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Web-Project-Management-Best-Practice-Guidelines
1.
Web Project Management
The practices behind successful web projects E-consultancy, May 2007 Lead author: Sonia Kay Contributing Editors: Craig Hanna and Chris Lake Copyright © E-consultancy.com ltd 2006 1
2.
Table of contents 1.
Executive Summary ..........................................................................3 1.1. Research aims ........................................................................................................... 3 1.2. Top 10 key findings and recomendations ................................................................ 3 2. Introduction ..................................................................................... 7 2.1. About this report ....................................................................................................... 7 2.2. Who is this report for? .............................................................................................. 7 2.3. About E-consultancy ................................................................................................ 8 2.4. What is Web Project Management? ......................................................................... 9 3. Research aim .................................................................................. 11 4. Methodology ................................................................................... 12 4.1. Sample ..................................................................................................................... 12 4.2. Questions ................................................................................................................. 12 4.3. Analysis .................................................................................................................... 14 5. Findings and Recommendations ..................................................... 15 5.1. The differences between web projects and other projects ..................................... 15 5.2. Biggest challenges facing web project managers .................................................... 16 5.3. Key drivers of success .............................................................................................. 18 5.4. A few words about agencies and consultancies ......................................................27 5.5. Building the right environment for success ............................................................ 31 5.6. Using the right methods and processes ................................................................. 48 5.7. Small projects need structure too ...........................................................................67 5.8. The essential project managers toolkit ................................................................... 71 6. Helpful resources ........................................................................... 72 7. References ...................................................................................... 72 8. Appendix 1 - The state of the nation................................................. 73 8.1. Quantitative research highlights .............................................................................73 8.2. Quantitative research results in full ........................................................................74 9. Appendix 2 – Interview Script ......................................................... 81 10. Appendix 3 – Questions used in online survey ............................... 82 11. Appendix 4 – Example of in-house adaptation of Prince ................ 88 Copyright © E-consultancy.com ltd 2006 2
3.
1. Executive Summary
1.1. Research aims The purpose of this research is to fill the information gap around web project management by learning from the experiences of organisations who are already out there managing web projects. We’ve put this report together on the back of a combination of in-depth interviews and quantitative research. Specifically this research will… • Discover what makes some organisations and projects more successful at web projects than others; • Show what methodologies, tools and techniques are working, and which one’s aren’t; • Help you evaluate your own situation and work out the best approach to move forward. 1.2. Top 10 key findings and recomendations 1. Nearly half of all respondents do not have a structured approach to managing their web projects. Nearly half of all respondents (45.5%) do not have a structured approach to managing their web projects. This rises to 67% in the retail industry. This can add up to bad news. Companies without a structured approach are the least likely to achieve their project goals, least likely to deliver customer satisfaction, are least able to deal with change during the course of the project and are less likely to achieve deadlines, meet budgets and deliver positive ROI. Lack of processes and skills can mean that… • Teams don’t have visibility of the progress of the project and its’ associated risks and issues; • There isn’t a consistent vision of what the team are trying to deliver; • Estimation of the resources and effort required for the project involved is either poor or non-existent; • Projects are planned in isolation from the rest of the business and are consequently poorly supported. Copyright © E-consultancy.com ltd 2006 3
4.
2. Budgets and
deadlines are difficult to control Nearly 58% of respondents say that their projects always achieve their goals, and yet only 21% of them say they always achieve deadlines. Only 39% always achieve budget and a positive ROI. In fact over 8% of respondents never meet their project deadlines and nearly 6% never deliver their projects within budget. Ouch. 3. Web projects are integrated with the rest of the business less than half of the time, and customer satisfaction is hard to achieve Fewer than half (46%) of respondents work to an annual plan that is aligned with their overall business strategy and only 56% say that they share common goals with the rest of the business. Whilst nearly 80% say they involve the end customer in gathering requirements for their projects, and 72% involve the customer in testing, only half consistently achieve customer satisfaction with their projects. 4. Teams know that their requirements will change during the course of the project but yet they struggle to deal with it when it actually happens Nearly 88% of respondents say that they set their requirements knowing that they are flexible to change during the course of the project, yet half of organisations say that changing requirements during the course of their projects is one of the biggest challenges they face. 5. Excellent project management is considered crucial to project success, but project management methods are not valued, and many organisations don’t use qualified project managers. Good communications and excellent project management are considered to be the two most important factors in determining the success of a web project. However, 22% of projects are managed by members of the marketing or commercial team rather than a qualified project manager. Knowledge of specific project management methods is considered to be the least important skill in managing web projects. Copyright © E-consultancy.com ltd 2006 4
5.
6. Web projects
are different from other projects E-consultancy’s research identifies that web projects are different from other projects because of their need to be responsive to… • changing customer requirements and market conditions, • the breadth of people and skills involved, • the raft of stakeholders, • frequently tight or fixed deadlines, • a degree of uncertainty, • and the need for interaction with real customers. Therefore web projects require a project management approach that helps with… • Evolving requirements; • Putting focus on the end customer; • Collaboration between different skill sets; • Managing stakeholder expectations. 7. Successful organisations have a structured approach to projects, and know how to apply a range of project management methods which can be tailored to the circumstances The most successful organisations are able to tailor their approach to the specific circumstances of the project and the organisation they are in, typically using a combination of agile and traditional project management methods. 8. Successful organisations think strategically but deliver tactically Companies with a more evolved approach to e-commerce embrace flexibility and the ability to deliver iterative, tactical change, because they are operating in highly competitive environments (and as such they need to be able to respond to the rapidly-evolving needs of the customer). Despite this flexible approach, every project is aligned with the strategy of the overall business, providing consistent direction. Copyright © E-consultancy.com ltd 2006 5
6.
9. In successful
organisations collaboration is built into the process from the very top of the organisation down. The culture and organisational structure of successful companies support effective collaboration between IT, E-commerce, Marketing and Management through; • Shared goals; • Sponsorship for projects at a senior level of the organisation; • Cross-functional steering groups who prioritise resource and provide guidance. 10. Excellent project management is as much about managing the environment as it is about managing the process Successful organisations recognise the importance of having a dedicated project manager. A good project manager brings excellent communication and people skills, managing the environment around the project rather than just following a set of text book processes. 1.3. Creating a model which is predictive of success A maturity model has been defined to help organisations to benchmark their web project management prowess against other organisations. It identifies three key groups… 1. Early experimenters – Web not part of business strategy, little/no project management structure or skills 2. Frustrated visionaries – Projects aligned to business strategy, project management style not suited to web 3. Slick professionals – Web projects supported fully by whole company, sophisticated project management The model is based on a series of behaviours and practices that the research has shown to have the most significant impact on a company’s ability to deliver successful projects. Copyright © E-consultancy.com ltd 2006 6
7.
2. Introduction
2.1. About this report This report describes the methodology and findings of a significant piece of research conducted into web project management. It makes a number of recommendations regarding web project management best practice on the basis of these findings, and the experiences of those who have kindly agreed to take part. It also draws on the writing of well respected authorities in the fields of project management, software development and web project management. The research was carried out in two main phases: Phase 1 focused on in-depth interviews to identify the characteristics and practices of successful web projects, and the main barriers to success. Phase 2 was designed to validate the findings of the first phase of research and allow quantitative measurement of the typical success rate of web projects using an online questionnaire. The interview discussion guide and a copy of the online survey are both published in full in the Appendices of this report. 2.2. Who is this report for? This report is aimed at anyone involved in commissioning or delivering web projects within their organisation, or on the behalf of a client organisation. The bulk of the report deals with the infrastructure, culture, practices and processes required to deliver medium to large web and e-commerce projects, although there are also specific findings and guidance relating to the delivery of smaller projects. The aim of the report is to enable those involved with web projects to identify the challenges that are specific to them, and identify best practices and approaches that will help them overcome these challenges and improve their chances of success on future projects. It is important to note that this report does not recommend a specific approach or set of processes as a ‘silver bullet’ to resolve all web project management challenges. Rather, our aim is to provide the reader with the framework and information to help them determine for themselves what their future practices should be. We hope it proves useful to you. We love receiving feedback, comments and, all being well, your testimonials. Send word to chris@e-consultancy.com. Copyright © E-consultancy.com ltd 2006 7
8.
2.3. About E-consultancy E-consultancy
is an award-winning UK-based publisher of best practice internet marketing reports, research and how-to guides, to help educate business people and marketers about the internet and e-commerce. Founded in 1999, the company has grown to more than 52,000 registered users and operates a paid-subscription model. Subscribers pay from as a little as £149 per year to access exclusive and highly practical content. E-consultancy also provides a range of public and in-house training programmes, such as seminars and workshops. It trained more than 3,000 internet professionals in 2006 and runs bespoke training programmes for well-known blue chips and SMEs. More than 100 exclusive E-consultancy events are lined up for 2007, including roundtables and monthly Supplier Showcases, which remain highly popular. Web Project Management Based on this research E-consultancy is running a programme of training seminars specific to Web Project Management. Upcoming dates for these courses are… Manchester 25th April, 2007 Manchester 4th July, 2007 London 10th July, 2007 London 13th September, 2007 Manchester 25th September 2007 London 20th November, 2007 Manchester 22nd November, 2007 If you are interested in attending any of these sessions please email viv@e-consultancy.com, or see our website’s training channel for more detail. E-consultancy also held a roundtable forum of E-commerce managers and project managers to discuss the findings of this research, the outputs of which can be found on our website. Copyright © E-consultancy.com ltd 2006 8
9.
2.4. What is
Web Project Management? What is a project? In ‘A Guide to the Project Management Body of Knowledge’ (PMBOK Guide) a project is defined as: “A temporary endeavour undertaken to create a unique product, service or result” What is significant about this definition is that it distinguishes projects from the everyday work of running of a business. Projects run alongside business as usual operations and typically deliver a change that needs to be integrated back into the business, at the completion of the project. What is Project Management? “Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK, 2005) Sometimes carried out by a professional project manager, at other times project management is an activity carried out by another member of the project team. You don’t necessarily have to be a project manager to manage projects. There are a few universal truths for any project which are reflected in every Project Management methodology: 1. There is always a customer, the project is always being delivered for someone; 2. There is always a project team, no matter how big or small; 3. There should always be a goal, otherwise why are you doing the project? 4. It ultimately comes down to managing the iron triangle… Cost Quality Time The iron triangle represents the three key elements of a project: cost, quality and time. Altering one of these variables will impact the other two. For instance, if you need to reduce the time to complete a project you will either have to risk reduced quality, or pay more money to ensure the same quality in less time. Copyright © E-consultancy.com ltd 2006 9
10.
Web Project Management The
fundamentals of project management are the same, whatever the project, but there are a number of challenges inherent to web projects which often prevent teams from delivering their projects on time, on budget and to the satisfaction of their internal and external customers. These challenges are outlined in more detail in section 5.1. In the experience of the participants of this research there is no single approach that is a perfect fit for web projects. Many organisations have embarked on journeys of experimentation and adaptation to arrive at processes that work for them. It is from documenting these experiences that we have been able to build a new body of knowledge that supports the notion of web project management as a separate activity. At its most basic level Web Project Management is about creating the right environment for the delivery of web projects. One with the following characteristics: • Just enough structure to help rather than hinder progress; • The flexibility to work with evolving requirements; • Focus on and involvement of the end customer; • Effective collaboration between different skill sets and departments; • Manages the expectations of multiple stakeholders; • Enables rapid deployment of priority features. Copyright © E-consultancy.com ltd 2006 10
11.
3. Research aim E-consultancy
felt that there was a big gap for this sort of research, and so we decided to do something about it. We are experienced in web project management, having created, launched and operated many websites for ourselves and for third parties. Indeed, a thorough revamp of the E-consultancy website has just begun, a project anticipated to take a year before it comes to fruition. Moreover, this research was undertaken in response to a growing need for guidance on web project management best practice from people working at the sharp end of the internet industry. As ever, our guidance is based on practical experience rather than theoretical knowledge of managing web projects. People say that this is where E-consultancy really stands out from the crowd, and we hope this guide will prove to be a valuable addition to the existing research available on at www.e-consultancy.com/research. Specifically this research aims to… • Discover what makes some organisations and projects more successful at web projects than others; • Show what methodologies, tools and techniques are working, and which one’s aren’t; • Help subscribers evaluate their own situation and work out the best approach for them. Our research is not intended as a training manual for any specific project management method or process, but we think it articulates the ideal environment for managing web projects. It also provides an insight into some of the wide range of project management techniques available. Copyright © E-consultancy.com ltd 2006 11
12.
4. Methodology
4.1. Sample Phase 1 of the research comprised of 18 depth interviews with representatives from different organisations, across a wide range of industries including travel, financial services, telecommunications, retail and agency. The respondents were chosen because they are responsible for either commissioning or managing web projects within their organisation. The purpose of this first phase was to identify the characteristics and practices of successful web projects, and identify the main barriers to success. Interviews were conducted with senior representatives from the respective internet teams at the likes of: MyTravel, Sony Ericsson, Sony Business Services, Axa-PPP, Alliance and Leicester, BSI, First Choice, Framfab, Henderson Global Investors, Lloyds, Code, O2, Opodo, P&O and Signet. Phase 2 was designed to validate the findings of the first phase of research and allow quantitative measurement of the typical success rate of web projects, and the maturity of UK organisations in their approach to web projects. This phase was conducted via an online survey to the E-consultancy newsletter subscriber base. The survey was completed by 633 individuals (about 5% of our newsletter readers). 4.2. Questions In order to satisfy the aims of the research it was necessary to evaluate what skills and resources are necessary to run web projects and also how projects are influenced by and interact with the wider organisation. In order to do this we borrowed a strategic framework already seen in E-consultancy’s in- depth study: ‘Managing an E-commerce team: Integrating digital marketing into your organisation’. The structure for his study was based on a strategic framework devised by McKinsey Consultants – The 7S strategic framework. In it each “S” represents a key issue that needs to be addressed. We have applied this framework equally effectively to the practice of managing Web projects, and it has been used in this research to highlight the key issues that need to be managed in order for a company to deliver its projects with a degree of success. This framework formed a backdrop for the first phase of qualitative research, which then defined the quantitative survey which was used in phase two. The interview discussion guide and a copy of the online survey are both published in full in the Appendices of this report. Copyright © E-consultancy.com ltd 2006 12
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Element of 7S
Application to Web Project Key issues model Management Strategy Annual planning approach, aligning Being part of organisation wide planning projects with organisational and process marketing strategy, gaining appropriate budget and resource, delivering value Effective prioritisation of web projects to align with business goals – roadmapping Being part of a programme of work In-built flexibility to adapt to fast moving environment Digital strategy as collaboration between IT / Marketing / Digital / Commercial Structure Modification of organisational structure Cross-functional steering and cross- to support digital projects functional teams Common goals and targets Integration between IT / Marketing / Mgt Where does project/programme mgt function sit? Accountability Systems Development of specific processes, Adoption of structured approach to PM. procedures and information systems to support digital projects Approach communicated and used by whole team/organisation Approach is fit for purpose – speed, quality, flexibility, scale Visibility of the project – timescales, issues, resource Effective process for gathering and refining requirements Role of customer / end user in the process Choosing the right supporting software Effective resource estimation and allocation Staff Breakdown of staff in terms of Senior level sponsorship background and characteristics, location, insource/outsource, part-time Diversity of backgrounds, skills and vs. dedicated understanding of web technology Dedicated PM function vs. managing projects as a part-time task IT Project Manager vs. Commercial Project manager Style The way key managers behave in Shared ownership and decision making achieving the organisational goals, and vs. working in competing silos the cultural style of the organisation as a whole Organisational culture main driver of Copyright © E-consultancy.com ltd 2006 13
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process/method
Techniques to nurture collaboration across functions Co-location Fear of permanent beta Skills Distinctive capabilities of key staff Breadth of skills required across the project Project management skills, training and experience PM balance between technical, commercial and people skills Experience of working in web projects Availability of expert technical resource Ability to evolve and embrace new technology Super-ordinate goals The guiding concepts of the organisation Improving the effectiveness of cross- which are part of shared values and functional teams through education and culture involvement in the process. Give the organisation understanding so they can embrace the potential of the web channel 4.3. Analysis The Clicktools analysis tool was used extensively in the quantitative phase of the research and enabled responses to be cross-tabulated and filtered. For example; • Cross referencing specific attributes and practices against their impact on success • Analysing the relationship between project management method and o Success o Culture o Challenges o Practices o Requirements gathering o Nature of deadlines • Cross referencing culture against success • Filtering to establish the impact on success of the predictive model • Filtering the model behaviours to quantify the volume of respondents at each stage of the model Copyright © E-consultancy.com ltd 2006 14
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5. Findings and
Recommendations 5.1. The differences between web projects and other projects The interviews conducted in the early stages of this research supported the view that web projects have challenges of their own which set them apart from other kinds of projects. Web projects draw on a huge range of people and skills – Marketing, commercial, design, usability, accessibility, information architecture, programming, database development, application development, integration with legacy systems, back office support and fulfilment. It’s not enough for each area to own one chunk of the project and then put it into a black box for someone else to integrate. Multi-discipline teams need to work together to define whole solutions that maximise the technology’s’ potential to fulfil the customers’ needs. Because of this diversity of interests, most web projects also tend to attract a huge array of stakeholders and hangers on. It’s also fair to say that in some organisations, web is still perceived as ‘quick and easy’ so project managers have to manage varied and unrealistic expectations. Web development tends to be an iterative process. Enhancing functionality through smaller, more frequent releases is the most effective way to keep up with the fast pace of change in consumer habits and technology. Plus the volume of data available on how customers interact with your website makes it impossible these days not to find ways to continuously improve conversion or loyalty. Hand in hand with a fast paced, competitive environment and demanding customers comes fixed deadlines, primarily driven by product launches and advertising campaigns. Many projects are made more complicated by the need to integrate cutting edge applications with legacy systems, which typically means that there are lots of unknowns. The requirements of a web project are often less defined at the outset, partly because it is difficult to second guess how the audience is going to interact with a three dimensional customer experience. It’s not uncommon for requirements to be refined as part of the design process, and prototyping is sometimes used to aid this. The web channel represents your company’s window to the outside world, so if your projects go wrong the evidence is there for all your customers to see and experience in the form of poor usability, confusing navigation, frustratingly slow page downloads, underwhelming content, impossible to complete transactions and error messages. Key Finding Take the time to ensure that you and other key stakeholders understand the unique challenges inherent with web projects. This will help manage unrealistic expectations from the business. Copyright © E-consultancy.com ltd 2006 15
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5.2. Biggest challenges
facing web project managers All our research participants were asked to identify the top three challenges they faced in delivering web projects. Their responses served to highlight the fact that a huge number of organisations are struggling with challenges that are inherent to the nature of web projects! Elements of their environment and / or processes are inadequate for the tasks they are being asked to carry out. Resoundingly, the biggest challenge facing web project managers is changing requirements during the course of the project. This is a defining feature of web projects, and can’t be avoided unless organisations are prepared to go back to producing brochure-ware and stop striving for meaningful customer interaction. Chart 1 – Biggest challenges in managing web projects 60 50 50 40 % of respondents 33 31 30 27 27 23.5 19 20 16 15 14 10 0 n ut e ns e s e ts ts ills s tio rc at tim en en p ce tio sk in u im ra m rm so o a on r st of bo pr ct ire se re ui re pe ut ck la M ru qu eq de p ol p ex La rP ee re r in o rc un Po or /K tic ea to e o s at pe et Po is cl er ils ul al G o p o fa tic e sc lo N nr s ar e es g U ev in to n D ng si e Bu bl ha na C U Most frequent challenges (n=527) Ironically most organisations, 87.67% according to our survey, set their requirements knowing that they need to be flexible to change. The fact that 50% still consider this to be one of the biggest challenges in their projects simply highlights the fact that they are unprepared for change when it needs to happen, or when it happens anyway. All project management methodologies will state that they have a mechanism for dealing with change within the project. But organisations need to understand that there is a world of difference between managing change as an exception to the project, and embracing change as part of the process. “Our problem was that the environment was constantly changing – you start off in waterfall with a big scope and then during the journey there would be continuous re- scoping because of unforeseen changes. So by the time you deliver it’s different to what you set off with and the business is disappointed”. Copyright © E-consultancy.com ltd 2006 16
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The next most
significant challenges are the unrealistic expectations of the business and failure of the business to provide adequate input at the right time. Once again, this is probably symptomatic of one of the major challenges of web projects. The fact that there are a myriad of stakeholders and skill sets involved in web projects, means that managing the appropriate level of involvement from all parties can be a phenomenal communications task. • Key Finding The results from the questionnaire serve to reinforce the view that web projects require a project management approach that helps with: • Evolving requirements • Putting focus on the end customer • Collaboration between different skill sets • Managing stakeholder expectations Copyright © E-consultancy.com ltd 2006 17
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5.3. Key drivers
of success During the interview stage of this research it became clear that organisations that are successful in delivering web projects share similar behaviours. We can see that success is not driven by the size of the organisation, which specific methodology they used or even the team structure. Instead, the key to running successful web projects appears to be nothing more that a collaborative and communicative culture, supported by structured practices and processes that are appropriate to the individual project and the organisation. The most successful organisations had these attributes in common: Statements of a mature organisation • Think strategically but deliver tactically • Projects aligned with business strategy • Sponsorship at senior level of the organisation • Cross-functional steering to prioritise resource and provide guidance • Collaboration between IT, Marketing and Management • Shared goals • Structured approach to projects, which is appropriate to the needs of the business. This often means using different approaches for different kinds of projects. • Driven by business/customer needs • Dedicated project management resource • Flexibility to respond to change • Focus on the requirements that deliver the greatest benefit For the purposes of statistical analysis and producing a predictive model, these statements were translated into specific practices which were then incorporated into the quantitative study: • Flexibility in requirements • Involvement of the end user in defining requirements • Having a Project Manager • Having a structured approach to managing web projects • Highly collaborative culture • Highly communicative culture • An annual plan that is aligned with the overall business strategy • Shared goals with the rest of the business • A business wide approach to prioritising resource • Cross-functional steering • Senior sponsors for projects A final influence, less easily quantified, was whether an organisation was able to demonstrate using different approaches for different kinds of projects. Key Finding Delivering a successful project is as much about managing the environment as it is about managing the process. Copyright © E-consultancy.com ltd 2006 18
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Most of us
do some of the right things The model will demonstrate that it is a combination of practices that drive significant improvements in the success rates of projects. But some behaviours are more important than others, and the good news is that UK businesses are already doing a lot of the right things. The table below shows the percentage of respondents already demonstrating the behaviours and practices that are critical to success. The practices that have the most tangible impact on success are marked with stars. Chart 2 – Percentage of respondents who demonstrate key success factors Multiple approaches 17.1 Cross-functional steering 28.9 Business wide prioritisation 34.9 Snr Sponsors 38.4 Align with business strategy 38.4 Shared goals 46.6 Highly communicative 49.8 Structured approach 54.2 High collaboration 54.5 Have a PM 55.5 User drives requirements 66.2 Flexible requirement 75.2 Baseline 100.0 0.0 20.0 Percentage of respondents 40.0 60.0 80.0 100.0 120.0 Key finding (n = 631) Some factors have a larger, clearer influence on the likely success of a project. The top four factors are: § creating a highly collaborative environment § having a structured approach § aligning projects with business strategy § business wide prioritisation of resource. Copyright © E-consultancy.com ltd 2006 19
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A model for
successful Web Project Management The quantitative study enabled data relating to over 600 companies to be mapped onto a maturity model, to establish whether these key behaviours were truly predictive of success. Each success factor was input according to how widespread its’ practice is i.e. the most commonly followed behaviours first, with the least common and arguably more sophisticated practices at the end of the model, as illustrated in the table above. Mature organisations are more successful By looking at a combination of which key success factors had been adopted by a company, and the perception of success they had achieved against the following criteria, we were able to demonstrate a clear link between the adoption of best practice (via the critical success factors) and the increased success of a project. How would you rate the success of your projects on the following criteria? Never Sometimes Always Achieves goals Meets deadlines Meets budget Customer satisfaction Involvement of the end user Embraces flexibility during development Delivers ROI Without doubt some elements of the model are more significant than others in driving success, but no single attribute guarantees success on its own. The model represents, at a high level, an ideal blend of company culture, organisational structure, skills and practices. The most successful organisations do all or many of these things. The following charts show how different facets of the model impact some of the success criteria. Copyright © E-consultancy.com ltd 2006 20
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Score out of
3 Score out of 3 2 1.9 2.1 2.2 2.3 2.4 2.5 2.6 2.45 2.55 2.65 2.75 2.85 2.4 2.5 2.6 2.7 2.8 2.9 Baseline Baseline Flexible requirements Flexible requirements Customer at Customer at requirements gathering requirements gathering Copyright © E-consultancy.com ltd 2006 Have a PM Have a PM Collaboration Collaboration Structured approach Structured approach Communicative Adoption of Model Adoption of Model Communicative Shared goals Shared goals Align with bus strategy Align with bus strategy Snr Sponsors Chart 4 - They are more likely to meet deadlines Snr Sponsors Business wide Business wide prioritisation prioritisation Cross functional Cross functional steering steering Chart 3 - Companies further up the model = more likely to achieve their goals. (n = 631) (n = 631) 21
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Chart 5 -
They are better at staying within budget 2.7 2.65 2.6 2.55 2.5 Score out of 3 2.45 2.4 2.35 2.3 2.25 Adoption of Model 2.2 2.15 Align with bus strategy Have a PM Business wide Baseline Collaboration Structured approach Shared goals Snr Sponsors Cross functional requirements gathering Flexible requirements Communicative prioritisation steering Customer at (n = 631) Chart 6 - They are better at dealing with change in the project. 2.75 2.7 2.65 2.6 2.55 Score out of 3 2.5 2.45 2.4 2.35 Adoption of Model 2.3 2.25 Align with bus strategy Have a PM Business wide Baseline Collaboration Structured approach Shared goals Snr Sponsors Cross functional requirements gathering Flexible requirements Communicative prioritisation steering Customer at (n = 631) Key finding It’s possible to apply a model that is predictive of success. Respondents at the top of the model scored themselves as 92.38% successful, versus the average which was 79.76%. Copyright © E-consultancy.com ltd 2006 22
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The model applied
Discussions with client and agency organisations suggested that there are three main categories to describe an organisations’ maturity in delivering web projects. The survey data enabled the size of these groups to be quantified. Chart 7 – Shows where the biggest improvements in success occur and the location of the three main groupings in terms of their adoption of the model Early Frustrated Slick Experimenter Visionaries Professionals 83% 14.2% 2.8% 120.0 Involves end user Meets deadlines 100.0 Achieves goals % of respondents 80.0 Meets Budgets 60.0 Customer satisfaction Flexibility in dev 40.0 Delivers ROI 20.0 Adoption of model 0.0 ts g es n gy ch e t n s M en s e in en iv io t io al or ch te in oa P er at at m go m ra el ns ra oa te ic a is pr ir e ir e as bo st po rit un ls d e ap pr qu av re qu B l la io ss S na m ap ha pr ed re H re co m nr ne t io le S ur e co e S es si h nc l id tip ib ct ig bu r iv y w fu ul ex tr u H hl - rd s m ith Fl ig ss S es H w as se ro in n U C H us lig B A (n=631) Although success rates consistently improve the further along the model you go, each of the markers on the diagram above serve to illustrate the point at which the most considerable improvements occur. Key finding Although some elements of the model are more significant than others in driving success no single attribute guarantees success on its own. Organisations should strive to adopt as many of the success criteria as possible in order to deliver value and ROI. Copyright © E-consultancy.com ltd 2006 23
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Early Experimenters
Early experimenters tend to be relatively new to delivering web projects. The web channel is typically seen as a tactical tool rather than a channel that is integrated into the overall strategic plan of the business. This can be problematic. It can mean that e-commerce initiatives operate in a vacuum and the opportunities and benefits are not fully realised by the wider organisation. On the one hand this means that the project team will typically have a lot of empowerment (while things are going well), but at times the lack of support from a senior sponsor can be to the detriment of the project. A particular challenge can be getting and keeping the right resources for the job. This mode is typified by a lack of formal process, or having to operate with processes that aren’t always suited to web projects. There will usually be some organisational tools such as work schedules, project updates and team meetings but these are often applied in an ad hoc manner. The knock-on effects of a lack of structured approach are discussed more fully later in this document. There is unlikely to be a full-time project manager in place, although IT project managers may get involved where there is integration with legacy systems. Projects are completed purely as a result of the sheer determination of the individuals within the project team. Nothing more. Working in this mode can be maintained for a while, but typically issues can occur when: • projects increase in their size or complexity • web gets a higher profile in the business • more stakeholders come out of the woodwork • there are more projects and/or fewer resources available • key team members leave Key Finding Web projects need to be part of an overall business strategy. When this isn’t the case the project team operate in a vacuum without the appropriate tools and techniques to make their projects a success. The business case for appropriate resource is doomed to fail because the project is not contributing to the priority objectives of the business. Copyright © E-consultancy.com ltd 2006 24
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Frustrated Visionaries
Frustrated Visionaries tend to deliver their projects against an annual plan and objectives which are aligned with the overall strategy of the business. They tend to have more formal structures and processes in place including cross-functional steering groups to prioritise projects and resources. In these circumstances web projects have visibility at a senior level in the company. Although there is a defined process for delivering projects there are still some common complaints: • IT and marketing don’t collaborate enough • Web projects sometimes disappear into an IT black-box and don’t always do what they’re supposed to when they come out the other side • Projects take too long to deliver • The business can’t be as responsive to customers and the competition as it needs to be • Projects get derailed by changing or misunderstood requirements Legacy systems and laborious processes are perceived as the biggest barrier to achieving the organisations’ online vision. What these organisations lack is the flexibility to cope with the demands of the market and ambitions of the company. They usually manage to deliver one or two large web projects a year, but want to be able to deliver enhancements in a more frequent and iterative way. “We have two big problems. It’s too long from getting an idea to delivery and stemming from that is that the process involves far too many people, too many personalities” Typically these companies will work within a Prince framework or a home grown waterfall process. In their favour, the communicative and collaborative nature of the team means that they’re usually well aware of their problems and are trying to resolve them. They actively research new methods and tools. Key Finding The vast majority of organisations that are struggling to deliver their web projects do so because they are persisting with a methodology that is inappropriate for their needs. A more flexible approach, using tools that are applicable to the task at hand, should be considered. This often means considering more agile project management methodologies. Copyright © E-consultancy.com ltd 2006 25
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Slick Professionals
Slick Professionals bring sophisticated expertise to managing web projects, and are likely to have clear processes (usually multiple methods) for managing projects which are characteristically more collaborative, user focused, iterative and flexible to change. These organisations are typically in highly competitive industries where customer expectations are high. They will deploy multiple changes during the course of the year, which are largely driven by customer research and marketing deadlines. The IT department is perceived as (and perceives itself as) as a key service provider. Agile methodologies are often adopted here because of: • quick starts, • ability to prioritise key requirements, • quick delivery of tangible outputs, • their ability to ensure participation of IT, commercial and marketing, • the fact that risks and the impact of problems or mistakes are minimised. More traditional approaches such as Waterfall are still used where appropriate e.g. where there is less uncertainty, requirements are fixed and the there is less need for innovation. Key Finding To be able to respond to a competitive market the most successful organisations adopt project methodologies that are appropriate to their environment; flexible, collaborative, with quick start ups and incremental delivery. Copyright © E-consultancy.com ltd 2006 26
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