1) Many IT projects fail or go over budget and over schedule due to unrealistic expectations and a lack of effective project management practices. 2) Key drivers of project success include clearly defined goals, competent leadership, adequate resources, and effective communication and tracking against plans. 3) Establishing the right skills for the project manager role and implementing a sound project management control system are both critical for achieving project success through consistent high performance over the entire project lifecycle.

1. Project Management
Control Systems
January 2010
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2. Objectives
Discuss drivers of program/project failure
Consider an approach to increase probability of success
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3. Agenda
Project Success
Effective Project Management
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4. Project Success
History has proven that many projects will fail
Extensive studies have been conducted to understand why failure
occurs
So why do we continue to see significant failures?
This question could be applied to the collapse of mid-west power
grid a few years ago or Jet Blue’s recent problems with flight
delays.
It is also true for Information Technology projects.
How often do projects fail and what can be done to prevent failure?
© 2010 IBM Corporation

5. Project Success
Approximately 60% of large Information Technology projects fail or do not meet the
expectations at some level..,
“ At companies that aren’t among Percentage of Failed IT Projects
the top 25% of technology users,
three out of ten IT projects fail on
100%
average. Translation: amazing 30%
90%
experience project failures.”
80%
– Julia King, “Survey shows 70%
common IT woes”, Computerworld, 60%
June 2003
50%
40%
You might conclude that this is 30%
good news – 70% succeeded. 20%
10%
What this analysis doesn’t tell
0%
you:
Small Mid-Size to
Failure
How many of these projects were Large
Success Budget less Budget greater
over-budget, over time or
than $500k than $500k
defective in function upon
completion. Source: Gartner Group Study 2005
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6. Project Success
Project managers often start with unrealistic expectations for the budget and timeline.
Variances from a project time and cost estimate can be significant
Software project cost as a function of life-cycle phase 1,2
F e a s ib ility R e q u ir e m e n ts S y s te m S y s te m S y s te m
S tu d y A n a ly s is D e s ig n B u ild In s ta ll
4 x
x(3+exp(-067n))
Expected range of estimation accuracy
2 x
1 .5 x
1 .2 5 x
x
.8 x
.7 x
x
.5 x
x(3+exp(-067n))
.2 5 x
S o ftw a r e d e v e lo p m e n t life -c y c le
1 2 3 4 N
Studies have shown that when initial budgeting is completed for a typical software implementation
project, the inaccuracies in the estimate can range from 1.4x to 0.6x of the point estimate. The
reduction of the variance depends on effective project management.
1 Software Engineering Economics, Barry W. Boehm, Prentice Hall PTR, 1981
2 “Software Size Estimation of Object-Oriented Systems,” IEE Transactions on Software Engineering, Vol. 16, No.5, May 1990
© 2010 IBM Corporation

7. Project Success
Many studies have been Jaing’s Drivers of IT Project Success
1. Clearly defined goals
done to identify sources of
2. Competent project manager
success and failure
3. Top management support
For example, in the article 4. Competent project team members
– “Ranking of system 5. Sufficient resource allocation
Implementation Success 6. Adequate communications channels
7. Project tracking (plans, schedules, etc.)
Factors” by James Jiang
8. Feedback capabilities
in Project Management
9. Responsiveness to client
Journal 12/96, Mr. Jiang 10. Client consultation
highlighted 13 items which 11. Technical execution
he believes drive a 12. Client Acceptance
successful project. 13. Trouble-shooting
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8. Project Success
Conclusions
A large number of Information Technology projects fail to
meet some portion, if not all, expectations,
Considerable effort has been expended by businesses,
consultancies and industry experts to identify the sources
of failure and recommend the path to success,
Yet, may IT projects continue to fail….
© 2010 IBM Corporation

9. Agenda
Project Success
Effective Project Management
© 2010 IBM Corporation

10. Effective Project Management
Project and program management effectiveness is often
only measured in the final results:
– Did the project complete on schedule?
– Was the project on-budget?
– Did we complete within scope?
– Did we achieve the quality expected?
Achieving these results requires a sustained, high project
performance over the entire life-cycle of the project.
In our experience, project success requires the right
project management skills, a sound project management
control system, and effective management execution.
© 2010 IBM Corporation

11. Effective Project Management - Right Skills
The lack of specific project management skills presents minimal risk for small
projects, but poses considerable risk to higher-profile, higher risk midsize to large
projects. The skill requirements for a strong project manager are extensive.
Overall Traits Requisite Skills
Negotiation
Diplomacy with Problem Solving
Credibility Conflict Resolution
Communications
Strategic View
Leadership
Action Business Acumen
Responsibility Financial Analysis
Risk Mitigation
Collaboration Organization Change
Catalyst Planning
Contracting
Risk Manager Administration
Technical Experience
© 2010 IBM Corporation

12. Effective Project Management – A Sound Project
Management Control System
A Project Management Control System Project Management Control System Framework
defines the means by which as program
or project is planned, managed and
controlled, including:
– Project objectives
– Project culture
– Cost and progress control Project Methodology
Management
– Operating rules and policies
System
– Work product templates
– Records and documentation
© 2010 IBM Corporation

13. Effective Project Management – A Sound Project
Management Control System – Fourteen Point Model
IBM has defined 14 elements of a sound Project Management Control System.
Project
Definition
Through our extensive project
M
ree sor
and
Qu gem
nt
an
management experience and work
me
ali e
Ag pon
Estimate
a
t y nt
with the Project Management Tr
S
a
Institute, IBM has defined 14 Co ckin
nt g & ns
ro t io
elements of a sound project De
l
un
ca nt
i e
management system. Ma liverab mm agem
nag l Co a n
em es M
ent
PMCS Structure Analysis
Non-Starter 5 4 3 2 1 2 3 4 5
Ratings Developmental lan Cha
Capable rk P ment Con e
ng
on a 1 to 5 Wo age trol
Scale Advanced n
Exemplary Ma
M a HR
nag
k t em
Ris men ent
g e
M ana M Su
an pp
ag lie
nt
Org agem
em r
me
Ma
na ue
Technical en
Ma Iss
ani
ge
n
Environment t
zat ent
Source: IBM’s Project Management Excellence Database
ion
© 2010 IBM Corporation

14. Effective Project Management – PM Execution
Project Management Success
Effective project
management execution
Highly
depends on both: Skilled
Possible Highly
Success Probable
(1) the skills of the Success
project/program
Manager
Project
Skills
management team and
(2) the quality of the
Project Management Success Possible
Control System. Unlikely Success
Limited
Experience
Poor Quality High Quality
Project Management Control System
Structure
Source: IBM Analysis
© 2010 IBM Corporation

15. Project Success
Conclusions
A large number of Information Technology projects fail to meet some portion,
if not all, expectations
Considerable effort has been spent by businesses, consultancies and,
industry to identify the sources of failure and recommend the keys to
success.
Often project success is measured only in the final results: in-scope, on-
schedule, in-budget and met-requirements
Achievement of project success requires effective project management
throughout the entire project life-cycle.
Project success is driven by: 1) Skills of the team (including the PM) and 2)
the Project Management Control System to support - communications,
management commitment, planning and scheduling, etc. which yields ……
Effective Project Management Project Success.
© 2010 IBM Corporation