How Boards and Senior Managers have governed ICT projects to succeed (or fail)

Dr Raymond Young raymond.young@gsm.mq.edu.au

Project Management and Organisational Change Canberra, 21-22 February, 2006

Its to fail successfully Howall about focus

$10M ERP, $100M pa, <200 staff CEO initiated Selection by snr management But Board unconvinced

Project initiated

Business case: $6M benefits over 5 years Snr managers sign off

Strong PM, Strong methodology, Highly motivated team But business ownership issues, technology not business focus, and snr management conflicts unresolved. world fastest implementation no BPR. <1/2 benefits realised. Upgrade strategy deferred

Moderate success

Major Governance Principle: Focus on a standard definition of success

EDP Success: Technical focus Information Quality Intention to use System Quality User Satisfaction Service Quality
Delone, W. H. and McLean, E. R. (2003) The Delone and McLean Model of Information Systems Success: a ten-year update Journal of Management Information Systems, 19:4, 9-30.

MIS Success: User focus

SIS Success: Organisational focus

Use Net Benefits

Common sense but not the common practice!

Scope of project success Scope of project management success 1 2 3 4 5 6

1 Initiation

2 Planning

3 Development

4 Implementation

5 Benefit

6 Closedown

The (proposed) Australian Standard

2

Evaluate
1 Initiate Support 3 4 Top Management Direct & Monitor

6
ICT Operations

Projects

Changed ICT Operations Changed Business Processes

Business processes

The 6 Key Questions

2 2. How much change is required to realise the benefits?

1. What are the expected business benefits?

Evaluate
1 Initiate 4. Who should sponsor the project?

Support 3 4

Top Management

Direct & Monitor

3. How will they be measured and rewarded? (ie. how will the realisation of benefits be measured?)

6. Are the benefits being realised ? 6

ICT Operations

Projects

5. Is the culture right for unexpected issues to be raised?

Changed ICT Operations Changed Business Processes

Illustrated version

Business processes

How Boards & Senior Managers should govern ICT projects

Discussion

Hard vs Soft

Why TMS? What TMS?

Theoretical Financial Basis Implications