More on software project failures

It's terrible to harp on this issue, but it is such a big issue. Software projects fail to deliver on return on investment. I had to raise this issue again because of another article that talked about it. The article is written from an IT point of view.

IT organizations in large businesses are a focal point for a lot of the work that gets done in a business. 70-90% of IT expenses are typically spent to keep the "lights on". This term is used by most people in IT for keeping the business running. Most businesses are lucky if they spend 30% on new projects. Even when they do, much of the staff's attention is placed on multi-tasking to keep the lights on.

When they do work on new business initiatives, they are focused on the mechanics of the projects: gathering requirements, implementing technology, managing the activities, trying to manage scope creep. Most IT organizations do a pretty good job of managing all of these activities. They are also focused on improving their abilities to get the job done. Project management, requirements gathering, managing scope have all improved over the last ten years, yet this has had little impact on the results.

The issue is not managing projects, it is not managing the steering committees and getting everybody to do a better job. It is a matter of focus!

Most IT projects take on a life of their own and lose sight of the original goals while they focus on the technical issues of the project. The goal may start out to improve productivity of staff in delivering service. A decision is made to implement new software to achieve that goal. From then on, the implementation takes over. The original goal is assumed to be met by the delivery of the original software. However, most projects take longer than expected. During that time, the business needs change; the business managers learn more about their business because of the project and change the requirements because they see a better way. All of the focus is on the development and implementation of the software, that is, to have a "successful project".

The result is that the "project" might be successful (i.e. it was implemented on time, within budget, meeting specifications), but the patient died (the business didn't get the results it needed).

While this article and other studies are focused on large organizations, the problem is the same with small ones. The projects aren't as large, the costs aren't as high, the failures aren't normally as detrimental, however they are still failures. Money is wasted and most small business cannot afford this waste.

We need to focus on the business value! What are we trying to make happen? How will the software help to make it happen? If changes are required because the business changes, then let's make sure the original goals (if still valid), will still be achieved.

The original article can be found here.