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    10 ways to avoid ICT project disasters

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    Having a sound governance platform administered by experienced people is critical to the successful delivery of any major technology project. Oliver Barrett looks at ten ingredients essential to avoiding a governance catastrophe in the fast moving IT sector.

    There are often common themes evident in failed projects; the most prevalent of these are lack of experience and poor ICT (Information, Communications and Technology) governance. Allowing these themes to develop is more often than not the fault of senior management.

    When it comes to corporate governance, experience and complexity in an inverse ratio can be a recipe for trouble. In recent large failed projects, inexperienced project managers and poorly informed, disinterested and reactive leaders feature prominently.

    There are other far-reaching consequences of poor ICT governance structures and processes, including a blow-out in costs, a compromise in the quality of the outcome delivered, a failure to achieve the expectations set for a project and, in some cases, expensive litigation.

    The following points are a guide to good governance for senior executives, drawn from recent ICT project disasters:

    Clarify roles and responsibilities as a blueprint for success
    Define roles and responsibilities from the outset, so that all stakeholders have a clear understanding of the boundaries and what is expected of them. At the time, this consideration may be viewed as something of an administrative overhead, but the long-term benefits are significant, particularly in arresting staff attrition rates and improving morale. It is much better to do it well from the very start than to try to fix it when the crisis becomes evident.

    Ensure senior management’s role is an active one – and walk the talk
    Gone are the days when ICT was merely a cost centre – something that senior management could safely ignore or delegate. ICT projects are now critical to driving an organisation’s strategic objectives, mitigating risks, obtaining competitive advantage, enhancing earnings and, ultimately, increasing shareholder value. This is clearly the domain of management. Senior management and boards should press for information on progress, costs and constantly monitor alignment with the business case.

    Alignment doesn’t just happen
    Keeping the project aligned with changing business requirements will not happen automatically. Constant assessment must be carried out to ensure the project is meeting changing needs. Delivering a ‘Rolls Royce’ project with an outcome that is no longer aligned with the business obligations is a major failure.

    The strategic is not the operational
    Make sure that strategic roles are not confused with operational ones. Both are equally important to a successful project outcome and require due attention. However, they are not the same!

    Keep it flexible – Adapt if needed
    Things change. It is important to adopt a flexible approach to ICT projects, adapted for the relevant stages of a project, but still within the wider boundaries of the governance framework.

    Talk, talk, talk – communication is key
    Ensure that there is a constant communication flow between stakeholders. Providing regular updates on progress will help to reduce the chance of any surprises. Communication also helps to establish clarity of the purpose and a common understanding between all parties of the desired project outcome. This approach is particularly important in a multi-vendor project or where there are geographically dispersed sites. It is essential to incorporate a communications strategy into your governance framework for a project – and communicate that strategy it to all relevant project personnel!
    Identify who is responsible for what
    Recognise that there is a cross-dependency between the activities of the project and the contractors. You are unlikely to succeed if the contractors do not succeed. This is especially so in a multi-vendor environment, where one must allocate end-to-end outcome responsibility. It is particularly important to identify the leadership team of each participant involved in the project delivery. Lines of authority should be clear.

    Consider the project from an end-to-end perspective
    ‘Migration’, ‘transition-in’ and ‘transition-out’ are not just consultant ‘buzzwords’. Their relevance and impact on a project’s outcome cannot be understated. Accordingly, there is a need to think of them as a governance issue and to incorporate them into the governance framework. They will likely have a major risk, financial or time impact on any project’s outcome. If ignored, that likelihood will become a certainty.

    Change doesn’t just happen
    For any major ICT project, consider your organisation’s culture and its readiness for change. Planning and managing the way an organisation handles change is vital – change doesn’t just occur by itself and there is a tendency in everyone to resist change to varying degrees. Accordingly, it is essential to have regard to stakeholders, project champions and others who might influence project team performance. A project implemented by an effective and cohesive team and well supported by the constituency of end users is more likely to go well.

    Break down the barriers
    Regular consultation between the project team and suppliers is paramount, particularly as silos can occur in big projects. Projects come unstuck when key information is not transferred to relevant people within an appropriate timeframe. Practices need to be introduced that break down barriers and enable people to know what others are doing.

    By creating strong project governance from the outset, senior executives will be in a far stronger position to ensure desired project outcomes are met and legal risks are effectively managed.

    Oliver Barrett is a Partner in the Telecommunications, Media and Technology Group at Minter Ellison Lawyers.