National Centre for Project Management Rethinking Project Success

National Centre for Project Management Rethinking Project Success Professor D. Dalcher University of Hertfordshire

National Centre for Project Management Agenda The concept of success The prevalence of failure Different levels of success? Examples of success and failure Emerging challenges Implications of the new view of success Conclusions 2 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management What is success? According to the Oxford Dictionary: Success is… ØA favourable outcome ØDoing what was desired or attempted ØAccomplishment of an aim or purpose ØThe attainment of wealth or fame or position 3 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management What is failure? Defined in dictionary as … lack of success 4 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management According to Standish Group: project resolutions can be: Successful: completed on time, on budget, with all specified features. Challenged: completed and operational, but over-budget, over time and with fewer features than specified. Failed: The project is cancelled before completion or never implemented 5 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Earliest software project survey: 1979 GAO survey Ø<2% used efficiently as delivered Ø 3% could be used after changes ØRest: never used, never delivered, or used but extensively reworked or abandoned. 6 Prof D. Dalcher, University of Hertfordshire

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National Centre for Project Management Project failure rule of thumb 26% 46% 28% Successful Challenged Failed Source: Standish Group 2001 8 Prof D. Dalcher, University of Hertfordshire

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National Centre for Project Management Reflection: What does this slide say? 10 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Some more scary statistics In 2000 there were 65, 000 failing US IT projects Between 1997 -2001, nearly $1 trillion was wagered on underperforming projects IBM: only 40% of change management projects successful 11 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Crucial issues in recent failures § § § § Relationship management Trust Communication Management of expectations Politics Risk management Escalation Contract management (extracted from special issue of TASM) 12 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Failure in project management While we know WE SHOULD BE focusing on success criteria that extend beyond the triple constraints we still seem to be stuck with older definitions. 13 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Success or failure? You decide… 14 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Different perspectives? 15 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Levels of project success Level 1: Project management success efficiency and performance Level 2: Project success objectives, needs, stakeholders Level 3: Business Success Benefits, value creation and delivery Level 4: Future potential 16 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case I: Euro. Tunnel 17 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case I: Success or failure? Eurotunnel, opened in 1994, 18 months behind schedule (late enough to miss second summer traffic season) Original budget £ 2. 3 billion, actual cost six times higher at £ 15 billion Huge losses; financial disaster Major engineering success 18 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case II: Success or failure? Initial estimate: <£ 10 m Final cost: £ 431 m 4300% cost overrun? Do you recognise the project? Opened October 2004 19 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case II: what is this project? 20 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case III: Do you recognise this project? 21 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management And now? 22 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management The third largest suspension bridge 23 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Has become famous for other reasons 24 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Tacoma Narrows 25 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case IV: Success or failure? 26 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Now re-generated 27 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Possibly most successful arena in UK 28 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case V: Advantics System Massive project to develop Kodak's new Advantix Photographic System (APS) 1996 selected by Business Week as one of the best new products of 1996 1997 PMI International Project of the Year But Kodak failed to anticipate the accelerating switch to digital photography 29 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Case VI: Success or failure 30 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Sydney Opera House 14 times over budget PM failure Project failure Architectural marvel Icon Tourist attraction Generates revenue 31 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Future challenges Extend idea of success to cover usage Extended life cycles Inclusion of decommissioning Recognition of future opportunities May need to be addressed on multiple levels (including success at programme level) 32 Prof D. Dalcher, University of Hertfordshire

National Centre for Project Management Conclusions Success is a complex and multi-layered concept Needs to be understood at different levels and timeframes Impact extends beyond a single project Success view determines actions and colours new developments 33 Prof D. Dalcher, University of Hertfordshire