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Show recent, preliminary results into project leadership practices that contribute to success of I.T.-intensive business projects.
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Reducing Project FailuresThrough Value-Driven
Change Leadership (VDCL)
VDCL
Gezinus J. Hidding, Ph.D.Loyola University Chicago
[email protected], 312.915.7059Joint research with
John Nicholas, [email protected], 312.915.7060
VDCLObjective
By the End of this Session:
You Will Understand How
Business Analysts
Can Contribute to Success
Of I.T.- Intensive Business Projects
This is YOUR Session: Feel Free to Interrupt Whenever
VDCLOverview
There Are (Still) Many (I.T.) Project FailuresNeeded: A New Paradigm
for (I.T.) Project Management (P.M.) Value-Driven Change Leadership (VDCL)
Our Empirical Research (Ongoing) Find Project Management Practices
Associated with Project Success or Failure
Research Results To Date PMBOK/VDCL Success Factors Observations That Are Striking (to Us)
VDCL
I.T. Project Failures:There Are (Still) Many
Standish Group - Chaos 2006 19% of Projects Canceled before Completed 46% of Projects Over Budget, Late and/or Less Features 35% of Projects On Time, On Budget, as Specified
Department of Defense Software Projects 29% - Paid for, but not delivered 46% - Delivered, but not successfully used 20% - Used, but extensively reworked or abandoned 3% - Used after changes 2% - Used as delivered
Diamond Consultants’ Digital IQ study 43% of IT executives:
90% of projects meet initial expectationsSee also: “Common Sense in Project Management”Paul Tedesco, Thomson Publishing, 2006.
VDCLCommon Failure Factors
Bad Project Planning Poor Specification of End-Item Wrong Estimate of Cost/Resources
Bad Project Management Bad Scope Management Ineffective Change Control Poor Issues Management
Bad Monitoring & Control Projects up to 20 times more likely to
escalate in terms of time and costs(Mark Keil – Georgia State University)
VDCLCause: Wrong Success Measures
If a Project Was:
“Ahead of Schedule” and “Below Budget,” Was It Successful?
“Behind Schedule” and “Over Budget,”Was It a Failure?
“Ahead of Schedule” but “Over Budget,”What Is It?
“Behind Schedule” but “Under Budget,”What Is It?
VDCL
Root Cause:Traditional P.M. Paradigm
The Traditional P.M. Paradigm Focuses OnActivities Being “On Schedule” and “Within Budget,”Not on Value Added by the Delivered Products.
Planned AddedValue Value
Planned DeliveredProducts Products
Activities“Goal-Directed Project Management: Effective Techniques and Strategies”,Erling Andersen, Kristoffer Grude , Tor Haug, Kogan Page, 1995.
VDCL
Needed: New ParadigmValue-Driven Change Leadership (VDCL)
3 Key Aspects:Change
Leadershipbased on
Solution
Architecture towards
Business
Value
VDCLDifferences
Traditional P.M.
Manage AdministerActivities
throughPhases
towardsOn-Time/ Budget
based onPERT Chart
VDCL
LeadPeoplethroughReleasestowardsValue (End results)based onSolution Architecture
VDCLWho Is Involved in VDCL?
20 Seasoned I.T. Project Managers
With Average Experience of 20 years:University faculty: with Practical ExperienceConsultants: I.T. and BusinessProject Managers: at Real CompaniesI.T. Architects: of Large SystemsVendors: of Software ToolsAuthors: Books about Project Management
VDCL
Our View: Projects ImplementStrategy Through Change
Strategy
Project Change
VDCL
Let’s Go Out ThereAnd Shift Some Paradigm!
From: Pepper … and Salt, The Wall Street Journal
VDCLVDCL: Fundamental Principles
“There Are No I.T. Projects.There Are Only Business Projects.Some Have More I.T. than Others.”
Value-driven Value-added over Budget/Schedule
Change Leadership Human Change over Repeated Activities
Based on Architecture Business Solution over Architecture Framework
VDCLValue - driven
“Firms Invest in I.T. to Create Value, Not Software.”
Value-added overBudget/Schedule Measuring Business Results over
Measuring Project Conformance Managing the Business Case over
Abandoning the Business Case Quantifying the Financial Impact of Risks over
Identifying a List of Risks
VDCL
B.A. “How To”:Manage Change Requests to Value
Budget Schedule and Value
Change 1 . . .Change 2 . . .Change 3 . . .Change 4 . . .
…
VDCLChange Leadership
“It’s the People, Stupid”
Human Change overRepeated Activities Changing Organizations over
Delivering Products Improving Activities over
Repeating Activities Developing Human Relations over
Interchanging Resources
VDCL
“The ‘Soft Stuff’ Is the ‘Hard Stuff’”
Leadership Executive Support Change Management Assign Well-Suited Personnel
Communication With Customer With User Within Management Hierarchy Within Project Team
Team Cohesion Commitment to Project/Goal and
Team Intercultural Issues Conflict Management
VDCLB.A. “How To”:Time to Learn from Others
Learn from Customers:How Can We Serve You Better?
Learn from Team Members:How Can We Work Smarter?
Learn from Other Current Projects:What Should We (Not) Do?
Learn from Previous Projects:If You Had To Do It Over,What Would You (Not) Do?
VDCLBased on Architecture
“Skyscrapers Are not Built Wall by Wall,but Floor by Floor, around the Core.”
Business Solution overArchitecture Framework Designing Business Solutions over
Debating Generic Frameworks Releasing Frequently over
Releasing with One Big Bang Flexible Architecture Alternatives over
One Architecture Design
VDCL
Definition: Architecture IsRepresentation of Structure
Architecture of Application/ Solution Representation Describing Structure of a
Specific System: Configuration of Common Modules Relations between Modules (I/O, Control) Specific Syntax of Modules’ Interfaces
Specific Business Drivers Lead to a Specific Architecture
20% of the Code Drives 80% of the Requirements (20/80 rule)
VDCL
Definition: Architecture Is NotInfrastructure
Infrastructure Is a Supersystem Offering Common Functionalities to Be Used by the Application/ Solution
Structure Is Common Functionalities in the Application/ Solution
Infrastructure and Application/ Solution Both (Can) Have an Architecture
VDCL Is Agnostic about Development Method Calls for Explicit Attention to Architecture Does Not Require a Particular Method
VDCL
B.A. “How To”:Prioritize What Is (Not) Essential?
Which Objectives Are Essential?Which Functionalities Are Essential?Which Modules Are Essential?What Can Be Delivered
Sooner/Later?
VDCLVDCL Paradigm: Summary
1. Decide How Much Value To Deliver When
2. Decide Which Deliverables Make Up Each Release
3. Plan Each Release As Usual (Schedule, Budget, …)
4. Manage Based On Results Achieved
Value Value Value Value ...
ArchitectureReleaseReleaseRelease ...
Activities Activities ...
Time
VDCL
Empirical Research:Does VDCL Make a Difference?
VDCL: Business Value Change Leadership Solution Architecture
ProjectPMBOK
9 Knowledge AreasSuccess
Project Demographics Project Project Manager Organization
VDCLResearch Design
Study Medium-Sized I.T. Projects
In Large(r) Chicago-based Organizations Sofar: Sixteen Projects in Seven Organizations
Not enough yet for solid statistic analysis (e.g., PLS)
Per Company, Compare Projects Pair(s): Successful – Unsuccessful
Structured Interviews Standard Questionnaire
Secured IRB Approval Interview Project Manager
VDCLInterview Questionnaire
Organization BackgroundProject BackgroundProject Manager BackgroundMeasures of Success/ FailurePM Practices
PMBOK VDCL
VDCL
Sample Statements (on a 7-Point ScaleStrongly Disagree – Strongly Agree)
From the Perspective of the Organization’s Value Added (Taking into Account All Benefits and All Costs),This Project Was a Success
From Beginning to End, The Business Case Was Kept Up-To-Date and the Project Stayed Focused on Achieving It.
The Project Plan Adequately Reflectedthe End-Product’s Architecture.
From Beginning to End, The Project Focused on People Having to Change.
VDCLNon-parametric Analysis
Project Pair 1 2 3 … n Correlation
PM Practice 1 + + + + Positive
PM Practice 2 + 0 0 - None
…
PM Practice n - - - - Negative
+/- When Practice Was Used More/Less
in Successful Project in Pair i
than in Less-Successful Project
VDCL
Preliminary Results to Date:Correlation with Success
PMBOK: (T1) Time Management (S1) Scope Management (Com1) Expectations Management
VDCL: (V2) Keep Business Case Updated Throughout (V3) All Stakeholders Agree on Project Purpose (A) Project Plan Reflected Solution Architecture
VDCL
Keep Business Case UpdatedThroughout the Project
Before Project Starts Clarify project purpose and success metrics Evaluate alternatives
During Project Implementation Evaluate change requests Make trade-off decisions
After Project Ends Analyze business value / project outcome
VDCL
All Stakeholders Agree onProject Purpose
Reach Agreement and Understanding among Key Stakeholdersand All Project Participants
on the Project’s Value / Outcomesand Clear Success Metrics
Give Project Participants a Personal Stake in the Project’s Success or Failure
VDCLStriking Observations
Almost ALL Projects Overran
Schedule and Budget “Successful” and “Unsuccessful” Projects Alike But, Successful Projects Had Smaller Overruns
Almost ALL Projects Do NOT Track:
- Employee Labor Hours
- Benefits Neither During Development Nor After Delivery
Some “Failed” Projects Did Not Deliver due to Dependency on Larger Program
VDCLDiscussion
Questions?Reactions?Feedback?Agreement?Disagreement?
VDCL
Preliminary Results to Date:No Correlation with Success
PMBOK: (HR1) Human Resource Management
VDCL: Negatively Correlated?
(V5) Quantify Financial Impact of Combined Risks (A3) Deliver in Multiple Releases
Inadvertent Sample Bias? (P7) Project’s Riskiness (as Perceived at the Start)