Managing the IT Function 615352

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Managing the IT Function615352

• Project and change management
• Week 8
• 2004
• Lucy Firth

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Today in the 352 course
BUSINESS and I.T. VISION
Business Systems Thinking
Relationship Building
Leadership
Architecture Planning
Making Technology Work
DESIGN of I.T. ARCHITECTURE
DELIVERY of I.T. SERVICES
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Today in the 352 course

• Project change management and evaluation
• Project change management and architecture
  infrastructure
• Project change management and alignment

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Reflections on OAC 251
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Systems approach to organisations
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Project management
A project is a temporary endeavor undertaken to
create a unique product or service PMBOK p4
may not be short, and the impacts/outcomes may be
permanent. Project management involves
controlling/monitoring the time and budget to
achieve the unique product (scope) this
requires stepwise problem solving.
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PM evolves

• Focus of PMBOK (2000) changes to reflect
  evaluation, strategy and organisational change
  (as well as refining PM techniques).
• Well, that is what they say
• PMBOK has modified slightly its 9 PM knowledge
  areas

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UK govt standard (PRINCE)

• Project is driven by its business case
  organisations justification commitment and
  rationale for the deliverable outcomes. Business
  case is regularly reviewed to ensure business
  objectives which may have changed are still
  being met.

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Take care with apparent differences
PM knowledge
Application mgt knowledge
General mgt knowledge
Prince2 p 2
Relationship of PM to other Mgt Disciplines PMBOK
p9
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Looking to the future

• PM is less about Gantt charts and more about
  alignment
• What does that mean?
• IT business groups communicating
• Project justification (ex ante) and evaluation
  (ex post during) in terms of strategy
• Gravity to infrastructure and portfolio
  perspective (e.g Motorolas SPS)

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Gravity _at_ Motorola SPS

• Motorola had gt1200 systems all built in house,
  fragmented by region and tech group.
• SPS procurement and finance has 80 different
  legacies, used by 5,700 people, in 11 functional
  organisations, 8 countries and 21 sites.
• Prevented e-commerce solutions, and integrated
  use of corporate data
• Replaced by single ERP standardised

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Looking to the future (repeat)

• PM is less about Gantt charts and more about
  alignment
• What does that mean?
• IT business groups communicating
• Project justification (ex ante) and evaluation
  (ex post during) in terms of strategy
• Gravity to infrastructure and portfolio
  perspective
• In short, it means MANAGEMENT rather than
  recording and monitoring through charts.

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Implications for you

• Being well organised is no longer enough. You
  need management skills and knowledge
• Communication skills
• Negotiation skills
• Business operations knowledge
• Organisational politics and culture savvy
• In short, you need to be part of the change
  management team.

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Go back over

• Week 5 architecture and week 6 portfolio
  approach.
• Reasons for project failure and for the
  productivity paradox is often poor planning for
  project implementation and post implementation
  adoption.
• That is, poor change management.

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Brown and Vessey

• 5 success factors to get an up-and-running ERP
  system with agreed-upon requirements delivered
  within schedule and budget p66.
• n.b. this does not necessarily imply post
  implementation adoption success it does not say
  anything about strategy.

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Hi 5 (and other mother goose tales)

• Top mgt is ENGAGED in the project, not merely
  involved
• Project leaders are veterans, and team members
  are decision makers
• Third parties fill gaps in expertise and transfer
  their knowledge
• Change mgt goes hand-in-hand with project
  management
• A satisficing mindset prevails

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Tautology

• If you have things that will bring about
  successful implementation, successful
  implementation is more predictable.
• Lousy research, but not bad for understanding
  industry.

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Top mgt is ENGAGED in the project, not merely
involved

• Overseeing the project less x-inefficiency and
  less organisational naivety
• Sponsor or local-hero especially important in
  the hero era of the 1990s.
• These should ensure
• Alignment
• Buy in by all stakeholders

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Project leaders are veterans, and team members
are decision makers

• Competence and power
• Leaders can do it.
• Leaders are known to be able to do it
  credibility and expert power.
• What is decision making
• Hero era of the 1990s it was about saying yes
  creatively
• What is it now? How can we have flexibility and
  autonomy and keep control of the project?

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Third parties fill gaps in expertise and transfer
their knowledge

• Ability of IT people to talk to other (business)
  experts
• Common language
• Common understanding
• Credibility and respect
• NIBU problem for outsiders
• Learning organisation culture of cooperation

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Change mgt goes hand-in-hand with project
management

• Change management must be rigorously planned and
  generously resourced p67.
• ERP means corporate transformation with new
  processes across functions bet the company
• ERP displaces legacy systems with integrated
  modules that require new structures and a culture
  that acknowledges that other BUs are impacted in
  real time by any BUs actions.

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An OD diversion

• sharing the vision, gaining upfront buy-in,
  communication often (and to everyone affected),
  and providing training on the new system and
  business process, via well-paced training
  programs. p67.
• All of this is to achieve the change in mind set
  that is central to OD change models.

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A satisficing mindset prevails

• 80 is good enough there is no room for
  perfectionists
• But how to integrate with only 80 correct
  modules? This is where I think that ERPs fall
  flat on their faces (opinion only).
• Solutions
• Vanilla trade off fit with cost risk
• Big bang trade off shock with dynamic
  adjustment failure risks most BUs poorly served
• Adjust project scope, budget and time due to
  unforeseen enables completion but not
  perfection

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Maturity innovation adoption

• Rogers Diffusion of Innovation (1962 classic
  greatly criticised, but got the ball moving)
• Fallacy of the early adopter advantage (Marx
  1864) costs, risks, etc
• Unless Carr (April, 2003) is correct and once
  IT/IS becomes a commodity it stops being a source
  of competitive advantage.

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Therefore

• Mgt decision is when to adopt as much as what to
  adopt.
• This shapes the entire IS/IT project portfolio.

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Benefits of change mgt

• PM within the context of change mgt discipline
• Positive press and shareholder opinion
• On time and on budget
• Productivity increases
• Prepared workforce for post implementation
  adoption success.
• Source Roberts, Jarvenpaa and Baxley

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Dynamic industry (source Roberts, Jarvenpaa and
Baxley)

• Motorolas SPS semiconductor solutions for
  wireless communications, networking and transport
  industry.
• Market profile
• Cyclical demand plus lumpy demand
• Entry of new nimble competitors low barriers
• Disruptive technologies replace existing, quick
  environment for diffusion

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Change mastery _at_ SPS

• While/because of implementing new ERP
• Internal change competence not consultants
• Roadmap of tools and processes for day to day
  change pf business and IT projects
• Feedback and metrics to keep executives engaged
• Local autonomy for change management
• Organisational learning to enable change mgt
  activities to change quickly to suit market
  conditions.

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Change readiness as core competency

• Markets with extreme dynamism change on all
  fronts, ongoing and radical require ability to
  change that is radically central to the
  organisations ethos.

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8 activities for CM of PM

• Change strategy planning
• Audience analysis and impact assessment
• Sponsorship and communication plan
• Role design mapping
• Training design and development
• Training deployment
• Readiness assessment
• Start-up support

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Source Roberts, Jarvenpaa and Baxley
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Institutionalising CR competence

• Global stakeholder input
• CM at every stage of project lifecycle
• Systems integration includes people and process
  integration
• Objective and quantifiable measure of stakeholder
  readiness give them the tools to track their
  own readiness before an emergency is created