Imperatives for Project Success

How to measure the success of project

1. Busniess benefits whould be realized

2. Stakeholders are committed

3. Project scope is realistic and manageable

4. work and schedule are predictable

5. teams are integrated and high performing

6. risks are being mitigated

7. delivery organisation benefits are realised

 

Proposal Preparation Process

 

Imperatives for Project Success

Good Requirements Baselines --> Good Proposals --> Good Contracts --> Good Projects

 

Most failed projects start with bad contracts.

Most bad contracts are due to bad proposals.

 

Reasons for Project Failures

Proposal Preparation Stage

1. Highly demanding client expectations

Description

    A. Client expectations could be

        a. Stiff deadlines

        b. Features of the proposed solution

        c. Benefits from the new solution

        d. Quality of project personnel

    B. Clients are by nature demanding - this is their right - however unrealistic demands can cause problems.

 

Solution

    A. Manage client expectations - bring it down to a level at which they can be met

    B. Walk through the proposed solution with the client and obtain agreement before signing the contract

    C. Establish communication at various levels in the client organization

    D. Try and get the client to acknowledge the challenges and risks associated with the project

 

2. Single phase, fixed price, fixed schedule approach

Description

    A. Requirements are often not clear and scope is not well baselined and bounded

    B. In spite of this IT projects are contracted with a fixed price, fixed schedule and a single phase approach - This increases risks

 

Solution

    A. Adopt a two phase approach by following these steps:

        a. Propose requirements study fist and freeze scope

        b. Then provide a proposal for the design and implementation phases

        But clients very often do not accept this

    B. The what do we do?

        a. Conceptualise the scope and provide a detailed description of it in the proposal.

        b. State that any deviations from this detailed scope would be subject to change control procedure

 

3. Client not clear about their responsibilities

Description

    A. Client's role and responsibilities are not made clear up front

    B. Typically problems arise due to

        a. Client non-availability for crucial project activities

        b. Client not clear about data conversion responsibility

        c. Interfaces that require changes to host systems

        d. Package implementation that involves re-engineering to processes within the client organisation

 

Solution

    A. Think through thoroughly what role the client should play at every stage of the project

    B. Based on their role, put as exhaustive a list as possible of their responsibilities in the proposal

    C. Discuss and agree all the tasks that the client should perform before signing the contract and commencing the project

 

4. Unclear acceptance/completion criteria

Description

    A. Examples of acceptance/completion criteria:

        a. The system will be deemed accepted by the client when all users are satisfied with its functioning.

        b. The project will be deemed completed when the users have matched all the required reports generated by the new system with that of the old system

 

Solution

    A. Example

        a. The system will be deemed accepted by the client when it functions for ten days without any errors that render it unusable

        b. The project will be deemed completed when the General, Purchase and Sales ledgers generated by the new system matches with that of the old system

    B. Clear and unambiguous Acceptance/Completion criteria should be thought through for all phases of the project and agreed with the client before signing the contract and commencing the project

 

5. One sided terms and conditions

Description

    A. Terms and Conditions in the contract should be fair to both parties

        Examples

        a. A hefty penalty clause for delayed delivery

        b. Termination rights is only for the client

   

Solution

    A. Example

        a. A corresponding bonus clause for early delivery

        b. Equal termination rights for both parties

    B. We should accept only terms and conditions that are fair to both parties and those that will not render the project unprofitable

 

6. Ineffective negotiations

Description

    A. What happens if negotiations are ineffective?

        a. Inadvertently a number of freebies are given away

        b. Additional technical features and performance norms are promised without checking back with the technical team

    B. Results

        a. Hard to meet commitments

        b. Loss making project

 

Solution

    A. This can be avoided by making it mandatory for the engagement team to obtain appropiate approvals within the performing organisation before the contract is signed with the client

 

7. Bad sub-contractor agreements

Description

    A. Agreements with sub-contractors often do not match with what has been agreed with clients

 

Solution

    A. Ideal sub-contractor agreement would be one that is matching on back to back basis with that of the client. Example - acceptance criteria, payment terms etc.

 

8. Port sub-contractor performance

Solution

    A. Check the credentials of the sub-ontractors

    B. Check the performance of the sub-contractors on past similar projects

    C. Review the detailed project and staffing plans of the sub-contractors

    D. Make contingency plans in case any sub-contractor fails to delivery

    E. Include appropriate buffers to take care of delays in sub-contractor's work

    F. Include appropriate clauses in the client agreement to protect the performing organization in the event that a client specified sub-contractor defaults

 

9. Incorrect estimates of effort and cost

Description

    A. Effort estimates in many IT projects are based upon the gut feel of the people involved

    B. Major aspects of the project that need to be taken into account are often missed - warranty support efforts, costs associated with purchasing support for third party supplied items, travel & living expenses etc.

    C. To keep price low, effort is under estimated

 

Solution

    A. Involve experienced technical personnel in developing and reviewing estimates

    B. Use an appropriate estimation tool - but do not rely on it completely

    C. Adjust estimates for the use of new technology, new tool, the training time required for the project team, sub-contractor under estimation, testing and recification time required, unidentified risks etc.

 

10. Lack of risk management

Description

    A. All projects are fraught with risks

    B. Sources of risks in IT projects

        a. Scope changes

        b. Readiness of the client to fulfil their responsibilities

        c. Ability of the users to learn the usage of the new system

        d. Bad assumptions

        e. Shortage of skilled resources

        f. Government

        g. Company policies

        h. Unrealistic deadlines imposed by the client etc.

 

Solution

    A. Actions to improve Risk Management

        a. Think through all the possible risks that can arise at every stage of the project and identify them

        b. Quantify the effects of these risks

        c. Make contingency plans to mitigate the adverse effects of these risks

    B. All this can be done at the proposal development stage itself

 

11. Lack of skilled resources

Description

    A. Major problem that the IT industry faces

    B. We are always reactive when it comes to manning the project with skilled resources

    C. This is typical of organisations that do not think long term

 

Solution

    A. Evolve a long term resource plan that will enable availability of resources when required

    B. Check availability of resources at the proposal development stage itself

    C. Authorise the proposal only if resources are either available or if not, there is a reasonable chance of acquiring the required resoureces

 

12. Poor handover from engagement to delivery

Description

    A. Engagement team is responsible only for selling - not responsible for delivery

    B. After contract signing, the engagement team withdraws and the project team takes over

    C. Often the handover is not smooth and completed

 

Solution

    A. Involve the project manager and key members of the project team in the engagement process

    B. This will eliminate the need for the handover

 

Project Execution Stage

1. Poor cost/schedule management

Description

    A. Major challenge for the project manager

        a. Effort involved is underestimated

        b. Project are understaffed

        c. Tendency is to go slow in the first few weeks/months of the project

 

Solution

    A. Work as though the deadline is tomorrow from day one

    B. Break down the overall project plan into sub-project plans and further into weekly and daily plans

    C. The daily goal should be to meet the daily plan

 

2. Skipping essential reviews

Description

    A. Reviews are often considered as non-value adding steps and are skipped

    B. If skipped, it will affect the quality of the work products.

 

Solution

    A. Make reviews mandatory in the project execution process

    B. Ensure independent experienced professionals carry out reviews at various stages of the project

 

3. No support from senior management

Description

    A. Laissez-faire attitude of senior management can result in projects not meeting its objectives

    B. Support to the project team from the rest of the organisation will not be available

    C. Client may lose the confidence in the project team's ability to deliver

    D. The project team will not have any one to turn to in case of problems

 

Solution

    A. Senior Management Responsibility

        a. Senior management should periodically review project progress with the team

        b. Periodic reviews with the client should also be conducted to assess the client's level of satisfaction

    B. Benefits

        a. Enables the project team to take appropriate steps to managethe project successfully and ensure client satisfaction

        b. Senior management can assess new business opportunities

 

4. Not implementing the change control procedure

Description

    A. Many project managers are reluctant to invoke the change control procedure when the client requests a new requirement that is outside the agreed scope

    B. Additional effort is absorbed resulting in cost and schedule overruns

 

Solution

    A. Explain the change control procedure to the client before signing the contract and put it in the place before the project starts

    B. Religiously follow this procedure even for small changes that do not affect the cost and schedule

 

5. Unplanned turnover of project personnel

Description

    A. Very common in the IT industry - disrupts projects

    B. Can cause havoc in the project, if it is not handle proactively

 

Solution

    A. Recognise this as a major risk and work out suitable mitigation plans

        a. Put in place a succession plan for key project team members

        b. Cross train project personnel, so that if one member leaves, another can take over tomporarily

 

Project Launch Activities

1. Review the following:

    A. Contract

    B. Scope

    C. Business Case

    D. Project Schedule

    E. Resource Estimates

    F. Project financials

2. Meeting the client and

    A. Confirm expectation

    B. Understand conditions of satisfaction

    C. Confirm the availability of client resources

    D. Understand the client's project team organization

3. Validate scope, estimates, schedule and budget with experts; if there are not realistic and adequate, call out appropriate risk and seek resolution from senior management

4. Seek the required resources with adequate skills; draw up a schedule of resource requirements and reach agreement for the provision of resources when required. If resources are not available or anticipated to be not available, escalate and seek senior management intervention.

5. Conduct a team charter workshop and come up with an agree team charter

6. Develop the initial project plan

7. Obtain access to the required project management tools for yourself and the team.

8. Set up a repository for all the project related documents

9. Setup the project management system for the project

    A. define the processes and procedures for various facets of proejct management

        a. scope management

        b. time management

        c. cost management

        d. risk and issue management

        e. communication management

        f. procurement management

        g. HR management

        h. quality management

    B. Document the project management system in the form of a project management plan

    C. Present the proejct management system to the client and seek agreement

 

Conclusion

1. Successful projects need good contracts

2. Good contracts need good proposals

3. Proposals, on acceptance, become legally valid contracts

4. Successful projects need good software engineering and project management practices

5. Good project management practice involves good proposals leading to good contracts, which aid in ensuring successful projects.