implementing information systems in organizations: change
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1Lars GrothImplementing information systems in organizationsINF5210
INF5210
Implementing information systems in organizations:
Change management in practice
Lars Groth
2Lars GrothImplementing information systems in organizationsINF5210
3Lars GrothImplementing information systems in organizationsINF5210
4Lars GrothImplementing information systems in organizationsINF5210
5Lars GrothImplementing information systems in organizationsINF5210
6Lars GrothImplementing information systems in organizationsINF5210
How come?
7Lars GrothImplementing information systems in organizationsINF5210
«Identifying Software Projects Risks: An International Delphi Study»Roy Schmidt, Kalle Lyytinen. Mark Keil og Paul Cule, Journal of Management Information Systems, Spring 2001, 17:4 s. 5-36.
8Lars GrothImplementing information systems in organizationsINF5210
A Reflection on Why Large Public Projects Fail
Kjetil Holgeid
Accenture Managing Director - Nordic Technology Lead Health & Public Service
Dr. Mark Thompson
Cambridge Judge Business School University of Cambridge
9Lars GrothImplementing information systems in organizationsINF5210
10Lars GrothImplementing information systems in organizationsINF5210
Risk factors and problem areasfor big, public IT-projects
1. Project is not anchored in an updated business
plan or IT strategy
2. Unrealistic goals and too high ambitions –
insufficient focus on the ability to actually
complete the work
3. Unclear organization and responsibilities
4. Too big and comprehensive systems – deliveries
not sufficiently modularized
5. Inadequate project management, insufficient
preparedness for exception management
6. Contracts are left in the drawer, and not used for
following up the execution of the project
7. Plans and estimates based on incomplete
information
8. Too much focus on technology, organizational
development and skill improvement
underestimated
9. Choosing bleeding edge technology instead of
tried and tested solutions
10. Insufficient competence, especially at
managerial level
11. Changes in requirements or preconditions during
the project are neglected
12. Wrong choices and low attentiveness to what the
organization should do and what to buy in the
market
11Lars GrothImplementing information systems in organizationsINF5210
Change management
≠
Operational management
12Lars GrothImplementing information systems in organizationsINF5210
Refinement of existing practice
An addition to or extension of
existing practice
Phasing out something
Replacing existing practice
with something entirely new
Levels of change
13Lars GrothImplementing information systems in organizationsINF5210
Change management strategies
Time is critical
Strong disagreement
Comprehensive change
Problem can be solves by changing formal elements
Acceptance for the use offormal authority
Little time pressure
Little disagreement
Limited (incremental) change
Problem-solving requirescultural changes
When employees want and are able to participate
The hierarchicalstrategy
The democraticstrategy
14Lars GrothImplementing information systems in organizationsINF5210
However, change – not least when it comes to introducing new IT systems – is really
about changing the very recurring patterns of action that constitute the organization
The heart of this must be a thorough understanding of this transition and of the planned,
new pattern
There are two basic views on this, corresponding to the two basic change management
strategies:
Change management strategies
The structural view:
Understanding leads to action
The hierarchicalstrategy
Waterfall method?
The democraticstrategy
The interpretational view:
Action leads to understanding
DevOps?
Alexander Budzier
BT Centre for Major Programme Management
University of Oxford
Hovedstadsområdets nettverk for
IT-ledelse og styring (HIT)
28th of May, 2015
Black Swans:
The Real Risk in IT Projects
16Lars GrothImplementing information systems in organizationsINF5210
We Studied a Total of 4,307 Projects, Worth $85.0 Billion
Project archaeology
Count
Desk study FOIA requests
Project type
System type
Projects 1,365
Organisations 28
289
51
1,029
58
Comms
3
Infrastructure6
Software89
Other35
MIS5
HRM
10
SCM
21ERP
29
▪ Average 21m▪ Median 0.8m▪ Total value 85bn
▪ Average 3.3 years▪ Median 3.0 years
Project size (2010 USD millions)
Project length (years)
1,624
120
Budget data
2Other
© Bent Flyvbjerg and Alexander Budzier 2009-2015
17Lars GrothImplementing information systems in organizationsINF5210
Black Swans Matter More Than Medians
N = 4,307 17
© Bent Flyvbjerg and Alexander Budzier 2009-2015
Thin-tailed distribution Infrastructure projects
Cost risk (Percent)1 Normal distributions with thin tails have less than .7% projects
outliers outside these bounds
IT projects
▪ IT and infrastructure projects have
similar median cost over-runs
▪ However, IT projects have a much
fatter “tail” of out-of-control projects
▪ In fact, IT projects are 100 times more
likely to run out-of-control than
expected: more than 10,500% over-
incidence of outliers!!
Frequency (Percent)
0
5
10
15
20
25
30
35
40
-100 -50 0 50 100 150 200 250 300 350 400
18Lars GrothImplementing information systems in organizationsINF5210
La Clairvoyance - René Magritte
19Lars GrothImplementing information systems in organizationsINF5210
20Lars GrothImplementing information systems in organizationsINF5210
Critical matters
1. Very different from what the team and
stakeholders in the organization have been
involved in before
2. Very complex and/or unclear problem
domain
3. Many stakeholders, cultures
4. Numerous interfaces to other systems
5. Involves significant changes in work
processes
6. Large or very large project size
7. Untested technology
Nature of project
8. Is management involved and committed?
9. Are objectives and expectations clear and
well known?
10. Is the project staffed with the right people
with adequate competence?
11. Is the project adequately organized?
12. Project volatility
13. Team spirit and morale, work environment
14. Contract type
Organization and management
21Lars GrothImplementing information systems in organizationsINF5210
Project size
Sauer, C., Gemino, A., and Reich, B.H. (2007): “The Impact of Size and Volatility on IT Project Performance: Studying the factors influencing project risk”, Communication of the ACM, November 2007, Vol. 50, No. 11
«The underperformers consisted of threecategories:
AbandonedBudget ChallengedSchedule Challenged»
22Lars GrothImplementing information systems in organizationsINF5210
Management support
Active commitment and support from line management in the
relevant parts of the organization is absolutely vital for project
success
Projects that are important for the organization as a whole will
also need top management’s full support and commitment
This is necessary to:
– Provide the project with the necessary resources, includingpersonnel
– Make the necessary decisions without delay as the project is progressing
– Solve the problems that always crop up during a project
23Lars GrothImplementing information systems in organizationsINF5210
Clarification of objectives and expectations
The project must have clear and clarified objectives
The objectives must be business objectives
Line management must decide on the objectives and commit
themselves to them
The expectations about what the project is to achieve both in total
and for each phase must be clear and clarified between line
management and the project
The project’s objectives must be known and accepted in the
organization
Project objectives and expectations must be thoroughly
internalized by the project team
24Lars GrothImplementing information systems in organizationsINF5210
Staffing
The quality of the work carried out in the project depends
squarely on the quality of the project team
The project must be allowed to pick the best qualified and most
experienced people in the organization, have them relieved for
their daily duties and made available for project work
Substitutes and temporary workers should be used to cover the
ensuing vacancies in the line organization, and not for project
work
For long periods, the project will require more than a normal
workload – key roles in the project cannot be combined with
daily tasks in the line organization
25Lars GrothImplementing information systems in organizationsINF5210
The Project Academy
26Lars GrothImplementing information systems in organizationsINF5210
The project organization
The project organization must contain the necessary roles
Normally, the role of project manager should be divided and shared by two
persons:
– The project director should have a background from line management positions. He/she should be responsible for maintaining the business perspective in the project, for reporting to the steering committee, and for anchoring the project in the line organization.
– The project manager should have IT-background and have the daily responsibility for the project.
The project organization must have solid support in the line line organization
The project must provide adequate information and reporting
Delivery and implementation should be organized separately, in
particular when a system is going to be installed at more than one site
– if not, the actual implementation work will be starved of resources
27Lars GrothImplementing information systems in organizationsINF5210
Project Volatility
Sauer, C., Gemino, A., and Reich, B.H. (2007): “The Impact of Size and Volatility on IT Project Performance: Studying the factors influencing project risk”, Communication of the ACM, November 2007, Vol. 50, No. 11
«The underperformers consisted of three categories:
AbandonedBudget ChallengedSchedule Challenged»
28Lars GrothImplementing information systems in organizationsINF5210
HIT surveys: Surveys amongmembers of a IT management network in Oslo, conducted onthe network’s seminars.
HIT = Hovedstadområdets nettverk for IT-styring og ledelse
Den gode kunde – Magne Jørgensen (Simula) - presentation at HIT breakfast seminar 27.11.2015http://hitledelse.com/tidligere-avholdte-arrangementer/
Rate of successPercentage of projects)
Per hour Fixed price
Usefulness
Quality
Budget
Time
Effectiveness
29Lars GrothImplementing information systems in organizationsINF5210
SMIOSSuccessful ICT solutions in the public sector
Partners:
• Lånekassen• SPK• Skatteetaten• NAV• NSB• Posten• Difi• Oslo Kommune• Asker kommune• Sykehuspartner• UDI
In-depth study of 35 projects
Magne Jørgensen: Hva kjennetegner IT-prosjekter som lykkes? Hovedstadsområdets nettverk for IT-ledelse og styring (HIT), frokostseminar 28. september 2016http://hitledelse.com/tidligere-avholdte-arrangementer/
Type of contractNumber of projects)
Wentwell
Problems in at least one area
Great problems/ terminated
30Lars GrothImplementing information systems in organizationsINF5210
Typical «Fixed-price» behavior
Contractor:
– More focussed on contract than on usefulness
– More opportunistic
– Reduced quality of deliverables
Customer:
– Becomes less flexible
– Insists that 100% of contracted deliverables should be produced, regardless of usefulness
– More focussed on price and specifications than on usefulness
Magne Jørgensen: Hva kjennetegner IT-prosjekter som lykkes? Hovedstadsområdets nettverk for IT-ledelse og styring (HIT), frokostseminar 28. september 2016http://hitledelse.com/tidligere-avholdte-arrangementer/
31Lars GrothImplementing information systems in organizationsINF5210
Explaining the connection between a focus on low price and project
problems
Context: Risk is particularly high when the customer has low competence in specifying
and evaluating vendor competence
«Hva skal til for å lykkes i IT-prosjekter?» Professor Magne Jørgensen, Simula Research Laboratory, 2015
32Lars GrothImplementing information systems in organizationsINF5210
Dunning-Kruger Effect
The Dunning-Kruger effect, named after David Dunning and Justin Kruger of
Cornell University, occurs where people fail to adequately assess their level of
competence — or specifically, their incompetence — at a task and thus consider
themselves much more competent than everyone else.
This lack of awareness is attributed to their lower level of competence robbing them
of the ability to critically analyze their performance, leading to a significant
overestimate of themselves.
The inverse also applies: Competent people tend to underestimate their ability
compared to others; this is known as impostor syndrome.
If you have no doubts whatsoever about your competence, you could just be that
damn good.
On the other hand...
33Lars GrothImplementing information systems in organizationsINF5210
Ahonen, JarmoJ., et al.: "Reported project management effort, project size, and contract type." Journal of Systems and Software 109 (2015): 205-213.
Fixed price contractsincrease administrative
overhead
Fig.4. Visual representation for hypothesis H5. Circles denote projects with fixed contracts, and triangles denote projects withtime-and-materials contracts. A dashed line is fitted to the time-and-materials contracts, and a continuous line to fixed contracts.
34Lars GrothImplementing information systems in organizationsINF5210
Morale and work environment
High spirits in the project team and a commitment to succeed is
decisive for the fate of the project
The work environment must be supportive of the project work
– Suitable office premises
– Good equipment that works
– Culture-building arrangements and artifacts
35Lars GrothImplementing information systems in organizationsINF5210
If these four conditions are met,
almost all problems can be overwon!
Deep commitment by a management that actively support the
project
Clear, clarified and well-known objectives agreed upon by all
major stakeholders
Adequate staffing with top skills and competence
High work morale
36Lars GrothImplementing information systems in organizationsINF5210
Requirement specification
Specs must be based on business needs
Itemizing must be on the right level – too many details will drown
out the important points, especially if you are buying
packaged software, and you may be lured into making
costly and unnecessary changes to it
Prioritization is adamant – the most important requirements must
stand out clearly
It is also important to include usability: How many clicks and
mouse movements are needed for the most common
operations? How many screens do you have to visit?
37Lars GrothImplementing information systems in organizationsINF5210
Methods and tools
The project should use documented methods
Methods and other tools should be suited for the tasks at hand
38Lars GrothImplementing information systems in organizationsINF5210
Project management methods
Critical chain project management
Event chain methodology
Process-based management
Agile project management
Lean project management
Extreme project management
….
PMBOK®
Most widely used
39Lars GrothImplementing information systems in organizationsINF5210
40Lars GrothImplementing information systems in organizationsINF5210
“The major problems and issues which PRINCE2 participants believe impede the success of projects using PRINCE2 are demonstrably not methodological, but rather organizational.”
Side 42
41Lars GrothImplementing information systems in organizationsINF5210
”CR
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2010, s. 21.
42Lars GrothImplementing information systems in organizationsINF5210
”CR
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TIN
G V
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N P
RO
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MA
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2010, s. 22.
43Lars GrothImplementing information systems in organizationsINF5210
"We know why projects fail, we know how to prevent their failure –
so why do they still fail?"
Martin Cobb, CIO, Treasury Board of Canada, 1995
44Lars GrothImplementing information systems in organizationsINF5210
Comprehensive checklistsDocument orientedMeasurements
Points out deviationsProvides advice
Comprehensive checklistsDocument orientedMeasurements
Points out deviations
Short checklistsFocus on interviews and participation in meetings
Points out problemsProvides advice
Proactive
Passive
Formal Problemoriented
Approaches to
Quality Assurance
Short checklistsFocus on interviews and participation in meetings
Points out problems
45Lars GrothImplementing information systems in organizationsINF5210
When should QA start?
Well before the project starts!
The quality assurance of greatest consequence for the
project must be carried out during the planning process!
46Lars GrothImplementing information systems in organizationsINF5210
«Early Warning Signs of IT Project Failure: The Dominant Dozen»Leon A. Kappelman, Robert McKeeman og Lixuan Zhang, Information Systems Management, 2006, 23:4 s. 31-36.
47Lars GrothImplementing information systems in organizationsINF5210
Risikodiagram Usikkerhetsbilde pr 08.08.2011
Høykritisk Kritisk Alvorlig Liten Liten Middels Stor Veldig stor
>50 30-50 10-30 <10 10> 10-30 30-50 50<
ST20
ST03 ST13 ST05, ST06
ST08
Konsekvens
Risiko Mulighet
Veldig stor
>60%
Liten
10-20%
Ubetydelig
<10%
Sann-
synlighet
Usikkerhets-
matrise
Stor
40-60%
Middels
20-40%
48Lars GrothImplementing information systems in organizationsINF5210
RadardiagramMVA3 98.11.25
0
1
2
3
4
5
6
7
8
9
10
Brukermedvirkning
Lederstøtte
Kravspesifikasjon
Prosjektplaner
Status, rapportering og oppfølging
Metoder, verktøy -- rutiner, standarder, maler
Bemanning og kompetanse (IT)
Organisasjon
Arbeidsmiljø og -moral
Mål og forventninger
Status pr. 98.11.25,
uveiet på skala 0-10
Status pr. 98.09.10,
uveiet på skala 0-10
49Lars GrothImplementing information systems in organizationsINF5210
Overordnede planer og fremdrift
ObservasjonerVirksomhetens prosjektleder har i samarbeid med sentrale prosjektdeltagere fullført den overordnede planleggings-prosessen. Planen er estimert og ressurssatt for alle aktiviteter som rapporterer til Virksomhetens prosjektleder.
For utviklingsoppgavene mangler det imidlertid i det fremlagte planmaterialet den nedbrytning i ressurssatte enkeltoppgaver med begrenset varighet (en eller i høyden 2-3 kalenderuker) som bør foreligge hvis fremdriftskontrollen skal være tilfredsstillende. Av samme grunn er det vanskelig å vurdere realismen i gjenværende milepæler og planlagte ferdigtidspunkter.
Sentrale nøkkelpersoner i Virksomhetens del av prosjektet er derfor usikre på hvor mye av de nye systemløsningene som kan være i tilstrekkelig sikker drift innen 31.12.XX med prosjektets nåværende organisasjonsform og fremdriftskontroll. De anser at en betydlig reorganisering (inklusive en endring av Big Consultings rolle) er en nødvendig forutsetning for å lykkes.
Det er derfor tatt initiativ fra Virksomhetens side til diskusjoner med Big Consulting om en reorganisering av prosjektet.
VurderingUten endringer i prosjektet er risikoen for å mislykkes høy. Vurderingene til Virksomhetens nøkkelspersoner i prosjekter virker klart berettiget. Det er derfor tvingende nødvendig at partene i prosjektet kommer frem til en organisasjonsform og en fremdriftskontroll som alle kan godta som realistisk. Det må raskt etableres enighet om en prosjektmodell og et oppfølgingsgrunnlag som alle parter anser vil gi minst samme sikkerhet for å klare kjernekravene som en konvertering av eksisterende systemer.
TiltakProsjektet reorganiseres for å tilpasses den nye situasjonen. En reorganisert løsning bør ha en ansvarlig prosjektleder med dokumentert kompetanse og en styringsgruppe med minst to medlemmer utenom prosjektlederen som har betydelig erfaring fra styringsgrupper eller prosjektledelse for større utviklingsprosjekter. Den ene av disse bør komme fra Virksomheten eller en kompetent 3.part engasjert av Virksomheten, den andre fra Big Consulting.
Reorganiseringen må ta utgangspunkt i utviklingsaktivitetenes behov, deretter må man reetablere den nødvendige prosjektorganisasjon for alle aktiviteter i forbindelse med prosess- og systeminnføring. Hvis Virksomhetens prosjektleder overtar ledelsen av totalprosjektet vil han ha behov for avlastning for arbeidet på prosess/forankringssiden, siden oppfølging av systemutviklingen vil kreve det meste av hans oppmerksomhet.
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