gene ca survey report

8/7/2019 Gene CA Survey Report

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Doomed from the Start?

Why a Majority of Business and IT Teams Anticipate

Their Software Development Projects Will Fail

Winter 2010/2011 Industry Survey

2011. Geneca LLC. All Rights Reserved.
http://www.geneca.com/?utm_source=online-survey-report&utm_medium=pdf&utm_campaign=online-survey-20102011


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Why a Majority o Business and I eams AnticipateTeir Soware Development Projects Will Fail

able o Contents

I. Background and Methodology ............ ............ ............ ............. ............ ............. ............ ..........3

II. Participant Prole ........... ............ ............. ............ ............. ............ ............. .......... ........... ...........3

III. Summary o Findings ...............................................................................................................3

IV. Detailed Findings ........... ........... ......... .......... ......... ......... .......... ......... ......... .......... ......... ......... ...6

A. Participant Demographics ..............................................................................................6B. Te Business/I Relationship .........................................................................................8C. Requirements Denition Process ..................................................................................9D. General Concerns ............................................................................................................10

V. Conclusion ............ ............. ............ .............. .................. ................... ................... ................... ....13

VI. What to Do About It ............. ............ ............. ............. ............ ............ ............... ............... ........13

VII. About Geneca ........... ............. ............ ............. ............ ............ .......... ........... ........... .......... .........13


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Background and Methodology

Geneca surveyed approximately 600 U.S. business and I executives and practitioners as part o itsongoing research on why teams struggle to meet the business expectations or their projects.

Te survey data was obtained through an online quantitative survey conducted in Q4 2010. Te survey

consisted o 25 closed ended questions and was completed by 596 individuals closely involved in thesoware development process. An independent market research analyst directed the studys reporting.

Sources or the survey participants include a CIO networking group, a project management proessionalassociation, Hoovers/D&B, and attendees to a 2010 CIO trade conerence.

Participant Prole

More o the survey participants were characterized as I executives and practitioners than as representingBusiness (n=476 vs. 119). Participants represented a range o industries, with the highest concentration

in manuacturing and industrial goods (30%). Over hal are in organizations with 100-999 employees(52%), but 38% are in organizations with 1,000+ employees. In addition, the sample is split betweencompanies with between $50 million and $1 billion in annual revenue, with the majority being between$100 and $999 million.

Summary o Findings

75% Lack o Condence in Project SuccessFuzzy business objectives, out-of-sync stakeholders, and excessive rework are key culprits

While research on the high percentage o soware project ailures is not new, o particular interest with

this survey is the high percentage o individuals who anticipate their projects will ail.

75% o respondents admit that their projects are either always or usually doomed right rom the start,including 27% who always eel this way. [able 10] While many o the responses to the questions in thesurvey reect a positive attitude to projects and requirements processes, the survey also reveals criticalpain points related to requirements denition and soware development practices.

Te importance o these ndings is especially signicant since the majority o respondents believe thattheir CEOs rate predictability as the most important attribute o an I team (70%). [ables 15, 20]

Interestingly, throughout the survey, the responses rom I proessionals and their business counterparts

are airly similar. As such, they seem to have many o the same issues and concerns with regard to theirprojects. Te perception is that challenges start at the beginning o a project and reect diculty in deningproject success. Tis carries orward to I and has impact throughout the rest o the project. [able 13]

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Tis study highlights several actors that contribute to the widespread anticipation o project ailure andits impact on project outcomes:

Rework wariness: A glaring act that has to be a concern or the entire organization is that rework ispervasive. 80% o these proessionals admit they spend at least hal their time on rework. [able 21]

While it would be hard to imagine other proessions (your doctor or dentist, or example) spendingthis much time on rework, most expect I projects to have at least some rework. However, extensiverework usually occurs when an organization devalues the need or ull and complete requirementscapture. Tis mindset usually leads to increasingly expensive xes throughout the project becauserequirements are not properly dened and accounted or up ront.

Other actors leading to rework include a lack o commitment by the business to the details o what theyneed. Tere may also be a lack o consensus on requirements rom all the areas o the organization thattouch the solution.

Business involvement is inconsistent or results in conusion: Unortunately, in some organizations,

requirements denition is considered exclusively an I responsibility, rather than a joint responsibilitywith the business. Both I and Business agree that business stakeholders need to be more involvedand engaged in the requirements process and that there is oen conusion around business needs.A ew respondents even report that the Business neglects its role completely and relies on I to llin the blanks. [able 12]

Sometimes conusion results when the business stakeholders believe they are talking about the samething and do not realize theyre actually in disagreement. When this disparate inormation is givento I, the outcomes are almost always disappointing. Tis ambiguity contributes to the problem oconusing business input.

Business is usually or always out o synch with each other about project requirements: Most sur-

vey participants believe that the Business is usually or always out o sync with project requirements(78%). Interestingly, slightly more business proessionals admit this shortcoming. [able 17]

Needs o the business shi. What was needed at the beginning o a project might not be needed lateron. Tis reality underlines why it is important or the business to stay engaged throughout the projectand communicate as early as possible i something isnt working.

At the same time, I needs to be exible. Lack o exibility can cause the business to eel out o syncwith the project. Tis may explain why more business people in the survey see this lack o exibilityas a problem than their I counterparts. It is also important to communicate requirements changesto all the stakeholders. I not, almost everyone is out o synch at the presumed end o the project.

Fuzzy business objectives: Slightly more than hal o the participants in this study are condent thatthe business objectives o their I projects are clear to them (55%). Most o the remaining participantsrom both audiences admit to being uzzy about the details related to those objectives. [able 8]

While business objectives such as I want to launch this product in Q4 or I expect this kind oreturn are quite clear to everyone involved, these broad objectives do not always take into accountthe on the ground realities o how business actually works. As a result, commitments get madewithout knowing how easible it is to actually get the job done.



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Conusion around roles and accountabilities: Te greatest barriers to success are seen as conusionaround team roles and responsibilities (38%) ollowed by a lack o common vision on project successcriteria (31%). [able 16]

Most I organization can nd room to improve practices in this area. While most o the projectteam knows who is providing requirements and writing specs, a bigger challenge is to identiy who

is accountable to clariy objectives and create alignment.

On most projects, it is the role o the Business to own the bigger picture and address the businessproblems. It is Is responsibility is to implement and execute on the problems. Opportunities realizedor opportunities lost are oen linked directly to the level o commitment to clarity around these roles.

Requirements denition process not described as articulation o business need: he negativeoutcomes are clear when business requirements are gathered improperly, including: Projects takinglonger than anticipated (61%), projects not considered a success (57%), and projects exceeding theestablished budget (43%). [able 14]

Negative outcomes can be traced to the nding that less than 20% o participants describe therequirements process as the articulation o business need. [able 11] Participants are split betweencharacterizing it as capturing specications(42%) and detailed user interace designs (40%). Tebusiness is more likely to eel the process consists o detailed user interace designs (51% vs. 37%among those in I).

Project success necessitates an upront requirements denition process that reects a common vision owhat the business needs built, the process activities and business scenarios to make that vision a reality,and specications that translate what business users need to do their job into something that can be builtby the team.

Other ndings include:

Lack o complete agreement when projects are done: Only 23% o the participants state theyare in always in agreement when a project is truly done, leaving the door open or rework, scopecreep and disappointment. [able 18]

Again, the culprit here is usually ambiguity and conusion around project expectations. It alsorelects a lack o metrics that communicate progress and realized value in terms the businessunderstands and appreciates. Tis can be resolved by consistently measuring progress based ondelivered business value rather than technical components.

Belie that predictability is achievable: In general the perception is that teams struggle to deliveron business expectations. However, in spite o the widespread concern about project ailure, mostpeople involved in soware development still believe that predictability is possible (76%). Regardlesso what they personally think, these people also believe that their CEOs rate predictability as the mostimportant attribute o an I team (70%). [ables 15, 20]

Most respondents are aware that the noise around success criteria makes it dicult to consistentlydeliver on expectations. Achieving predictability starts with a consensus on the denition o success.Next, it takes leadership committed to setting their teams up or success and removing obstacles.



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IT is a trusted partner and critical to the companys success. While most I (76%) and Business(72%) respondents hold I in high regard, both audiences also suggest that there are problems withthe relationship that need to be addressed: I doesnt build what the business asks or, projects arealways over budget or take too long, and I needs to provide more warning when a project is goingto be over budget or late. [able 9]

Because the business oen eels that they may not get what they need, condence can be gained onlywhen the business gets visibility into when things will be done, in a language that is meaningul to them.

Detailed FindingsA. Company Demographics

Table 1: Job Function: Nearly a third o respondents identiy themselves as an I Director/I Executive(29%), ollowed closely by CIO (25%). Nearly hal o the Business participants indicate they are inbusiness management (48%) and nearly as many say they are product managers (38%).

Table 2: Industry: Participants are spread across a variety o industries, led by nearly one-third who saythey work in manuacturing/industrial goods (30%). Nearly a quarter o business respondents work inthe nancial/insurance industry (24%).



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Table 3: Company Size: Over one-third o the sample work or companies with 1,000 or more employees(38%), while over one-hal report working or a company o 100-999 employees (52%).

Table 4: Company Revenue: Most o the participants are split between working or companies withannual revenues in excess o $500 million (40%) and $100-499 million (41%).

Table 5: Team/Department Size: About the same number o participants work in development teamsor departments o 50-99 employees (30%) and 25-49 employees (32%). Fewer report working in anenvironment with ar larger or smaller stafs (100+: 12%, under 25: 26%).

Table 6: Number o Projects: Approximately hal o respondents work on 10-19 custom soware developmentprojects per year (47%). An additional 34% note that they are involved in 20 or more projects annually.



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B. Te Business/I Relationship

Table 7: Meeting Expectations: Only slightly more than hal o respondents (54%) say their team issuccessul or the most part in delivering projects that meet business expectations, that is, achieving70%-89% o their goals. Only 19% o the total sample sees their teams as very successul (achieving90%-100% o goals), with those on the Business side o these organizations more likely to eel this way

(33% vs. 16% among those in I).

Table 8: Understanding o Business Objectives: Only a little more than hal o respondents say that thebusiness objectives their I projects are expected to support are very clear, both conceptually and in thedetails (55%). Most o the rest o the participants admit they are unsure o the details o these objectives.Interestingly, I and Business express a similar degree o understanding o the business objectivesassociated with their I projects.

Table 9: Business View o IT: Tree-ourths o I (76%) and Business (72%) respondents agree thatI is a trusted partner and critical to the companys success. At the same time, a number o I peopleassume that their business colleagues believe that I doesnt build what the business asks or (42%),projects are always over budget and take too long (33%), and I needs to provide more warningwhen a project is going to be over budget or late (28%).



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C: Requirements Denition Process

Table 10: Perceptions o Project Fate: Most people believe that their I projects are either always orusually doomed rom their onset (75%). In act, 27% eel that their I projects are doomed rom thevery beginning, including 41% o those rom the business.

Table 11: Describing the Requirements Deinition Process: When describing their companys

requirements deinition process, participants are split between characterizing it as capturingspecications(42%) and detailed user interace designs (40%). Te Business is more likely to eel theprocess consists o detailed user interace designs (51% vs. 37%), indicating that the business may berustrated with the technical nature o the process. Unortunately, less than 20% o participants describethe requirements process as the articulation o business need.

Table 12: Business Involvement in Requirements Process: Only 33% think the business is activelyinvolved to ensure their needs are captured and delivered. While almost hal o the total sampleindicates that the Business side o the company is involved (in the requirements process), there isoen conusion around what they ask or (44%). Interestingly, the Business is slightly less likely toconcur that its involvement is sucient and clear.



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Table 13: Frustration in Requirement Denition Process: Te greatest rustration related to this processis getting the business to clearly state and commit to project objectives (46%). Additionally, nearly athird say there is a lack o clarity around team roles and accountabilities (30%), while 15% note theinability to track project progress in terms that make sense to all stakeholders. Tere is a clear need orthe Business to get more involved in the requirements process, clearly state their project objectives andcommit to staying involved throughout the development cycle.

Table 14: Problems with Gathering Business Requirements: Both audiences agree that multipleproblems come rom poorly gathered business requirements. Many agree that the project takes longerthan estimated to be completed(61%) and will not be considered an overall success (57%). Nearly haleel the project will go over the established budget (43%, higher among I than business: 47% vs. 25%),while 27% agree that the result is that the project ails to delivered the desired capabilities.

D. General Concerns

Table 15: Predictability in Sofware Development: In spite o the widespread anticipation o project ailure,most people involved in soware development tend to believe that predictability is still possible (76%).

GENECA RESEARCH REPORT 1


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Table 16: Greatest Barrier to Successul Projects: When identiying the greatest barrier to deliveringsuccessul custom soware projects, respondents are divided between conusion around team roles andresponsibilities (38%) and a lack o a common vision (31%).

Table 17: Consensus o Business on Project Requirements: Over three-ourths o participants eel thatthe business team is always or usually out o sync with each other when it comes to project objec-tives (78%). Tis response includes 25% who eel the business team is always out o sync, even higher

among Business proessionals (43% vs. 21% or I proessionals). Tis is a very common problem andeven Business admits the situation occurs too oen.

Table 18: Agreement on Project Completion: Only 23% o participants eel that Business and I always

agree on when a project is truly completed, opening the door to rework, missed deadlines and scope creep.

Table 19: Satisaction with Outsourced Sofware Development Projects: Satisaction with the outcomeo outsourced projects is moderately high, but only 23% are always satised, leaving room or improvement.Interestingly, the Business is more likely to always be satised (35% vs. 20% among I).



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Table 20: Most Important Attribute o an IT team (CEO perspective): When asked what their CEOeels is the most important attribute o an I team, the assessment is split between the ability to deliverpredictability (70%) and getting the project done on time (63%). Far ewer participants believe thatnot breaking the budget is their CEOs priority or the I team.

Table 21: Time Spent on Rework: 80% o respondents admit that at least hal o their time is consumedwith rework that could be avoided or at least minimized. Only 21% indicate that a small portion or lesso their time is spent in this area.

Table 22: Degree o Dened Roles and Accountabilities: While nearly all agree at least to some degreethat their role has been clearly dened (89%), lack o clearly dened roles is viewed as a major barrier toproject success. Business proessionals are more likely to say yes to this query than their I counterparts(74% vs. 60%).



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Conclusion

Tis research reminds us that problems lurking below the surace o most soware projects cause manyproessionals to have little condence that their projects will ultimately satisy all concerned. Most othese problems all into the ollowing categories:

oo much rework and scope creep Inconsistent business involvement Business stakeholders out o sync with each other Fuzziness on project objectives Unclaimed accountability or the bigger picture

As evidenced, these problems are interconnected, and when le unchecked, create a cascading efect thatcompromises team perormance and erodes the ability to predictably deliver successul projects.

Most soware projects begin with much promise and high expectations. However, commitments areoen made too quickly without a collaborative view o project success. Conusion around business

expectations starts early in the project, is transerred to I and carried orward throughout theproject. All o these actors cause teams to anticipate road blocks and or big expectations to becomebigger disappointments.

Te Way Forward: Tis ime We Will Do It Diferently.

Teres a good chance that many o us have been staring at these problems all along and just need tounderstand what we are seeing and what to do about it. ake a hard look at your own processes and askhow you can help acilitate:

1. Communication o clear business objectives

2. Measurement o project results against business objectives3. Ownership o the project goals vs. design o the solution4. Collaboration between the business and I to drive alignment5. A common vision across every part o the organization involved

Acknowledge and validate your teams uncertainty about project success. Ten commit to doing what isnecessary to set your team up or or success. Rather than letting your team bank on having problems,get them excited about the prospect o success by arming them with new practices to get there.

About Geneca

he ability to deliver a predictable services experience is one o the great challenges acing the sotwareconsulting industry.

We believe that predictable soware development is achievable. It requires an understanding o how to create acommon vision o success. It means empowering talented people to do great things. Most o all, it takes awillingness to make and honor commitments.

o learn more about Geneca:Web: www.geneca.comBlog: http://www.gettingpredictable.comOce: 630-599-0900Press contact: [email protected]

http://www.geneca.com/?utm_source=online-survey-report&utm_medium=pdf&utm_campaign=online-survey-20102011http://www.gettingpredictable.com/?utm_source=online-survey-report&utm_medium=pdf&utm_campaign=online-survey-20102011http://www.gettingpredictable.com/?utm_source=online-survey-report&utm_medium=pdf&utm_campaign=online-survey-20102011http://www.geneca.com/?utm_source=online-survey-report&utm_medium=pdf&utm_campaign=online-survey-20102011

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