Avoiding IT Black Hole Projects

Presentation May 1, 2013

Prepared by Ron Markowski

Scientific Process

• Issue• Analysis• Recommendation

Issue

Scope Time

Cost

Where IT projects start…

Issue

The Standish Group International (2010), in their Chaos 2009 Summary Report, highlights the harsh reality that 68% of projects failed to achieve their triple constraint requirements of delivering on time, on budget, and with the intended features and functions.

Even more alarming is the rate of IT project failures. A number of publications have estimated IT projects fail as high as 90% of the time in delivering on their triple constraints.

According to Grenny, Maxfield, and Shimberg (2007), one is better off betting on a roulette wheel then on IT projects.

Issue

Creep: Scope, Time, and/or Cost

“Escalation of Commitment”

Issue

What would be another similar occurrences in nature???

An expanding Star

Results

Signs of exploding Projects

Issue

Where exploding stars and numerous IT projects end up!

As noted by Keil and Mahring (2010) IT projects can resemble a black hole where vast amounts

of time and money are put in, with little to nothing being returned.

IssueGrenny, Maxfield, and Shimberg (2007) reported that the US spent $255 billion per year just on IT projects, with the results being more than a quarter of them ending in failures or cost overruns.

According to Nelson (2007), IT projects continue to fail at an alarming rate, costing taxpayers billions of dollars in the public sector, and billions more are lost in the private sector, which translates into added costs, lost revenues, and lost jobs

Williams and Samset (2010) provide numerous examples of cost overruns including Denver’s $5 billion airport that was 200% overspent, the Scottish Parliament coming in ten times over budget and over three years late, and the US Army delivering 47% of unusable project outcomes.

Analysis: How to Avoid IT Black Hole Projects

• COBIT 5.0 emphasizes the need for value creation through governance.

According to Yazici (2009), governance is needed to help ensure projects stay aligned to organizational objectives, which requires an understanding of perceptions.

Recommendation

According to ISACA (2012) delivering stakeholder value requires good governance and management of information and technology (IT) assets

Good Governance

Check/Report

Deming’s ApproachAn American who invented quality in Japan and improved the quality of their products. Was rejected initially in the US, then became prominent later.

Scope Time

Cost

Where IT projects should end

Check/Report

Questions?