service (NHS) National Programme for IT (2002 ) System abandoned - costs are still piling up Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 6. Conclusions of the UK Public Accounts Committee “Launched in 2002, the National Programme was designed to reform the way that the NHS in England uses information. The benefits include financial savings, efficiency gains and wider benefits to society …” Shortcomings included -poor negotiating capability, resulting in deals with -poor value for money -weak programme management and oversight. There were also failures -to understand the complexity of the tasks, -to recognise the difficulties of persuading NHS trusts to take new systems that had been procured nationally, and -to get people to operate the systems effectively even when they were adopted.“ “…two-thirds of the £10.7 billion of total forecast benefits were still to be realised in March 2012.” http://www.publications.parliament.uk/pa/cm201314/cmselect/cmpubacc/294/29404.htm Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 7. The 1st governance model of PALKO-program didn’t work. It took the program 4 years to figure out the model needed to be streamlined… PALKO program reported here. All committees above it, plus those depicted on the other diagram, were setting expectations to PALKO. Where is the project? It did not fit this organizational diagram… Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 8. Project targets vs Line of Command targets (invisible resistance, inertia) Here is your project. What are your chances to make a change in Rolling Mills department? Important project Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 9. The headline stories of major failures are the tip of an iceberg The real problem? The anonymous, everyday underperformance Huge overruns in time & money. Why? Headline stories of megafailures Bubbling under the surface, the mass of megafailures The makings of megafailures MASSIVE, ANONYMOUS, EVERYDAY UNDER-PERFORMANCE missing deadlines, budget overruns poor value for money routines, frustration, burnout Exceptional challenges, show-stopper surprises Unique circumstances, extreme complexity Unimaginable unprofessionalism Why don’t we hear about these? Most programs manage to keep it private Most failures are not ugly/sexy/political enough Big programs failing is not news anymore Why don’t we care about this? We live it everyday, consider it normal It’s the industry standard; risky to break We don’t want to see real, viable options Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 10. The Religion of Moloch in Bertrand Russell’s “A Free Man's Worship” (1903) Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 11. Contents Introduction The problem The cause The solutions Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 12. The cause? Our mistakes Jekyll & Hyde Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 13. Spending lots of money in the beginning is like… Licenses, hardware, tools ... So many things of everything and lots of them. Paid in advance compared to benefitting from project’s results. Like so many traditional ERP projects. Let’s say you want to improve order-to-cash performance: less inventory, shorter throughput and better responsiveness to customer demand. And you start a traditional ERP Project. Do you see the paradox? Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 14. Change program communications are constantly neglected Either it’s really bad, or there’s just not enough of it media message WRONG audience time integration interaction NO innovation interest inspiration ignorance RESULT? resistance criticism And much more... confusion Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 15. Are you, your team, program or organization learning? Second loop learning through critical reassessment? REASSESS Second loop First loop Zero loop Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 16. Are you, your team, program or organization learning? Second loop learning through critical reassessment? REASSESS Second loop First loop Zero loop Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013 most programs are stuck on zero loop = no learning happens
- 17. Contents Introduction The problem The cause The solutions Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 18. R2O: 12 steps to better projects energize engage interact self-assess reuse learn be agile oil simplify steer impact benefit Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 19. ReTHINK: Deliver benefits early Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 20. ReWORK: Turn communications into interaction dialogue journey innovate integrate be EXCITING be RELEVANT inspired agents active audience Collaborate SoMe HOW? Gamify And so on... RESULT? The organization turns into active subject of change Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 21. ORIENT: Invest in learning The bigger the project the more there is to learn. Apprentice – journeyman – master craftsman, a centuries old process of knowledge sharing. And it is still very useful because some people know how to do the stuff and some don’t - yet. How’s the training program of your project? By when each of the apprentices should be able to advance and present their master pieces? Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
- 22. Get in touch Find Moolok in media Facebook Twitter Talentum IMAGE: Kaikki meni, eikä riitä Taloussanomat: Huono it-johtaminen maksaa Suomelle miljardeja Talouselämä: Taas meni pieleen Digitoday: Suomessa hassataan miljardeja huonoon it-johtamiseen ICT Standard Forum: Terveisiä Moolokille Tietoviikko: It-hankkeiden budjeteista tehdään ylisuuria Tietoviikko (video): Tämän takia IT-projektit floppaavat YleX Etusivu: Haastattelussa epäonnistuineista it-projekteista kirjan kirjoittaneet Tapio Järvenpää ja Ilkka Kankare Verkkouutiset: Väite: IT-hankkeisiin hukkuu 7 miljardia vuodessa Tuomasmuraja.com: Apotti-hankkeen tiellä on vielä monta mutkaa CxO Mentor, Kirja-arvio Tapio Järvenpää Ilkka Kankare tapsaj@me.com Tel: +358 40 199 0836 @Tapsa_Jpaa ilkka.kankare@capgemini.com ilkka.kankare@gmail.com Tel: +358-50-337-9549 Veikö Moolok Vallan? Vapauta projektisi tuhlaajakultista | Tapio Järvenpää & Ilkka Kankare | 2013
Editor's Notes
- Weget to readaboutthesefantasticcasesall the time, in Finland and globallyThiscouldneverhappen in my project (couldit?).The programsaredeliveredbyprofessionals just like us, sameorganization, methods, technologies, certificates
- Theproblems of the NHS programseemvery, veryfamiliar…
- Syksyllä 1999 aloitetun, useistaprojekteistakoostuvanhankekokonaisuudentavoitteenaoliuudistaaAjoneuvohallintokeskuksen (AKE) palvelujentoimintamallijatietojärjestelmät. Alkuperäinenvalmistumistavoiteoliasetettuvuodelle 2003. Jälkikäteen on arvioitu, että AKE ennakoihankkeenkustannuksiksi 15–27 miljoonaaeuroailmanomantyönsäosuutta.Neljävuottahankkeenaloittamisenjälkeen, kun hankkeenolisi jo pitänyt olla valmis, ohjausrakennelmaavirtaviivaistettiinsiirtämälläkeskeneräisenprojektinvastuutlinjaorganisaatioille. Johtoryhmäpurettiinjavastuutsiirrettiin AKE:n johtotiimille. PuolivuottamyöhemminperustettiinAvaintavoite 1 -ohjausryhmäedistämäänajoneuvoprojektientoimintaa. Jahetiperäänperustettiinajoneuvoprojektienkäyttöönotonjohtoryhmä.Kuvaavaatoiminnalle on se, ettävuoden2008 talousarviossa PALKO-hankkeen tavoitteetovatedelleenkorkealla: ”Pysytäänarvioiduissakustannuksissajaaikataulussa, sisältötavoitteetsaavutetaan.” Aikapaljonsanottuhankkeesta, jokaoli jo maksanutmoninverroinalkuperäisenhinnan, jokaoliviisivuottamyöhässäjajonkasisältöäolikarsittuuseasti!
- From a book about how to present scientific facts. Published 1920 or so.Projects are set to make a change. They develop processes, concepts and systems. Create instructions, manuals, training programs and materials.In a traditional, hierarchal organization the primary (and only) target setting direction is vertical, top-down.I such setting the project has no means to achieve its targets for implementation without support and active role of line management. No matter what targets the project has they are always dependent on the resource allocation and target setting of each line organization.
- As with real icebergs, the mass beneath the surface supports the visible, above the surface tipWithout the anonymous everyday underperformance, most megafailures would not be possibleIn effect; our everyday practices are the cause of the megafailuresFor this, we pay a heavy price, as professionals, citizen, taxpayers
- Why do we allow this to happen?“The savage…feels the oppression of his impotence before the powers of Nature; …respects Power, is willing to prostrate himself,without inquiring whether they are worthy of his worship. …the trembling believer thinks, when what is most precious has been freely given, their lust for blood must be appeased, and more will not be required.
- We never make all the typical mistakes, and we don’t make the same mistakes all the timeBut we do underperform, as professionals, teams, programs, organizations, in so many ways that are unnecessary and add no value to anyone. We the presenters cannot be much worse than you, dear audience...
- Lisenssit, rauta, testaajat, oheistyökalut, …Lista on pitkä. Kaikki pyrkivät myymään, syyllä tai toisella – useasti hyvää tarkoittaen – kaikkea, mikä ei välttämättä ole heti alussa tarpeen.On paradoksaalista nähdä projekti, jonka lopputuotokset tähtäävät esim. tuotannon tehostamiseen, jakelukanavan reagointikyvyn parantamiseen ja varastojen pienentämiseen, mutta jonka hankinnat on tehty etupainotteisesti. Hankittu ikään kuin varastoon myöhempää isompaa tarvetta ja kysyntää varten.Tai projekti, jonka tuotokset parantavat asiakaskanssakäymistä, mutta joka pitää itsensä kiireisenä eikä ehdi kuuntelemaan tulevia käyttäjiä.Tai projekti, joka kehittää tuotetiedonhallintaa ja yhteistoimintaa, mutta ei osaa julkaista speksejään.
- Project C becomes a so called strategic project. It’ll never reach it’s targets but so much has been invested that point of no return has been passed.
- The bigger the project themore there is to learn.Apprentice – journeyman – master craftsman, centuries of experienceLearning must have targets. By when each of the apprentices should be able to advance and present their master pieces?On the job learning happens when people see their work products in action and receive feedback. If there is a long time between specification and go-live people don’t remember anymore what they thought when work was commenced and to make things worse there is very little if any chance for repetition.Learning must be made measurable. Good example: a certification test after training, retest the bottom 10 % performers sometime after go-live and again retest bottom 20 % after another period. Connect test performance to original training program and adjust accordingly.