E-MailRethinking IT Success and Failure
Cutter Consortium Senior Consultant Helen Pukszta finds the implied definitions of IT project success and failure to be deficient: they are, by and large, based on whether a project is delivered on time, within budget, and with functionality as originally specified. Meeting all three criteria is unquestionably a desired outcome on any project but, by themselves, they do not define an organization's success with IT and therefore should not define the success of the IT department.
According to Pukszta, "Delivering a project that is late, overbudget, and with scaled-down functionality does not automatically portend failure; in fact, it could represent the best of all possible outcomes. I will venture a guess that the most successful IT projects -- those whose ratio of benefits to costs is the highest -- significantly deviate from original plans. This is because producing high business value typically implies a high degree of uncertainty, and that, in turn, significantly frustrates estimating efforts.
"If we were to agree that late, overbudget, and scaled-down projects are, basically, failures, why do businesses continue to invest in IT, despite the apparently dismal rate of success? Because there is value and opportunity there. Directly measuring that value is notoriously challenging. One reason it is so difficult is that it takes time for benefits to materialize and for businesses to recognize them. IT investments transform businesses in a variety of ways, and it takes time for organizations to adapt to changes. Despite all the successful tests and preparations, the reality is that no one really knows how the new system will work out in practice and over time."
Pukszta continues, "We do need managers who are driven by schedules and budgets; little would get accomplished without them. But we also need managers in charge of projects who are value watchdogs and who understand that the drive to meet target schedules, budgets, and user expectations should not take precedence over the drive to maximize business value. Measures such as on-time/on-budget/in-scope statistics are only as good as their ability to approximate that business value. If tradeoffs between keeping on schedule and producing additional benefits appear, as they often do, they have to be recognized and handled appropriately."
Pukszta concludes "Incompetence or malpractice should never be tolerated in IT project management, and there is always room for improvement. However, there is more to success in IT investment and management than watching schedules and budgets. IT departments should define their success first by the value they provide to the business and only then by the accuracy of their estimates and ability to steer user expectations. Of course, making sure that such value is visible and recognized throughout the organization presents another challenge."
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