I have written a number of posts discussing the rate of IT project failure. According to every study I have seen over the past 10 years, at least half of all IT projects fail. I believe there are many factors that contribute to this trend but during a recent interview with SearchCIO http://bit.ly/3w5S3, Kristen Caretta asked me to choose one. Whenever I am asked this question I always cite the lack of sound Project and Portfolio Management (PPM). I have seen few organizations that have the appropriate decision-making processes and relationships to ensure their IT investments are reasoned and rational.
Sound PPM enables enterprises to determine the optimal mix and sequencing of proposed programs and projects to best achieve the organization's overall goals. PPM enables investments to be expressed in terms of hard economic measures, aligned to business strategy goals, while honoring constraints imposed by management or external real-world factors. Without this capability, I argue many projects are doomed before they begin.
My discussion with Kristen reminded me of a recent visit I had with a CIO who is in the beginning stages of revamping an IT organization for a major insurance provider. We talked about many things in our two hours together, including IT investment governance in his organization. In our conversation, he offered a much simpler explanation for the rate of IT project failures. He contended enterprises are "Happy with crappy." He said so with a mischievous grin and I couldn't help but laugh.
I am sure you have heard that there is an element of truth in every joke, and his clever comment caused me pause. In the past, I have theorized that our inability to correct this disturbing trend was partially due to a complacency born of a belief that technology projects inherently:
- Take longer than we plan
- Cost more than we anticipate
- Don't usually deliver what the user wants - the first time (for a variety of rationalized reasons)
Did his comment provide more insight into my theory? Are we happy with crappy based on our rationalization that technology projects are inherently difficult to estimate and deliver successfully? Let me know what you think.
Steve Romero, IT Governance Evangelist