Information technology (IT) projects foster organizational productivity and growth by improving business processes and enabling the development of new products and services. Surprisingly, given the diversity of project types, most project failures have common causes that can be attributed to inadequate planning. Management Concepts Inc. has identified five "deadly sins" that increase the likelihood of an IT project collapsing before it bears mature fruit. Fortunately, these causes of failure can be avoided by holding a facilitated project kickoff workshop (see below) that's designed to keep projects aligned and organizational goals supported.
Why projects go wrong
According to a 2004 survey of a decade's worth of IT projects at U.S. companies conducted by Standish Group International Inc., 18% of projects failed, 53% were over time or over budget, and only 29% succeeded. The survey found that one of the primary reasons for the low success rate is that many projects are launched without serious planning. To establish the foundation for flawless project execution and to maximize a project's eventual value, avoid committing the following deadly sins of project start-ups.
Failure to review and incorporate lessons learned. "It's hard to convince staff of the value of this review," says Jim Furfari, project leader in the Enterprise Project Office of Colorado Springs Utilities (CSU). "They think that because they've already captured core knowledge from one or more previous projects, there's no need to record it. Yet, another employee working on a similar project might not know that just the right information exists to help solve a problem."
Because reviewing lessons learned takes lots of time, Furfari's organization is adding a database of them to CSU's suite of portfolio tracking tools. Historically, as a routine project management procedure, CSU used a form to list lessons learned when closing out a project's paperwork. But managers of more recent projects told Furfari that they simply don't have the time to scan volumes of paper in search of applicable lessons. Switching to a computerized, searchable database is expected to save considerable time and avoid missed opportunities.
Failure to create a project charter. Without a charter that clearly defines the scope and business purpose of a project (see table), its manager has no chance of accurately estimating its time or cost. Furfari stresses that it's important for all project staff—not just the manager—to understand the business expectations of a project; anyone not in the loop will have "ownership issues," he says. Accordingly, Furfari suggests that all stakeholders and sponsors of a project participate not just in the creation of its charter but also in the presentation of its funding proposal to top management.
Essential ingredients of a project charter. Source: Descriptions adapted from Project Management Institute, A Guide to the Project Management Body of Knowledge, 3rd ed. (Newtown Square, Pa., 2004).
Failure to conduct a formal project kickoff workshop. A project kickoff workshop brings together all stakeholders to clarify the project's objectives and scope. It should be conducted after the organization has made the decision to invest in the project, based on information presented when the business case is made (Figure 1).
1. Start on the right foot. A typical sequence of IT project planning and execution milestones. Source: Management Concepts Inc.
According to Furfari, if you skip a formal kickoff, you risk having someone who should know about a project be unaware of its existence. For example, if a facilities construction project and an IT project are under way at the same time, the managers of both projects should be informed about potential cross-impacts. Holding a workshop to formally kick off each project will ensure that everyone is appropriately informed.
Failure to establish a core team. A project's core team should include one or more full-time, experienced IT professionals as well as multiskilled subject matter experts. A typical core team would comprise a project manager, a business visionary, a system engineer/technical lead, and a business analyst. One of the key decisions made by the team is determining when additional expertise is needed. The core team's initial responsibilities are to conduct the project's feasibility study and to prepare its business case.
After the project is approved, the core team conducts the project kickoff workshop and begins detailed planning. The Enterprise Project Office at Colorado Springs Utilities learned first-hand the benefits of including the project's manager on its core team. "In one case, the project manager contributed some valuable understanding of some early design considerations. By insisting that they be funded, he improved the fit of the project in our overall infrastructure," says Furfari. "Another benefit is obvious: Once the project is approved, the project manager can hit the ground running." Figure 2 depicts a traditional project team structure, whereas Figure 3 illustrates the core team structure.
2. Old school. A traditional project team. Source: Management Concepts Inc.
3. Latest and greatest. The core project team (in orange) concept in practice. Source: Management Concepts Inc.
Failure to involve management. Just as the stars of winning professional sports teams rely heavily on a coach for strategy and tactics, core project teams need the help of a project sponsor. The sponsor serves as the voice of the management team and keeps the project focused on strategic imperatives. Ideally, the project sponsor would be located just down the hall from the core team's work room and be available 24/7 to remove barriers that might slow progress.
If any of these five deadly sins is committed, a project is at risk of being late, over budget, or undelivered. The work may also be incomplete, fail to meet requirements or expectations, fail to deliver expected benefits or return on investment (ROI), or all of the above. Several steps can be taken, however, to avoid these sins and improve a project's odds of being successful.
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