ICT Project Management A survival guide Dr Christopher O’Mahony Head – Centre for Information Technology St Ignatius’ College, Riverview In summary This presentation shares some examples of IT projects in schools, and hopefully shares some tips on how to survive the IT Project battleground. Good News and Bad News Some wider context A cynical view Key learnings A sample case study Some useful links The presenter Christopher O’Mahony Head – Centre for IT, St Ignatius’ College, Riverview In school IT management roles since 1997 PhD research in school management information systems, IT evolution, IT evaluation, organisational culture Involved in various IT projects such as Management information systems Library systems Voice-over-IP SAN / DDT ISP Reprographics The good news The fact that this conference is happening, and that this topic is included, is indicative of the growing professionalism among school IT management. Most of us, during our tenure in these positions, will be involved to a greater or lesser extent in IT projects. Increasingly in schools, other organisational units are looking to IT managers for robust methodologies and discipline, rigour and objectivity in capital projects. BUT ……… The bad news In the 1990’s, the average life span of a senior IT manager was about 900 days. A common cause of IT manager casualty is failed IT projects. Aalders, R., & Hind, P., (2002) “The IT Manager’s Survival Guide”, Chichester, UK; John Wiley & Sons. Industry analysis tells that MOST IT projects fail For example: UK NHS – 4 years over time, GBP 10 billion over budget Australian Customs – 4 weeks container processing backlog on implementation Defining project failure Project abandonment Cost overruns Time overruns Incomplete implementation / functionality Major causes: Degree of user involvement Executive management support Project management experience (Courtesy: Information Age, 2005) Project cost vs project success More than $10 million 2% 11% $6m to $10m 23% $3m to $6m 32% $750,000 to $3m 46% Less than $750,000 0% 10% 20% 30% 40% Smaller initiatives fare better at reaching goals than larger projects do. 50% (Courtesy: Information Age, 2005) Proportion of projects over budget < 20% are over budget 46% 20% - 50% are over budget 22% > 50% are over budget 0% 32% 10% 20% 30% 40% 50% (Courtesy: Information Age, 2005) Proportion of projects delivered late 34% < 20% are late 20% - 50% are late 12% 54% > 50% are late 0% 10% 20% 30% 40% 50% 60% (Courtesy: Information Age, 2005) Proportion of scope successfully delivered < 50% scope delivered 26% 50% - 90% scope delivered 37% > 90% scope delivered 0% 37% 10% 20% 30% 40% A cynical view Project Management Truths “Never underestimate the ability of senior management to buy a bad idea, and fail to buy a good idea.” “Quantitative project management is for predicting cost and schedule overruns well in advance.” “Project meetings are events where minutes are kept, and hours are lost.” “We build systems like the Wright brothers built airplanes – build the whole thing, push it off a cliff, let it crash, and then start all over again.” A cynical view Project Management Truths Projects happen in two ways: (a) Planned and then executed or (b) Executed, stopped, then planned and executed. “Good project management is not so much knowing what to do and when, as knowing what excuses to give and when.” “Some projects finish on time in spite of project management best practices.” “Users don’t know what they want until they get it. Then they know what they DON’T want.” Key learnings Successful projects have demonstrable discipline, rigour and objectivity Link all IT projects to the IT Strategic Plan – avoid unplanned projects Different leadership types on a project team (eg Business, IT, Academic) have different dynamics, and these need to be ‘managed’ Engage senior management in all major projects Key learnings There is rarely a pure ‘IT’ project Clarify who’s driving Be wary of resourcing assumptions Prioritise your projects Build in plenty of milestones and progress meetings Avoid scope creep Talk straight Learn how to say “No” One Case Study – School MIS project The case for change Building project approval Governance and team structure Internal stakeholder consultation External enquiries The Tender Phase 1 - evaluations Phase 2 - presentations Phase 3 – Selection and contract Conversion and trial Go live Post implementation The case for change 2004 Business Office driving the call for change Areas requiring review: Fees & Billing Registrations & Admissions Foundation and OIU School shop Facilities Assets Project approval Early 2004 Business Case presented to: IT Committee Finance Committee College Council Initial ‘rule-of-thumb’ budget approved Project Team established External support from industry professionals Evaluation Governance & Team Structure IT Steering Committee Project Steering Committee Business Requirements Implementation Plan Ongoing Support Commercial Price G Conlon C O’Mahony L Holden (P2) B Peatman (P2) K Corbett (P2) G Conlon C O’Mahony G Conlon C O’Mahony G Conlon K Corbett G Conlon K Corbett Stakeholder consultation Term 1 2004 Questionnaires to all stakeholders Focus Group meetings What have we got that must be retained? What have we got that must be dumped? What have we NOT got that we must have? What have we NOT got that we’d like to have? Broad email enquiries to other ADAPE members Evaluation from ADAPE members -15 -10 -5 0 5 10 A B C D E F G H Happy Unhappy 15 20 25 The Tender Stakeholder consultation in Term 1 informed Requirements Specification Clear expectations of tender respondents Closed tender Incumbent invited to respond Longlist to Shortlist Make your tender document self-scoring Use quantitative analysis to justify selection / rejection Score each dimension Weight each dimension Consider price last Remember to include items such as: Conversion costs (export as well as import) Customisation / configuration costs Training costs Evaluation Phases Phase 1 Assessment of compliance and evaluation against evaluation criteria Phase 2 Discussions, clarification, negotiations and reference checks with short-listed Suppliers. Update evaluation. Short-listed Suppliers Preferred Supplier Phase 3 Finalise contract with preferred supplier, including further discussions and negotiations as appropriate Signed Contract Evaluating Proposals Evaluation Methodology Evaluation Criteria Weightings Scoring Rules Evaluating Price Evaluation Criteria & Weightings (excl. Price) Evaluation Category Criteria Criteria Weighting Business Requirements General 20% Core Business functions 40% Development / Foundation 20% Retail Operations 10% Other (Facilities, New Business Functions) 10% Implementation Track Record 30% Timeframe 20% Approach (eg phased) 50% Industry Track Record 20% Depth of Resourcing 30% Help Desk Support 30% Account Management 20% Vendor Stability 40% Financial Viability 40% Acceptance of Riverview’s Key Commercial Terms 20% Implementation Plan On-going Services Commercial 400% Category Weighting 55% 15% 20% 10% 100% Phase 1 Evaluation Results Business Requirements Implementation Plan Ongoing Services Commercial Price Business Requirements Comparison-1 Business requirements (weighted) by supplier 40 35 30 General 25 Core 20 Foundation 15 Retail 10 Other 5 0 A B C D E Business Requirements Comparison-2 Business requirements (weighted) by Category 40 35 30 A 25 B 20 C 15 D 10 E 5 0 General Core Foundation Retail Other Implementation Plan Comparison Implementation Plan Analysis 70 60 50 40 30 20 10 0 A B C D E Ongoing Services Comparison Ongoing Services Analysis 70 60 50 40 30 20 10 0 A B C D E Commercial Comparison Commercial Analysis 100 80 60 40 20 0 A B C D E Phase 1 Summary (excl Price) Scores Category Weighting A B C D E Requirements (Bus + Tech) 55% 45.7 33.1 46.1 49.9 42.0 Implementation Plan 15% 7.5 3.8 10.5 9.8 5.3 Ongoing Service (estimate) 20% 12.0 10.0 11.0 13.0 11.0 Commercial (estimate) 10% 6.5 4.5 8.5 8.5 7.0 TOTAL 100% 71.7 51.4 76.1 81.2 65.2 3 5 2 1 4 Category Rank NOTE: higher score is more favourable Price per Point of Value Approach Lowest price per point of value score = highest ranked supplier “Price per Point of Value” Score = NPV for Supplier Weighted Score for Supplier The service providers response must meet Riverview’s minimum requirements on each of the non-price evaluation criteria Financial Comparison - 1 Price Analysis (per Point of Value) NPV over 3 Yrs 2,500 2,000 1,500 1,000 500 E D C B A - Financial Comparison - 2 Price Analysis (per Point of Value) NPV over 5 Yrs 3,000 2,500 2,000 1,500 1,000 500 A B C D E Narrowing the field Vendor presentations We drove the agenda, not the vendor Important to use real-life scenarios / scripts Level playing field for all presentations No second chance Reference site checking Vendor recommendations Plus our own enquiries Selection and Contract From two down to one: Keep #1 and #2 keen right to the very end Contracts: Don’t simply accept the ‘standard’ contract Make the extra effort to ensure the contract matches your needs Always make sure your school legal advisers review the contract Conversion and trial If converting data from old system to new system: Do your best to retain support from outgoing vendor. Allocate plenty of time and resources to test the converted data. Worth considering at least two iterations of the conversion-and-trial cycle. Ensure robust change request procedure is in place during this phase. Go live! November 2004 – Conversion-&-Trial #1 January 2005 – Conversion-&-Trial #2 March 2005 – Go Live! Train! Train! Train! Support! Support! Support! Post implementation March 2005 was chosen for implementation as it had the least impact on our daily business. By Term 2, we were ready to use the new system for the second billing run. We’ve now been working with the new system for over one year. Every month / term that goes by things get easier, smoother, more second-nature. The old system is still available for reference, which is helping to mop up inconsistencies. We have also been building communication channels with other schools using the system, which is helping to inform the vendor of future improvements. Other Project Applications At Riverview, we have been using essentially the same methodology for about three years, for projects such as: Internet Service Provision Storage solution (SAN/DDT) Reprographics refresh Integrated Library Management System Useful links There is an increasing requirement for IT Project Managers to have formal accreditation AIPM – Australian Institute of Project Management www.aipm.com.au Endorsed courses: www.aipm.com.au/html/aipm_endorsed_courses_act_nsw.cfm Sydney University – Project Management Graduate Programme (PMGP) www.pmgp.usyd.edu.au PRINCE2 http://www.ogc.gov.uk/prince2/ In Conclusion Good ICT projects must be informed by robust research and well-exercised methodology; Good ICT projects must be continuously evaluated and reviewed; Good ICT projects lead to improved organisational agility and effectiveness. Contact Details Dr Christopher O’Mahony Head – Centre for Information Technology Saint Ignatius’ College, Riverview Tambourine Bay Road, Riverview, NSW 2066 Phone (02) 9882 8222 Fax (02) 9882 8588 Web www.riverview.nsw.edu.au Email cdomahony@riverview.nsw.edu.au