2010 Chaos Summary

C H A O S S U MMA RY F O R 2 0 1 0
TABLE OF CONTENTS
CHAOS SUMMARY FOR 2010
lntroduotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
user lnvolvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Point Lxample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Lxeoutive 3upport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Book Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Clear Business 0bjeotives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
CA03 ealthoheok 3ervioe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Loosystem ealthoheok Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Lmotional Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
10 CA03 3uooess Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
0ptimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
ow1o Lxample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Agile Prooess . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
CA03 Knowledge Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Projeot Management Lxpertise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
PM Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3killed Resouroes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
PMA Uiagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Lxeoution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1ools and lnfrastruoture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3ummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
USER INVOLVEMENT
CHAOS SUMMARY FOR 2010 3 Copyright 2010 The Standish Group International, Inc.
1he latest CA03 results show a deorease in projeot suooess rates, with 32 of all
projeots being delivered on time, on budget, with required features and funotions.
3o why has the suooess rate deoreased? lor the last 16 years, 1he 3tandish 0roup
has been the leading provider of projeot management researoh and reporting. 1hese
16 years of oumulative CA03 researoh enoompass more than 70,000 oompleted l1
projeots. 1hrough 3tandish 0roup's CA03 university programs, we have hosted more
than 500 workshops, as well as oountless foous groups, projeot assessment sessions, and
exeoutive retreats.
0ur mission through this researoh is to make you, the l1 professional, more suooessful, and to help you show the value of your
l1 investments. 1he 3tandish 0roup offers several opportunities for your organization to improve your projeot delivery through
the CA03 university memberships and servioes. 1he CA03 university membership eoosystem utilizes the CA03 Knowledge
Center (CKC) and other CA03 tools and produots. lorty-four peroent of projeots oame in late, over budget, and/or with less than
the required features and funotions. 1he purpose of the CA03 researoh is to improve on-time, on-budget, and on-target projeot
delivery.
0ur unique, web-based CA03 Knowledge Center is the hub of CA03 Researoh and member servioes." 1he always-fresh
CKC oontains the 100 most important best praotioes an organization needs to develop and maintain a suooessful projeot
management environment, as well as many other features. 1he CKC breaks down the researoh into 10 simple lessons oovering
the 10 CA03 3uooess laotors. 1he lessons learned and their pertinent points are derived from 3tandish 0roup's body of
researoh on how to improve projeot suooess rates and reduoe failures.
Laoh lesson is supported by a natural law. 1hese lessons are given as our opinions, but they are muoh more. 1hey represent the
aooumulated knowledge of thousands of professionals about how youthe PM0 manager, the projeot manager, the applioation
manager, the l1 exeoutive, or the business exeoutiveshould approaoh the development of applioation software. 0ur tools assist
the projeot oftoe and individual managers in improving oommunioation and deoision making, whioh in turn improves projeot
delivery. 1he following pages desoribe these natural laws and the CA03 servioes and tools that support these natural laws.
0ur mission through this researoh is to make you, the l1 professional, more suooessful, and to help you show the value of your l1
investments.
RESOLUTION
Projeot resolution
results from CA03
researoh for the
years 2000-2008. 28
2000
Succeeded
Failed
Challenged
2002 2004 2006 2008
23
49
34
15
51
29
18
53
35
19
46
32
24
44
INTRODUCTION
HowTos Charts
Cases
Talks
Denitions
Book
Reviews
History
Lessons
USER INVOLVEMENT
USER INVOLVEMENT
Law of the Two Faces
Users are both your best and worst enemy.
1he Law of the 1wo laoes supports the trst CA03 3uooess laotor, user lnvolvement,
and states that users are both your best friend and worst enemy. 1he CA03 researoh
olearly shows that projeots that laok user involvement perform poorly. owever, it is
easy to say that you need healthier user involvement, the hard part is to aooomplish it. 1o
this end, the CKC provides reoommendations on how to improve user involvement with oase
studies, oommentary, and other instruotions. 1he 3tandish 0roup updated CA03 user lnvolvement
points provide greater detnition to help organizations oreate and update best praotioe guiding prinoiples. ln addition for
2010, 1he 3tandish 0roup is doing a study on how the eoonomy is affeoting user involvement.
1he projeot team needs user feedbaok, requirements review, basio researoh, prototyping, and other oonsensus-building
events. 1he feature optimizer in the 0ptiMix provides a platform of oommunioation by helping users and projeot teams
foous on the most important requirements and funotions. 0ptiMix uses the patented prooess of oonverting logioal
oonstraints into linear oonstraints. 3uoh a prooess allows users to optimize features based on dependenoies, something
they oould never do before this invention.
Laok of user involvement is the number one reason for projeot failure. 1wo of the big reasons
for laok of user involvement are time and timing. Being involved in a projeot takes time away
from their normal daily work routine. Uuring the projeot the team might need user feedbaok
at a oritioal stage. 1ime and timing of deoisions are often problematio for the users. 1o help
organizations with the time and timing of deoisions, 1he 3tandish 0roup has developed the
Ueoider, a deoision pipeline system.
1he projeot management environment needs to oultivate an eoosystem for users and
user groups that enables them to be involved. 1he 3tandish 0roup has developed an
environmental benohmark and assessment system to disoover the organization's strengths
and weaknesses. 1he benohmark and assessment system is used in workshops as part of an
overall skills assessment. 1he end produot of the assessment is a set of easy-to-implement
reoommendations. 1he following page is an example of one of the 100 points.
1he 3tandish 0roup
has developed
an environmental
benohmark and
assessment system
to disoover the
organization's
strengths and
weaknesses.
CORRECT USER
UAR13 results of the
question, ow would you
rate your organization's
ability to reoognise the
oorreot users to provide
projeot requirements?
Poorly
9%
Moderately
31%
Skilled
41%
Highly
Skilled
19%
POINT EXAMPLE
POINT 2: Rapport
It is critical to develop and maintain a quality relationship with the user and user groups.
Building and maintaining a rapport faoilitates oommunioations and understanding. Attendees of CA03 university
determined that the need to understand the user's business and to oommunioate effeotively with the user is key
to establishing user rapport. 1he three elements that highlight the rapport point are business oommunioations,
quality relationship, and expeotation management.
Business communications: is talking to the users in their language and oustoms. 1he projeot team has to
be able to understand the user's basio business. 1he projeot team must understand the user's business enough to
oommunioate effeotively with the user oommunity. 1he projeot team should refrain from using too muoh teohnioal
jargon and foous on the business elements so oommunioation is olearly understood. 1he projeot team should be
proaotive in solioiting user opinions espeoially around business funotions and requirements. Make sure the users
feel their opinions make a differenoe. Uemonstrate through both aots and deeds, not just words, to the users that
their views are being addressed. Always remember it is their system, not yours.
Quality relationship: begins with oreating a oooperative environment with mutually agreeable ground rules for
effeotive teamwork. 1his environment should inolude negotiating and establishing formal or informal oontraots and
ensuring that the rules of interplay are olearly understood. 0noe you have established a quality relationship, the
next requirement is to maintain it by making it easy for users to be involved. 1he projeot should understand how the
user likes to oommunioate suoh as texting, instant messages, e-mail, webLx, telephone, or the old-fashioned way,
in person. 1he projeot team should try using their favorite method as muoh as possible. 1he projeot team should
hold regular progress meetings involving the user to test this quality relationship. lf the projeot team determines
that the relationship has deteriorated, immediate remedial aotion is required.
Expectation management: starts with an established quality and aohievable metrios. Nothing kills a
relationship faster than over promising and under delivering. 1hese quality metrios should be fair, feasible, and
published. 1ransparent metrios are used to ohart the projeot's progress and ongoing operations. Make sure there
is a benett for the users to be involved and that they see this benett. 1he metrios should tie baok to these benetts.
Lstablish a formal method for managing expeotations through interplay between the projeot team and the user
oommunity. Also, make oertain the users know what is expeoted of them as part of the team.
I I I I I
EXECUTIVE SUPPORT
Cheetahs Law
Swift decisions are typically better than long,
drawn-out analysis.
1he oheetah is the fastest mammal on earth, with speeds up to 60 miles an hour.
Cheetahs use this speed to oatoh their prey. lt turns out that we have seen many
examples where swift and deoisive deoisions have inoreased projeot suooess. As a result,
Cheetah's Law states that swift deoisions are typioally better than long, drawn-out analysis.
1his law supports the seoond CA03 3uooess laotor of Lxeoutive 3upport. Projeots that have an
aotive and responsive exeoutive sponsor fare better than those left to hang alone without a ohampion.
Lxeoutive 3ponsor is an ongoing researoh program looking at ow to be a good exeoutive sponsor." 1he 3tandish
0roup has developed a number of researoh produots and tools around being a good exeoutive sponsor. 1he
produots and tools inolude an exeoutive sponsor workshop, exeoutive reports and news artioles, deoision pipeline
tool, and feature optimization tool. 1he exeoutive sponsor workshop looks at examples within the organization to
highline the skills and waysboth good and badthat exeoutive sponsors oan affeot a projeot. 1he 3tandish 0roup's
environmental benohmark and assessment system will disoover the organization's strengths and weaknesses. 1he
exeoutive sponsor benohmark and assessment is used in workshops as part of an overall skills assessment.
1he exeoutive sponsor one-on-one servioe provides an easy way to improve an
exeoutive sponsor's skills through a three-step prooess. 0enerally this servioe
is done just prior to an exeoutive sponsoring a projeot. lirst, the exeoutive
sponsor takes a private skills assessment test. 3eoond, 3tandish advisors
review the skills and oreate a personalized one-hour olass. 1hird, a private
olass is then presented to the exeoutive over webLx. 1he presentation is then
followed with a guide and oheoklist to help the exeoutive through the projeot.
1he Ueoider produot helps exeoutive sponsors speed up their own deoisions
and help them empower the projeot team to inorease their deoision velooity.
BLINK
question, ow would you
rate your organization's
speed in making oritioal
deoisions during the
development and
implementation of a
projeot?
Protracted
34%
Swift
8%
Calculated
58%
Executive Sponsor is
an ongoing research
program looking at
How to be a Good
Executive Sponsor.
EXECUTIVE SPONSOR DIAGRAM
STEP 3:
Group Class
STEP 1:
Self-assessment
STEP 2:
Standish Review
STEP 3:
One-on-One
OR
BOOK REPORT EXAMPLE
TITLE: Blink
Subtitle: 1he Power of 1hinking without 1hinking
Author: Maloolm 0ladwell
Publisher: Little, Brown and Company, 2005
Reviewer: 1im 1ohnson
Rating: 5 out of 5 Butterties
Focus
1he premise of this book is on making quiok deoisions. 0ladwell suggests that quiok deoisions based
on intuitions oan be more aoourate than well-researohed and oareful analysis. e lays out many
examples of where a quiok response was muoh better than a drawn-out response, suoh as the Cook
County ospital, the u.3. Blue/Red Army game, and experts who oan spot a fake at a glanoe.
Wisdom Pearls
what is really powerful about Blink is that many of the examples provide a framework for making
rapid deoisions. lor example, in the oardiao ward of the Cook County ospital a dootor will ask six
questions to determine if the patient should have more tests or be sent home with a paokage of 1ums.
ln the oase of the Blue versus Red Army game, the preset oommunioation and protoools allowed the
partioipants to make not only quiok, but aoourate, deoisions.
CLEAR BUSINESS OBJECTIVES
ELEVATOR PITCH
question, ow often do
you oreate an elevator
pitoh for migration
projeots?"
Never
Often
Sometimes
Always
46%
18%
5%
31%
Law of the Roads
It does not matter which road everyone comes from as long as they
end up in the same place.
As ogi Berra onoe said, lf you don't know where you are going, you might wind up
someplaoe else." 1his statement rings so true when it oomes to a projeot's business
objeotives. 1hus, the Law of the Roads states that it does not matter whioh road everyone
oomes from as long as they end up in the same plaoe. Clarity and foous are essential to a
suooessful projeot. 1his third CA03 law supports the 3uooess laotor of Clear Business 0bjeotives. Lvery stakeholder will
have his or her own agenda that needs to be fultlled by the projeot. lt only stands to reason that 10 stakeholders will equal
10 individual goals. 1his is a major issue beoause these variable needs will often oontiot.
Clear Business 0bjeotives are aohieved when all the stakeholders are fooused on and understand the oore values of
the projeot. 3takeholders need to be able to see the big pioture and know how the projeot aligns with the organizational
business strategies. 3takeholders must always have some skin in the game. A good test is to have a short elevator pitoh"
of 10 words or less that everyone oan reoite.
0ne way to get everyone on the same page and promote olear business objeotives is
the use of our 0ptiMix produot. 0ptiMix oreates a feature and funotion staok in order
of their value to the organization. 0ptiMix oan be used to set features and funotions in
motion based on the position within the staok of funotions. 0ptiMix aids in the planning
and deoision prooess of whioh features and funotions to inolude and when to inolude
them. 1he 3tandish 0roup's CA03 0ptiMix uses the patented prooess of oonverting
logioal oonstraints into linear oonstraints. 3uoh a prooess allows you to optimize
features within a projeot based on dependenoies. 1he 0ptiMix looks at oost, risk, gain,
before, after, must, and must not as inputs. Risk and gain use a tve-option seleot box
to make it very easy and effeotive. leatures and funotions are managed by an overall
projeot budget.
0ptiMix oan be
used to set features
and funotions in
motion based on the
position within the
staok of funotions.
CHAOS HEALTHCHECK SERVICE
OVERVIEW
1he CA03 Loosystem ealthCheok 3ervioe is an assessment and benohmark of
an organization's projeot environment. using speoialized tools, databases, and
advisory oapabilities, 1he 3tandish 0roup will exeoute a series of well-developed,
fooused, and short events to provide a platform for projeot improvement. 1hese
events inolude projeot protles, interviews, and workshops.
The Ecosystem HealthCheck Service offers 4 major deliverables:
1. Project Proles: Benohmark the organization's projeots against the CA03 database of 70,000 projeots to
understand the environment from a resolution point of view.
2. Interviews: ln a series of role-based, one-hour on-site interviews with l1 exeoutive management and the
projeot exeoutive management team, 3tandish starts to develop a pioture of the organization's projeot
oapabilities.
3. Workshops: ln a suooession of individual projeots, projeot managers and funotional workshops, 1he 3tandish
0roup gains both qualitative and quantitative insight into your projeot environment.
4. Recommendations: 3tandish will take the results of all the data gathered, oompile and analyze it, and provide
a detailed report of the tndings with reoommendations on how to improve the health of your eoosystem,
inorease eftoienoy of projeot delivery, and raise the value of l1 investments in information teohnology projeots.
The Ecosystem HealthCheck Service offers four major benets:
1. Improve Project Success Rates: 0ur simplitoation praotioes allow you to make minor ohanges to your
prooess without the added burden of new oostly methodologies that are unproven in your environment. 0ne
of our oustomers instituted our methods and in three years went from an on-time/on-budget average suooess
rate of 35 to 95.
2. Improve Return on Investment: By reduoing overhead oost, marginal requirements/projeots, and failed
and ohallenged projeots, and deoreasing the time to delivery, the return rates on projeots that have undergone
the CA03 praotioes have on average more than doubled. we reoommend a trst year target of a 10
improvement.
3. Match: within the ealthCheok tool set is a method to assign risk to projeots and requirements. Knowing what
projeots and requirements pose the greatest risk allows for mitigation to be deployed, reduoing these risks.
4. Improve Customer Satisfaction: 1he appraisal provides muoh information as input into an overall Loosystem
ealthCheok.
SUMMARY
ln summary, a healthy projeot management eoosystem will both save and make money for your oompany.
Additionally, it will save time and improve projeot management performanoe by identifying and isolating souroes
of management frustration at all levels in the organization. lt should oome as no surprise that healthy projeot
environments produoe more suooessful projeots.
STANDISH GROUP ECOSYSTEM HEALTHCHECK METHODOLOGY
Since our groundbreaking CHAOS report of 1994, The Standish Group has been studying real IT projects -
determining the factors of success and the causes of failure. We have amassed a database of more than
70,000 projects and have spent years out in the real world of IT projects working and talking to people,
asking questions, and learning about project management environments. The Standish Group clients
span the globe and are among the worlds leading organizations.
Standish
Knowledge
Standish
Knowledge
Standish
Knowledge
Standish
Knowledge
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Standish and Client
Standish and Client
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Standish Project
Prole Tool
(online survey of
100 projects)
PM Assessment
Methodology
Standish
Assessment Tool
(30 facilitated
workshops,
8 people/workshop
Standish
Final Draft Report
TOOL KIT
Standish
Group
Standish
Project
Prole Tool
(online)
SG executes
recommendations
& Road Map
Standish
Database
Project Prole
Results
Recommendations
& Roadmap
Results of
Workgroup
Assessments
Final detailed
HealthCheck Report
with Recommendations
& Roadmap
Final detailed
HealthCheck Report
& Roadmap
Recommendations
& Roadmap
(from Final Report)
Active Project
Prole Results
1-5 days, Resources: Standish Project Prole tool
1 week, Resources: 2 Standish Group FTE
1-2 weeks, Resources: 2 Standish Group FTE
6 mos. later, 2-3 days, Resources: 2 Standish Group FTE
2-3 weeks, Resources: Standish Group
1 day, Resources: 2 Standish Group FTE
EMOTIONAL MATURITY
Law of the Five Deadly Sins
You will encounter the Five Deadly Sins in all projects.
1he Law of the live Ueadly 3ins states you will enoounter the live Ueadly 3ins in
all projeots. 1he live Ueadly 3ins are part of all projeot eoosystems, healthy and
unhealthy. ln faot, a projeot oannot be suooessful without them. lor example, every
projeot needs to have an impatient visionary, whioh results in overambitionthe trst
deadly sin. lt is how you deal with eaoh of these sins that will determine the suooess or
failure of a projeot. 1his fourth law of CA03 supports the Lmotional Maturity 3uooess laotor.
Lmotional Maturity is the ability and oapaoity to peroeive, assess, manage, and direot the emotions and
aotions of the projeot stakeholders. lt is the ability to identify and remove unneoessary requirements, as well
as the aptitude to deliver bad news and aooept oritioal feedbaok. Lmotional maturity means having the skill
to reoognize and deal with the live Ueadly 3ins of projeot management, whioh are overambition, arroganoe,
ignoranoe, abstinenoe, and fraudulenoe.
1he 3tandish 0roup has several servioes to help organizations improve their emotional
maturity. lirst, the performanoe ealthCheok assessment for both the environment and
projeots evaluates an organization's emotional maturity. 3eoond, the projeot manager's
interviews and assessment evaluate the individual and oolleotive projeot manager's
emotional maturity skills. 1hird, the live Ueadly 3ins" workshop helps you learn how to
reoognize the tve deadly sins, how they negatively affeot the outoome of projeots and
how to overoome the effeots of the tve deadly sins. ln addition, the workshop shows you
how to mitigate the results of the tve deadly sins. lurther, the workshop provides ways
to demonstrate to stakeholders the effeots and resolutions of the tve deadly sins.
I I I I I
PROJECT PORTFOLIO
LPPM 3urvey results
of the question who
maintains/evaluates the
projeot portfolio?
1%
PMO
IT Executives
Business Ops
AD Managers
Other
4%
24%
35%
36%
The project managers
interviews and
assessment evaluate
the individual and
collective project
managers emotional
maturity skills.
Point 1: Overambition
0verambition is a strong desire to exeoute a signitoant projeot to gain fame, fortune, or power through the impaot
of overreaohing goals. 0verreaohing means to defeat oneself by going too far or by doing or trying to gain too
muoh too soon. 3ometimes overreaohing is good, but both overambition and overreaohing should be reoognized
and the risk oonsidered and managed.
Point 2: Arrogance
Arroganoe is the unwarranted, overbearing pride or hubris evidenoed by a superior manner toward superiors,
peers, and inferiors. ubris is often assooiated with a laok of knowledge, interest in, and exploration of history,
oombined with a laok of humility. ln Anoient 0reeoe, hubris" referred to aotions taken in order to shame and
humiliate the viotim, thereby making oneself seem superior. Really smart people do not need to make themselves
feel better at the expense of others.
Point 3: Ignorance
lgnoranoe is the oondition of being unaware, uninformed, uneduoated, and/or unsuspeoting about the projeot
and stakeholder goals, direotions, details, issues, and opportunities. Many stakeholders praotioe rational
ignoranoe," whioh is when the oost of eduoating oneself about the issue suftoiently to make an informed
deoision oan outweigh any potential benett one oould reasonably expeot to gain from that deoision. 1herefore, it
would be irrational to waste time doing so.
Point 4: Abstinence
Abstinenoe, in the oontext of projeot management, is the aot or praotioe of refraining from partioipation and
oontribution to the projeot. Nonpartioipation means withdrawing from the aotivities of the projeot and from the
projeot in general. lt also means that the person or persons do not want to be identited with the projeot or its
aotivities.
Point 5: Fraudulence
lraudulenoe is an aotion intended to deoeive, it is deliberate triokery intended to gain an advantage or to avoid
oonfrontation. lraudulenoe is being oontrary to the truth or reality through speeoh or aotion. lt is falsely portraying
true intentions by deoeptive words or aotion. lraudulenoe, in the projeot management sense, is lying to oneself.
FEATURE AND FUNCTIONS
Peroent of delivered
features and funotions
results from the CA03
researoh for the years
2000 through 2008
0
30
60
90
70%
2000 2002 2004 2006 2008
67%
64%
68%
67%
10 CHAOS SUCCESS POINTS FOR EMOTIONAL MATURITY:
OPTIMIZATION
Law of the Long-Tailed Monster
You will always build too much of what you dont need and not
enough of what you do need.
1he Law of the Long-1ailed Monster states you will always build too muoh of what you
don't need and not enough of what you do need. 1he great retailer, l.w. woolworth, onoe
said that 50 oents out of every dollar he spent on advertising was wasted. e went on to
say that he wished he knew whioh 50 oents. 1hat is the same problem with requirements: 50
peroent of software features are not used or wasted, while other features are sorely missed. 0ver- and
underbuilding applioations represents the biggest form of software development waste. we think a silver
bullet to solve the issue is optimization based on value. 1he tfth Law of CA03 supports the 0ptimization
3uooess laotor.
0ptimization is a oomplete approaoh that, when fully implemented, oovers systems, people, prooesses,
applioations, and datain other words, the whole l1 organization. 1he goal is to provide the best value for
the highest level of servioe and funotion. l1 optimization oomprises prooedures used to make systems,
applioations, prooesses, and people as effeotive and funotional as possible, at the best possible value with the
least possible risk.
1he major optimization servioe offered by 3tandish is 0ptiMix. 0ptiMix allows the
organization to play with budgets, projeots, features, oonstraints, and other faotors.
0ptiMix uses our patented prooess of oonverting logioal oonstraints into linear oonstraints.
1his prooess allows you to optimize projeots and features based on dependenoies. 0ptiMix
presents the optimal set of features and projeots that give the organization the least risk
and greatness value for the budget.
0ther optimization servioes inolude the three assessments servioes and the general
writings within the CA03 Knowledge Center. ln our optimization workshop we modernize
a zoo. 1he zoo has tve new projeots, eaoh with a number of requirements. 1he purpose of
this workshop is to explore ways to identify, optimize, and manage requirements by oost,
risk, and gain.
Success Challenged Failed
0ver $10M 0 11 19
$6M to $10M 6 20 28
$3M to $6M 13 36 39
$750K to $3M 19 18 8
under $750K 62 15 5
1otal 100 100 100
PROJECT RESOLUTION BY PROJECT SIZE
1he projeot
resolution by size
results from the
CA03 2008
researoh.
OptiMix uses our
patented process of
converting logical
constraints into liner
constraints.
ACTION
HOWTO EXAMPLE
Take Care of Panda Bears
Lverybody loves the panda bears. lt is proven that when you have one in a zoo it draws people, in turn, revenue yield or
return goes up. Conversely, a panda bear oan be expensive and may not adapt well to the environmentit oan get siok and
die, and therefore is a very high risk. when weighing features and funotions within an applioation, the same thought prooess
must be used. what has a high yield and what is the risk?

Lvery requirement should be assigned values of oost, return rate, gain, and risk. Plaoe together all the requirements
that provide the best return with the least risk. Plaoe together all the requirements that have the lowest return and the
highest risk. Meet with all stakeholders to validate your assumptions. Create a baseline of requirements that provide
the best return rate. Beware of the panda bear theory, as the bear may die.
FOUR SUGGESTIONS
1. Panda bears are rare and most projeots will not have them. lt is also very unlikely that a projeot would have more than
one. Be oareful not to label features and funotions as a panda bear." A panda bear should be olearly detnable. when in
doubt, leave it out.
2. 0noe you have identited a feature or funotion as a panda bear you oan suspend the not-doing-the-risky-things-trst
direotive. Uo the panda bear trst. lf it fails, you may want to try again or eliminate it altogether.
3. Make everyone aware that the speoito feature and/or funotion is a panda bear and that it is risky, but if oompleted will
have major benetts for the organization. 0ain agreement from all stakeholders that the panda bear is worth the risk.
4. After the panda bear is oompleted, go baok to doing the low-risk, high-gain items trst and work your way down the list. Uo
not get overoontdent and start doing all the risky items. ln faot, try to avoid doing the high-risk, low-gain items altogether.
OPTIMIX
USER
INTERFACE
PROJECTS/
FEATURES
DEPENDENCIES
ADMINISTRATION
STACK ENGINE
PROJECT
STACK
AGILE PROCESS
Law of the Edible Elephant
The only way to eat an elephant is one bite at a time.
1he Law of the Ldible Llephant states that software should be built in small, iterative
steps with small, fooused teams (or, eat the elephant one bite at a time). ou do
so with small bites or stepping-stones. A stepping-stone is a small but signitoant
deliverable. A stepping-stone aotivity allows for tangible inspeotion either visually or hands-
on. 3tepping-stones are keystones in the agile and iterative software development prooess
that lead to more deliverables or indioate the projeot is not on the right traok. 3tepping-stones are
powerful beoause they allow for rapid feedbaok, oreation of feature velooity, and aooelerated user training and
aooeptanoe. 1he sixth Law of CA03 supports the Agile Prooess 3uooess laotor.
Agile Prooess is based on iterative development, where requirements
and solutions evolve through oollaboration between self-organizing oross-
funotional teams. 1he iterative prooess has been a oornerstone of the CA03
reoipe of suooess. 1he CKC spells out our guiding prinoiples to the CA03
agile prooess. ln addition, the CKC presents ow1os, oase studies, and
oommentaries. 1hese guiding prinoiples oan be used in developing, seleoting,
and enhanoing your agile prooess.
1he agile prooess enoourages frequent inspeotion and adaptation. lt also
enoourages teamwork, self-organization, and self-aooountability. 1he
ealthCheok environmental assessment tests your ability to operate and
maintain an agile methodology. 1he projeot assessment tests your ourrent
agile skills. 1he projeot manager assessment tests their skills in managing agile projeots. 1he exeoutive sponsor
assessment tests their ability to support the agile prooess.
1he agile prooess allows for rapid delivery. ln theory, it hopes to align development oloser to the users' needs by
oontinuous oollaboration and delivery of stepping-stones. 1he 0ptiMix servioe aids in this prooess in two ways. lirst,
it allows the organization to break up projeots into mioroprojeots and still be able to keep traok of them. 3eoond, it
allows the organization to manage work in progress by foousing on high-value items.
CHAOS RESOLUTION BY STYLE
3hows olassio CA03
resolution results by
waterfall versus the
agile prooess from
the CA03 projeot
database from 1994
to 2008
AGILE
WATERFALL
Failed
12%
Successful
43%
Challenged
45%
Failed
15%
Successful
26%
Challenged
59%
These guiding
principles can be
used in developing,
selecting, and
enhancing your agile
process.
CHAOS KNOWLEDGE CENTER (BASIC)
OVERVIEW
1he CA03 Knowledge Center oontains the 100 most important best praotioes
you need to develop and maintain a suooessful projeot management environment.
lt is fresh and always up-to-date with the latest thinking on the most important
things that your organization oan do to foster greater projeot management
leadership.
The CKC offers four major deliverables:
1. Best Practices: 1he best praotioes oolleotion is organized around the 10 CA03 3uooess
laotors or Lessons Learned. Laoh lesson has 10 foous points.
2. HowTos: 3upporting eaoh of the points are suggestions on how to use the best praotioes and
implement them in your organization.
3. CHARTS: 3upporting the points is a oolleotion of over 400 oharts on data oolleoted with the CA03
re searoh projeot.
4. More CHAOS: Additional support for the points inoludes the CA03 Aotivity Newsletter, oase studies,
oommentaries, detnitions, and other supporting papers and doouments.
The CKC offers four major benets:
1. Success Rates: 0rganizations that have adopted the CA03 Best Praotioes have seen remarkable
inoreases in their suooess rates. 0ne trm went from 34 to 94 in just a few years.
2. Crowd Knowledge: 1he CKC is developed from a massive oolleotion of knowledge from l1
professionals over an extended of period time. 1his oolleoted wisdom will help your organization to
more rapidly adopt best praotioes that will inorease your suooess rate.
3. Multiple Views: 3inoe a CA03 researoh projeot uses a multitude of instruments, it provides
different views that will allow you to better matoh your situation to tnd answers.
4. Data: 1he CKC is ohook full of data from around the world to help build internal and external
presentations.
SUMMARY
ln summary, the CKC is part of an overall healthy projeot management eoosystem. A healthy projeot
management eoosystem will both save and make money for your oompany. Additionally, it will save time
and improve projeot management performanoe by identifying and isolating souroes of management
frustration at all levels in the organization. lt should oome as no surprise that healthy projeot environments
produoe more suooessful projeots.
PROJECT MANAGEMENT EXPERTISE
Law of the Mad Hatter
Complexity causes confusion and cost.
ln days of old, people who made hats often ended up with mental illness. 1here
are a number of theories why this happened, one being that ladies' oustom hats at
that time were very intrioate and it took great pains to oreate and keep traok of all the
designs and permutations. lt would oreate great distress for a woman to have a hat similar
to another. Projeots by their very nature are oomplex, it takes an empathetio organizational
environment to understand the projeot management prooess in order for the team to simplify the
projeot management praotioe. 1he Law of the Mad atter states that oomplexity oauses oonfusion and oost.
1he seventh law of CA03 is supported by the Projeot Management Lxpertise 3uooess laotor.
Projeot Management Lxpertise inoludes the basio projeot management skills as outlined in PMl's PMB0K.
1he ante for projeot management expertise is qualited PMPs. owever, it goes beyond the skills of the projeot
manager to the organizational environment. 1he environment must reoognize and give authority to the projeot
manager's skill and expertise. Projeot managers must be able to manage down, aoross, and up.
1he CA03 Projeot Manager Assessment is an appraisal of individual projeot managers. using speoialized
tools, databases, and advisory oapabilities, 1he 3tandish 0roup will exeoute a series of well-developed,
fooused, and short events to provide a oomplete evaluation of a projeot manager's skills. 1hese events inolude
protles, interviews, and workshops. 1he appraisal will highlight a projeot manager's skills. 1hese skills oan
then be mapped against programs and projeots that require oertain
skills. lt also oan be used to help other projeot managers with their
projeots and improve their skills. 1he appraisal oan also highlight skills
that a projeot manager laoks, and therefore provide goals in areas where
the projeot manager oan seek to improve. lt also oan be used to map
against programs and projeots that require those skills.
PMI CERTIFICATION
question, Uo you
require your projeot
managers to have PMl
oertitoation or the
equivalent?"
0
10
30
40
11%
2003 2004 2005 2006 2007 2008
16%
21%
29%
38%
31%
20
2009
31%
These skills can
then be mapped
against programs and
projects that require
certain skills.
CHAOS PROJECT MANAGER ASSESSMENT
OVERVIEW
1he CA03 Projeot Manager Assessment (CPMA) is an appraisal of individual
projeot managers. using speoialized tools, databases, and advisory
oapabilities, 1he 3tandish 0roup will exeoute a series of well-developed,
fooused, and short events to provide a oomplete evaluation of a
projeot manager's skills. 1hese events inolude protles, interviews, and
workshops.
The CPMA offers four major deliverables:
1. Prole: A standard form that oovers the basio information about
the projeot manager's skills and history. 1his also ties oompleted
projeots to the projeot manager.
2. Interview: A 30-minute on-site interview with the projeot manager that starts to develop a
pioture of the projeot manager's oapabilities.
3. Workshops: 1wo olinios using the CA03 projeot manager assessment tool, one direotly with
the projeot manager and one with a peer group. 1he 3tandish 0roup gains both qualitative and
quantitative insight into the projeot environment from these olinios.
4. Recommendations: 3tandish will take the results of all the data gathered, oompile and analyze
it, and provide a detailed report of the tndings with reoommendations.
The CPMA offers four major benets:
1. Strengths: 1he appraisal will highlight a projeot manager's skills. 1hese skills oan then be
mapped against programs and projeots that require oertain skills. lt also oan be used to help
other projeot managers with their projeots and improve their skills.
2. Weaknesses: 1he appraisal oan also highlight skills that a projeot manager laoks, and therefore
provide goals in areas where the projeot manager oan seek to improve. lt also oan be used to
map against programs and projeots that require those skills.
3. Levels: 1he appraisal oan be used to segment projeot managers into different levels, thereby
providing a method to put programs and projeots into oategories suoh as high risk, high oost,
eto., and matoh them to the right projeot manager.
4. Reviews: 1he appraisal oan be used as part of a yearly review to determine oompensation and
elevation.
SUMMARY
ln summary, a CPMA is part of an overall healthy projeot management eoosystem. A healthy projeot
management eoosystem will both save and make money for your oompany. Additionally, it will
save time and improve projeot management performanoe by identifying and isolating souroes of
management frustration at all levels in the organization. lt should oome as no surprise that healthy
projeot environments produoe more suooessful projeots.
STANDISH GROUP PM ASSESSMENT METHODOLOGY
Since our groundbreaking CHAOS report of 1994, The Standish Group has been studying real IT projects -
determining the factors of success and the causes of failure. We have amassed a database of more than
70,000 projects and have spent years out in the real world of IT projects working and talking to people,
asking questions, and learning about project management environments. The Standish Group clients span
the globe and are among the worlds leading organizations.
Standish
Knowledge
Standish
Knowledge
Standish
Knowledge
Standish
Knowledge
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Standish Project
Prole Tool
(online survey of
100 projects)
PM Assessment
Methodology
Standish
Assessment Tool
(30 facilitated
workshops,
8 people/workshop
Standish
Final Draft Report
TOOL KIT
Standish
Group
Standish
Project
Prole Tool
(online)
SG executes
recommendations
& Road Map
Standish
Database
Project Prole
Results
Recommendations
& Roadmap
Results of
Workgroup
Assessments
Final detailed
HealthCheck Report
& Roadmap
Final detailed
HealthCheck Report
& Roadmap
Recommendations
& Roadmap
(from Final Report)
Active Project
Prole Results
1-5 days, Resources: Standish Project Prole tool
1 week, Resources: 2 Standish Group FTE
6 mos. later, 2-3 days, Resources: 2 Standish Group FTE
2-3 weeks, Resources: Standish Group
1 day, Resources: 2 Standish Group FTE
SKILLED RESOURCES
Law of the Empty Chair
Your best person will leave at the worst possible time.
1urnover is a faot of life. 1he longer a projeot goes on, the more likely a key person will
leave. 1his oould be a skilled developer or the exeoutive sponsor. when this happens,
it oan have devastating results and put the projeot in peril. 1he best method to oombat
suoh an event is to keep the projeot oyoles short with oontinuous deliverables. 1he Law of
the Lmpty Chair states that your best person will leave at the worst possible time. 1he eighth
law of CA03 supports the 3killed Resouroes 3uooess laotor.
3killed Resouroes is the ability to aoquire, manage, and oontrol the right resouroes at the right times to move
the projeot forward. lt is the oapability to develop the skills and maintain an environment that enoourages
progress and reduoes stress. lt is the ability to deal effeotively and promptly with turnover during the projeot's
life oyole.
1here are literally thousands of deoisions that have to be made during
the life of a projeot. 0ur researoh shows that for every $1,000 in projeot
oost, the organization will need to make 1.5 deoisions. Uuring a typioal
medium size LRP system implementation the organization will have to
make over 10,000 deoisions. 1wenty-two peroent of a projeot's deoisions
are around the business prooess, 17 are projeot items suoh as oost,
time, eto., 15 are teohnioal deoisions, and 14 are user funotions.
when you inorease the velooity of development, you do not want to impede the progress by slow deoisions.
1he Ueoider is a deoision pipeline solution. lt is designed to inorease the speed and quality of deoisions.
1he faster a projeot is oompleted the less effeot turnover of talent will have on the projeot. 1he benetts of
the Ueoider inolude: reduoe meeting time by 20, inorease deoision partioipation, inorease deoision quality,
deorease deoision latenoy, deorease deoision reversals, dooument deoisions for oomplianoe, improve deoision
notitoation, and benohmark deoisions.
QUALITY STAFF
question, ln your
opinion, what peroent
of a projeot's suooess
is direotly attributable
to the retention of
a quality teohnioal
staff?"
41% - 60%
21% - 40%
10% - 20%
Less than 10%
Over 60%
52%
11%
23%
1%
13%
The benets of the
Decider include:
reduce meeting time
by 20%.
PMA DIAGRAM
STEP 6:
Recommendations
STEP 5:
Report
STEP 4:
Peer Assessment
STEP 3:
Self-assessment
STEP 2:
PM Interview
STEP 1:
Project Proles
EXECUTION
PMO
UAR13
results of the
question, "Uo
you maintain
a Projeot
Management
0ftoe (PM0)?"
28%
NO, but planning starting an
advisory and educational body
NO, but planning on
starting a controlling body
YES, as an advisory
and educational body
YES, as a controlling
body
NO PLANS
9%
19%
36%
8%
Pandas Law
Inaction is the purest form of failure.
ln our zoo workshops, the panda bear represents high risk and high reward. when
partioipants are asked to foous on gain, the panda bear is always part of the solution.
when partioipants are asked to foous on risk, the panda is always left out of the zoo.
owever, when they are asked to oonsider both risk and gain, the results are mixed. ln
real life few projeots have true panda bears. But when they do oome about, they need to
be embraoed and nurtured. Risk is part of every projeot, but unneoessary risk should be avoided.
Panda's Law states that inaotion is the purest form of failure. 1he ninth law of CA03 supports the Lxeoution
3uooess laotor.
Lxeoution is the suooessful deployment of teohnology with problem statements, requirements doouments, and
projeot plans. Lxeoution is the aot of oarrying into effeot or to oompletion a projeot based on a plan. Lxeoution
is using leadership skills and projeot management experienoe to oreate a positive outoome. Lxeoution
oombines tnanoial management guidanoe with a formal methodology. Lxeoution is simply getting the job
done with the least possible resouroes. 1he CKC spells out our guiding prinoiples of projeot exeoution. 1hese
guiding prinoiples oan be used to improve your projeot delivery. 1he ealthCheok environmental and projeot
assessment tests your exeoution skills.
0ur benohmark servioe allows us to measure your projeots against our
database of 70,000 projeots. 1he organization would oomplete a projeot
protle for your last 100 projeots. 1his is a very simple form that would
take about 10-15 minutes to oomplete for eaoh projeot. we would then
audit the projeots and interview you on your projeot prooess. Next, we
would then oall the projeot stakeholder and interview them. when we
felt oomfortable with all of the projeots we would measure them against
the CA03 projeot resolution database and oreate a report for you of our
tndings with areas where you oould improve your exeoution.
The HealthCheck
environmental and
project assessment
tests your execution
skills.
BENCHMARK
STEP 1:
Project Proles
STEP 2:
CHAOS Database Match
STEP 3:
Report and
Recommendation
CHAOS DEMOGRAPHICS
CA03 results provide a global view of projeot statistios but do tend to have a heavier oonoentration on the united 3tates and
Lurope. lifty-eight peroent (58) of ourrent year's respondents are u.3.-based, 24 are Luropean, and the remaining 18
represent the rest of the world. lifty-one peroent (51) of these oompanies are oonsidered lortune 1000-type oompanies,
another 32 would be oonsidered midrange, and 17 are in the small-range oategory. 1hey span a diverse number of vertioal
industries and organizations.
I I I I I
TOOLS AND INFRASTRUCTURE
Law of the Fools
A fool with a tool is still a fool.
ears ago in a foous group, one of the partioipants said, A fool with a tool is still
a fool." 1his gave rise to the Law of the lools. lt means having the right tool for the
problem, for if every problem were a nail, every solution would be a hammer. owever,
it is not just having the right tools, but the skill to use them that makes all the differenoe
in suooess and failure. 1ools, infrastruoture, and vendors make up a big part of the projeot
management eoosystem. 1he 1ools and lnfrastruoture 3uooess laotor is supported by the 10th law
of CA03.
1ools and lnfrastruoture is the ability to aoquire and maintain a set of tools and infrastruoture to promote the
development and management of a dynamio environment. lt is the skill to be able to use and benett from suoh
important tools as task, resouroe, requirements, ohange, and quality management. lt inoludes the ability to
manage outside vendors.
1he CKC spells out our guiding prinoiples for the use of tools and infrastruoture. 1hese
guiding prinoiples oan be used to improve your projeot delivery. ln addition, the CKC
presents ow1os, oase studies, and oommentaries. 1he ealthCheok environmental and
projeot assessment tests your skills in the use of tools and infrastruoture. 1he projeot
manager assessment evaluates the tool skills of the projeot managers.
0ur ongoing study on Lnterprise Projeot and Portfolio Management (LPPM) foouses on
the value of features and funotions of PPM solutions. our advisor days oan be used
for oonsulting on tools, uses of tools, referenoe oheoks, and other tool-related advioe.
ou oould also use your advisor days for advioe on ohange management, standard
infrastruoture, and modernization methods.
I I I I I
REQUIREMENTS TOOLS*
1he projeot resolution
by whether or not a
requirements tool was
used. Projeots sample
was from the CA03
2008 researoh.
Success Challenged Failed
used 20 46 34
Not used 14 56 30
0verall 17 52 31
AU Projeots with over $750,000 in labor oost
The HealthCheck
environmental and
project assessment
tests your skills in
the use of tools and
infrastructure.
HOWTO: Use Standishs OptiMix Services
0ptiMix is an online tool developed and operated by 1he 3tandish 0roup. 1he 3tandish 0roup's
optimization system allows advisors to prioritize projeots quiokly and easily. 1he 0ptiMix
tool is a result of major researoh and studies oonduoted over a half deoade with muoh trial
and error.
our 3tandish team of highly motivated and skilled professionals will work with the 0ptiMix applioation to
help you in oaloulating risk, oost, and gain in order to optimize your projeot portfolio. 1his system oonsists
of general utilities and a genomio optimizer. 1his optimization should be done in the following three steps:
Step 1: 0ather data on all projeots that are to be optimized, suoh as oost, time, type, eto. 3ee
projeot protle for the type of data to be gathered and enter this data into the projeot protle.
Step 2: Create a oase and enter or move the data in the 0ptiMix solution.
Step 3: Run the 0ptiMix produot and keep running it in different methods and ways until you feel
you have the right mix of projeots and their priority.
ACTION
ENTERPRISE ARCHITECTURE
LPPM 3urvey results
of the question,
who oontrols
the enterprise
arohiteoture?"
1%
PMO
IT Executives
Business Ops
AD Managers
Other
13%
19%
9%
58%
FOUR SUGGESTIONS
1. use the 0ptiMix produot to optimize the priority of projeots to meet budget requirements.
2. use the 0ptiMix produot to maximize gain and minimize risk.
3. use the 0ptiMix produot to reduoe requirements and foous on the high-value items.
4. use the 0ptiMix produot to help deoide whioh projeot and/or requirements will be worked
on the ourrent period suoh as the next quarter or year.
Martin Cobb of the 1reasury Board of Canada 3eoretariat said in 1995, we know why projeots fail, we know how to prevent their
failureso why do they still fail?" 1his later beoame known as Cobb's Paradox. 1herefore, we have to oonsider Cobb's Paradox: 3o
why do they still fail?" 1hrough these 10 lessons and 100 best praotioes we try to tnd the solution to the most perplexing paradox.
As a member of CA03 university you will partioipate in the searoh for answers. 1here are four levels of membership: entry,
enterprise, enhanoed, and ealthCheok.
Entry level provides access for 10 users to the:
1. CA03 Knowledge Center
2. CA03 Aotivity News
3. R0l 1ool
4. Ueoider 1ool
Basio also provides for one-half day of advioe.
Enterprise level provides access for all team members for all services in the entry level, plus:
5. Benohmark
6. Lxeoutive 3ponsor Assessment tool & eduoation
Lnterprise level provides for one and a half days of advioe.
Enhanced level provides access for all team members for all services in the enterprise
level, plus:
7. 0ptiMix tool
Lnhanoed level provides for two and a half days of advioe.
HealthCheck level provides access for all team members for all services in the
enhanced level, plus:
8. Assessment workshop
9. lnterviews
10. ealthCheok report
ealthCheok level provides for 20 days of oonsulting and advioe in oonjunotion with the ealthCheok.
IN SUMMARY
Entry Enterprise Enhanced HealthCheck
CKC X X X X
Newsletter X X X X
R0l X X X X
Ueoider X X X X
Protles/Benohmark X X X
Lxeoutive 3ponsor 3elf-Assessment X X
0ptimizer X X
Lnvironment Assessment X
Projeot Assessment X
Projeot Management Assessment X
# of users 10 1eam 1eam 1eam
Advisor Days 0.5 1.5 2.5 N
SERVICE LEVELS
C H A O S S U MMA R Y F O R 2 0 1 0
The Standish Group International, Inc.
60 State Street, Suite 700
Boston, MA 02109
P: (508) 760-3600
www.standishgroup.com

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