“Achieving Your Project’s ROI” - managing the human aspects of projects Track # 3 Dr Frances Bruce . . Bruce Partners Consulting P/L No. COUG 2003
AGENDA strategy Value Delivery System BEHAVIOR Value Delivery System $ value Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 2
TODAY’S ENVIRONMENT • • • More demanding customers Greater technology complexity Interactions more diverse Fighting for prioritization Doing more with less Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 3
PERFORMANCE FAILURE 53% of IT projects fail to deliver ROI For CRM initiatives: > 70% do not deliver expected ROI 55% of variance in return on sales 1 in 5 damage customer relationships 40 -46% of companies do not even measure ROI Over the next 5 years, Fortune 500 companies will waste a projected $80 B on technology implementations Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 4
BEHAVIORAL BLOCKERS 90% of project failures are due to people issues! Macro level – structures, processes, policies Micro level – interactions, group dynamics. …. An Example Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 5
VALUE DELIVERY SYSTEM Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 6
APPLYING THE VDS Plan - Assess the situation (SDT - Achieving Sustainable Change) Delivery Design - Architect the change of (SDT - Designing Successful Change) Value Implement - Manage and review (SDT - Understanding Responses to Change) Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 7
Plan - ASSESS • • • Alignment & sponsorship Critical success factors Sustainability Example – I. T. Company’s Reporting System (CRM) Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 8
Design - ARCHITECT • • • Tailoring Approach Measurement & re-use Example – Oil Company’s Distributor System (ERP) Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 9
Implement - MANAGE • • • Buy-in to system & its use Risk management & assimilation Change skills & understanding Example – Finance Company’s SAP Rollout Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 10
BENEFITS OF THE VDS • • Easier projects Faster implementations On budget delivery Greater take-up of solutions …. ROI is achieved! Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 11
KEY POINTS § Today’s performance is no longer tolerable § Complement methodologies with human considerations for value delivery § Use SDTs to facilitate dialogue …. For more information: www. visionlearningsystems. com Copyright 2003 Bruce Partners Consulting Pty Ltd – All Rights Reserved 12