Monday, May 25, 2009

The 5 Ws of Software Project Success

Computers are a necessary component of every business today, yet the success rate for software projects in business is not very high. Most companies get some value from implementing software, yet they get far less than they should, and far less than if they looked at software as an investment rather than as a cost of doing business.

If you look at it as a cost, you look at whether you can afford it. If you look at it as an investment, you look at whether you will get a 20, 50 or 100% return. Very few businesses ever achieve returns that measure 20% let alone more than that.

We have all heard the questions that every reporter must answer in any article. They are: Why, what, where, who and when. It turns out that these questions are the same ones that generate results for software projects. The reason that software projects fail to achieve big returns is that there is not a clear answer to these questions.

Let's look at each of these in turn.

Why buy or install the software?
While this seems like a simple question, there are many potential answers to the question. This is often described as the goal or objective of the “project”. The software can be used to satisfy many different goals, and often the people involved interpret different goals from the original.
Take Customer Relationship Management (CRM) software, for example. The assumed goal for some may be to increase sales, but CRM software can do many things:
  • It has a contact manager.
  • It has the capability to track every interaction with your customers.
  • It has the ability to track the status of activity with a customer.
Saying that you want to implement CRM software encounters this type of conflict.

A recent client's objective was to understand the status of activity with customers. The reason was that he was having high turnover with salesmen, and when they left, he had no idea whether there was any sales in the works. By tracking the status, he could quickly assign someone to work on these customers to finish the sale. Most people that I talk to would not have assumed that this was his objective.

You must clearly define why you want to install the software to everybody involved.

What must happen to get the software to deliver the results needed?

Most software projects focus on software implementation, but this need has nothing to do with the software or training on the software. This has to do with how people do their jobs. If we use the example above, every salesperson needs to track all of their activity with clients if you are to be successful. This can be a lot of work.
What is the incentive for the salesperson? If there is no incentive, why would they do it? If they do it, how do you know whether the information that they capture is of value for your objective? Many projects attempt to capture all of the data, assuming that it will be of value later. This results in too much data that is of little value.

Define how you will track whether it is doing what you want it to do. Do it on a small scale to ensure that you can use the data that is being captured. Work with the data that provides the most value first.

Who, Where and When will the information be captured?
These are the questions that deliver the results. If people are in the office and working on their computers, it is easy to capture the information that you are looking for. Rather than write it down, people can type it. However, if they are in the field and don't have access to a computer, and don't have any other need to capture the information, it will be much more difficult. This is where most software projects go wrong. They try to capture too much information, but force people to do it on their own time and don't offer any benefit to the person doing it.

This is a case of less can be more. If you ask for too much, you will get garbage or not get it at all. If you ask for less, the most critical information, you are more likely to get it. If you also show the value that you get early, it is likely to be better information.

This completes the circle:
  • Everybody knows why you are doing it.
  • Everybody knows what must happen in order to meet the goal.
  • The people who must do it, know where they have to do it and when.

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