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The success rate of ICT projects managed by a Master Systems Integrator (MSI) is about 60%. When compared with the standard 31% success rate for all ICT projects, there are clearly some important lessons to be learned. The business models and structure of MSIs restrict their operations to the “Top 5” segment where only 15% of all ICT projects are being delivered. However the other 85% of ICT projects can also apply their methods to improve the performance of project delivery. Top quality ICT project delivery performance can be achieved by every enterprise with: (1) Clear, High Quality Strategy; (2) Good Governance Processes; (3) Quality Project Management Procedures; (4) Effective Change Management; (5) Quality Communications and (6) Higher Emotional Intelligence.
Learning these best practice ICT project lessons and applying them to an important business transformation program can be both a valuable and a daunting prospect for any enterpise. Applied EQ Services Ltd can help with the coaching support to optimise skill sets and deliver a sense of assurance for any enterprise needing to more confidently conduct the "orchestra" for their own projects.
ICT projects managed by a Master Systems Integrator (MSI) have a success rate of about 60%. That’s according to a 2017 study by the Aberdeen Group: "Master Systems Integrators: A Key to Achieving IT Success".
Compared with the 31% success rate for all ICT projects as reported by the annual Standish Group survey; there’s clearly some important lessons to learn.
The Aberdeen Group study found the higher 60% success rate for ICT projects is generally achieved by MSIs providing a core set of their services:
Project management:
helping organisations plan, execute, and deliver their ICT projects on time and within budget.
Technical expertise:
helping organisations select and implement the right IT solutions for their needs.
Industry knowledge:
helping organisations to ensure that their ICT projects are aligned with their business goals.
Partnerships:
Bringing partnerships with other companies, (H/w & S/w vendors) to help organisations get the best possible pricing and terms for their ICT project technology.
By contrast, the Standish Group survey finds, the key factors driving the low 31% success rate that is typical of most ICT projects are:
Clarity of the project goals
Unclear project goals make it difficult to measure success and ensure that the project remains on track.
Experience and skills of the project manager
A PM without the experience and skills in managing ICT projects is more likely to be unsuccessful.
Key stakeholder involvement
The involvement of key stakeholders throughout the project is essential to ensure that the project meets the needs of the organisation.
Quality change management
ICT projects are often more complex and involve both planned (and unplanned) changes. The delivery process must be able to manage this change effectively to ensure that the project is successful.
Resources
The project must have the resources, such as funding, people, and equipment, necessary for its full scale, scope complexity and unknown .
So why (as reported in the same Aberdeen study) are only 15% of all ICT projects delivered using MSIs? The reasons are structural and arise mostly from the larger size of the major MISs (like Accenture, IBM, Capgemini, CGI Group, Wipro, HCL Technologies).
Cost:
MSIs typically need to charge more (per hour) than other types of companies that deliver ICT projects. This is because they employ more and higher paid resources with specialised experience and expertise in their complex projects.
Scope:
MSIs typically focus on the larger and more complex projects than other types of companies that deliver general ICT projects. This means MSIs need to find clients who are willing to commit the time, resources and management focus necessary for big scope projects.
Risk:
MSIs typically can take on more risk than other types of companies that deliver lower risk ICT projects. Their deeper financial resources, breadth of project portfolio and in-house experience helps them to off-set risks associated with working on new and innovative projects.
Competition:
There are many great local companies that deliver ICT projects, and MSIs are not always the most locally competitive or culturally compatible option. Largest MSIs are typically more expensive (per hour) and are targeting a narrower high-end segment of the ICT market.
Market Awareness:
MSIs are not as well-recognised across many segments of the market outside the large higher-end enterprises. Marketing of ICT program delivery services is generally reliant on referrals, recommendations and word-of-mouth making it difficult to communicate their less familiar value proposition to prospective clients.
Important lessons can still be learned from the success of the larger MSIs that will help increase the chances of success for any ICT project. The key lesson is that any and every enterprise, even those who don't fit into the MSI Top5 target 15%, can improve the performance of their ICT project delivery. The priority requirements are:
Clear Quality Strategy:
Start by establishing a clear understanding of the ICT project goals.
Work with trusted advisors and knowledgeable experts to ensure everyone involved in the ICT project understands the objectives (and deliverables), that they are aligned with the organisation's overall goals and the plans are founded on quality technical expertise & sound industry knowledge.
Good Governance Processes:
Get buy-in from key stakeholders.
Make sure that the strategy and the plan and the project work-streams each have all necessary support of the people (stakeholders, sponsors and customers) who will be affected by them.
Quality Project Management Procedures:
Build and maintain an accurate and detailed project plan.
The project plan should include the project objectives, the tasks that need to be completed, the resources that will be needed, and the timeline for completion.
Manage change effectively.
ICT projects are often complex and will involve change. The PMs and their processes must be able to manage change effectively to ensure that the project is successful.
Communicate regularly and effectively with stakeholders.
Keep stakeholders updated on progress with the project and performance against the objectives. Ensuring the communications are reliable, accurate and objective helps effectively qualify any stakeholder concerns or missed expectations.
Higher Emotional Intelligence:
Be flexible.
Things don't always go according to plan, so the PM and their management processes must be able to support and adapt to changes by making adjustments as needed.
Celebrate successes.
Change is challenging. It is important to celebrate successes and mark milestones along the way to help keep morale high and to motivate the stakeholder and the delivery teams.
Learning and applying the best practice ICT project lessons for an important enterprise transformation project can be both a valuable and a daunting prospect. If you have a complex ICT project but you’re not necessarily one of the big-5 MSIs 15%, it may be helpful to discuss more about applying these best practice lessons to your own ICT project delivery. If you’re wondering about potential gaps or if there are questions about exactly how you’ll assure the success of your own ICT transformation, Applied EQ Services Ltd can help provide the coaching support you need.
Coaching to help calibrate operating processes so they’re aligned with global best practice,
Coaching to help apply project procedures effectively so they improve local project delivery service
Coaching to develop communication skills and techniques for confident successful leadership.
Coaching to introduce aligned partners and expert thought leaders so they can help qualify and calibrate the plans
Engage Applied EQ Services for bespoke online coaching, mentoring and consultancy services.
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