These moves can largely be targeted at three positive outcomes: to use the information to manage risk and deliver successful projects more often, to bridge the knowledge gap with non-ICT management by offering project governance support and to raise the profile and demonstrate the value of ICT at the most senior level within the organisation and / or the Company Board.
The conversation concerning troubled ICT projects is an important one to have. Obviously questions need to be asked about the financial losses that have occurred, however much of the discussion in response to reports has focused on what has not been done well, rather than why, and the best solutions moving forward.
As I see it, the main challenges are about having the right project governance team, organisational culture and sufficient available support for governance groups.
The methodology most commonly used for project management in Australian business transformation and ICT projects is known as PRINCE2, it is particularly common in government.
It stipulates that the project manager is appointed by the project sponsor and takes direction from the project steering committee, which includes the sponsor. Under PRINCE2 the sponsor and steering committee have the ultimate responsibility for success or failure of the project.
When the Outgoing NSW Auditor-General Peter Achterstraat retired in September 2013 he listed 12 key reasons he believed government projects fail. It is worth recalling the list in full. He cited poor initial business cases, unclear statements of expected outcomes, a lack of senior management buy in, inadequate gateway reviews, poor communication, inadequate stakeholder engagement, scope creep (or in many cases ‘scope gallop’), conflicts of interest, optimism bias when assessing prospective benefits, group think, lack of appreciation of the ‘big picture’ and decision-makers being too embedded in the project so that they can’t see the forest for the trees.
Most if not all, of those reasons for failure stem from a lack of effective project governance, not ineffective project management, and this is a distinction worth noting. Mr Achterstraat also observed that successful projects shared a number of common traits – including a clear distinction between who was managing and who was leading the project.
Effective governance
Effective governance requires the appointment and availability of the right sponsor and the appointment and availability of the right steering committee members. This sounds easier than it often is, because these people usually occupy management roles at mid to senior levels and the governance function is in addition to their “business as usual” responsibilities.
The value of “Lessons Learned” should be obvious and it is a PRINCE2 requirement. Although the term is starting to be absorbed into our business language, in reality the concept is rarely practised in business or the public sector. People don’t like to admit mistakes and careers are impacted when a major project runs off the rails.
However a lack of accountability on a project will affect the way an initiative is managed and governed. When difficulties emerge on a project accurate project status reporting is essential.
An effective project sponsor and their governance team should create a transparent and supportive environment in which to deliver initiatives which involve risk. This encourages forthright conversations and timely decision making to address problems, rather than denial of issues and delays to solutions.
Over time, in delivering project services we have been asked by senior executives to support them in their roles as project sponsors or steering committee members.
Keeping initiatives
As part of our research for a new program to deliver that learning we reviewed local and global research, many reports, texts and blogs, we interviewed and worked with project steering committees, sponsors and project practitioners on a range of initiatives in addition to conducting project performance reviews.
Our experience revealed that the information to support those in governance roles has been scant.
ICT executives will be aware of PRINCE2 but many other mid-senior level executives or business managers have never heard of it and have no idea of what it looks like until they find themselves in a project governance role.
There is, however no shortage in the market, of PRINCE2 training for project managers. In PRINCE2 there is a big difference between the governance roles and the role of a project manager, yet this is not well understood by many organisations.
We agree that recent announcements by some States to deliver smaller ICT projects will help to manage risk and is a step in the right direction. However, achieving effective project governance is essential to more successful delivery notwithstanding project size or complexity. Improved project governance will also facilitate better outcomes for organisational development and productivity wins.
Many organisations do not have the skills and/or knowledge to govern projects effectively. ICT leaders can demonstrate the value of ICT by informing other executives within their organisations of the risks and success factors associated with projects and promoting learning for the governance function.
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Autor(en)/Author(s): Karen Darling
Quelle/Source: The Australian Financial Review, 05.12.2013
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