Project Governance and Failure

Governance and failure

Key issues, obstacles, and solutions

© Copyright 2009 Asuret Inc. All rights reserved.

Presented by: Michael Krigsman, CEO, Asuret, Inc.

Agenda Bio State of failure Achieving success Asuret governance and

failure analysis simulation Key governance lessons


This lecture, and the associated governance failuresimulation, was presented to a Master’s level class in strategic project management at University College London on March25-26, 2009. The class was led by Dr. Andrew Edkins, UCLSenior Lecturer.

http://www.bartlett.ucl.ac.uk/graduate/programmes/msc_be/smp_index.html�

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Bio:Why IT ? CEO of Cambridge Publications, documentation and

training outsourcing (from 1988) Key Innovations: Manage documentation with software development rigor Apply consumer-level values to system documentation

Fixed-price, fixed-scope projects (Microsoft, Intel, SAP, IBM, many VC-funded startups, etc.)

Over 100 customers and hundreds of projects Software industry: projects late, over-budget, internal

battles, etc.


Developed SAP’s rapid implementation tools starting 1995 (AcceleratedSAP and more)

For 10 years, developed SAP’s consultingautomation tools

Developed implementation tools and methodologiesfor IBM

Created methodologies of all sorts BUT… Failures persist despite millions of dollars

invested in tools and methodologies. Why??

Bio:Why IT ?


Failures arise from business, organizational, political, and cultural reasons

Can’t fix what you don’t see Solution: Expose the hidden causes of failure through

unique approach to data collection, measurement, analysis, and process

Asuret:Measuring causes of failure


Blogging:IT failure

Key assumptions:1. IT failure is common and resonates with many people2. Data-driven approach to blogging: case studies, statistics,

practical advice, insight and analysis3. Objective and balanced: not sensationalistic

Major challenges:1. Discussing failure is taboo: Hard to gather information2. Gaining trust: Don’t reveal secrets


Use of media: Social media: Blogs, Twitter, conferences, and discussions Traditional media: Magazines, newspapers Analysts: Close associations

Recognized industry “influencer:” SAP, Oracle, Saleforce.com, Lawson, etc.

Goal: Trusted, independent, and objective advisor


State of failure


State of failure:Governance issues are No organization is immune to failure 30% - 70% of IT projects are late, over-budget, or

don’t meet planned requirements

“IT project managers cannot accept all of the responsibility of delivering projects successfully. Top management and steering committees have a significant role to play in managing project risk.

Ambitious-sized projects, moving targets, and managerial turnover present challenges for IT projects that stretch even experienced project managers. Effective oversight of projects can help project managers respond to these challenges.”

Academic research report (November, 2007)


State of failure:Methodologies and tools are enough Project failures persist despite PPM, ITIL, PMI, CMM,

and other business process improvements “Distortions” interfere with process: poor judgment, politics,

and personal agendas Extreme case: “Successful” process / failed outcome

“One of the major weaknesses uncovered during the analysiswas the total reliance placed on project and development methodologies.

Processes alone are far from enough to cover the complexityand human aspects of many large projects subject to multiple stakeholders, resource and ethical constraints.”

British Computer Society (June, 2008)


Lack of alignment: Business / IT Management / project staff Vendors / customers

State of failure:are common



Diagnose and measure the real sources of failure Share knowledge and lessons learned to

improve success rates Embed innovation around IT project success

in the organization Evaluate your organization’s collaboration capabilities

Preventing failure:Removing to success


Increase appropriate communication to reduce information silos

Connect social networks to support continuous organizational improvement

Facilitate rapid, effective, and ethical decision-making Align IT with measurable business results Change project culture, not corporate culture

Preventing failure:Removing to success (cont’d)

What problem does the project solve? Who is the project champion? What does the stakeholder map look like? What PM toolbox are you going to use and what drives it

(procurement issues)? How will the project be governed (who, how, when)? How will the project be controlled (planning, monitoring,

reporting)? How will success be judged or measured? (who when, how)

Preventing failure:beyond IT


Asuret Failure Analysis Simulation


Asuret failure simulation:Measuring 7 of success Organizational, political, and cultural factors are critical Hard to measure

IT Project Success

Business Case

StakeholderInvolvement

Executive Sponsorship

Project Management

Change Management

Third-Party Relationships

Resource Availability


Asuret failure simulation:Specialized


Wisdom of crowds Requires carefully-selected group to avoid

“stupidity of crowds”

Measurement through “indirection” Reduce bias for charged issues Simple questions based on observable situations

Stakeholders consensus workshop follows analysis Ensure analysis is accurate and complete Gain consensus to avoid decision-making gridlock

Goal: insight, clarity, consensus

Key Governance Lessons


Key governance lessons:knowledge


Governance: people, collaboration, and responsibility IT and construction governance are fundamentally the

same Measurement and diagnosis are not sufficient to

create future success Consolidating / aggregating lessons learned is

essential to achieve continuous improvement Goal: Create shared organizational memory Engage stakeholders Improve collaboration and communication across silos

Key governance lessons:signs


Forward-looking warning signs of failure: Ambiguous or diffuse project ownership Stakeholder complexity Conflicts of interest Inconsistencies (hardest to discern in advance.

(For example: Taurus stakeholders not required to participate in project; Clissold fitness for purpose problem–architect didn’t understand target population needs.)

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Key governance lessons:The point


Be fearless and brave to do what’s right But, also exercise good and wise judgment

(don’t needlessly destroy your career)


Let’s have coffee!

Michael KrigsmanCEOAsuret, Inc.

Email: [email protected]: http://asuret.comBlog: http://blogs.zdnet.com/projectfailures+ 1 (617) 905-5950

mailto:[email protected]�

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Project Governance and Failure

Business

Transcript of Project Governance and Failure