Can Recover Project Failure

Published Date: 02 Nov 2017

YAN JI

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Abstract

The paper aims to demonstrate effective techniques are used to solve project problems, leading to achieve companies’ success. All reviewed articles which are referenced and used in the report included in the Association of Business Schools.Furthermore, the information of a typical case is derived from China’s project management. The report will go through a simple introduction for the paper aiming to state the purpose and key ideas. Next, overview and analysis of several concepts, including project management, project, the reasons of existing project problem and the tool of project recovery framework, as well as providing typical case for application to state project problem and solutions. After that, the different understanding of major points of this report will be demonstrated. All the theories will be paid attention on integrate dealing with project problems.

Key Words: project problems, project management, project recovery framework.

Introduction

A project will be successful or not, depending on most of the participants, who are not only abilities but also motivated to generate a win-win outcome. A mass of procedures, methods and techniques are going to implement, which is linked with the general project management and people ability, enable the project to achieve the set criteria of cost, scope and time in the most effective direction (Lester, 2007).Project management is as an efficient source to control complex or novel activities. It is more efficient than traditional kinds of management, for instance, functional departments in a hierarchical organization. The process is to bring new or renew projects on stream and enter into the market to fulfill demands though different management methods to maintain day-to-day operations (A K Munns and B F Bjeirmi,1996). During this period, companies successfully implement the techniques of project management, since they will have an unfamiliar and unique undertaking. These undertakings are the crucial methods to if companies make the right or wrong choices, affecting the successful or falling outcomes. IT projects, in particular, which contain a variety of hardware and software products hold a high rate of failure.

Consequently, a study about the drawbacks of project management and correspondent efficient solutions will be stated. Basically, several stages for the format of this report will be showed. First of all, review several analysis and overviews of key theory, comprising overview of project management and project, analysis of the reasons of existing problems of project, overview of the project recovery framework. In addition, given IT project case for application, it is going to present the some pain points affect the performance of project and adopt several solutions to solve, in order to recover the project. Also, a detailed conclusion of the paper will be given in the end. Besides, the objective of this report demonstrates useful techniques to be adopted to solve project problems, leading to achieve the successful consequences for companies.

Overview and analysis of key theories

1.Overview project management and project

A project is the achievement of a specific goal, involving a number of activities and tasks(Erik & Clifford,2011). It expends resources to complete the specification during the certain time. In contrast, the process of handling the achievement of the project purpose within a short term can be defined as project management (A K Munns and B F Bjeirmi,1996).Some researcher also think that " project manangement is a management discipline that is receiving a continuously growing amount of attention"(Mantel,2005&Shtub,2004)Both are heavily tended to the achievement of the project, but they actually have important distinction depending on the emphasis of definitions. The project tends to define and select an activity which will bring benefits to the company. It is based on the whole life to bring benefits in the area of financial, marketing or technical for organizations (Archer&Ghasemzadeh,1999). On the other hand, project management looks for managing the project through adopting a series of techniques and tools, without negative obstacle for the routine operation of companies (Aubry, Hobbs&Thuillier,2007). It tends planning and control, which focuses on time, budget expenditures and appropriate performance level. Here are two diagram illustrates the difference between project and project management.

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Figure1.The stages in a project life cycle and the parties interested in each stage

(Source: A K Munns and B F Bjeirmi,1996)

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Figure2.The scope of project management success within the project life cycle

(Source: A K Munns and B F Bjeirmi,1996)

2.Analysis of the problem project

Generally,The possibility of success on any given project may be less than the possibility of failure. The results of project management success or failure are many. There are early warning signs, but are often misunderstood. Some organizations have a poor understanding of managing troubled projects.They would include the aspects of budget, project schedule, quality standards and project goal. In detail, project management fail to achieve the goal, Avots(1990) suggested contain (such as):

"Inadequate basis for project

Top management unsupportive

Wrong person as project manager

Inadequately defined tasks

Management techniques misused

Lack of project management techniques

Project closedown not planned

Lack of commitment to project"

Also, project’s greatest drawbacks are in time, organization and resources, and to a lesser area project cost, definition, contracts and change (Hussain & Wearne,2005). The reasons of these problems may overlap, but asking what is the major one has built that project managers can first give priority of attention to allocate. Taking action on the greatest problems, requires the focus of project managers with understanding of choices in structure, tools for analyzing business processes and skills in leadership (Cooke-Davies,2002).Each resource has a limited size basing on each job requires to use a part of each resource during its implement (Gargeya&Deane,1996).This field covers a various types of problems, such as scheduling project tasks subject to precedence and resource constraints.

The research shows clearly that there is a high rate of failure in the area of IT project(Walid,Khalid,Saleem&Hani,2009).The reasons of failure contains technological unfamiliar, managerial issues, organizational and functional problems.Standish Group International in 1995 conducted "several thousand of It project revealed that only 16% of those projects were finished on time, and within the estimated budget;32%were terminated before they were completed, while the remaining 52% involved costs higher than the original estimates and were completed behind their schedule"(Standish Group,1994). Another research from the UK by Oxford University and Computer Weekly in 2003 stated, there is merely 16% of IT projects were considered to meet success(Sauer&Cuthbertson,2003).

3. Overview the project recovery framework

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The project recovery framework plays a important role as an effective technique for rescuing problem project, consisting of recognize, assess, diagnose, direct and learn (Joe, 2012). The troubled project recovery framework helps project managers or sponsors to assure overall quality and management. It also address personnel and management issues as well as the coding-intensive focus of these frameworks (Havelka, D., Sutton, S. G., and Arnold, V.,2001).

The Recognize Phase

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The first stage is to realize a series of pain points and detect the early signs of potential project problems. Caper stated (1995) the initial problem situation can be overcome when a project headed toward disaster or cancellation, which can be considered a recovery. "Recovery may not always be possible" (Douglas&T.M., 2006).In order to improve likelihood of recovery, early discovery of the project drawbacks is the good way. This stage is also the way to review the project and its history. In addition, this should be finished as quickly as possible because time is a constraint and have to review the next important stages.

The Assess Phase

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This phase is a critical assessment of the project’s current status. The project team should assess the actual performance and perform a root cause analysis. Looking for surface problem is an easy way, but they should focus on the hidden failure points.Furthermore, the project teams also need to look at the issues log to ensure if the issues are people issues or systems and so on. Some authors identifies reasons for project failure and concluded that the critical factors are related to project, to project manager and team members, to organization and to external environment(Walid Belassi &Oya Icmeli Tukel,1996).Generally, people issue is a big problem. It can be difficult to get their opinion for what went wrong. Another problem is that staff may hide some critical information, which negatively affects the assessment phase, even the whole project recovery framework.

The Diagnose Phase

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The necessary data for decision-making and team’s support are two key aspects for the recovery. It should work with the project team and determine the options of solution to show to the stakeholders (Harold Kerzner, 2009).When a project is in trouble, there may not be valid that the original budget and schedule. The project may cost more and spend longer time than original one. In other words, stakeholders concern on whether or not to support the project may change to value, quality and reputation at first. However, they may change the direction to pay attention to time, cost, scope and potential risk after occurring project failure. Sakellaropoulos and Chassiakos(2004)said that "we cannot solve our problems with the same thinking we used when we created them". Also, some argue that change still has a high failure rate(Julia&Mark,2003).It is necessary to hire new people with new ideas to bring into the current project .Otherwise, a project manager should notice some of team members may be also committed to others beginning projects.

The Direct Phase

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When making decision whether or not kill a project, a project manager needs to be gone through the recognize phase, the assess phase and diagnose phase in advance. The project managers should heavily ensure to consider and contain employees, suppliers, customers and communities when implementing this direct stage (Kenneth,2009).Meanwhile, consideration for the rationales why projects are killed, which can see and understand by stakeholders. Such as one reason is a project occurs contradiction with the business goal and company strategy. The project managers have to cut the project after consideration for interest relationship, avoiding unnecessary waste on resources.

The Learn Phase

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During the last step, the project manager should focus on certain back implementation factors, such as learning from pervious mistakes, strictly control the scope change process, providing open communications. Ochieng& Price (2010) suggested project teams without face-to-face contact or to negotiate or develop relationships are difficult to manage. On the other hand, knowledge management also plays a critical role in the area of the learn stage. Some scholars consider knowledge is a high valuable form of information that is ready to adopt for decisions and actions (Thomas, David &Michael, 1998).

4.IT project case for application

1) Background

Almost all civil aviations have set up their own software development department in China at present. However, the percentage of project success is too low, because a mass of civil aviations apply the traditional model of project management, meanwhile, there is wide difference between the area of organizational system, project implementation and software development business.

The civil aviation administration of China deployed and set up the leading team in order to solve problems in 1998. This was the first time that the organization introduced the layout of software engineering project management. The project manager was acted by computer system manager, and built project team accordingly. The objective of project is divided into two aspects. Firstly, the tasks should be completed by October 1999.Meanwhile, improving the function of allocation and increase the function of SPA (Special proportional allocation).The center wants to boost the capacity of professional software development and accelerate process automation. Nevertheless, the result of the project is not ideal, such as the delay of SPA system by March 2000.Adopting the project recovery framework, the project manager can make right decision to kill or recover the current project.

2) Identify problems

Through the recognize stage, some pain points can be found in this project and also can identify influences. The project compass pain points in the area of technology, people, culture and capability.

2.1 Poor project system

The purpose of the project was to complete software development with flexible and efficient and achieve informatization in the area of main businesses.Nevertheless, it misidentified the concept of project and department without detailed analysis and brought computer system department into the same project briefly.Furthermore, the key of problem solution was to modify the original system of functional module from the project goals. Although the project strategy had great significance, the workload of project was not large and easy to control. In relation to SPA, it was a new system to implement basing on the allocation system of Lufthansa. One side, SPA had no correlation with the center’s original new system. On the other hand, there was incompatible relationship between Lufthansa’s system and center’s system, due to the change of hardware environment and the complex agreement of SPA. Depending on that situation, the project needed a wide range of modification and logical reconstruction with heavy workload and larger difficulty. In addition, there should set up two independent project team.Otherwise, there was less understanding of building project. The center of project team did not reflect project with flexible and efficient, and limit the permissions of subordinates’ team and the ability to human resources, then affected the project progress.

2.2Deploy human resource

The center has not formed the people-oriented modern of human resources management system, due to be affected by long-term planning system. On the other hand, personnel turnover is a major issue. The major reason of leaving is less training opportunity, weak job challenge, and lower opportunities of promotion and so on, rather than salary problem. These issues fully show the fact there are severe matters existing in the area of human resources management. Frequent personnel turnover has brought large negative impact for the area of startup and development, especially the development of SPA module. Allocation is the key of settlement business, moreover SPA is the major difficulty in the settlement system and needs strong professionalism. Lack of personnel in the area of software development directly affects the startup of project, this is also one of the main reasons for project failure.

2.3Communication and conflict

The center continues to use the functions of the organization system rather than reflects the characteristics of project as cross-functional platform, when builds software development project. The project team is determined to communicate with customer support department and the end user basing on the form of organization and allocation of project members. Weak communication channels lead to frequent conflict within the process of software development.

Conflict is mainly manifested in two aspects. Firstly, human resources competition exists both project manager and head of customer support department. According to setup functional organization, customer support department is responsible for connecting with airline companies, meanwhile, this department is the sole channel to communicate with both project team and users. Due to customer support department has no responsibility for project, so they move their own business priority level. Secondly, transferring information cause misunderstanding between project manager and user contract manager due to delay and lose information. In the process of project, the requirements of user cannot be submitted in time to the R&D department and even be distorted. The result is often to redesign programs by developers.

2.4Knowledge management

Knowledge management is the new content of project management(Marja&Lorna,2005), but is not paid attention by project personnel. A typical example is less standard for arranging development documents. The program document is an important communication channel for developers and user, and is a key basis for use and system maintenance, as well as a significant aspect for software project. Therefore, project manager should supervise to compile program documents by developers. Team members do not realize the importance of knowledge management, which is arranged the end stage of task rather than synchronized with development work in the project process. The result leads to get incomplete documents and add more burdens for some departments.

3) Solutions for Problem project

Solutions should be found through change management. After bringing problem solution into actual practices, the project managers can make better decision whether or not kill the problem project.

3.1Establish flexible project organization

In the field of traditional industries, software project generally exists in the form of functional organization. Functional department managers are responsible for project tasks, which allocated by the center project department. Whereas, the different departmental managers have priority views for project tasks. Therefore, the outcome leads some jobs to delay due to lack of cooperation. In addition, the project manager is lack of power, who cannot control and evaluate project members for the progress and effect of work, leading to cause chaos in the aspects of process management and personnel management.

The best solution of above problems solving is to build matrix organization(Wei,Yue,Chia,Chu&Ming,2012) within software engineering projects. The project manager is mainly responsible for project, and the functional managers assist to assign personnel. The project manager implements to recruit needed personnel from other functional departments. And the performance of project members is evaluated by the project manager rather than is controlled by the original departments. This reduces the effects of the functional departments for project, and project manager can more effectively control project.

Enterprise organization structure, on the other hand, generally assumes the pyramid from the top of decision-makers to the bottom of operating personnel. This hierarchy system causes overlap, bureaucracy, low efficiency and highly frequent change to adapt to the contents of software project management (Hartmann S, Sprecher A.,1996). The internal project organization can be flattening by reducing the management level, such as cancellation of department levels. Furthermore, the center should establish new development team with the characteristics of agile, flexible, fast and efficient. The advantages of this flat project organization tend to reduce the management cost and enhance the project on the speed of market responses and the ability of satisfaction.

3.2Build good human resource management system

Organization should fundamentally build the modern management thought of people-centered and highly realize the role of human resources(Sean&Diane,2005).First of all, companies should encourage all personnel to participate in project management. Project implementation personnel have the more detailed information on the progress of project, but they lack of voices. And the project manager is mere an executor of the tasks. The progress of project is fully controlled by the top managers. It is not conducive to project management and project staff’s enthusiasm and creativity. Therefore, regularly holding the joint meeting with all levels staff, they all have opportunities to open communication. Secondly, companies should establish learning organization as soon as possible. Strengthen personnel training and emphasis on training project management personnel, which are the good solution to achieve higher quality of project staff, increase the probability of project success and enhance competitiveness and viability of organizations. Thirdly, companies are suggested to set the promotion channel for personnel in the area of software development. The promotion of software developers is relative less, affecting significantly the work enthusiasm of developers and the stability of the development team, because it is not the key department in the area of traditional industry organization. In order to fundamentally solve the problem, the personnel system should be reformed and set up right position for right staff.

3.3Promote standardization and systemization

The software engineering project is a kind of concentrated human resource project, that is, the fundamental guarantee for project success is the excellent development team. At present, the state-owned enterprises stand at low level to attract talents and maintain talents. So these institutions must set up a series of measures for standardization on the process of software development, though establishing the infrastructure of management methods, practices and rules. Even personnel leave, who initially defines methods, practices and rules, the project can continue implementing.

To be a great software product lines, software engineering team has to the following necessary steps. Firstly, the firm should build the basic software management control, combining the previous data and current project requirements to plan a feasible project agreement. According to products is created by project team, the firm should set up a performance baseline and control its integrity. On the other hand, the team should implement standards of software project, which is formulated by the companies. Secondly, the project team devotes to develop and maintain software process, including the process of software engineering and the process of software management. In order to control product lines, cost, schedule and functionality, as well as quality of software, the organization should build consistent standard on the software process.Thirdly, as a part of development plan, the organizations measure the productivity and quality of important processes. This is a good way to take action when exceed the limited field. The project limits quantitative within the acceptable range through the change in process, achieving control on products and processes.Fourthly,basing on the pervious steps, the project team should analyze own drawback to ensure reasons and learn lessons.Finally,organization has the ability to identify weaknesses and improve project progress in advance.

4) Lessons learnt

From learning from above case, I think there are a lots learnt which is large useful in the future IT project. Effective communication plays a critical role in the project, both organize the project or start to recover the problem project. The first step of enhance communication is to practice with many times. When the members are willing to share knowledge and experience, the spirit of this team is greatly improved. Afterwards, the project team members should understand the tasks for others, so each share ideas to improve the efficiency. Misunderstanding leads not only to make slow or no progress during the project time, but also to waste extra resources. Human resource is the major asset in an organization. It is crucial chain for the project how to make reasonable decision for distribution of personnel. The project manager plays a key role in the project, which should have power to control the progress, resources and relationship with other departments. The last and foremost point is innovation on system. Chinese civil aviation draws into SPA from allocation system of Lufthansa as a way to create in the software system. However, they use traditional project management rather than innovated one, leading to occur project failure. Overall, whether project manager or project members should concern on details of the project.

Conclusion

The Chinese civil aviations is facing major issues when it comes to finishing projects. This is especially the case for recover problem project. The study has revealed the problems as the cause of project failure and the solution for project recovery by adopting the project recovery framework. The software engineering project management will be increased in the area of traditional industries. When organizations devote to seeking a suitable model for project management, it has important meaning for industry modernization and informationization, as well as enhances the competitiveness of Chinese enterprises. The lessons learnt from Chinese civil aviations that is performing periodic project health checks(Harold,2009) and carefully notice the early warning.The health checks not only discover the surface but also the inside part.

The report first highlights the difference between project and project management. It also attempts to present how the objectives of a project and project management are distinct. Project management is based on building a new project. A project has a wider goal, but project management tends to achieve short-term targets. There also needs to consider risks to lead project failure. The root causes are described in the paper that the project teams should pay attention to control time, scope and cost, avoiding extra consumption. The success or failure of a project is largely linked with the role of project management.

Next, one must always need in the problem project that project recovery framework will contribute to recover the failure project. It needs to go through five stages, including recognize, assess, diagnose, direct and learn. Not all problem projects can be recovered, it depends on the results through adopting project recovery framework. The last two processes are based on the first three of evaluation stages. If these three stages occur tiny mistakes, the problem project has no longer to rescue. Therefore, project managers should concern on totally understand the specified troubled projects through auditing and diagnosing.