Introduction
Arguably one of the most epic accomplishments of the 21st century was the invention of the computer and the subsequent creation of the internet. These two entities have virtually transformed the world as far as information processing and communication is concerned. Organizations have extensively employed the use of computer systems as efficient global communications became the defining attribute of successful organizations.
Key among the systems is the integration of information technology in project management. However, despite its advantages, numerous IT project have in the recent past failed due to various socio-technical issues. The human factor has been credited for most of the failures. This paper shall in detail reflect on a recently failed IT project. Reasons as to why the project failed shall be provided. In addition, the similarities of the root causes as compared to those of other IT projects shall also be highlighted.
IT project failure: A brief overview
The Standish group (1995) report has for a long time been noted as the landmark report on IT project failures. The report displayed results gathered from executive managers who had invested in various IT projects across different sectors. The results indicated that: “31.1% of projects will be canceled before they ever get completed.
Further results indicate 52.7% of projects will cost over 189% of their original estimates (Standish Group, 1995)”. In regards to success rates, the report indicated that; “only 16.2% for software projects that are completed on-time and on-budget (Standish Group, 1995)”. Ever since the report was presented, the number of failed IT projects across different sectors has been increasing at an alarming rate.
Case study: Queensland Health – Government of Queensland – Australia
Queensland Health is an organization dedicated to the provision of healthcare services to the Australian community. In a bid to improve its efficiency, accuracy and cost reduction in service delivery, the organization thought it wise to modernize its payroll system (ERP). As such, the project which cost the organization $64.5 Australian dollars was expected to end by June 2010.
However, the project which aimed at replacing the aging payroll system that had been in use ended up as a major failure for the organization. This failure not only had serious financial repercussions to the organization, but also left thousands of employees with little to no pay due to major cut-over. Even though, the organization is yet to provide a conclusive report accounting for this failure, the press and business analysts highlighted the major mistakes that were made during the project.
Contributing factors as reported by analysts and the press
Key contributing factors as documented in various literatures included but were not limited to: poor project planning, lack of clear roles and responsibilities for project team members, poor communication skills and training. In addition, the stakeholders were not engaged effectively in the project and there was evidence of tension between government departments. On the same note, the project managers failed to resolve the complex business processes before implementing the new system.
Finally, reports indicate that the project requirements and alignment did not meet the needs of the business. In summary, the project failed due to poor planning, communication, managerial and, risk management skills. The same factors have been documented as being among the core factors that lead to IT project failures in most businesses.
IT Project failure: A literature review
According to Ledingham and Bruning (2000), good communication is considered to be one of the fundamental building blocks of a successful organization. If efficient communication is to take place, there must be some levels of trust exuded and mutual respect by parties involved in any given project. Ledingham and Bruning (2000) advance that interaction with each other leads to greater appreciation and hence building of mutual respect and eventually establishment of trust.
Considering the adversarial communication currently exhibited in the organization, team building exercises e.g. sporting activities, interdepartmental parties and other social events would have averted the communication hurdles that led to the project failure.
In addition, Hashmi (2010) reiterates that project failures are in most cases as a result of poor planning, managerial skills and conflicts. As such, the author proposes that an exemplary project manager should ensure that his team has a sense of purpose and is working towards the achievement of some organizational goals.
He/she should also set out to generate and sustain trust between the administration, employees, stakeholders and clients. This results in the promotion of hope and confidence amongst the organizations worker force. These qualities heighten the levels of optimism within the organization all the while boosting employee’s morale and guarantees future success in all organizational endeavors (Hashmi, 2010).
Conclusion
The number of failed IT projects has been a cause for alarm in many sectors. The causes of these failures are well known and should be used by others as lessons on what not to do during a project. In this regard, organizations should not shun away from IT projects but rather, they should implement the measures recommended in this report so as to avoid failure.
References
Hashmi, M. (2010). Identification of the Root Causes of Software Project Failure. USA: Lap Lambert Academic Publishing.
Ledingham, J. A. & Bruning, D. S. (2000). Public relations as relationship management: a relational approach to the study and practice of public relations. NY: Taylor & Francis.
Standish Group. (1995). Chaos (Application Project Failure and Success). Web.