1 Presentation to PMI GT ISLIG January 10, 2001 Hitesh Seth Senior Manager, Cap Gemini Ernst & Young...
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Transcript of 1 Presentation to PMI GT ISLIG January 10, 2001 Hitesh Seth Senior Manager, Cap Gemini Ernst & Young...
1
Presentation to PMI GT ISLIGJanuary 10, 2001
Hitesh SethSenior Manager, Cap Gemini Ernst & Young
Managing IT Delivery Risk
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Objectives / TOC
Background
IT Disasters
Common IT Delivery Risks
Risk Management Leading Practices
To Identify common risk areas and leading practices to overcome risks in IT implementation projects.
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Who is Cap Gemini Ernst & Young?
A global Management Consulting and I.T. services firm combining the strengths of Cap Gemini with E&Y Consulting.
A company with demonstrated success in outsourcing and joint venture business ventures with companies like Sprint, Farmland Industries, EDF, British Steel and PruessenElektra.
With a head office in Paris, it employs more than 57,000 people worldwide, operating in 31 countries and reports global revenues of 7.7 billion euros.
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Who is New Horizons?
A joint venture between Ontario Power Generation (itself a successor company to Ontario Hydro) and CGEY to provide full-range IT services to the North American energy marketplace.
Immediately focused on continuing to provide IT services to OPG and related entities: Bruce Power, Retail Energy Hub.
The North American energy sector (especially energy generation) represents a multi-billion dollar emerging market as a result of Energy deregulation.
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Scope
Change
Uncerta
inty
Dealing with
People
Risk
Factors
Evolving Scenarios
Quality Management
Training Experience
Ski
lls
Kn
ow
led
ge
Time & Effort
Challenges of Project Management
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Software Project Statistics :Standish Group 1994 U.S.
Application DevelopmentApplication Development250 Billion / Year175,000 Projects
250 Billion / Year175,000 Projects
Project StatisticsProject Statistics31% - Cancelled16% - On time / on Budget 53% - Over Budget / Schedule or under Scope
31% - Cancelled16% - On time / on Budget 53% - Over Budget / Schedule or under Scope
IssuesIssues222% - Average Schedule Overrun189% - Average Cost Overrun 39% - Average Scope Underrun
222% - Average Schedule Overrun189% - Average Cost Overrun 39% - Average Scope Underrun
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Common IT Delivery Risks
1. Ineffective Sponsorship & Commitment
2. Loose Definition of Requirements.
3. Misunderstanding success.
4. Doing too much.
5. Technology Complexity
6. Not having the right skills.
7. Demanding business timing. Unrealistic deadlines.
8. Aggressive business change.
9. Pitiful project management.
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1. Ineffective Sponsorship & Committment
Also Disguised As…
Changing sponsorship.
Multiple business leaders / companies that do not agree. Key users are different from funder.
Wrong Technology
Leading Practices
Steering Committee for Issue Resolution
Demonstrating success to management
Apply appropriate priorities
Motivating staff
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Keep the sponsor and users actively involved in the entire
project life cycle to increase the likelihood that:
Keep the sponsor and users actively involved in the entire
project life cycle to increase the likelihood that:
The correct problems are addressedThe correct problems are addressedThe appropriate priorities are followedThe appropriate priorities are followedThe solution is affordableThe solution is affordableThe solution deals with the problemsThe solution deals with the problems
The correct problems are addressedThe correct problems are addressedThe appropriate priorities are followedThe appropriate priorities are followedThe solution is affordableThe solution is affordableThe solution deals with the problemsThe solution deals with the problems
Engage clients:Engage clients:
Task forcesTask forcesPrototype systemsPrototype systemsIncremental implementationIncremental implementationWalkthroughsWalkthroughsPilot sitesPilot sitesStatus reviewsStatus reviews
Task forcesTask forcesPrototype systemsPrototype systemsIncremental implementationIncremental implementationWalkthroughsWalkthroughsPilot sitesPilot sitesStatus reviewsStatus reviews
Sponsorship & Commitment - Risk Management
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2. Loose Definition of Requirements
Also Disguised As…
“Let me describe it verbally…”
“Show me a prototype, then I can provide details…”
Leading Practices
Define the scope & deliverables in a project charter.
Model the process and define a process owner.
Iterative definition and deployment.
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3. Mis-understanding Success.
Also Disguised As…
Relying on users to know the complete business process.
Business case is outdated, or not done.
“Out of left field” requirements.
Leading Practices
Understand / update the business case.
Model the process and define a process owner.
Find the appropriate business approver.
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4. Doing too much.
Also Disguised As…
It will take over a year to complete…
We can correct small problems, after we implement.
Leading Practices
Deploy solutions iteratively to limit technology and business complexity.
Assess size limitations on the project.
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SchedulesSchedulesEffortEffortElapsed timeElapsed time
EffortEffortElapsed timeElapsed time
TechnologyTechnologyInterfaces to other systemsInterfaces to other systemsInterfaces to other technologiesInterfaces to other technologiesBomb-proofing requirementsBomb-proofing requirementsExtent of functionalityExtent of functionalityVolume of transactionsVolume of transactionsNumber of vendorsNumber of vendors
Interfaces to other systemsInterfaces to other systemsInterfaces to other technologiesInterfaces to other technologiesBomb-proofing requirementsBomb-proofing requirementsExtent of functionalityExtent of functionalityVolume of transactionsVolume of transactionsNumber of vendorsNumber of vendors
OrganizationOrganizationTeam sizeTeam sizeNumber of sitesNumber of sitesNumber of organization unitsNumber of organization units
Team sizeTeam sizeNumber of sitesNumber of sitesNumber of organization unitsNumber of organization units
Doing Too Much: Size Assessment
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5. Technology Complexity
Also Disguised As…
Multiple mixed e-business tools
Unstable development environment
High Performance, Reliability or Scalability Requirements
Leading Practices
Pilot solutions.
Use technical experts. Leverage the knowledge of others.
Limit the “newness” of the solution
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Ensure that all pieces of the solution will fit together by the end of the project and improve communication of both the problem and the proposed solution with:
Walkthroughs:• Analysis• Design• Programming• Testing
Technical review group
Documentation:• Use Cases• Prototypes• Models• Specifications
Modular design:• Hierarchical Structure• Defined interfaces• Logical data structure• Reusable objects
Top down architectures:
• Application• Data• Technology
Technology Complexity: Define Development Approach
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6. Not having the right skills.
Also Disguised As…
The team is working overtime and stressed.
The project estimate was wrong.
Leading Practices
Find experts in each solution domain: infrastructure, new media, development, business area, etc.
Procure experts externally, if not available internally.
Triangulate estimates.
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Team Location
Team Location
Experience of:Experience of:
Project manager on similar projects
Team members working together
Team with the application
Project manager on similar projects
Team members working together
Team with the application
Dedicated assignment of:
Dedicated assignment of:Project manager
User and technical staff
Project manager
User and technical staff
Project team productivity will be impacted by:
Acquiring the Right Skills: Staffing Considerations
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7. Demanding business timing. Unrealistic deadlines.
Also Disguised As…
We will miss the market opportunity if we do not implement by…
Leading Practices
Manage expectations. Procure experts who have done it before.
Consider the implementation approach. Deploy solutions iteratively to minimize technology and business change.
Assess implementation readiness to articulate the downside risk.
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The selected implementation strategy needs to be understood by all management and staff in terms of rationale, benefits, and consequences.
Strategies can include:
Quick and dirtyBig Bang Incremental or phased
Demanding business timing: Implementation Approach
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8. Aggressive business change.
Also Disguised As…
We want to eliminate our paper billing system with a “wireless internet CRM system”
Leading Practices
Deploy solutions iteratively to minimize technology and business change.
Implement Communications & Training programs.
Pilot solutions and business processes.
Prepare contingency plans.
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Business Strategy
Recognize that technology will impact the integration of people / organization, business process and business strategy.
People
TechnologyProcess
Managing business change.
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10. Pitiful project management
Also Disguised As…
Cost overrun, Schedule overrun, scope reduction, ...
Leading Practices
Use PM best practices.
Manage “up”.
Focus on risk management.
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System implementation / development methodology
Scope control approach
Issue resolution approach
Quality management strategy
Knowledge coordination approach
Ability to plan, estimate, schedule, perform to overall plan, and the quality of the final system, will be directly related to use of:
Project Management Risk Factors
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Risk Management
1. Recognize the risks
2. Utilize risk management techniquesOptimize project structure
Plan and control project
Engage users
Perform technical reviews
Conduct risk abatement
Conduct external risk reviews
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SponsorSponsor
SteeringCommitteeSteering
Committee
Internal AuditSecurity
Internal AuditSecurity
ProjectManagerProject
Manager
ProjectAdministration
ProjectAdministration
BusinessCoordination
BusinessCoordination
TechnicalCoordination
TechnicalCoordination
EnterpriseIT PlanningEnterpriseIT Planning
Enterprise Data Management
Enterprise Data Management
OperatingUsers
User Administration
SystemDevelopment
DataManagement
TechnicalServices
OperationsServices
ProductionServices
Project Functional Organization
QualityAssurance
QualityAssurance
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Limit innovationsLimit innovationsAvoid “the bleeding edge”Match technology literacyControl rate of change
Avoid “the bleeding edge”Match technology literacyControl rate of change
Constrain design options
Constrain design options
Avoid the “perfect” solutionRecognize unknowns and
futures
Avoid the “perfect” solutionRecognize unknowns and
futures
Limit project size /durationLimit project size /duration
Phase deliveryImplement 80% solutions
Phase deliveryImplement 80% solutions
Establishtraining programs
Establishtraining programs
Develop standards/guidelinesDeliver trainingProvide support
Develop standards/guidelinesDeliver trainingProvide support
Reward
Success
Risk ManagementUtilize Risk Abatement Strategies