
Doing so can save heaps of cash...
Published: 23 August 2004 09:00 GMT
Professor Robert Macredie and Dr Mark Lycett, leaders of the Fluid Business research project at Brunel University, argue that project failure should be viewed more often than not as a success
Many IT projects exist to create a link between IT and the business, helping to align investment in technology with the needs of the business as a whole.
Here's a common scenario for such a project: a project manager is given an objective, a team and a budget and then he or she is expected to get on with the job and deliver on expectations in a specified timescale. Twelve months down the line, when the project is nearing completion, it's canned - at considerable cost to the business - because it no longer compliments current business objectives.
The question often asked at this point is: why did it take so long to realise that the project was no longer relevant or useful?
Your mission...
We all know there is a considerable amount of work, effort and time that goes into getting projects set up and signed off on. IT directors and their project managers have to justify every penny and prove that either the benefits far outweigh the cost to the business or ROI will be achieved.
Project managers are given set targets, usually defined in terms of time, cost and scope, and then set out on a mission to complete the project and deliver for the people who have placed confidence in them. It is not surprising therefore that project managers are loath to divert from a path that sees a project completed, as they are more often than not paid and given incentives to finish a project.
At the same time, there is often little or no incentive whatsoever to identify at an early stage which projects clearly miss the company's strategic mark. Stopping a project is more often than not seen as a complete failure and project management bonuses are lost.
When a project is cancelled, though, it's often not the project manager's fault. Some projects will either need to be heavily adapted or will become obsolete as business goals change in order for the company to remain competitive and deliver for stakeholders.
Running a project to the end can be a costly exercise but it is even more costly if the aim of the project does not meet with the businesses requirements.
Abort mission?
It is the project reward and success perception criteria that need to be fundamentally changed. Reward systems should be put in place to encourage project leaders to constantly review whether or not their project continues to support the business objectives set out at the beginning. Changes to or even the early termination of a project should be rewarded if it will save the company money in the long run.
'A stitch in time saves nine' is a proverb that should resonate within project management, but this culture can only be created if the business encourages it. Project leaders need to feel that intervention - even if fundamentally negative - will not be seen as a failure. Stopping a project because it will be ineffective and a waste of resources should be seen as a success and rewarded accordingly.
The relationship between IT projects and the business must be monitored by those closest to the problem and solution, that is, project managers. Businesses must encourage early intervention by rewarding those who take early steps to sound the alarm when projects no longer meet the objectives defined from the outset. Ironic as it may sound, by creating a culture that rewards failure, businesses will probably save considerable amounts of money.
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