Factors that Contribute to IT Project Success - Essay Example

? IT PROJECT SUCCESS: WHY SOME PROJECTS SUCCEED AND OTHERS FAIL by of the of the of the School State 17 November 2013 Factors that Contribute to IT Project Success An effective project team is one of the requirements for project success. The project team and its manager are crucial to the success of a project, even though project management techniques and plans are also necessary. A project team is not just created by having people placed together in a group. Gido and Clements contend that “helping these individuals develop and grow into a cohesive, effective team takes effort on the part of the project manager and each member of the project team” (2009, p. 360). Effective project teams clearly understand the objectives of a project, have a high degree of collaboration, cooperation and trust, are results oriented, and clearly understand their roles and responsibilities (Gido and Clements, 2009). Most practitioners term a successful project as one that meets specification or performance, time, and cost objectives. Extensive research has been carried out to determine the causes and components of project success. Researchers however do not converge on the issue as they all tend to have different views. The success of a project can be defined in a number of ways. According to Schwalbe, by meeting cost and time objectives and scope, a project can be termed as being successful (2010). Another measure of project success is client satisfaction. Client satisfaction depends on a number of issues apart from having a project completed within the objective cost, time, and scope, such as the politeness of the project team. It is common to have cost and time objectives and project scope met, but an unsatisfied customer. This makes a project a failure. Schwalbe points out that, “a project might not meet initial scope, time, and cost goals, but the customer could still be very satisfied” (2010, p. 16). This makes the project a success. It is for this reason that in recent times, organisations have come up with rating systems to measure customer satisfaction, rather than only pursuing cost performance, time, and scope (Schwalbe, 2010). The other measure of project success is determined by whether “the results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy” (Schwalbe, 2010, p. 15). Total Project Management is among the methods applied in IT projects to increase chances of project success. Walubita asserts that “total project management applies the theories of methods of total quality management to manage all the project fields (such as quality management, time management and cost management etc)” (2009, p. 117). Kohli supports this fact, he alludes that “total project management (TPM) covers technical management plus project management plus business management (general management areas) disciplines” (2007, p. 329). Total Project Management emphasizes on two primary aspects; these are project management process quality and final product or service quality. In the context of projects, total project management “implies total active involvement and commitment of everyone in the project for meeting the quality requirements of the client” (Kohli, 2007, p. 329). This approach focuses on having the customer satisfied, properly managing the project process, responsibility of the project team to ensure quality output, and continuous improvement. Total Project Management enhances accountability and efficiency in projects. The application of this approach in IT projects has been found out to be effective in reducing chances of project failures. In fact, most projects that utilise this approach get to succeed. This is mainly attributed to the fact that TPM supports proper management of time, costs, resources, risks, human resources, communication, procurement, integration and scope (Kohli, 2007), since it covers all areas of management. It is a fact that success has been experienced in the Information Technology industry. As a result of the competitive advantage that some organisations have gained from the development of Information Systems, they have flourished. Organisations have also used Information Systems to boost the efficiency and effectiveness of their operations. Despite this, failures have been experienced and some of them have been excessive. Factors that Contribute to IT Project Failure Ineffectiveness in a project team is one of the main causes of project failure. There are many reasons that lead to underperformance or failure in projects, whether complex or simple. According to Ferraro, “these may include poor project management, unclear objectives and goals, lack of organisational support, lack of user input, unrealistic time frames, poorly managed expectations, and unclear roles and responsibilities” (2012, p. 24). Inadequate project planning leads to the failure of a project. This is because it brings about wrong investment decisions, poor feasibility analyses, wrong cost estimates, and wrong information regarding a project, which is mainly caused by poor investigation in the field (Ferraro, 2012). Other factors include poor implementation planning, improper management and contract planning, and “lack of project management during execution” (Ferraro, 2012, p. 27). Wrong cost estimation by a client is another factor that leads to project failure. Clients who perceive cost estimation as a one-time task have problems understanding the causes of additional costs, and therefore end up being unhappy with the project. Kohli asserts that “an enlightened client does not measure cost overruns solely in terms of this initial estimate, but treats project cost estimation as a continuous process” (2007, p. 27). Contractors also make their cost estimates. This happens immediately they receive tenders from clients. The fact that this is done before the start of a project is a risk to both the contractor and the client. By giving a considerably high budget amount on a project, a contractor risks losing a business opportunity, while by giving a considerably low budget amount on a project, he risks getting very low profit, getting into loss, or even suffering bankruptcy (Kohli, 2007). According to Kohli, “a project based on inaccurate cost estimates is certain to fail unless its performance objectives are revised and/or additional funds inducted” (2007, p. 28). In the field of Information Technology, there is no consensus on what Information Systems failure comprises of. In broad sense, “IS failures occur when IS projects do not achieve the original user or system owner’s expectations or objectives” (Pather, Remenyi, B. and Remenyi, D., 2011, p. 16). When failures in IS projects are not too serious, spontaneous dispensation of resources can rescue the projects. Failures have always been present in the development of Information Systems. Examples of such systems include the National Health Services National Programme for IT, Taurus Financial services, and The London Ambulance System in the United Kingdom (Pather, Remenyi, B. and Remenyi, D., 2011). Pather, Remenyi, B. and Remenyi, D. (2011) point out that “ a study conducted by KPMG indicate that in a single year, most public firms had written off failed IT projects typically due to poor project management” (p. 13). Some failures are also attributed to errors in systems, and in most instances, the failures are not exposed; this withdraws the chance for lessons to be learnt from such failures. In fact, most failures in IT projects are not brought to public attention for one reason or the other. An example of an IT Information Systems failure is the “erroneous three trillion Yen trade at the Tokyo Stock Exchange in early 2009” (Pather, Remenyi, B. and Remenyi, D., 2011, p. 14). Overview of Agile and Waterfall Methodologies Agile Project Management (APM) Methodology The Agile Project Management (APM) approach endeavours on “early delivery of business value, continuous improvement of the project’s product and processes, scope flexibility, team input, and delivering well-tested products that reflect customer needs” (Layton, 2012, n.p.). There are a number of agile methodologies applied in the development of software products in the IT industry; these include extreme programming, lean, and scrum (Layton, 2012). In the development of software product, agile focuses on the product, people, flexibility and communications. The two characteristics present in all agile methods are adherence to agile principles and manifesto and use of empirical control as their basis. The term agile methodologies refer to “a group of software development processes that are iterative, incremental, self-organising and emergent” (Stamelos and Sfetsos, 2007, p. 3). Agile methodologies do not solve a problem in one attempt like in the traditional methods. They are rather flexible toward the ever changing software requirements in modern times. In the IT industry, software developers using this method make a full system in the beginning of their project, and changes are made according to the requirements that are later released. The fact that the process is continuous and accommodates changes makes it very effective in systems development and this also enhances project success. The incremental characteristic of all agile methodologies allows addition of new functionalities into a system. The end of addition of new functionalities is what marks the completion of a software project, and this way, both the client and developer are satisfied with the final system. Additionally, the self-organising concept of agile methodologies “requires that the team members respect each other and behave professionally when it comes to what has been committed on the paper” (Stamelos and Sfetsos, 2007, p. 3). This way, a project is done to specification and completed within the given time frame, since the developers are not given any time for raising excuses or extensions, which are the aspects that mostly lead to project failures. Waterfall Methodology The waterfall method on the other hand is one of the oldest methods of software development. It is also one of the most commonly used methods in software development (Blessing and Chakrabarti, 2009). In this model, a project is broken down into stages, each with its own deliverables. The stages include “problem definition, requirements analysis, design, implementation and maintenance” (Remenyi, 2004, p. 219). In order to move to the next stage in development, software developers are required to fully complete working on the initial stage. For example coding can only begin when the design is ready and accepted by all those involved in the project. A number of changes have been introduced to this methodology since its introduction in order to improve its effectiveness. One of this is an interactive back step between phases meant to accommodate any new functionality. This methodology encourages the dedication of time and effort into the early phases of software development, since they are the most crucial and need to be right from inception. It is also argued that correcting problems during the early stages is cheaper and easier compared to when a project is almost done. When the correct requirements are given, the waterfall method is very suitable for development of software applications. Critical Analysis of Agile and Waterfall Methodologies Agile Methodologies Agile software development methodologies uphold the interests of the project manager and the client, as well as those of the development and testing teams. This is because the most important aspects that determine the success of a project such as visibility and transparency are promoted. For the client and the project manager respectively, agile methodologies ensure a lot of satisfaction and an easy time. For the development and testing teams, development time for iterations and the learning curve are shortened, while early testing of the software is made possible, since it gets to be completed early enough. Agile has the advantage of being applicable in all sizes of projects. Return on investment is achieved faster for software developed using agile methodologies. This is because once a functional product is built, it is released into the market, as addition of features continues. The fact that feedback gets to be gathered from customers during this time lowers the risk of agile projects becoming failures. This is because through the feedback, necessary changes are made to fit the needs of the customer. In case the chances of a project failing are higher compared to the chances for its success, agile provides a discourse for the project to be cancelled. Agile projects have lower defects compared to projects that rely on other methodologies. This comes from the fact that once a functional product is developed it gets released, and this acts as a testing platform for the product. This way bugs are detected and corrected early. In fact, agile is said to provide a test driven development. From this it can be said that agile is very accommodating to change, and this in turn increases chances of success. The method of empirical control applied in agile methodologies emphasises on decision making based on problems observed in a software product. This makes agile very applicable in both existing software upgrades and development of new software. The fact that agile allows the incorporation of new functionalities makes it very effective for development of software products, since they have the characteristic of changing requirements. The methodology therefore positively responds to the dynamic software market and accommodates new and other emerging approaches to business (Layton, 2012). The attention placed to developer’s responsibilities by this methodology makes it quite effective in avoiding project failures. This is because no laxity is encouraged, while the team is required to properly manage time for early delivery of business value. The incremental and iterative characteristics of this method also promote continuous improvement of a software product and the processes applied in generating the product, making a project successful in the long run. If properly managed, the scope of a project, stakeholder’s expectations, and organisation of a project among other factors lead to the success of a project. According to Sobh, “agile methodologies attempt to overcome these obstacles by changing the approach used to develop software and manage projects” (2008, p. 378). The development of the software is placed before everything else and this also leads to success. Maedche, Botzenhardt and Neer allude that “many success stories and serious reports as the Chaos manifest of the Standish Group prove that agile methods and techniques fundamentally increase project success” (2012, p. 97). Waterfall Methodology Due to the fact that it is simple, the waterfall method “is widely used to manage large and complex software development projects” (Doom, 2009, p. 60). The success of projects that utilise the waterfall method depends on whether system requirements are explicitly defined. Due to the fact that the method is easy to understand and follow, the project team does not face a lot of challenges using it, and this increases their chances of coming up with the required software. For project success, cost effectiveness and predictability, IT project managers incorporate agile methodologies in a waterfall software development environment and vice versa. A project heavily relying on the waterfall methodology can incorporate a few agile tools to enhance the execution of a project. Some of these tools include shorter releases of frequent prototypes that allow learning of important lessons and better decision making during development. A single philosophy for the entire team, which is characteristic of agile methodologies, enhances accountability in a waterfall development environment. On the other hand, a project heavily relying on agile methodologies can incorporate a few waterfall tools to enhance thoroughness and ensure quality. This is because waterfall encourages thoroughness in every step of software development, and this in turn promotes the quality of a software product. Risks and other issues that may arise during the course of a project are also properly managed, when a few waterfall tools are incorporated in an agile development environment. This is because unlike agile methodologies that only concentrate on the risks and issues at hand, the waterfall method concentrates on the possible risks and issues that may arise during the course of the entire project. Ways to Minimise the Impact of Risks in IT Projects The fact that there are possible courses of action that can minimise risks in IT projects is a relief to software developers and IS professionals. The factors that can reduce and in some cases, eliminate risks include: Business actions: Since IS professionals are knowledgeable enough to know when stakeholders do not understand a business problem they can focus on the users of the system. Including contingency plans in project budget, scope, schedule, and quality: These are very necessary in handling any eventualities that may arise during the course of a project. Schwalbe defines contingency plans as “predefined actions that the project team will take if an identified risk event occurs” (2009, p. 178). Using established procedures: These have the ability to reduce the likelihood and impact of risks. IT Project Management Software Project management software is important for organisations seeking to upgrade their project planning techniques as well as properly allocate resources, manage budget, and control costs of operation. In complex projects, project management software assists in proper organisation of resources and activities. In the field of Information Technology, project management software is necessary in supporting communication among members of a team, who are sometimes placed in different remote locations (Goodrich, 2013). Such software is effective in ensuring accuracy, for example sharing of the right files. Examples of project management software used by IT professionals include ActiveCollab, Assembla, Basecamp, Central Desktop, Confluence, and Producteev among others (Goodrich, 2013). Conclusion and Recommendations As the number of projects being undertaken and their intricacy continues to grow, the significance of project management is emphasised. Proper project planning has increased the success rates of IT projects, although failures still continue to be experienced, since only less than half of the projects meet the time, scope and cost objectives. Project managers have a key role to play in managing projects and helping organisations succeed. A project manager is expected to attend to a number of duties, possess skills and continue to advance the ones he possesses, especially for managers in the field of information technology, where new advances are made every day and where risks associated with projects are higher. In addition to this, a project manager needs to have excellent leadership skills to guide him in properly steering a project team. In order to increase their possibilities for success in projects, organisations need to adopt a more professional approach to managing projects. In cases where Information Technology projects need to apply resources from outside an organisation, procurement needs to be properly managed. This increase the success rates of these projects. Proper planning on how to procure resources is therefore crucial. Reference List Blessing, Lucienne T. M. and Chakrabarti, A., 2009. DRM, a Design Research Methodology. London: Springer Science + Business Media. Doom, C., 2009. An Introduction to Business Information Management. Ravensteingalerij: Academic and Scientific Publishers nv. Ferraro, J., 2012. Project Management for Non-Project Managers. New York: American Management Association. Gido, J. and Clements, James P. ed., 2009. Successful Project Management. Mason: South-Western Cengage Learning. Goodrich, R., 2013. Top Choices for IT Project Management Software. [online] Available at: < http://online-project-management-review.toptenreviews.com/top-choices-for-it-project-management-software.html> [Accessed 20 November 2013]. 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