Breaking down the approach to dividing IT endeavors
In the realm of IT projects, success can often be elusive. From government initiatives like the Child Support Agency's case management upgrade and the NHS's National Programme for IT, to private sector ventures, large-scale IT projects have a tendency to fail spectacularly.
A key factor in this issue lies in the complexity of these projects. Splitting application functionality into discrete web services, as seen in Service-Oriented Architecture (SOA) projects, can lead to complex interdependencies between services, increasing the overall project's complexity. Dividing a single functioning system into smaller subsystems can also increase technical complexity, making project management more challenging.
One strategy to reduce this risk is to split large projects into smaller, manageable chunks. This approach, when executed effectively, can help minimise interdependencies between subsystems, thereby reducing project complexity and risk. The key to this lies in identifying functions that have 'synergy', where one is not useful without the other from the business's perspective.
Identifying synergistic functions allows predicting where interdependencies will lie, which can be done early in the design phase. This proactive approach can help prevent an organization from effecting substantial business change, a pitfall that can occur when sticking to small, bite-size IT projects.
Research by Alexander Budzier and others has shown that the 'social complexity' of an IT project, which includes user resistance, stakeholder turnover, team turnover, and knowledge transfer between parties, is a more powerful predictor of IT failure than technical complexity. Therefore, managing these social aspects is crucial for the success of IT projects.
Another theory for why large IT projects fail is the likelihood of unforeseen catastrophes during longer project durations, often referred to as 'black swan' events. These unpredictable, catastrophic events can have a significant impact on project success. One in five IT projects will suffer a 'black swan' event, four times as many as construction projects. The longer a project takes, the bigger the window for a black swan event to occur.
To combat this, a development methodology that combines the forward visibility of traditional 'waterfall' projects with the flexibility and responsiveness of Agile could reduce the risk of large IT programs. Agile software development techniques, such as delivering functioning code every two weeks and involving the customer in the process, are not scalable for large projects worth more than £50 million. However, a hybrid approach that leverages the benefits of both methodologies could provide a solution.
Learning from prior project experience is also essential in analysing project risk. The problem with IT projects is not the average cost or schedule overruns, but the outliers or extreme cases. By studying over 5,000 IT projects, Budzier and Flyvbjerg have identified factors contributing to project failure, providing valuable insights for project managers to avoid repeating the same mistakes.
In conclusion, managing IT projects effectively requires a strategic approach that considers both technical and social complexities, minimises interdependencies, and learns from past experiences. By doing so, organizations can reduce the risk of calamitous failure and increase the chances of successful IT transformation.
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