Effective Project Management + Complexity Addressed + Right Design

ERP Functional Business Design and Project Leadership 

Most large IT oriented projects fail to be executed successfully, and many fail outright causing significant loss. In 2012, a McKinsey survey estimated 40% of large IT projects over $15 million fail, while a Standish survey (3500 IT projects between 2003 and 2012) suggest that only 7% of projects over $10 million were successful. 

In our experience large IT and transformation projects frequently fail for a number of reasons, but most significantly, is a failure to recognize the complexity in the business and its processes and to plan for this in the system design. Complexity is at the heart of most businesses, simple business models are easily replicated, complexity is a dimension of a corporation’s competitive moat. 
Leadership failure is also often cited – although in our experience we find client personnel committed to change but under-resourced for the goal established. There also exists inherent conflicts in the consultant driven IT spend model that also play into failures.  These conflicts go to the heart of how software firms and offshore resources drive projects. In short success demands:

- In-depth planning at a detailed functional and transactional level
- Analysis of the impact on people within the organization required to support testing, learn new systems and continue in their day-to-day responsibilities
- Successful execution in stages (phase or decision gate)
- Avoiding “rosy” and overly optimistic goals 
- Avoiding the pitfalls of project bureaucracy
- Understanding that standardized IT systems are useful if you have standardized processes – but core business processes are rarely standardized
- Realistic budgets and timelines.