The document discusses avoiding IT strategy and investment disasters. It outlines an agenda for a presentation on identifying lessons from past IT failures and developing strong IT management capabilities. The presentation covers examples of major IT disasters, "sins" that contributed to failures, methods for learning from mistakes like researching case studies and reviewing lessons identified. It also discusses frameworks for assessing an organization's IT maturity and providing roadmaps for improvement. The goal is to help attendees recognize lessons from their own experiences and strengthen their ability to manage IT for business value.

1. Avoiding IT Strategy and
Investment Disasters
Richard Moulds
Warwick London Alumni Group
2nd May 2012

2. Introduction
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3. Objective
To enable you to identify at least 1 lesson and 1
resource
– Publications
– Organisations & Case Studies
– Methodologies
– Fellow Alumni
to act on
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4. Agenda
• Introduction
• Objective
• IT Disasters
• Identify your 1st lesson
• Findings
– Research
– Lessons Learned
– Making Decisions
• Identify your 2nd lesson
• IT Management Capability
• Summary
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5. Agenda
• Introduction
• Objective • Individuals
• IT Disasters Capability
• Identify your 1st lesson Focus • Teams
• Findings
• Research
• Lessons Learned
• Making Decisions
• Identify your 2nd lesson • IT Management
• IT Management Capability Capability
Focus • Business
• Summary
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6. IT Disasters
• 1983 Faulty Soviet early warning system nearly causes WWIII
• 1990 The AT&T network collapse
• 1996 The explosion of the Ariane 5
• 1998 Mars Climate Observer metric problem
• 1997 Siemens and the passport system
• 1999/2000. The two-digit year-2000 problem
• 2004 EDS and the Child Support Agency
• 2006 Airbus A380 suffers from incompatible software issues
• 2006 When the laptops exploded
• 2007 LA Airport flights grounded
http://www.zdnet.co.uk/news/it-at-work/2007/11/22/the-top-10-it-
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disasters-of-all-time-39290976/

7. IT Disasters - Crash
• Overambitious
• Pride
• Presumption
• Pusillanimity
• Credulity
• Consultancy
• Tailored Software
• Concealment
• Buck Passing
• Lawyers Moulds Management Consulting Ltd

8. Identify your 1st lesson in pairs
1. Describe a recent IT disaster
from your own experience
2. Use the handout to identify
up to 3 Sins that you feel
were relevant to this
disaster
3. Choose one of these Sins
and discuss the likely root
cause of the problem
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9. Tony Collins in 2012
http://blogs.computerworlduk.com/the-tony-collins-blog/
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10. Tony Collins & David Bicknell in 2012
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http://ukcampaign4change.com/

11. Research
Top 10 Practices H% L% Diff.%
Transferral of lessons learned 73 32 41
Quantification of benefits 52 14 38
All benefits identified 56 19 37
Organisational change reviews 62 30 32
Overstating benefits 22 51 -29
Benefits delivery planning 45 19 26
Benefits review and evaluation 62 39 23
Organisational change planning 44 23 21
External reference sites used 45 24 21
External benchmarking used 35 16 19
Cranfield University Information Systems Research Centre
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12. Lessons Learned
• Google searchs
• Lessons learned = 39.7 million hits
• We fail to LL = 29.2 million hits
• Lessons learned = identify lesson & act on it **
• Identify lessons by assessing the:
– context
– event
– causes (root causes and critical success factors)
• Act on lessons
• 6 Case studies - 5 NHS Hospital Trusts & BHF
• Published in British Journal of Healthcare Management
** Milton N (2010) The Lessons Learned Handbook
http://www.amazon.co.uk/The-Lessons-Learned-Handbook-Knowledge-
Based/dp/1843345870/ref=cm_cr_pr_product_top
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13. British Journal of Healthcare
Management Dec. 2010
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14. 5 lessons identified Capabilities
Business Cases
• identify a list of measurable benefits, with named owners , that
stand up to objective scrutiny in the business case
• list all major risks, issues and lessons identified from at least one
reference site visit for each option see slide 15
• ensure the mobilisation of staff in future projects includes a role
model approach, led by the project sponsor on how to raise and
resolve difficult issues see slides 17 & 18
Decision Making & Governance
• establish decision-making processes for complex, innovative
projects that use a proven process see slide 16
• establish a similar approach to governance for identifying and
acting on lessons as used for corporate and patient risks.
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15. Decision Making
Risks, Issues & Lessons
Complex Decisions
Personality Types
Business Teams
Accountability & Capability

16. Risks, issues & lessons
Risks- what could
go wrong ?
Disaster =
Multiple, Major
Issues
Identify and act Issues- what has
on lessons gone wrong ?
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17. Complex Decisions
People who Are responsible for
Recommend Make a proposal, gather input, provide data and analysis to make
a sensible choice in a timely fashion
Consulting with input providers-hearing and incorporating their
views and winning their buy in
Agree Negotiating a modified proposal with the recommender if they
have evidence based concerns about the original proposals
Escalating unresolved issues to the decider if the A and R cant
resolve differences
Perform Executing the decision once it is made
Seeing that the decision is implemented effectively
Input Providing relevant facts to the recommender that shed light on the
proposals feasibility and practical implications
Decide Serving as the single point of accountability
Bringing the decision to closure by resolving any impasses in the
decision making process
Committing the organisation to implementing the decision
HBR Jan 2006 - Who has the D? How clear decision roles enhance organisational performance
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http://www.bain.com/publications/articles/who-has-d-how-clear-decision-roles-enhance-organizational-performance.aspx

18. Personality Types
MYERS BRIGGS
Extraversion ( E ) Introversion (I)
Sensing (S) Intuition (N)
Thinking (T) Feeling (F)
Judging (J) Perceiving (P)
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19. Business Teams
• IT and Project Management is still a relatively
young profession
• Engineers, Lawyers, Accountants, Doctors 1818 -1880
• IT, Project Managers 1957-1975
• Balance of Business Teams
– What is the frequency of HR, Finance & IT agenda
items in the last 12 months?
– IT projects or Business IT projects ?
• People & project management
– Includes role model leadership, conflict management,
behaviours, learning and development
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Balanced business teams including IT

20. Accountability & Capability
C level sponsor Sponsor/SRO
on top 10 projects
Project
Senior User
Manager
5 lessons identified – capabilities
eg the mobilisation of staff in future projects includes a role model
approach, led by the project sponsor on how to raise and resolve difficult
issues
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21. Identify your 2nd lesson in pairs
1. Describe a recent IT disaster
from your own experience
2. Use the handout to identify
up to 3 Sins that you feel
were relevant to this
disaster
3. Choose one of these Sins
and discuss the likely root
cause of the problem
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22. IT Management Capability

23. Developed by the Innovation Value
The IT Capability Maturity Framework Institute (IVI)
Optimize value from IT Steering patrons
• Defines maturity profiles across IT domains
to transform organizations from cost center
to value center
• 33 Critical Capabilities, each with 5 levels of
maturity
• Provides a holistic view of maturity, with
ability to share amongst peers
Provision of improvement roadmaps
• Assists CIOs and senior IT decision-makers
evaluate their IT organization, industry
benchmark trends and clearly identify next
steps
Research base
• Based on a framework originally developed • Non-profit, open innovation consortium with
by Intel IT membership from leading industry IT end-
• Refined and extended by the Innovation users, vendors, consulting firms,
Value Institute (www.ivi.ie) government, non-profit and academic
organizations
• Reviewed and tested with 300+ CIOs plus
latest academic thinking • More than 75 organizations worldwide
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24. The Framework
Managing IT Like a Managing the Managing the Managing IT for
Business IT Budget IT Capability Business Value
IT Leadership & Funding & Financing Enterprise Architecture Total Cost of
ITG Governance FF EAM Management TCO Ownership
Business Process Technical Infrastructure Benefits Assessment &
BPM Management BGM Budget Management TIM Management BAR Realization
Business Planning Portfolio Planning & People Asset Portfolio Management
BP PPP Prioritization PAM Management PM
Strategic Planning Budget Oversight & Knowledge Asset
SP BOP Performance Analysis KAM Management
Demand & Supply Relationship Asset
DSM Management RAM Management
Capacity Forecasting & Research, • Each critical
CFP Planning RDE Development, &
Engineering capability has
RM Risk Management SD Solutions Delivery five levels of
Accounting & Allocation
maturity
AA SRP Service Provisioning
ranging from
Organization Design & User Training
ODP Planning UTM Management ‘Initial’ to
SRC Sourcing
User Experience
UED Design
‘Optimizing’
Innovation programme & Project
IM Management PPM Management
Service Analytics &
SAI Intelligence SUM Supplier Management
Capability Assessment
SICT Sustainable ICT CAM & Management
Increasing maturity improves IT ability to deliver on key priorities
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25. IT-CMF: Maturity of discrete Critical Processes
Differences in perceived current maturity by Business Area
Optimising
Advanced
Interm-
Basic
Initial
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Operations

26. IT-CMF: Importance of discrete Critical Processes
Differences in perceived importance by Business Area
5
4
3
2
1
IM&T Operations
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Benchmark: n = 31

27. Summary
Individuals & teams
– Lessons learned =
identify lesson and act
– Mitigate risks by acting Risks
on lessons to avoid
issues
Lessons Issues
– Better decisions rely on
evidence + ideas + MYERS BRIGGS
Sensing Intuition
objectivity + empathy
Thinking Feeling
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28. Summary
IT & Business Management
– Accountabilities & capabilities - act on lessons &
knowledge
– Balanced business teams, including IT
– Business IT Plans & ambitions > or = or < IT
management capability
– Determine where you, your business and your IT
suppliers are/need to be in the IT capability chain
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29. Questions & Comments
• Richard Moulds
• Moulds Management Consulting
Limited
• 28 Eggbridge Lane,
Waverton,
Chester,
CH3 7PE
• richard@mouldsconsulting.co.uk
• http://www.linkedin.com/in/rich
ardmoulds
• M: 07834 320979
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30. SPARE SLIDES
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31. Key practices
Benefit delivery: to be improved to
Delivery Planning - organisational
increase maturity
change
& benefits. level and success
4. Highly
Successful Project selection:
Portfolio management.
Business cases –
Life cycle approach identification of benefits.
to benefit management.
Benefit and change reviews
Demand led with
business ownership of 3. Successful
benefit delivery plans and
a comprehensive review Project delivery:
process.
Sound business cases Business cases-
based on achievable identification of costs.
benefits but ineffective Technology and
benefit delivery and
change planning, with 2. Moderately process change
insufficient business Successful planning. TCQ
ownership & reviews.
involvement. Sound IT methodologies, but
ineffective portfolio management and
business cases are cost rather than
benefit based. IT methodologies
dominate with insufficient business
involvement in business cases, 1. Unsuccessful
implementation and review.
Characteristics Inadequate and inconsistent use of
of the 4 proven methodologies. Unrealistic
business cases, limited business
levels of maturity involvement in all practices. Very
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weak