Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

It project management infamous failures, classic mistakes, and best practices

•
•
M
Mahyar Teymournezhad

This document discusses IT project management failures, classic mistakes, and best practices based on research analyzing 99 IT project retrospectives. Some key points: - McDonald's $1 billion "Innovate" project in 2001, their most expensive IT project, failed before launch due to issues like unrealistic scope and lack of senior management buy-in. - Common classic mistakes fall into four categories: people, process, product, and technology. Process and people mistakes were most frequent. - Best practices to avoid failures include thorough planning, risk management, quality assurance, and using accurate estimating techniques like historical data. Proper stakeholder engagement and having the right project sponsor are also important.

1 of 34
IT PROJECT MANAGEMENT: INFAMOUS FAILURES, CLASSIC MISTAKES, AND BEST PRACTICES Mahyar Teymournezhad R. Ryan Nelson - University of Virginia
MANY ORGANIZATIONS CONDUCT RETROSPECTIVES AFTER A FAILURE TO AVOID FUTURE DISASTERS. An individual retrospective tells a unique story, but more insight can be gained by examining multiple retrospectives. 99 retrospectives across 74 organizations were used to conduct this research. From this research many common mistakes and best practices can be extracted for better project management.
INFAMOUS FAILURES MCDONALDS This project aimed to create a real-time global network to link over 30,000 stores in 121 countries to headquarters by Intranet. It would have given executives a bird’s eye view of the entire system at any minute of the day. “INNOVATE” PROJECT (2001)
INFAMOUS FAILURES MCDONALDS At cost estimates of over $1 billion, Innovate was the most expensive information technology project in McDonalds’s history. Innovate project failed before it even got off the ground. McDonalds wrote off $170 million in the 2002 and Innovate was cancelled. AN EPIC ‘MC-FAILURE’
INFAMOUS FAILURES MCDONALDS Scope Management: $1 billion would have only covered the first 5 years of design and implementation. Millions more would need to be spent to maintaining the system. Linking all 30,000+ locations via broadband was impossible WHY INNOVATE FAILED?
INFAMOUS FAILURES MCDONALDS Implementation: Attempted to go company wide in a one fell swoop or big bang approach. Acceptance: Franchisees reluctant to accept after “Made For You” system in 1998 slowed service. Senior executives also had a lack of IT knowledge. Experience: No prior experience in large scale software implementation. WHY INNOVATE FAILED?
INFAMOUS FAILURES MCDONALDS • Project should have been broken down into manageable chunks. • Hired a project manager with large-scale software implementation expertise. • Eased concerns and discomfort of Senior Management and Franchisees. TAKEAWAYS
Classic Mistakes
• “Ineffective project management practices that were identified so often, by so many people, with such predictable, negative results that they deserve to be called “classic mistakes.” -Steve McConell Failure is generally rooted in errors by project mangers and is rarely attributed to chance. Definition CLASSIC MISTAKES DEFINED
People IT Human Capital Process Management Processes and Technical Methodologies Product Product Size and Product Characteristics Technology Use and Misuse of Modern Technology CLASSIC MISTAKES 4 Categories of Mistakes
People • Undermined Motivation • Capabilities of the individual team members/ the working relationship among the team members • Leaders failure to take action to deal with a problem employee • Adding people to a late project
Process • Wasted time in the “Fuzzy Front End” • Underestimating and producing overly optimistic schedules • Insufficient Risk Management • Contract Failure
Product • Requirements Gold-Plating • Feature Creep • Developer Gold-Plating • Research Oriented Development
Technology • Silver-bullet syndrome • Overestimated savings from new tools or methods • Switching tools in the middle of a project
A Meta-Retrospective of 99 IT Projects • 502 Masters level Mgmt Info Systems students were assigned to complete retrospectives on completed IT projects of various magnitude. • The IT projects were assessed under the following criteria: 1. Project Context and Description 2. Project Timeline 3. Lessons Learned (What Went Right vs. What Went Wrong) 4. Recommendations for the Future 5. Evaluation of Success/Failure Overview
A Meta-Retrospective of 99 IT Projects 1. The majority of the classic mistakes were categorized as either process or people mistakes. 2. Scope Creep did not make the top ten list. 3. The Top 3 Mistakes occurred in about 50% of all the projects examined. Case Findings
Summary Project mangers should closely examine past mistakes to determine which are the most common and search for patterns that will help them avoid repeating these mistakes.
BEST PRACTICES
• One of the best advantages of uncovering what went wrong in projects studied is to discover what went right. • Properly used methods, tools, and techniques can help organizations avoid the classic mistakes from occurring in the first place. WIN WITHIN DEFEAT
• The Estimation and Scheduling Process consists of: • Sizing or scoping the project • Estimating the Effort and Time Required • Developing a Calendar How to Avoid Poor Estimating and/or Scheduling
1.Fewer Mistakes 2.Better Budgeting 3.Less Overtime 4.More Credibility for the Project Team 5.Less Schedule Pressure 6.Less Staff Turnover Accurate Estimates Will Include
The IT field is betting somewhat better at estimating cost but worse at estimating time. In 1994, the average cost overrun was 180%. The average dropped to 43% by 2003. In 2000, average time overruns reached a low of 63% but have increased significantly to 82%. The Current Pattern Standish Group’s longitudinal findings show that:
• Using Developer-Based Estimates • A modified Delphi Approach • Historical Data • Algorithms • Estimation Software • Estimate-Convergence Graphs How To Improve Estimating and Scheduling?
1. Time Box Development 2. Creating a Work Break Down Structure 3. Retrospectives to Capture Actual Size, Effort, and Time 4. A Project Management Office 4 Valuable Approaches to Improving Project Estimation and Scheduling
Cone of uncertainty
1. Using a Stakeholder worksheets and assessment graphs 2. Communication Plans 3. Creation of a Project Management Office 4. Portfolio Management INEFFECTIVE STAKEHOLDER MANAGEMENT IS THE 2ND LARGEST CAUSE OF PROJECT FAILURE
“WITH GREATER POWER COMES GREATER RESPONSIBILITY” How to Avoid Insufficient Risk Management
• Risk Identification • Analysis • Prioritization • Risk-Management • Planning • Resolution • Monitoring The Process of Risk Management
Use a Risk Table Best Practice For Avoiding Risk
• Comprehensive Project Charter • Clearly Defined Project Governance • Portfolio Management How to Avoid Insufficient Planning
• Agile Development • Joint Application Design Sessions • Automated Testing Tools • Daily Build-and Smoke Tests How to Avoid Short changing Quality Assurance
“One of the key problems during the development phase of the project was the relatively low skill level of the programmers assigned to the project. The weak programming skills caused schedule lapses, poor quality, and eventually caused changes in personnel.” Get The Right Person For the Job Reoccurring and Common Issues Reduction in face-to-face meetings Time-Zone Barriers Language and Cultural Issues
WHO’S PAYING FOR THIS? • A project must have the “Right” Sponsor. That means that a project must have a sponsor who will be with the project from the beginning, and managing the relationship throughout the life of the project. BUT SOME CHANGE CAN BE BETTER • “There were CEOs on calls all the time. Nobody wanted to be written up in the ‘Wall Street Journal.’That was what motivated people to change. Fear that the stock price would get hammered and fear that they would lose too much business.”
The End Mahyar Teymournezhad

More Related Content

It project management infamous failures, classic mistakes, and best practices

  • 1. IT PROJECT MANAGEMENT: INFAMOUS FAILURES, CLASSIC MISTAKES, AND BEST PRACTICES Mahyar Teymournezhad R. Ryan Nelson - University of Virginia
  • 2. MANY ORGANIZATIONS CONDUCT RETROSPECTIVES AFTER A FAILURE TO AVOID FUTURE DISASTERS. An individual retrospective tells a unique story, but more insight can be gained by examining multiple retrospectives. 99 retrospectives across 74 organizations were used to conduct this research. From this research many common mistakes and best practices can be extracted for better project management.
  • 3. INFAMOUS FAILURES MCDONALDS This project aimed to create a real-time global network to link over 30,000 stores in 121 countries to headquarters by Intranet. It would have given executives a bird’s eye view of the entire system at any minute of the day. “INNOVATE” PROJECT (2001)
  • 4. INFAMOUS FAILURES MCDONALDS At cost estimates of over $1 billion, Innovate was the most expensive information technology project in McDonalds’s history. Innovate project failed before it even got off the ground. McDonalds wrote off $170 million in the 2002 and Innovate was cancelled. AN EPIC ‘MC-FAILURE’
  • 5. INFAMOUS FAILURES MCDONALDS Scope Management: $1 billion would have only covered the first 5 years of design and implementation. Millions more would need to be spent to maintaining the system. Linking all 30,000+ locations via broadband was impossible WHY INNOVATE FAILED?
  • 6. INFAMOUS FAILURES MCDONALDS Implementation: Attempted to go company wide in a one fell swoop or big bang approach. Acceptance: Franchisees reluctant to accept after “Made For You” system in 1998 slowed service. Senior executives also had a lack of IT knowledge. Experience: No prior experience in large scale software implementation. WHY INNOVATE FAILED?
  • 7. INFAMOUS FAILURES MCDONALDS • Project should have been broken down into manageable chunks. • Hired a project manager with large-scale software implementation expertise. • Eased concerns and discomfort of Senior Management and Franchisees. TAKEAWAYS
  • 9. • “Ineffective project management practices that were identified so often, by so many people, with such predictable, negative results that they deserve to be called “classic mistakes.” -Steve McConell Failure is generally rooted in errors by project mangers and is rarely attributed to chance. Definition CLASSIC MISTAKES DEFINED
  • 10. People IT Human Capital Process Management Processes and Technical Methodologies Product Product Size and Product Characteristics Technology Use and Misuse of Modern Technology CLASSIC MISTAKES 4 Categories of Mistakes
  • 11. People • Undermined Motivation • Capabilities of the individual team members/ the working relationship among the team members • Leaders failure to take action to deal with a problem employee • Adding people to a late project
  • 12. Process • Wasted time in the “Fuzzy Front End” • Underestimating and producing overly optimistic schedules • Insufficient Risk Management • Contract Failure
  • 13. Product • Requirements Gold-Plating • Feature Creep • Developer Gold-Plating • Research Oriented Development
  • 14. Technology • Silver-bullet syndrome • Overestimated savings from new tools or methods • Switching tools in the middle of a project
  • 15. A Meta-Retrospective of 99 IT Projects • 502 Masters level Mgmt Info Systems students were assigned to complete retrospectives on completed IT projects of various magnitude. • The IT projects were assessed under the following criteria: 1. Project Context and Description 2. Project Timeline 3. Lessons Learned (What Went Right vs. What Went Wrong) 4. Recommendations for the Future 5. Evaluation of Success/Failure Overview
  • 16. A Meta-Retrospective of 99 IT Projects 1. The majority of the classic mistakes were categorized as either process or people mistakes. 2. Scope Creep did not make the top ten list. 3. The Top 3 Mistakes occurred in about 50% of all the projects examined. Case Findings
  • 17. Summary Project mangers should closely examine past mistakes to determine which are the most common and search for patterns that will help them avoid repeating these mistakes.
  • 19. • One of the best advantages of uncovering what went wrong in projects studied is to discover what went right. • Properly used methods, tools, and techniques can help organizations avoid the classic mistakes from occurring in the first place. WIN WITHIN DEFEAT
  • 20. • The Estimation and Scheduling Process consists of: • Sizing or scoping the project • Estimating the Effort and Time Required • Developing a Calendar How to Avoid Poor Estimating and/or Scheduling
  • 21. 1.Fewer Mistakes 2.Better Budgeting 3.Less Overtime 4.More Credibility for the Project Team 5.Less Schedule Pressure 6.Less Staff Turnover Accurate Estimates Will Include
  • 22. The IT field is betting somewhat better at estimating cost but worse at estimating time. In 1994, the average cost overrun was 180%. The average dropped to 43% by 2003. In 2000, average time overruns reached a low of 63% but have increased significantly to 82%. The Current Pattern Standish Group’s longitudinal findings show that:
  • 23. • Using Developer-Based Estimates • A modified Delphi Approach • Historical Data • Algorithms • Estimation Software • Estimate-Convergence Graphs How To Improve Estimating and Scheduling?
  • 24. 1. Time Box Development 2. Creating a Work Break Down Structure 3. Retrospectives to Capture Actual Size, Effort, and Time 4. A Project Management Office 4 Valuable Approaches to Improving Project Estimation and Scheduling
  • 26. 1. Using a Stakeholder worksheets and assessment graphs 2. Communication Plans 3. Creation of a Project Management Office 4. Portfolio Management INEFFECTIVE STAKEHOLDER MANAGEMENT IS THE 2ND LARGEST CAUSE OF PROJECT FAILURE
  • 27. “WITH GREATER POWER COMES GREATER RESPONSIBILITY” How to Avoid Insufficient Risk Management
  • 28. • Risk Identification • Analysis • Prioritization • Risk-Management • Planning • Resolution • Monitoring The Process of Risk Management
  • 29. Use a Risk Table Best Practice For Avoiding Risk
  • 30. • Comprehensive Project Charter • Clearly Defined Project Governance • Portfolio Management How to Avoid Insufficient Planning
  • 31. • Agile Development • Joint Application Design Sessions • Automated Testing Tools • Daily Build-and Smoke Tests How to Avoid Short changing Quality Assurance
  • 32. “One of the key problems during the development phase of the project was the relatively low skill level of the programmers assigned to the project. The weak programming skills caused schedule lapses, poor quality, and eventually caused changes in personnel.” Get The Right Person For the Job Reoccurring and Common Issues Reduction in face-to-face meetings Time-Zone Barriers Language and Cultural Issues
  • 33. WHO’S PAYING FOR THIS? • A project must have the “Right” Sponsor. That means that a project must have a sponsor who will be with the project from the beginning, and managing the relationship throughout the life of the project. BUT SOME CHANGE CAN BE BETTER • “There were CEOs on calls all the time. Nobody wanted to be written up in the ‘Wall Street Journal.’That was what motivated people to change. Fear that the stock price would get hammered and fear that they would lose too much business.”