You have been tasked with delivering a large-scale software implementation project. Historically, similar projects within your organization have failed to complete on time, on budget, and/or have failed to deliver upon their intended benefits. It some cases, these projects have even been abandoned altogether. With a new project on the horizon, you need to minimize your risks of repeat failure.
Our Advice
Critical Insight
- Even in today’s day and age, where information sharing is easier than it has ever been, large-scale software projects continue to fail at an alarming rate (an average of 66% over budget, 33% over time, and delivered with 17% less value than originally predicted, according to a recent publication by McKinsey & Company). Although most companies will survive a failed software implementation, 17% of the failed projects researched can essentially threaten the existence of an organization.
- One would think that IT shops would have such implementations down to a science; however, these “black swan” projects (defined as projects that exceed 200% in budget overruns), occur a lot more than what would be expected.
- You have solicited the professional services of a systems integrator. You want to ensure that you are able to manage the SI, and aren’t solely dependent upon their methodology throughout the implementation period.
Impact and Result
- Assuming greater accountability over the project (avoid over-reliance on the SI)
- Leveraging the collective knowledge and advice of other IT professionals
- Reviewing common pitfalls and lessons learned from failed implementations
- Proper risk mitigation planning for each stage of the project
- Self-assessment of your own readiness to enter/exit each stage of the project