The 5 Top Reasons Enterprise Projects Failmydlc.com/pmi-mn/PRES/2005B0614_5Reasons.pdf · Hard Change Leadership Soft Change** Compelling Threat/ Burning Platform The Push: Current

The 5 Top Reasons Enterprise Projects Fail:

How to Avoid Becoming a Statistic

Stevie Peterson, PMP6/14/2005

Prepared for: PMI-MN; June 14, 2005 Breakfast Meeting

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First Things First:ALL major change initiatives should be treated and executed as a project.

Having said that:U.S. public and private sectors spend $2.3 trillion dollars on projects every year; 25% of the nation’s Gross Domestic Product.

70% of those projects “go south.”

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Objectives:Gain insight into why enterprise “change” projects failUnderstand ways to avoid becoming a statisticUnveil a “meta model” of changeIntroduce 8 transformational tools or leversBe able to answer the following question for your own organization:

ARE WE PROJECT CAPABLE?

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Why Enterprise Change Projects Fail:

Poor / Improper Executive EngagementSub-Optimal Project StructureAccountability & Authority ProblemsSponge-Like GoalsInattentiveness to Organizational Change Principles & Methodology

There are more:Lousy Process DesignFaith in Big NumbersFailing to Learn From “Lessons Learned”

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Poor / Improper Executive Engagement:

ONE Executive Sponsor Whose Responsibilities Include:– VISIBILITY THROUGHOUT THE PROJECT– PROVISIONING OF RESOURCES– PUBLICITY– MEDIATION / ARBITRATION– VISIONARY– PUBLIC ANOINTMENT OF PROJECT

MANAGER– DECISION-MAKING– COMBAT “GENERAL” SPANNING CROSS –

FUNCTIONAL EXECUTIVE RANKS

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Sponsor & Strategic Trade-Offs:

Cost Duration

Result

It is ABSOLUTELY the Sponsor’s job to make strategic tradeoffs the Project Manager brings forward via documentation and recommendations.

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Sub-Optimal Project Structure:

NOTE: Project Manager reports to theExecutive Sponsor.

Choose what project structure will optimize project outcomes:

FunctionalMatrixed

• Weak• Strong• Balanced

Projectized

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Accountability & Authority Problems:

Clear assignmentfrom an

authorized manager Commitment

from the subordinate

Consequencesfor performance

C’s the Day!

Accountability =

©2000 Executive Leadership Group, Denver, CO.

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Accountability & Authority Problems:

Authority = 4 Minimum Requirements:

Influence

Group

Membership

Influence

Individual

Performance

Choose team membersRemove team members

Assign tasksConsequate performance


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PM as Leader or Manager? Both.

Q: When is a Manager not a manager?

A: When they have accountability without authority.

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Sponge-Like Goals:

Institute ONE Measure of Success

for the project.

MOS =

What’s the point?

Why are we doing this project?

How to avoid the much dreaded:

SCOPE CREEP…

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Measure of Success: 2 Parts

ACHIEVEMENT:A meaningful and measurable business

outcome as a result of project deliverables

& activities.

CONSTRAINT:A restriction or two – stay within them

while working toward the achievement.

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Measure of Success: ExamplesGood MOS:Customers surveyed rate their overall experience as

a 4.3+ on a 5 pt scale / While reducing expenses by

12% by December 30, 2005.

Another Good MOS:Meet or exceed target MTTR targets 93% of the time

for all severity level Incidents / While reducing

Operational headcount by 5% by December 30, 2005.

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Measures of Success: More Examples:Lousy MOS:

Implement a tool for Incident, Problem,

And Change Management.

Yet Another:

Improve customer satisfaction.

And Another (but better):

Improve Service Availability / While reducing

expenses.

These are great ideas – just lousy MOS’s!

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Inattentiveness to Organizational Change Principles & Methodology:THIS IS #1 ON THE HIT PARADE AS TO WHY ENTERPRISE PROJECTS FAIL.WHY?– Service Management projects change the way

organizations “do stuff.”– Changes in an organization’s culture must be

planful and thoughtful – much in the same way as the process / tool changes are introduced and managed via a formal project plan.

– The organizational climate must be initially assessed and then cultivated in order to accept and sustain introduced changes.

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The Trident: A Meta-Model of Change:

Hard Change

Leadership

Soft Change**

Compelling Threat/ Compelling Threat/ Burning PlatformBurning Platform

The Push: Current RealityThe Push: Current Reality

The Pull: Preferred FutureThe Pull: Preferred Future

CompellingCompellingVisionVision

People want everything to be

better, butnothing to be

different!

**Assess and develop a “people change” plan using the following 8 transformational tools / levers:

1. Measurement2. Organizational Design3. Communication4. Accountability Processes5. Rewards & Recognition6. Involvement7. Education & Training8. Resourcing


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Change Framework:

Leadership

Hard Change Soft Change

Mobilize

Diagnose

Design

Implement

Sustain

Recognize the Gap

Assess theCurrent Reality

Design thePreferred Future

Implement thePreferred Future

PDCA the Change *

*Plan, Do, Check, Act

Sell the Gap

Assess OrgChange Capability

Design theChange Process

Implement theChange Process

PDCA the Tools *

DEEPENING

COMMITMENT


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Measurement:

What existing indicators will help us measure our progress? When and how is it collected?How receptive are personnel to data collection and feedback? How skilled?What’s the availability of benchmarking data?Will it be seen as a threat or a boon? (to whom?)What do we want (have) to know? How will we know when we’re successful?Who are likely recipients of the data? How will it be shared?What will be the political impact of gathering accurate data?


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Organizational Design:

Do the people who need control to effect change have the requisite authorities to do so?Is the “right” sponsor in place? Governance structure?Is authority concentrated at the appropriate level?Is the organization structure aligned in support of the goal? (What does the optimal design look like?)How does the organization optimize cross-functional processes at the local and global level?How do managers work through cross-functional initiatives?


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Communication:

What communication vehicles are currently used? How effective are managers at conveying information?Selective perception: What part of our message is the audience likely to magnify, distort, or ignore?How do we currently know when our communications are successful?How much stress might we provoke in our anticipated communications?From where do employees normally get their information about changes?How many audiences do we have to serve?


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Accountability:

How skilled are managers at discussing expectations with their subordinates including: involvement, goal setting, and performance feedback?How often do employees report to more than one manager? Hard lines? Dotted lines?Do we have a tradition of supplying consequences based on performance?Is performance quantified?Are requisite authorities granted in alignment with accountabilities?Will HR be a help, hindrance, or neither?


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Rewards & Recognition:

What gets employees promoted? Laid off?How do employees earn bonuses?What types of rewards are granted?Are rewards granted on individual achievement, group/team achievement, or both?Do we have a process with integrity? Are our espoused values the same as our “working” values?Is recognition public or private?Do current rewards affect behavior in the intended direction? How do we know?


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Involvement:

Which groups will experience the greatest impact of the change?Which groups or who brings the most expertise to the discussion?Where’s the power? Formal? Informal?How skilled are the managers at soliciting, handling, and utilizing involvement? What vehicles are used?What is our past experience with employee involvement? What are our resulting biases?Do we know what level of involvement is appropriate to different situations and employees?


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Education & Training:

What relevant knowledge deficit(s) does the sponsor or other key leaders have? What about other affected employees?What is the availability of trainers? Budget?Will there be a delay between training and use of new skills?How will utilization of new skills be promoted and sustained in the new environment?What opportunities exist for making education and training unnecessary through job (re)design, job aids, or other means?Will “continuation” training be necessary?


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Resourcing:

What staffing levels and associated capabilities are required for the project? Maintenance?How do we decide what work we do if appropriate staffing levels aren’t available? What are the organization’s capabilities around recruiting and hiring the “right” people?What is the process on how and who is laid off?What are the associated processes? How long do the processes take?What resources other than human are needed?What is the process for securing initial funding and building contingency dollars?


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How to Avoid Becoming a Statistic:

Appoint the “Right” Sponsor.Select the Appropriate Project Structure.Confer Requisite Authorities to the “Real” Project Manager; INSTITUTIONALIZE those Authorities.Sell the Vision:– Speaks to the heart and motivates personnel.

Sell the Measure of Success:– Speaks to the head and directs the work.

Assess Project Capability:– Develop “soft” project plans based upon assessment.– Execute in parallel with “hard” project plan.

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THANK YOU!!!

Stevie Peterson Contact Information:Work: 651-205-2406

Email: [email protected]

Home Office: 651-779-9928

Email: [email protected]

Documents

The 5 Top Reasons Enterprise Projects Failmydlc.com/pmi-mn/PRES/2005B0614_5Reasons.pdf · Hard Change Leadership Soft Change** Compelling Threat/ Burning Platform The Push: Current