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It black hole projects - Ron Markowski


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It black hole projects - Ron Markowski

  1. 1. Avoiding IT Black Hole ProjectsPresentation May 1, 2013Prepared by Ron Markowski
  2. 2. Scientific Process• Issue• Analysis• Recommendation
  3. 3. IssueScope TimeCostWhere IT projects start…
  4. 4. IssueThe Standish Group International (2010), in their Chaos 2009Summary Report, highlights the harsh reality that 68% of projectsfailed to achieve their triple constraint requirements of deliveringon time, on budget, and with the intended features and functions.Even more alarming is the rate of IT project failures. A number ofpublications have estimated IT projects fail as high as 90% of thetime in delivering on their triple constraints.According to Grenny, Maxfield, and Shimberg (2007), one isbetter off betting on a roulette wheel then on ITprojects.
  5. 5. IssueCreep: Scope, Time, and/or Cost“Escalation of Commitment”
  6. 6. IssueWhat would be another similaroccurrences in nature???
  7. 7. An expanding Star
  8. 8. Results
  9. 9. Signs of exploding Projects
  10. 10. IssueWhere exploding stars andnumerous IT projects end up!As noted by Keil and Mahring (2010) IT projectscan resemble a black hole where vast amountsof time and money are put in, with little tonothing being returned.
  11. 11. IssueGrenny, Maxfield, and Shimberg (2007) reported that the US spent $255billion per year just on IT projects, with the results being more than aquarter of them ending in failures or cost overruns.According to Nelson (2007), IT projects continue to fail at an alarmingrate, costing taxpayers billions of dollars in the public sector, andbillions more are lost in the private sector, which translates into addedcosts, lost revenues, and lost jobsWilliams and Samset (2010) provide numerous examples of costoverruns including Denver’s $5 billion airport that was 200%overspent, the Scottish Parliament coming in ten times over budgetand over three years late, and the US Army delivering 47% ofunusable project outcomes.
  12. 12. Analysis:How to Avoid IT Black Hole Projects• COBIT 5.0 emphasizes the need for valuecreation through governance.According to Yazici (2009), governance is needed to helpensure projects stay aligned to organizationalobjectives, which requires an understanding ofperceptions.
  13. 13. RecommendationAccording to ISACA (2012) deliveringstakeholder value requires good governanceand management of information andtechnology (IT) assets
  14. 14. Good Governance
  15. 15. Check/ReportDeming’s ApproachAn American who invented quality in Japanand improved the quality of their products.Was rejected initially in the US, then becameprominent later.
  16. 16. Scope TimeCostWhere IT projects should endCheck/Report
  17. 17. Questions?