040210ProFailure

Project Failure12 Mistakes To AvoidHosted By: Dennis Sommer, PMP  February 10, 2004: 

Project Failure 12 Mistakes To Avoid Hosted By: Dennis Sommer, PMP February 10, 2004

Projects Today vs. 10 Years Ago: 

90% of the executives surveyed stated they did not see project success improvements over the past 10 years. Projects Today vs. 10 Years Ago Are there more successful projects today vs. 10 years ago ?

Project Research Results: 

Project Research Results Standish Group – Project Research

Project Research Results: 

Project Research Results Venture Development Corp. – Project Research 70% of projects are cancelled or behind schedule

Project Research Results: 

Project Research Results Cutter Consortium – Data Warehouse Project Research 46% of projects add little or no value Only 15% are considered a success

Project Failure Examples: 

Project Failure Examples Have You Been Part of a Failed Project ? Denver Airport: The failure to produce reliable software to handle baggage cost the city $1.1 million per day. American Airlines: A car rental and hotel reservation system project collapsed after spending $165 million. Pharmaceutical Company: Out of 500 current projects, none are on-time or on-budget. This year, 40% will be canceled. Government Agency: After six years of developing a simple registration application process and spending $45 million, the project was canceled before it was implemented.

Introduction: 

Do you know what the most common project mistakes are ? Introduction Let’s take a look at the top 12 !

Project is Not Part of The Strategic Plan: 

Project is Not Part of The Strategic Plan Roadblocks Encountered Non strategic projects are first to be cancelled Team members and other resources are pulled for higher priority “strategic” projects Executive and business unit time commitments are limited Project budget is reduced Executives and business units are slow to respond to critical issues, risks, or project activities Action Items Identify which item on the strategic plan your project supports Understand the priority of this strategic plan item Understand the “value” your project brings to the business Decide whether the risks are to high to continue

No Executive Sponsorship: 

No Executive Sponsorship Roadblocks Encountered Project does not get the right level of support when needed Project goes in fragmented directions Issue resolutions are slow to arrive, sometimes causing a stoppage of the project Project lacks focus No leadership Action Items Identify the technical, business, and financial sponsor Determine the sponsors participation in the project Elicit sponsorship from C-Level executives who will receive the greatest value from the project

Poor Technology Evaluation: 

Poor Technology Evaluation Roadblocks Encountered Products selected do not work Products selected have never been implemented before The correct components were not budgeted or purchased until later in the project Vendor goes out of business before project completion Action Items Perform an intensive due diligence upfront Verify reality vs. vaporware See it, touch it, and use it in a comparable environment

No User Involvement: 

No User Involvement Roadblocks Encountered Products developed do not meet customer needs New business process reduces productivity Product design takes longer than expected Product is not accepted by the users Products developed do not provide a return on investment or add value to the business Action Items Assign the best and brightest users to the project Commit customer time to the project to avoid day to day priorities

Scope Creep: 

Scope Creep Roadblocks Encountered Development never ends, product changes frequently Modifications to product during initial deployment drastically increases your risk of failure Getting off the vendor upgrade path Unexpected increase in cost, effort and duration Action Items Only modify products if business critical Test the change in scope against the business case Evaluate impact on cost, schedule, and risks Implement scope changes in the next release Setup a Change Management committee

Invalid Pilots: 

Invalid Pilots Roadblocks Encountered Pilot lab equipment does not mimic reality Works in the lab, not on the production floor Product can be a complete failure on the first day it is released Action Items Before starting, document an accurate inventory of all hardware, software and other production environment information. Validate the pilot tests for all environment configurations

Inadequate Testing: 

Inadequate Testing Roadblocks Encountered Dramatic increase in product bugs Dramatic increase in quality issues Increased risk of product failure Increased costs during deployment and support Low user satisfaction Action Items Eliminate features before cutting back on testing Testing phase should include system test, customer acceptance test, volume test, and stress testing

Poor Planning: 

Poor Planning Roadblocks Encountered Number of outside locations to deploy products increases project complexity and risk exponentially Unknown conflicts and timing issues delay project Unexpected staffing needs Unexpected equipment and supply needs increasing cost of project Action Items Perform a detail plan before the start of the project Review and adjust plan on a daily basis

Rolling Out At the Wrong Time: 

Rolling Out At the Wrong Time Roadblocks Encountered Missed milestones and a Go Live date that can not move will sacrifice other key project needs (ie. Testing, pilot, etc) Peak volume season sounds good to the business but adds unnecessary stress and risk Conflicts with other projects and initiatives targeted for the same period of time Action Items Once a Go Live date is available, evaluate the business cycle, other project dependencies, alternative dates, etc. Understand why the business needs a solution by a certain date Allocate enough time between Go Live and Peak Season to work out any last minute kinks

Limited Training: 

Limited Training Roadblocks Encountered Low customer acceptance Increased costs during deployment and support Low morale and decreased productivity Lost revenue Action Items Prepare a low cost training alternative Involve customers more during the product testing Eliminate features before cutting back on training Delay the project if possible

Under Estimating Change To The Business: 

Under Estimating Change To The Business Roadblocks Encountered Project and business processes are not aligned Business process changes are not considered until the end of the project Drastic process or project changes required at the last minute causing overages and delays Results in reduced or negative ROI Action Items Understand the business process impact of the solution at the beginning of the project Allocate a 25 to 35% change management budget (time and cost) Setup a Change Management committee with the business

Avoiding Risk Analysis: 

Avoiding Risk Analysis Roadblocks Encountered Nobody likes discussing “risks” Project teams are not prepared for disaster Unrealistic view of the project status A .01% risk probability can stop a $100 million project dead Unexpected project delays and cost overruns Action Items Day 1, start a risk management log Identify risks throughout the project Continually revise risk mitigation and contingency plans

Slide20: 

Avoiding These Common Mistakes Will … Reduce project overruns and missed schedules Improve project ROI and business value Improve customer satisfaction

Slide21: 

The full article “Avoiding Project Failure” can be found at: www.btrconline.com For a copy of the presentation, email me at: dennis@btrconline.com