Avoid Major Information Technology Project Pitfalls.

Introducing the ERP Project Estimator.

Do we accept that IT Projects won’t deliver?

It seems that these days we take for granted that IT projects take longer than we think they will.

We expect them to cost more than we thought they would cost.

It is not realistic to believe we can deliver everything we said the project would deliver.

In fact, the reasons for this are at the ready. Do any of the following statements sound familiar?

• "It is too hard to estimate the time and cost"• "We didn't have enough time to plan" • "IT projects are very complex and inherently unpredictable"• "The customer didn't know what they wanted"• "Our requirements process is terrible"• "We don't have enough resources to get the work done"• "Production emergencies adversely affected project progress"• "We didn't have the information we needed"• "Scope creep!" • "Information Technology Governance"

In for a penny, in for a pound!

Once a programme of work has commenced it is difficult to stopbut, in some cases, that would be the best outcome as the benefitsare eroded day by day.

One can only assume from the studies conducted, that all ITprojects that failed to deliver to expectations, or on time andbudget, had very strong business cases or, that those with theresponsibility to “call it quits” had a vested interest in continuing.

It could further be speculated that Governance Boards can bepersuaded by others (with a vested interest in continuance) that,“We have an overrun at the moment but expect to correct this laterin the program”

Actually I wish I had a penny for every time I heard that!

Remember the 7 Ps?

In fact once a program has started there is usually little appetite toclose it down, but consider how did it get to that point in the firstplace?

Did someone forget the 7 Ps?

Proper Prior Planning Prevents Piss Poor Performance!

Was the estimation process and governance appropriate?

In most cases the estimation is compiled by those who will benefitfrom the outcome, therefore, it would be in their interest to beoptimistic about the costs and duration. Making the business casestronger than it might otherwise be. The outcome is the sameregardless of this being consciously done or not, a project is born,and the estimate handed over to the PM to deliver against.

Skin in the game!

To help overcome this tendency some organisations willengage a systems integrator and contractual bind them to anoutcome.

Fixed Price or Time and Materials contracts will drive particularbehaviours from both the customer and the integrator whichcan lead to unexpected results. The practice of augmentingthe estimate with a lot of “Optional Extras” or “SelectableFeatures” outside of the standard offering also leads toinsufficient budgets being acquired and presents an erroneousbusiness case from the outset.

PM – Project Magician?

Other organisations, recognizing a shortage of ProjectManagement talent within the organisation will look to bringin a contract Project Manager who can sometimes feel likethey are being asked to work miracles on an under-estimatedproject.

If they complain about the lack of funds they will be told thatsomeone else can be found that can deliver, or, they can usethe “in for a penny approach” and state “we have an overrunat the moment but expect to correct this later in the program”

Improvement Opportunities

Long Term Responsibilities – appoint the person with the intimateknowledge of the Project Estimates with the responsibility forBenefits Realisation and appoint them as a member of the ProjectBoard as the Benefits Manager.

This will assist in protecting the business case from both costincreases and benefit evaporation.

Don’t leave this to the Project Manager as more often then nottheir role finishes with the project closure report long beforebenefits begin to be realised.

The Project Manager can assist with, and needs to be involved in,the estimation process but overall responsibility should resideelsewhere.

Improvement Opportunities

Use a repeatable, proven Estimation Process and Tool.

The Gartner Group as conducted numerous research studies into the reasons projects fail and produced a step by step estimation process designed to increase the level of success in ERP project delivery.

Based on this process Rogant Consulting has developed an ERP Project Estimator Tool that has been proven against projects exceeding $1M and up to $165M.

Call to Action

To give your next ERP Project implementation the greatest chance of success engage Rogant Consulting to work with you to develop the project estimate and provide the mentoring necessary for your appointed Benefits Manager to actively participate and influence the Project Board, while enhancing the attainment of the required benefits.

Contact Rogant Consulting for more details.

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