Today's Schedule

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Today's Schedule

• 600 Introductory Remarks
• 610 Quiz
• 620 Goldratt Review
• 700 -- Break
• 720 -- Change Management IT
• 800 -- Mt Auburn Case

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Goldratt Review
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Beyond the Goal

• Goldratt on how IT delivers value...

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The search for the new rules

• 1. What is the main power of the technology?
• 2. What limitation does it diminish?
• 3. What rules helped us to accommodate the
  limitation?
• 4. What rules should we use now?

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Beyond the Goal

• Goldratt on the long tail of project mgmt...

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The prevailing rule of project managementThe
way to ensure that the project will finish on
time is to try to make every task finish on time.
time
50
80
50
80
The higher the uncertainty the bigger the tail!
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D Choose estimates higher than 80.
B Meet commitments.
A Be considered a reliable person.
C Dont exaggerate.
D Choose estimates close to 50
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• The wrong rule of project management
• The way to ensure that the project will finish on
  time is to try to make every task finish on time.

• The new rules
• Dont turn estimates into commitments.
• Move the protection from the task level to the
  project level.
• Use buffer management to set priorities.

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Beyond the Goal

• Goldratt on holistic process change...

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1. Improving only one link may cause problems in
another.

• Why a holistic approach?

2. Improving only one link may cause problems for
the link that improved.
3. Improving only one link is definitely a waste
of major benefits.
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Addressing Org Change

• Why do so many IT-enabled org change initiatives
  (e.g., ERP, CRM, SFA) fail?

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3 Issues in Managing Risk

• The Leadership of the Change
• Are the leaders committed?
• Do they understand?
• Are they formally motivated?
• Do they have the formal power?
• Are they experienced?
• Do they have the informal power?

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3 Issues in Managing Risk

• The Users/Employees
• How will they react?
• Will they embrace it?
• Follow orders?
• Follow others?
• Wait-and-see?
• Resist?
• Sabotage?
• WHY?

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3 Issues in Managing Risk

• Project scope and urgency
• How wide is the scope of the project?
• How deep is the change required?
• Is the change urgent?

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Understanding Risk
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Planning for Risk
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Selecting a Strategy
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Too Much IT Knowledge???

• What about this article struck you as insightful,
  relevant, interesting, or questionable?
• Why do so many IT projects fail?
• What lessons from the universal checklist seem
  insightful to you?

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5 Pitfalls of Implementation

• 1) Inertia
• A lack of progress over time.
• Caused by
• Introducing many new processes simultaneously
• Replacing complex, hard-to-model processes
• Projects that jeapardize the role of participants

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5 Pitfalls

• 2) Resistance
• When users resist an implementation or are not on
  the same pagelooks like inertia, but theres
  more fighting.
• Caused by
• novel process improvements
• Lack of alignment on key incentives

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5 Pitfalls

• 3) Misspecification
• Technically satisfactory system that fails to
  improve business processes.
• Caused by
• Very complex processes.
• Improved COTS systems
• The telephone game

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5 Pitfalls

• 4) Misuse
• User errors diminish returns on IT system
  investment
• Caused by
• Unsophisticated users
• New processes
• Systems that affect processes across the company

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5 Pitfalls

• 5) Nonuse
• When systems are discretionary
• Frequently occurs when
• Incentives arent aligned
• If it affects a core task in a novel way
• Insufficient training

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A Framework for Analyzing Process Enabling IT
Projects

• Factors
• Groups
• Span
• Core
• Autonomy
• Process
• Novelty
• Volume
• Technology
• Template
• People
• Discretion
• Sophistication
• Adapted from McAfee, Course Module Note, HBS,
  2003

• PITFALLS
• Inertia
• Resistance
• Misspecification
• Misuse
• Nonuse

• Management Strategies
• Level
• Style
• Scope
• Timing
• Preparation

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FACTORS

• Groups
• Process
• Technology
• People

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GROUPS

• Span
• Core
• Autonomy

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PROCESS

• Volume
• Novelty
• Complexity

Low NOVELTY High
Low COMPLEXITY High
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TECHNOLOGY

• Template
• Tool

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PEOPLE

• Discretion
• Sophistication

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MANAGERIAL STRATEGIES

• Level Above Interfaces
• Style Consensus vs
• Directive
• Scope Reduction vs Prevention
• Timing Big Bang
• Phased (big/small steps)
• Prepare Training Expectations Mgmt

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Strategies for Avoiding Pitfalls
Pitfalls
Strategies
Inertia
Authority
Resistance
Style
Misspecification
Scope
Misuse
Timing
Preparation
Nonuse
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Too Much IT Knowledge?

• What is the 30-second summary of what we can
  learn from this piece?

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Try your hand at reengineering

• GSBM is evaluating the student evaluation of
  classes. In your team, take 40 minutes to
  evaluate and reengineer the process. Post your
  planned process in Blackboard. Include the
  following
• Map the current process, identify bottlenecks and
  cost centers
• Define the objectives
• Evaluate current process performance
• Would you recommend TQM or BPR for this process?
  Why?
• Engineer a new process and map it.
• The KPIs (i.e., metrics) that govern performance
• The role IT plays in enabling the process
  (automate, informate up, informate down,
  transform)
• Techniques
• Boldly apply one or more principles of
  reengineering
• Search out and destroy assumptions.
• Go looking for opportunities for the creative
  application of IT.

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Mt. Auburn

• Summarize the case
• Why are there so many errors in hospitals?
• How can IT help reduce ADEs? What can IT not
  help with?
• How large an impact do you think the POE will
  have at Mt. Auburn?
• Why is Mt. Auburn implementing a POE?

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Mt. Auburn POE Case

• Work with your teams. Review the case and
  answer the following
• What are the important PEIT factors for this
  implementation?
• What are the expected pitfalls?
• What strategies would you recommend?

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5 Common Memo Mistakes

• What are the FACTS? Especially, what are the
  benefits? Are they measurable?
• Rhetorical flow Problem Specification to
  Recommendation
• Process sequences timing
• The great mystery novel
• Expectations management

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BREAK