Elusive IT Project Value: Book Tells How To Achieve It

I've just finished reading an excellent book on achieving value from IT projects, The Information Paradox: Realizing the Business Benefits of Information Technology, by John Thorp and the Fujitsu Consulting's Center for Strategic Leadership.

Thorp and company claim that today's IT projects are evolving more and more from simple automation efforts to complex "information" initiatives, and even further---to complete business transformation initiatives. This calls for a different approach and requires IT and Business collaboration.

As the book points out, the classic "let's buy a product and assume it comes with automatic benefits" approach doesn't work in today's more complex arena (and in fact it probably never did). In a complex business transformation initiative, trying to assume that an IT project in isolation will deliver value is wishful thinking.

The book also points out the four critical dimensions of complexity, which it says are blind spots in traditional thinking:

1) Linkage - to other related initiatives and to business strategy
2) Reach - those areas of organizational structure or supply chain processes that may be impacted by the change, or that need revisiting in order to bring about the benefits
3) People- those affected by the change and/or that need to be engaged (i.e. proactive change leadership and stakeholder analysis)
4) Time - the time it takes to manage the overall initiative, including the above dimensions, to fully realize the benefits (most companies grossly underestimate this)

Unfortunately, many IT projects just focus on on-time and on-budget delivery (resulting in a situation that the book describes as, "the operation was successful but the patient died"). Thorp and company refer to this as "investment myopia."

Instead, a committment to business value, ongoing process improvements, frequent iterations of delivery, and better project selection techniques are key. Most of all, we need to be aware of the blind spots mentioned above.

The book goes on to describe how a system of program management, portfolio management, and governance, with a focus on benefits realization, can bring about results. It also cautions about the dangers of treating selections as a one-time annual event, making selections in isolation (instead of in the context of investment programs), and not looking at all aspects of value (i.e. going beyond simple financial measures).

I highly recommend the book for those struggling with determining the value of IT, or trying to bring about collaborative change in their organizations. If you look at any major successful transformation, it was brought about by a marriage of technology, business process, and organizational change, and with full backing from senior management. This book can go a long way toward helping make this happen.

Project Management Lessons from Mars

Brian Muirhead, the project manager for the Mars Pathfinder program, had some good tips to share with Projects@Work this week.

Some key learnings, extrapolated from the interview:

• Innovation and bold ideas are often necessary to meet what often seems like an impossible challenge. The trick is to balance the cost and time savings with the risks.
• A diverse team is key. It's better to have people that are different, with complementary skills, than have a bunch of people who think and act the same way.
• A small core team that can share issues, problems, and resolutions, with one person at the helm, is an effective way to run a project.
• Trust, honesty, and personal committment are traits that need to be prevalent throughout the team.
• Test, test, and then test again. Don't rely on luck. If you can't test using the exact situation, then simulate it as best you can, testing as much as is possible.
• A team is only as good as it's weakest link. It's up to the project leader to identify those people that aren't up to the task and remove them or find an area that suits them better.
• Ensure team members have opportunities to make personal connections and grow.
• A project manager must simultaneously provide the glue (keeping the team cohesive and focused) and the grease (removing barriers).
  
  Here's the full interview...
  
  http://www.projectsatwork.com/content/Articles/232113.cfm

Earned Value Wikipedia: Your Chance to Contribute

Our friend Garry Booker of Project Frontier has revised the Wikipedia entry for Earned Value Management and is looking for feedback.

Feel free to check it out and update as needed. Also, here's Garry's introductory statements in the topic's discussion page.

His revisions have added some clarity, plus information on making EVM scalable to various size projects. There are some good diagrams and links as well.

Here's the link...

Earned value management - Wikipedia, the free encyclopedia

Change Management: Aim for the Heart

Christopher Koch runs a great blog on CIO.com. His latest post explores the challenges of change management, and recommends generating ways for people to get that "aha moment" for themselves. This "makes it stick" as opposed to being told that they have to change, or being shown metrics or even logical cases.

I couldn't agree more. He also offers some good examples, such as the open book approach, where people will see the numbers and hopefully deduce the need for change. A method I recommend (and which I discuss in my response to this week's puzzler on the AllPM forum), is to use stories or examples that can serve to generate an emotion such as a deep-seated need or fear. This, too, can lead to that "aha moment."

Here's Koch's full post on CIO.com...

CIO Blogs - The Primordial Factors in Change Management

Project Success Story: Veterans Heath Administration

When Ken Kizer took on the challenge of revamping the horrific state of affars that was the U.S. Veterans Health Administration (many of you have probably seen the movies that showed the sorry state of Veterans Hospitals), nobody suspected that they would go from "last to first."

Forget "Good to Great," these hospitals literally went from "worst to best!"

Reading the writeup on it in this week's issue of Business Week, I was struck by the similarities between Kizer's approach and Napoleon (whom most of you know I'm quite familiar with).

Whereas Napooleon was focused on equality, Kizer was driven by quality and safety. Like Napoleon, Kizer inherited a disastrous state of chaos and provided order, visibility, improvements in technology, training, accountability, decentralized decision-making, and most of all, hope and pride. Also like Napoleon, Kizer had his share of enemies, some who felt he was too arrogant and others who perhaps felt threatened by the changes. Finally, like Napoleon, Kizer was eventually ousted, except by Congress instead of foreign powers.

Fortunately, unlike Napoleon, Kizer's successors continued his methods and his passion. Because of these changes, every nurse and doctor in the network has instant access to electronic patient records, and drugs are filled robotically, avoiding the mistakes common to most other hospitals. And because these hospitals treat the patients for life, they spend more time and money on preventative care, as they realize it costs everyone less in the long run (talk about Total Cost of Ownership!).

I highly recommend picking up this week's Business Week (the July 17th issue with "The Plot to Hijack Your Computer" on the cover). Meanwhile, below is another article that talks about the amazing transformation that Kizer led the VHA through.

Expect to hear more on this as I research this in more depth. I also ordered the book, Straight from the CEO: The World's Top Business Leaders Reveal Ideas That Every Manager Can Use, which is mentioned in the article and apparently covers Kizer's story.

Here's the article (not the Business Week one, but a good one nonetheless) ...

"The Best Care Anywhere" by Phillip Longman