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© Skop.es Pty Ltd 2016#ProcureTECH
The Hidden Causes
of
System Implementation
Failures
and
How to avoid them.
© Skop.es Pty Ltd 2016
Agenda
#ProcureTECH
Problem -> Cause -> Solution
© Skop.es Pty Ltd 2016
We are on a mission
#ProcureTECH
Combat the stress and impact
of failed system
implementations.
Through education, resources
and tools that dramatically
improve project success rates.
© Skop.es Pty Ltd 2016
About Jonathan
#ProcureTECH
© Skop.es Pty Ltd 2016
About Luke
#ProcureTECH
© Skop.es Pty Ltd 2016#ProcureTECH
How significant is the problem?
Studies referenced:
Harvard Business Review
Mckinsey & Company
Gallup Business Review
Project Management Institute
Standish Group
Geneca
University of Ottawa
Problem -> Cause -> Solution
© Skop.es Pty Ltd 2016
Failures – The unpleasant reality
<1/3
#ProcureTECH
successfully completed on
time and on budget
Are successfully
completed on
time/budget
of all IT projects
Standish Group finds
© Skop.es Pty Ltd 2016
Failures – The unpleasant reality
#ProcureTECH
McKinsey finds IT
projects disappoint by?
56%
47%
7%
Cost overrun
Schedule overrun
Benefit shortfallBenefit Shortfall
Cost over-run
Schedule over-run
© Skop.es Pty Ltd 2016
Failures – The unpleasant reality
75%
#ProcureTECH
anticipate their
software projects are
“Doomed from the start”
of business &
IT executives
“doomed from the start”
Source: Geneca
© Skop.es Pty Ltd 2016
Failures – The unpleasant reality
80%
#ProcureTECH
of people admit they
spend at least half their
time on…
reworkre-work
#ProcureTECH
Failures – The unpleasant reality
Only
55%
of people feel that the
business objectives
of their projects are
clear to them.
Business objectives
© Skop.es Pty Ltd 2016
© Skop.es Pty Ltd 2016
Failures – The unpleasant reality
33%
of projects fail because
of a lack of…
involvement from
senior management.
Involvement from
senior management
#ProcureTECH
© Skop.es Pty Ltd 2016#ProcureTECH
Critical Success Factors
Critical Success Factors
Problem -> Cause -> Solution
© Skop.es Pty Ltd 2016#ProcureTECH
A Critical Success Factor (CSF) is an element that is
necessary for an organisation or project to achieve
its mission.
For example, a CSF for an IT project is “User involvement”.
Critical Success Factors
Two uses: Common causes of failure -&- Criteria for success
© Skop.es Pty Ltd 2016
Critical Success Factors
User Involvement
Executive / Management Support
Clear Statement of Requirements Proper Planning
Hardworking, Focused Staff
Realistic Expectations
Smaller Project Milestones
Competent Staff
Ownership
Clear Vision & Objectives
Standish Group – Large IT projects
#ProcureTECH
© Skop.es Pty Ltd 2016
Critical Success Factors
User Involvement
Executive / Management Support
Clear Statement of Requirements
Proper Planning
Hardworking, Focused Staff
Realistic Expectations
Smaller Project Milestones
Competent Staff
Ownership
Clear Vision & Objectives
#ProcureTECH
Project concept Formal set up Implementation
© Skop.es Pty Ltd 2016
Critical Success Factors
#ProcureTECH
© Skop.es Pty Ltd 2016
Executive and User Engagement
#ProcureTECH
Too late to fix!
Setup & Requirements Testing & Sign off
© Skop.es Pty Ltd 2016
Executive and User Engagement
#ProcureTECH
Nothing to fix
© Skop.es Pty Ltd 2016
Measuring / Monitoring Engagement
Measuring
Engagement
Net Promoter Score for
projects!
Actions and Purpose focused
measures of engagement.
#ProcureTECH
© Skop.es Pty Ltd 2016
Measuring / Monitoring Engagement
#ProcureTECH
Executives
Actions
How much time do you have
scheduled for contribution to this
project?
Purpose
Rate the level of impact this
project will have on your team and
department?
© Skop.es Pty Ltd 2016
Measuring / Monitoring Engagement
Users
Actions
What new capabilities have you
advocated for, will you be testing
the new system to verify its
delivery?
Purpose
Do you believe that the new
system will improve our
organisation, and understand
how?
#ProcureTECH
© Skop.es Pty Ltd 2016
Critical Success Factors - Resources
#ProcureTECH
Free tools!
© Skop.es Pty Ltd 2016
Success Factors Checker
#ProcureTECH
Online CSF Checker
- 13 plain English questions (with answers supplied)
- Research outcome based scoring weighting
- Graphical feedback
- Based on our CSFs for system implementations
http://www.criticalsuccessfactorschecker.com/
© Skop.es Pty Ltd 2016
Success Factors Checker
#ProcureTECH
© Skop.es Pty Ltd 2016
Success Factors Checker
#ProcureTECH
© Skop.es Pty Ltd 2016#ProcureTECH
Setting up for a successful
System Implementation
Problem -> Cause -> Solution
© Skop.es Pty Ltd 2016
Analysis of our own projects
LCUBED projects – focus on preparation
#ProcureTECH
© Skop.es Pty Ltd 2016
Successful Set-up
#ProcureTECH
Requirements definition
Project Management
Technology selection
Activities
Success
Factors
Deliverables
© Skop.es Pty Ltd 2016
Successful Set-up
• Functional requirements
• Business case
• Savings & Benefits
• Documentation
#ProcureTECH
Requirements definition
• User involvement
• Executive engagement
• Statement of objectives
• Realistic expectations
• Business vision
• Workshops
• Survey
• Consultations / Focus groups
• Communications
© Skop.es Pty Ltd 2016
Successful Set-up
#ProcureTECH
Requirements definition
Activities
Success
Factors
Deliverables
© Skop.es Pty Ltd 2016
Successful Set-up
• Risk mitigation plan
• Gant charting
• Change / Comms. program
• Project Charter
#ProcureTECH
• Planning
• Documenting
• Scheduling
• Resourcing
Project Management
• Proper Planning
• Risk mitigation
• Project Schedule / plan
• Communications planning
© Skop.es Pty Ltd 2016
Successful Set-up
System selection
#ProcureTECH
Project Management
Activities
Success
Factors
Deliverables
© Skop.es Pty Ltd 2016
Successful Set-up
• Match to requirements
• Selection criteria &
transparency
• Set & agreed price
• Credibility & relationship
#ProcureTECH
• Interviewing
• Reviewing
• Apprising / comparing
• Selecting
• Technology fit (gap)
• Selection Criteria
• Clear documentation
Technology selection
© Skop.es Pty Ltd 2016
Successful Set-up
#ProcureTECH
Technology selection
© Skop.es Pty Ltd 2016
Three things to
remember
#ProcureTECH
Conclusion
© Skop.es Pty Ltd 2016
Preparation trumps delivery (to avoid failure)
CSFs awareness imperative (hidden causes)
Know the What, How, Who & When
#ProcureTECH
Requirements definition
Project Management
Technology selection
Conclusion
© Skop.es Pty Ltd 2016
Thank You
Luke@Skop.es Jonathan@Skop.es

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The hidden causes of system implementation failures and how to avoid them

  • 1. © Skop.es Pty Ltd 2016#ProcureTECH The Hidden Causes of System Implementation Failures and How to avoid them.
  • 2. © Skop.es Pty Ltd 2016 Agenda #ProcureTECH Problem -> Cause -> Solution
  • 3. © Skop.es Pty Ltd 2016 We are on a mission #ProcureTECH Combat the stress and impact of failed system implementations. Through education, resources and tools that dramatically improve project success rates.
  • 4. © Skop.es Pty Ltd 2016 About Jonathan #ProcureTECH
  • 5. © Skop.es Pty Ltd 2016 About Luke #ProcureTECH
  • 6. © Skop.es Pty Ltd 2016#ProcureTECH How significant is the problem? Studies referenced: Harvard Business Review Mckinsey & Company Gallup Business Review Project Management Institute Standish Group Geneca University of Ottawa Problem -> Cause -> Solution
  • 7. © Skop.es Pty Ltd 2016 Failures – The unpleasant reality <1/3 #ProcureTECH successfully completed on time and on budget Are successfully completed on time/budget of all IT projects Standish Group finds
  • 8. © Skop.es Pty Ltd 2016 Failures – The unpleasant reality #ProcureTECH McKinsey finds IT projects disappoint by? 56% 47% 7% Cost overrun Schedule overrun Benefit shortfallBenefit Shortfall Cost over-run Schedule over-run
  • 9. © Skop.es Pty Ltd 2016 Failures – The unpleasant reality 75% #ProcureTECH anticipate their software projects are “Doomed from the start” of business & IT executives “doomed from the start” Source: Geneca
  • 10. © Skop.es Pty Ltd 2016 Failures – The unpleasant reality 80% #ProcureTECH of people admit they spend at least half their time on… reworkre-work
  • 11. #ProcureTECH Failures – The unpleasant reality Only 55% of people feel that the business objectives of their projects are clear to them. Business objectives © Skop.es Pty Ltd 2016
  • 12. © Skop.es Pty Ltd 2016 Failures – The unpleasant reality 33% of projects fail because of a lack of… involvement from senior management. Involvement from senior management #ProcureTECH
  • 13. © Skop.es Pty Ltd 2016#ProcureTECH Critical Success Factors Critical Success Factors Problem -> Cause -> Solution
  • 14. © Skop.es Pty Ltd 2016#ProcureTECH A Critical Success Factor (CSF) is an element that is necessary for an organisation or project to achieve its mission. For example, a CSF for an IT project is “User involvement”. Critical Success Factors Two uses: Common causes of failure -&- Criteria for success
  • 15. © Skop.es Pty Ltd 2016 Critical Success Factors User Involvement Executive / Management Support Clear Statement of Requirements Proper Planning Hardworking, Focused Staff Realistic Expectations Smaller Project Milestones Competent Staff Ownership Clear Vision & Objectives Standish Group – Large IT projects #ProcureTECH
  • 16. © Skop.es Pty Ltd 2016 Critical Success Factors User Involvement Executive / Management Support Clear Statement of Requirements Proper Planning Hardworking, Focused Staff Realistic Expectations Smaller Project Milestones Competent Staff Ownership Clear Vision & Objectives #ProcureTECH Project concept Formal set up Implementation
  • 17. © Skop.es Pty Ltd 2016 Critical Success Factors #ProcureTECH
  • 18. © Skop.es Pty Ltd 2016 Executive and User Engagement #ProcureTECH Too late to fix! Setup & Requirements Testing & Sign off
  • 19. © Skop.es Pty Ltd 2016 Executive and User Engagement #ProcureTECH Nothing to fix
  • 20. © Skop.es Pty Ltd 2016 Measuring / Monitoring Engagement Measuring Engagement Net Promoter Score for projects! Actions and Purpose focused measures of engagement. #ProcureTECH
  • 21. © Skop.es Pty Ltd 2016 Measuring / Monitoring Engagement #ProcureTECH Executives Actions How much time do you have scheduled for contribution to this project? Purpose Rate the level of impact this project will have on your team and department?
  • 22. © Skop.es Pty Ltd 2016 Measuring / Monitoring Engagement Users Actions What new capabilities have you advocated for, will you be testing the new system to verify its delivery? Purpose Do you believe that the new system will improve our organisation, and understand how? #ProcureTECH
  • 23. © Skop.es Pty Ltd 2016 Critical Success Factors - Resources #ProcureTECH Free tools!
  • 24. © Skop.es Pty Ltd 2016 Success Factors Checker #ProcureTECH Online CSF Checker - 13 plain English questions (with answers supplied) - Research outcome based scoring weighting - Graphical feedback - Based on our CSFs for system implementations http://www.criticalsuccessfactorschecker.com/
  • 25. © Skop.es Pty Ltd 2016 Success Factors Checker #ProcureTECH
  • 26. © Skop.es Pty Ltd 2016 Success Factors Checker #ProcureTECH
  • 27. © Skop.es Pty Ltd 2016#ProcureTECH Setting up for a successful System Implementation Problem -> Cause -> Solution
  • 28. © Skop.es Pty Ltd 2016 Analysis of our own projects LCUBED projects – focus on preparation #ProcureTECH
  • 29. © Skop.es Pty Ltd 2016 Successful Set-up #ProcureTECH Requirements definition Project Management Technology selection
  • 30. Activities Success Factors Deliverables © Skop.es Pty Ltd 2016 Successful Set-up • Functional requirements • Business case • Savings & Benefits • Documentation #ProcureTECH Requirements definition • User involvement • Executive engagement • Statement of objectives • Realistic expectations • Business vision • Workshops • Survey • Consultations / Focus groups • Communications
  • 31. © Skop.es Pty Ltd 2016 Successful Set-up #ProcureTECH Requirements definition
  • 32. Activities Success Factors Deliverables © Skop.es Pty Ltd 2016 Successful Set-up • Risk mitigation plan • Gant charting • Change / Comms. program • Project Charter #ProcureTECH • Planning • Documenting • Scheduling • Resourcing Project Management • Proper Planning • Risk mitigation • Project Schedule / plan • Communications planning
  • 33. © Skop.es Pty Ltd 2016 Successful Set-up System selection #ProcureTECH Project Management
  • 34. Activities Success Factors Deliverables © Skop.es Pty Ltd 2016 Successful Set-up • Match to requirements • Selection criteria & transparency • Set & agreed price • Credibility & relationship #ProcureTECH • Interviewing • Reviewing • Apprising / comparing • Selecting • Technology fit (gap) • Selection Criteria • Clear documentation Technology selection
  • 35. © Skop.es Pty Ltd 2016 Successful Set-up #ProcureTECH Technology selection
  • 36. © Skop.es Pty Ltd 2016 Three things to remember #ProcureTECH Conclusion
  • 37. © Skop.es Pty Ltd 2016 Preparation trumps delivery (to avoid failure) CSFs awareness imperative (hidden causes) Know the What, How, Who & When #ProcureTECH Requirements definition Project Management Technology selection Conclusion
  • 38. © Skop.es Pty Ltd 2016 Thank You Luke@Skop.es Jonathan@Skop.es