Archive for the ‘IT project’ Category

CIOs Want To Know Why IT Process Improvement Programs Fail

Wednesday, January 11th, 2012
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They start out fine, but the ending is never pretty…

They start out fine, but the ending is never pretty…

It seems as though at least once a year CIOs get a bee in their bonnet and decide that the company’s IT department needs to knuckle down and improve its processes. This means that it’s time to implement one of those far-reaching process improvement programs. Oh, oh. No matter if it’s Six Sigma or some other flavor-of-the-week program, they all seem to end up the same way – having no lasting impact. Let’s take a look and see why this happens…

Process Improvement Programs Don’t Work

This type of discussion always seems to get off to a good start if I can share some interesting statistics with you. How about this one: 60% of all corporate Six Sigma programs fail to deliver the expected results. Ouch!

Clearly something has gone horribly wrong here. Those of us who work in IT know exactly what is going on. We’ve seen those big process improvement programs get announced with all sorts of excitement and then they always just seem to end up fading away.

When you’re CIO, this can’t happen. Your career is based on what kind of results you can deliver, and a successful process improvement program can be a big part of this. Let’s take a closer look and maybe we can find out where things are going off track.

Phase 1: The Good

Man, these big IT programs always seem to start on such a positive note. Everybody’s happy to be selected to be on the team and they are all committed to achieving the goal. Those teams are no small thing either – they can easily have 10-18 people on them because of course you want to have a representative from every possible impacted area.

Since the CIO has launched the program; the program has the attention and the support from the senior IT folks. This means that the low-level managers are clearly communicating to their folks who are involved in the project that working on the project is a top priority.

What’s even better than the launch, is what happens when the team reaches a goal – the CIO throws a party! Everyone celebrates the success and the people on the team get some sort of recognition and a reward. Everyone is happy.

Phase 2: The Bad

Time marches on. After the initial success, the process improvement program continues on. The problem is that it’s been going on for so long that now folks start to get distracted. Other tasks start to creep in around the edges and steal their time away.

The outside experts who were brought in to help the time implement the Six Sigma or whatever program now move on to other things. The team keeps moving on, but their way forward is no longer clear.

Managers are no longer so open to having their team members spend so much time on this other project. Instead, they start pushing to have their staff complete their “day job” before they spend time on the “special project”.

Phase 3: The Ugly

This is where it all falls apart. Basically what happens is that the folks who are working on the process improvement teams just stop doing the work. They no longer care about the program because it really has no bearing on their annual performance appraisal. Therefore they make the conscious decision to focus on what matters, their real job, and start to ignore the process improvement project.

What’s interesting is that this project failure is often hidden from the CIO. What happens is that the folks who are doing the reporting start to focus on the one or two teams who are actually able to keep moving forward, even if it’s just a bit, and they don’t report on the teams that aren’t making any progress.

Because they also start to report on what teams say that they are going to do in the future, this obscures what is really going on right now – nothing. This always eventually comes to the surface, but by then the damage is done and the CIO’s process improvement program has failed.

What All Of This Means For You

The very definition of information technology is that it’s a department built on processes. When CIOs decide that those processes need to be improved, they like to kick off a big process improvement program.

However, all too often in the IT sector these programs end up producing no long-term positive results. The reasons are many: over time there is less and less expert assistance, existing job responsibilities start to take over, and lack of senior IT management involvement all work to shift focus away from the project.

The importance of information technology means that IT processes really do need to be improved. CIOs can make sure that the time and effort that is poured into these process improvement programs yield results. Making expert resources available for longer times, making process improvement results a part of everyone’s performance appraisal, limiting team size, and ensuring IT executive involvement will all work to make your next IT process improvement program a success.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: How long do you think an IT process improvement program should go on?

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What We’ll Be Talking About Next Time

I love clouds, you love clouds, we all love clouds. It seems like everyone in IT is talking about cloud computing and how it’s the next big thing. Cloud computing has almost become a part of the definition of information technology. Look, I think that there’s a lot of good things about cloud computing, but I’m not convinced that it’s the right solution for everyone. This brings up the question of how a CIO can find out if cloud computing is right for his or her IT department. It turns out that there are three questions that just might provide the answer that you are looking for.

The British Are Coming, The British Are Coming – Lessons From BT

Wednesday, July 14th, 2010
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BT Exact Had To Transform Its IT Department In Order To Survive

BT Exact Had To Transform Its IT Department In Order To Survive

Anyone can be a successful CIO – you just have to master the basics: understand what business you are in and find ways to use technology to allow the business to move faster and do more. A great example of this is BT Exact: the IT branch of British Telecom (BT) – the UK’s largest phone company. Back in 2004 they knew that they had an IT problem, but they didn’t know how to solve it…

Too Much Of A Good Thing

Every CIO has to deal with a fundamental problem: how to structure the IT department. Back in 2004 BT was ducking this problem: they didn’t have a centralized IT function. Instead, each of their business lines had their own CIO and IT staff. You can just imagine how many different IT projects were going on with little or no communication between them.

Realizing that they had a problem, BT Exact reached out and hired Al-Noor Ramji who was at the time the CIO for the U.S. based Qwest telephone company. Just imagine the mess that Al-Noor walked into on his first day on the job…!

Right Sizing

When Al-Noor arrived at BT there were approximately 4,300 IT projects going on. Since they were all operating in their own silos none of them had coordinated delivery dates and in fact many of them had no related business case to back them up.

Clearly it was time to put an end to the madness. BT undertook a massive effort to evaluate just what it was working on in its IT department. After it had halted unnecessary projects and combined similar efforts, they were left with only 29 projects.

Legacy IT systems that had been created by past projects were another problem. BT was paying to keep 3,000 such systems up and running. Al-Noor had them take a look at what each system was being used to do and in the end they were able to decommission 700 of these systems.

What Have You Done For Me Lately?

All of these changes were just a lead in to what Al-Noor was planning on doing. As we all know, often IT projects can take a long time to implement. When these projects run on and on for a long time, it’s very easy to lose sight of what we were trying to do in the first place. At BT they’ve come up with a solution to this problem.

They’ve implemented a 90-day project management review cycle for all IT projects. This means that a set of agreed on metrics are established for each project at the start of every 90-day cycle: customer satisfaction, ROI, etc.

At the end of a 90-day cycle, each project team reviews how well they met the goals that had been established at the start of the cycle. If the goals are met and the project meets its objective for that cycle, everyone on the project gets a bonus for their work.

This sound all fine and dandy, but in the early days there weren’t any bonuses being handed out. However, things have changed since then. Now BT has seen the cost of projects go down by 19% and they’ve seen their IT productivity more than double.

What All Of This Means For You

When you become CIO you may find yourself walking into a mess as complicated as the one that Al-Noor found himself in. With a little luck, you’ll be able to use what he did to fix things quickly.

Getting rid of IT silos and eliminating projects that aren’t going to have any business value to the company is a great way to start. Implementing an effective project management system that will allow everyone to keep their eyes on the prize is also needed.

Once again, becoming a successful CIO is not impossible. Taking the time to make sure that you know where the company wants to go and then shaping the IT department to get you there is exactly what a successful CIO does.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills

Question For You: Do you think a 90-day cycle is too long or too short?

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What We’ll Be Talking About Next Time

When you go hunting for your next IT job (and it may be sooner than later), will your resume be up to the job? Come to think of it, when was the last time you dusted off and updated your resume?

It Turns Out That Top-Down Decisions Are What CIOs Need To Make

Wednesday, February 24th, 2010
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To Get An IT Project Done On Time, The CIO Needs To Make Some Decisions

To Get An IT Project Done On Time, The CIO Needs To Make Some Decisions

What’s Wrong With The Way That We Schedule IT Projects?

At the end of the day, an IT department is simply a collection of projects. Some of these projects are short lived (“we’ve got an outage!”) and some are much longer (“let’s install a new ERP solution”). However, it turns out that today’s CIOs have been taking the wrong approach when it comes to scheduling these IT projects and it shows.

All too often once the decision has been made to fund a project, the CIO takes a hands off approach until the project has been completed. What this means in practical terms is that the planning for the project is done by the project team itself. This is where things start to go off-track from the very beginning.

Put yourself for a moment in the shoes of the poor IT planner who has just been handed a large IT project. Sure, you’re excited about the opportunity to manage so much responsibility; however, you also realize that not delivering the project when you say that you will can sink your career. What will you do?

Simple – it’s called “sandbagging” . What you will most likely do will be to add extra time to the project so that when things start to slip, the end date for the project won’t be impacted. Shucks, if you can get away with it you’ll add a lot of extra time to the project so that you just might be able to deliver it early and get the admiration of your bosses for being such a good project manager.

Take this situation and then consider what happens when what the project manger is working on is just one part of a bigger project. Additional time will be added to each of piece of the project and eventually the “time padding” will grow so large that you may have doubled or even tripled the real time that the project is expected to take.

The Power Of Top-Down Planning

The way to solve this is for the CIO to step in and supply some top-down planning. This is where the CIO sets the dates for the project and hands these dates to the project team. Jay Bahel reports that a recent study of 75 large IT projects revealed that the ones that were the most successful were the ones that had their milestone dates set in a top-down fashion by the senior IT leadership.

Why does this type of heavy-handed approach to setting IT project dates work so well? It’s actually pretty simple. By establishing the dates by which work needs to be completed, the CIO is sending a very clear message to the IT team – this is your goal, make it happen. This sets up a sense of urgency within the team and it can go a long way in preventing those internal conflicts that always seem to arise as a team tries to set dates for a project.

The Role Of The Core Team

Yes, yes – I know that things will be different when you become CIO. However, let’s assume for just a moment that even you won’t be able to spend all of your waking hours lording over any single IT project. What can be done to keep things on track and moving towards the milestones that you have laid down?

Creating a so-called “core team” that keeps a watchful eye on an IT project can be a great help in ensuring that the project stays on track. It’s important that this team not be too large – 4-6 senior management leaders should do the trick. The role of this team will be to bring the interests of both IT and the rest of the business to the table in order to manage the project.

The core team is ultimately responsible for making sure that the CIO’s project milestones are met. In order to do this they will have to resolve the conflicts that arise during the project as well as ensuring that the project team is able to interface with the rest of the business in order to complete project tasks.

What All Of This Means For You

Moving to a top-down project planning process will require changes to be made in your IT department. Expect some bruised feelings especially from the project managers – they’ll feel like you are taking some of their power away from them.

Picking the members of the core team that will be watching over the IT project is not something to be done lightly. Not only do they need to bring solid set of skills to the table, but they also need to be able to get along with each other.

Once again, it becomes clear that a CIOs job is not necessarily to actually do things, but rather to make things happen. When it comes to IT projects, the CIO needs to show the rest of the IT department the way by setting timelines and milestones in a top-down fashion…

Do you think that top-down IT planning would help your IT department’s projects to be more successful?

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What We’ll Be Talking About Next Time

I believe that one of the reasons that it is so hard for a CIO to get the IT department to align with the rest of the business is that finding the correct opportunities where alignment is possible can be a big challenge. Well I’ve got some good news for you: it looks like such an opportunity is getting ready to show up and it’s called XBRL…