Many technology projects fail because companies cannot muster the required resources. This creates a major hurdle in the minds of decision-makers, as the perception that IT projects are difficult and prone to failure is a real concern when considering whether to approve a project or not.
Statistics from research are frequently quoted that show a dismal failure rate of IT projects. Interestingly, much of this research was done in the late 1990s and early 21st century when complex ERP implementations dominated IT projects. An example of such research is the Standish Group’s finding in 1995 that 31% of IT projects are cancelled before they are completed, and that only 16% of IT projects are completed on time and within budget. Unfortunately, this notion of risk weighs heavily with decision-makers, who are asked to approve capital on new projects, and accounts for the intense scrutiny of the solutions and vendors during the product selection phase. Ultimately, projects that could add value to an organisation are rejected for the wrong reasons.
Most companies approach the risk of IT project failure through formal project management during the design, build and deploy phases of an implementation. An increasing number of companies are also including formal change management into the project – after all, even though the project is based on technology, people have to work with the system.
Software vendors have approached the implementation challenge by simplifying the configuration process and using a template-based approach. Templates allow best practice business processes to be pre-configured by the vendor (out of the box), leaving a relatively small customisation effort to the project. However, this approach alone can also be flawed if change management is not taken into consideration – users will still have to adapt to the system, no matter how efficiently the configuration process is managed. And best practice processes may not resemble what users are used to, leading to rejection of the system – so this template approach also has its risks.
Success through change management
Change management is one of those soft issues that excite industrial psychologists, yet perplex engineers and technologists. The discipline is based on an understanding of human motivation and psychology. Several change management models exist, such as the McKinsey’s 7-S model, Lewin’s change management model and Kotter’s eight-step change model. Each model has a slightly different emphasis, but they are all based on an approach to most efficiently motivate people to make a transition to a new state.
The success rate of implementation projects can be dramatically improved by incorporating formal change management into the project scope. Kotter’s model, for example, requires a sense of urgency (for the change) as the first step. Unfortunately, in some projects, such as implementation of safety and health systems, the sense of urgency can be precipitated by a serious accident. This is the sad reality of human nature, akin to fitting burglar guards after your first break-in. The remaining steps proposed by Kotter include building a team for the change, constructing the vision of the end state, communication, empowerment, creating short-term goals, being persistent and finally ensuring the change is permanent and the solution is sustainable.
By fusing change and project management into the implementation project, companies reduce the risk of failure. Projects will be completed on time and within budget, and more importantly the end-users will be more accepting of the system and the system will be sustainable. Unfortunately, this does take effort and there are no short cuts. Software vendors will make their implementations simple through templates and proven methodologies. The client company is responsible for ensuring that change management is done well. Ultimately, when this approach is followed the outputs are predictable and the risks are easily managed.
In summary, when you are considering a technology-based solution and feel the hurdle of a successful implementation is too high, ask for the vendor’s implementation methodology and experiences, ensure good project management is in place and above all do not neglect change management because it is people at the end of the day who will make the system succeed or fail.
For more information contact Gavin Halse, ApplyIT, +27 (0)31 514 7300, [email protected], www.applyit.com
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