This is the last in a series of articles (Just what is causing IT project failures? and Setting-up IT projects for failure) in relation to the issues identified in the report prepared by the Victorian Ombudsman in conjunction with the Victorian Auditor-General (Own motion investigation into ICT-enabled projects released November 2011) (Ombudsman's Report) which looked into the factors that contributed to the failure of public sector ICT projects.
We had earlier commented that the factors identified by the Ombudsman's Report can be divided into:
- things done at the outset that result in the project being set up for failure (see Setting-up IT projects for failure); and
- 'mistakes' made during the course of the project.
Accountability
The Ombudsman's Report noted that in many of the projects reviewed there were no clear lines of accountability for the progress and success of those projects. It is essential that there are senior personnel who clearly 'own' the project and are accountable for key decisions made in the course of the project. While there can be a tendency to assume that the project 'owner' should reside within the organisation's IT department, it is often more appropriate for the project 'owner' to be a senior executive within the part of the business that will be the ultimate user of the system or services.
Lack of leadership
A related issue identified by the Ombudsman's Report is a lack of leadership on these major projects. Sometimes these projects require strong leaders to step up and make hard decisions. An absence of such leadership can result in a project drifting without clear direction.
Poor governance
Good governance arrangements are essential in the conduct of major projects. However, often this governance is lacking.
Large complex projects require well functioning committees made up of people with relevant experience and appropriate skill sets. These committees must be capable, and encouraged, to ask hard questions, to look behind project management decisions and to take action to bring the project back on track.
Risk management
'Risk management' has been a catch phrase in the ICT industry for many years now. Unfortunately, it is not uncommon for those undertaking major projects to only pay lip service to risk management.
While it is good practice to list indentified risks at steering committee meetings and to have and maintain a risk register, these alone are not enough. Active steps need to be taken to manage the risks that have been identified.
Probity/conflict of interest
The Ombudsman's Report identified instances where issues of probity were not sufficiently attended to. This led to the potential for a perception of lack of fairness or conflicts of interest. Without proper attention to these issues, it is very easy to fall into difficulty and extremely hard to extricate oneself from it.
A common example of a potential probity issue is the engagement of a vendor in a pilot or requirements development stage of a project and then allowing that vendor to be a tenderer for the project. While there is no hard and fast rule that prevents this, it does create a potential probity issue that needs to be very carefully managed.
Project management
The Ombudsman's Report identified issues with project management as being a key contributor to project failure. Of particular note was a lack of strong project management skills within many agencies and departments.
Vendor management
Vendor relationships can be challenging and do need to be carefully managed. It is up to management on both sides to ensure that all parties are pulling in the same direction. Like project management, vendor management is an undertaking that requires skill, expertise and experience.
Change management
Implementing new ICT systems and services will often require significant changes within an organisation and how it conducts its operations. Managing these changes is critical but, unfortunately, often does not receive the focus required. The change process should be treated as a project in itself, subject to appropriate project management, leadership and governance.
It is clear from the Ombudsman's Report that the management of major ICT projects could be significantly improved. While most of the recommendations and observations made in the Ombudsman's Report are not new, they are a timely reminder that ICT projects are failing as a result of the same mistakes being made over and over again.
Hi Ron, We are software escrow agents (Software Escrow Guardians) and we regularly sign escrow agreements for ICT developments. Generally these agreements are required either by investors; to protect their financial interests either in the developer or in the application, or by purchases of the development to protect their development investment as the application is being developed. Yes, we have released source code covered under these type of agreements. In the article, you make reference to lip service being played to Risk Management. I agree with you, there is not enough effort made in the area. Good risk assessment up front saves time and effort later in the project, especially if those risks scenarios are practised. Software escrow is just one risk mitigation tool that does not have universal use but has great benefit in the right circumstances. Sincerely Neil Gladden
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