Reasons of Failure While Delivering the FiReControl Project - Case Study Example

Project Management Executive Summary The report examines and explores the key influencing factors leading to major failure of the Department for Communities and Local Government (the Department) to deliver the FiReControl project. The discussion of the report also provides a major understanding about the strategic measures and practices of the Department to circumvent future risks that might occur due to an extensive failure in meeting cost and time of the FiReControl project. With due regards to the decisions made by the Department in respond to the major failure of the project, the report also provides a set of relevant suggestions that can help the Department to successfully conduct large scale of IT project towards increasing efficiency of the fire service and rescue operations. Table of Contents Executive Summary 2 Part1. Introduction to the Report 4 Part2. Brief Background of the Project 4 Part3. Main Discussion on Two Topics 6 3.1 Key Factors Leading to Failure of the FiReControl Project 6 3.1.1 Inadequate or No Support from the Localities 7 3.1.2 Underestimating Project Complexities 8 3.1.3 Inefficient Leadership and Management Strategy 9 3.2 Possible Measures Undertaken by the Department Responding to the Failure of FiReControl Project 10 Part4. Conclusion 10 Part5. Recommendations 11 References 13 Part1. Introduction to the Report The report focuses on critically exploring the project management activities of “The FiReControl project,” which was initiated in the year 2004 and was expected to complete by the month of July 2009. In order to explore each component of the project management activities, the report provides a clear description of the project activities that led it to face failure in the context of fundamental project management theories and justifications. Moreover, the report also focuses on developing a critical evaluation of the project management activities and major factors underpinning the failure of the “FiReControl project” in the context of relevant theoretical implications and practice guidelines of project management. In addition, the report offers a set of relevant and justified recommendations in respond to the project management activities in the “FiReControl project” in the context of pertinent theoretical concepts. The recommendations provided in this report also provides a major reflection regarding the project management activities that substantially lowered the possibility of success of the overall project and suggested appropriate set of project management activities that can help the project managers to effectively deal with issues in each stage of the project. Part2. Brief Background of the Project The FiReControl project as per the observation in the case is one of the major initiatives with a wide range of valuable insights in the form of streamlining fire rescue operations of the control rooms and offer appropriate services to the community members. According to the observation, the project is aimed to bring progress in the resilience, efficiency as well as technological development in the English Fire and Rescue Service through a replacement of 46 local control rooms along with a wide network of nine purpose-to-built regional control centres. In this regard, the project is structured by using a national computer system in order to effectively handle calls as well as mobilising equipment and managing incidents that are frequently taken place in different rescue service operations (Department for Communities and Local Government and Brandon Lewis MP, 2014). With due regard to the observation of the case, the project was commenced in the year 2004 and was expected to successfully accomplish its desired goals by October 2009. The anticipated cost of the project was £120 million, which was set by the department in July 2004. With the aim of attaining the predetermined goals and objectives of the project, the Department for Communities and Local Government contracted European Air and Defence Systems (EADS), which is currently known as Cassidian. It has developed and installed required computer system in different activities of the FiReControl project (National Audit Office, 2011). However, in the year 2007, the project has witnessed facing major hurdles due to its budding cost as well as delay in meeting required lead- time to complete its activities. Due to the major delay in the project activities, the project was anticipated by a delay of 5 years in terms of delivering postulated results of FiReControl project. In this regard, the department at the time of making decision to cancel the project has estimated a total cost of £635 million. Therefore, a minimum of £469 million has also been estimated as a total loss by carrying out the FiReControl project (National Audit Office, 2011). FiReControl project had faced number of delays in completing the activities, which further escalated major increase of cost throughout its lifecycle. Nevertheless, an extensive delay in making decision relating to project cancellation is one of the major flaws of the Department, which further led the FiReControl project to experience massive financial cost. The Department cancelled the project in December 2010 after concluding that it cannot be delivered within an acceptable timeframe. At the point the decision was made, the Department estimated that it had spent £245 million on the project and calculated that completion would take the total cost of the project to 635 million, more than five times the original estimate of 120 million (Great Britain: National Audit Office, 2011). Part3. Main Discussion on Two Topics With due regards to a major understanding of the project, it has been identified that the FiReControl project was commenced with a broader aim of streamlining rescue operations of the English Fire and Rescue Service department. The adequate focus on achieving maximum efficiency in the fire and rescue operations through reducing the department’s 46 local control rooms and building nine regional controls have been observed as the primary aim of the project. However, the FiReControl project of the department witnessed major failure with extensive escalation of its costs along with total required time to accomplish the project objectives (National Audit Office, 2011). In this regard, this section of the report primarily distinguishes the key factors leading to the failure of the project and how the Department undertakes needful measures in respond to the failure of delivering the project. 3.1 Key Factors Leading to Failure of the FiReControl Project In relation to the project management theoretical implications, the adequate focus on identifying key factors that might have significant influence on undermining project goals is one of the major decisions of the project management department. In this regard, emphasising on identifying risk factors underpinning different project stages often helps project management team to formulate appropriate measures that can enable to minimise the negative impact of risk factors on project management activities. In relation to the project management scenario in FiReControl project, there is a number of flaws that can be identified for underpinning each stage of the project. Few of the major influencing factors that critically lowered the project management efficiency of the project have been discussed in the following section (Kenny, 2003). 3.1.1 Inadequate or No Support from the Localities From a theoretical perspective, integrating equal support especially from the local communities that are directly influenced by the success or failure of a particular project is one of the major considerations for the Project Management Organisations (PMOs). Additionally, the organisations should also need to maintain adequate focus on aligning the project goals and functions in line with the interests as well as needs of the target populations. The initiatives in this regard provide a major support to the PMOs to design and perform project activities more efficiently with equal involvement and support from the community members and other partner groups (Munns & Bjeirmi, 1996). In relation to the FiReControl project, the underpinned project management approaches as well as regional structure of the Department were not offered support from those linked with the success or failure of the project. Additionally, the Department has also overlooked to provide adequate information about the dictated standard approach of the project along with its overall aim of modelling emergency call and mobilisation services from the new-purpose-built fire controlling centres to the local communities. Moreover, the aim of developing regional fire rescue service centres have also been criticised by the ‘local Fire and Rescue Authorities’ and ‘Fire and Rescue Service’ providers owing to the efficiency of regionalising fire and rescue services (National Audit Office, 2011). 3.1.2 Underestimating Project Complexities Clear Identification as well as prioritisation of the complexities is few of the major considerations of an efficient project management operation. The adequate focus on complexities underpinning the project activities can provide a major support to the project management team to avert any type of obstacles that can delay the actual lead-time or maintain adequate control of costs determined in each project activity (Field & Keller, 1998). However, the trend of underestimating risks or complexities in the project activities often create major hurdle for the project management team to obtain desired project goals and objectives (Schwalbe, 2006). In relation to the case of FiReControl project, the underestimating complexity by the department in designing system in accordance with the needs of Fire and Rescue Services has substantially increased major operational issues. In addition, inefficient modification of the key required components for accommodating different operational needs has also been observed as a major underestimated factor leading to fail the FiReControl project (Great Britain: National Audit Office, 2011). In addition, it has also been observed that the FiReControl project was involved in wrong or invalid estimation of required cost and expected savings. This was also a major factor for the department to experience major failure. According to the observation, the department has estimated a sum of £120 million in total cost and savings of £86 million based on commitment of the Department and Treasury. However, the estimation of cost failed to include expenses relating to meet local and regional process implementation activities. Moreover, costs associated with installation of machines and other valuable equipment was imperfectly estimated that further impose major financial loss for the department in the project (Russell & Meehan, 2014). 3.1.3 Inefficient Leadership and Management Strategy Leadership and management strategies are the pivotal elements that help project management team to accumulate project activities within the stipulated time and cost. Moreover, the integration of an effective leadership and managing strategies helps project management process to obtain major opportunity of acquiring new talents along with developing efficient project stages. In addition, the incorporation of effective project management leaders also increases delivery success of the project activities with desired quality (Stelth & Lee Roy, 2009). The process also helps project team to minimise or prevent the amount of possible overspending in each project activity. Furthermore, improving decision making skills; transforming performance of the individuals; along with increasing risk managing skills and abilities of the members are also regarded as few of the major roles of a successful leader that can help project to successfully obtain its desired goals and objectives (Ramakrishna, 2010). In relation to the case of FiReControl project, major complexities in the governance system during the first five years of the project have substantially deteriorated the decision-making practices of the department. Moreover, the department used to make decisions without designing clear lines regarding the accountability and responsibility of the staff members had lowered the scope for the project to achieve its desired goals (National Audit Office, 2011). 3.2 Possible Measures Undertaken by the Department Responding to the Failure of FiReControl Project The decision of terminating the project was made by the Department during the month of June 2010 and by forming contract with EADS. The primary purpose of the contract is to avert the possible risks that might be derived due to the failure of the FiReControl project and carry out contingency option to provide adequate support to the EADS to deliver expected outcomes from the incomplete project. In order to pay back the loss, the Department cancelled the FiReControl regionalisation project and agreed towards a settlement of £22.5 million with EADS. During the contracted period with EADS, the Department had paid a net payment of £11.7 million (National Audit Office, 2011). Moreover, the Department’s failure to accomplish the IT project also resulted in building empty regional fire control and rescue service centres. In order to house IT equipment for the empty regional centres, the department has further incurred a cost of £32 million during the period of March 2011. The Department was also observed to incentivise the local Fire and Rescue Services and focus on using the regional centres in order to reduce the on-going and future waste resulted from the failure of the FiReControl project (National Audit Office, 2011). Part4. Conclusion According to a critical assessment of incurred loss as well as extensive decline to meet the project goals, the Department’s failure in the FiReControl project can be duly regarded as a major example of worse value of money in project management. The negative and undesired consequences of the project were significantly driven due to the dictated standard and approach implemented in the project management activities. Moreover, the process of underestimating project complexities, poor leadership and managing practices have been recognised as a major factors leading to the failure of the Department to accomplish the goals of FiReControl project. The discussion made in this report has also provided a major understanding about the initiatives of the Department in order to circumvent risks that might be derived from the failure of the FiReControl project. Part5. Recommendations With due consideration to the major influencing factors of the Department’s failure to the FiReControl project, the following key areas can be recommended that can help the Department for Communities and Local Government to successfully conduct its wide range of fire and rescue services in the communities. Minimising waste resulted from the FiReControl project and respond immediate services as per the needs of the communities and Department can be a major aspect to reduce further negative influence from the project. Involving interests and needs of the local communities regarding fire services and rescue activities would also enable to meet the incomplete goal of the project. Moreover, ensuring that the other departments and project management organisations have obtained adequate understanding about the flaws along with understanding appropriate set of practices to avert such type of consequences can also be a major aspect for the department. Finally, providing appropriate and justified support towards Department for Communities and Local Government for continuing advanced and valid large-scale IT projects in order to increase efficiency and reliability of the fir control and rescue services in the communities. References Department for Communities and Local Government and Brandon Lewis MP, 2014. Supporting Fire and Rescue Authorities to Reduce the Number and Impact of Fires and Public Safety and Emergencies. Written Ministerial Statement by Brandon Lewis on FiReControl Legacy. [Online] Available at: https://www.gov.uk/government/speeches/firecontrol-legacy [Accessed February 19, 2015]. Field, M. & Keller, L., 1998. Project Management. Cengage Learning EMEA Great Britain: National Audit Office, 2011. The Failure of the FiReControl Project: Department for Communities and Local Government. The Stationery Office. Kenny, J. 2003. Effective Project Management for Strategic Innovation and Change in an Organizational Context. Project Management Institute, Vol. 34, No 1, pp. 43-53. Munns, A. K. & Bjeirmi, B. F., 1996. The Role of Project Management in Achieving Project Success. International Journal of Project Management, Vol. 14, No. 2, pp. 81-87. National Audit Office, 2011. The failure of the FiReControl project. Department for Communities and Local Government. [Online] Available at: http://www.nao.org.uk/report/the-failure-of-the-firecontrol-project/ [Accessed February 19, 2015]. Ramakrishna, K., 2010. Essentials of Project Management. PHI Learning Pvt. Ltd. Russell, C. & Meehan, S., 2014. Exploring Legitimacy in Major Public Procurement Projects. Journal of Public Procurement, Vol. 14, No. 4, pp. 419-461. Schwalbe, C., 2006. Introduction to Project Management. Cengage Learning. Stelth, P. & Lee Roy, P. G. L., 2009. Projects’ Analysis through CPM (Critical Path Method). School of Doctoral Studies (European Union) Journal, No. 1, pp. 10-51. Read More