Localization
UAT
Roll out
Business shortcuts
Want to look good fast Inadequate detailing of business requirements
Organizational Dynamics
Pressure to meet ST targets
Declining performance
overload
No decisions
the only thing they shoot you for is missing product launch Line workers invent new methods to insure they are never penalized. It didnt take long for them to develop a buffer in front of their line so that if the schedule called for 700 and their line was fully utilized at 800, they could still run 800 units every day, and still make their labor performance. The organization becomes increasingly focused on compliance
FAE
Performance Degrades
overload
overload
overload
Declining performance
Actual Performance
Actual Performance
Pick one
Working harder yields better before things get worse
Manage Capacity
It is hard to avoid getting stuck if you take on more work than you have the capacity to do Capability development and defect elimination inevitably suffer (just do it doesnt) Most organizations try to do this (if at all) with a bottom up approach Start with all the work you want to do Estimate resources requirements Add it up and cut everything that falls below the water line While necessary, this rarely works on its own Individual task estimates are notoriously unreliable We have a strong psychological tendency to assume that everything will proceed according to the best case It is very easy to say we can make space for one more
Keep good records of what you accomplished last year (or quarter)
Compare what you did last time with what you are planning on doing this time If you are planning on doing more this year than last you better have a good story for why this is feasible Its not unusual for these to be off by more than a factor of two HarleyDavidson made huge progress just by recognizing that they could not do more than one big project a year
Rapid Decision Making in fast moving, and ambiguous environments is critical and helps to mitigate overload Best Practices for Speeding Decision Making (from a multicase study of computer firms):
Counterintuitive: faster decision making involves considering more simultaneous alternatives than slower firms
Considering more alternatives prevents costly revisits, is more easy to evaluate than decisions in isolation, and reduces escalation of commitment to poor options e.g., hard to buy a car without looking at multiple cars
Slower decision making produces worse, not better outcomes as the environment changes and firms fail to make some critical decisions
Scope of project and what is not in scope What constitutes a change? How will change request be managed?
Changing requirements
If the goal post keeps changing or any reason, project is at higher risk of failure
Hi Requirement Volatility Low tech Spreadsheet: sales forecast, budgeting, production planning ERP for Demand Planning, Production Planning
Project Risk
Hi tech
2 # of risk factors
Use this to communicate to all levels before, during and after project
Project Risk
High
New Projects
Ongoing Projects
Medium
Low
Outcome: Predictable
Simple planning tools like GANTT chart, PERT, CPM work fine and give predictable results Usually stick to budgets These are low stress projects
Outcome: Unpredictable
Planning tools are less important than ability to handle tech complexity Unpredictable effect on budgets These can become high stress projects
Outcome: Unpredictable
Planning tools are less important than ability to handle tech complexity Unpredictable effect on budgets These can become high stress projects
Outcome: Unpredictable
Planning tools are less important than ability to handle tech & requirements complexity Unpredictable effect on budgets These can become high stress projects Excellent leadership required to guide through difficult times
Build
IT builds Alpha, Beta tests Intense collaborations between dev, UI design, Testing, Documentation teams co-located or dispersed or outsourced Close controls to stick to time & budget
Implementation
IT and End Business user work in tandem Management of Testing, training, disruption of normal working
SDLC
Extensive upfront planning to get everything right ROI calculations done way in advance Little scope for accommodating new use cases Tend to over engineer Tendency to ignore complexity, looming disasters Ego of people involved is given more importance
Adaptive
Little to no upfront planning. Learn as you go. Based more on market size for product Very flexible. Easily accommodate Deliver what will get consumed Can easily test and fix without burning time or budget User needs are given more importance
DISCUSSION
Investment:
Risk/Return trade off
2. Informational
Provide information to Manage, Control, Account, Report, Communicate, Collaborate or Analyse Example: CRM, Sales Management, BI
Gain competitive edge Examples: ATMs, Hand held Trade Promotion Management devices, GIS based vendor mapping
4. Infrastructure
Essential foundation like electricity Laptops, printers, servers, networks, databases
Infrastructure: Features/Benefits
What it can do Business integration Business flexibility Reduced marginal cost of BUs IT Reduced IT costs Standardization
Returns Higher market valuation Faster speed to market Smaller short run margins Lower Return on Assets
Transactional: Features/Benefits
What it can do Cut costs Increase throughput
Returns Higher sales per assets Lower cost of goods sold 25-40% return
Informational: Features/Benefits
What it can do Increased control Better information Better integration Improved quality Returns Superior quality Premium pricing Larger margins Higher ROA
Strategic: Features/Benefits
What it can do Increased sales Competitive advantage Competitive necessity Market positioning
Returns 50% fail Few spectacular successes 2-3 year lead Premium pricing More sales from modified and enhanced products