How to Cause Information Technology Disasters William A. Yasnoff, MD, PhD Oregon Health Division.

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Transcript How to Cause Information Technology Disasters William A. Yasnoff, MD, PhD Oregon Health Division.

How to Cause Information
Technology Disasters
William A. Yasnoff, MD, PhD
Oregon Health Division
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Causing IT Disasters
 Risks
of Information Technology
 Types of Disasters
 Disaster Strategies: Management
 Disaster Strategies: Technical
 Avoiding Disasters
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Risks of IT: How Projects Fail
 Functional:
system does not perform
needed tasks (correctly)
 Users resist new system
 Management resists new system
 Cost overrun
 Delays
 Technical problems: system does not
work
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Sources of IT Risk
 Mismatched
expectations
– lack of knowledge by management
– lack of accurate forecasting
– lack of adequate communication
Inadequate planning
 Changing specifications
 Resistance to change
 Technology

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Nolan & Norton Benefit/Risk Grid
HI
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High Wire Acts
Dud
Block Buster
Bread & Butter
D O AB I LITY
HI
Rates of IT Failure are High
• 16.2% were “project successful” (software
projects that are completed on-time and on-budget among
American companies and governments)
• 52.7% were “project challenged” (they were
completed and operational but over-budget, over the time
estimate, and offers fewer features and functions than originally
scheduled)
• 31.1% were “project impaired” (canceled)
Source: “Charting the Seas of Information Technology”
The Standish Group 1994
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Strategies for IT Failure
 Management
 Technical
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Key Elements in IT Projects
Time
Features
Budget
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1. Trust the Vendor
 Buy
system without clear problem
specification
 Rely on single source of advice
 Ignore standards and open systems
 Select the lowest cost option
 Use only one vendor for all purchases
 Only allow use of “standard,” centrally
approved software
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2. Delegate
 Implement
and manage IT systems with
different group from purchaser
 Separate strategic and operational
management
 Impose cosmetic quality control
standards
 Delegate operations, retain financial
control
 Develop rigid job descriptions
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3. Impose Rigid Controls
 Eliminate
exploratory work
 Enforce conformity with current inhouse standards
 Require justification for every computer
system expenditure (savings or
competitive advantage)
 Eliminate operational managers who
take an organization-wide view
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4. Divide and Rule
 Separate
business and IT functions and
personnel; separate career tracks and
reporting lines
 Encourage competition within the
organization; discourage collaboration
 Maintain management ignorance of IT;
do not fund IT continuing education
 Underpay all IT staff
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5. Use IT as Tool for Finance
 Place
IT under Director of Finance
 Use IT primarily for financial control
 Focus IT efforts on executive information
systems
 Move corporate staff to remote site
 Move IT staff and operations to
(different) remote site
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6. Use Consultants
 Rely
solely on external consultants for IT
 Use the same external consultants for
management advice
 Eliminate any in-house staff that address
the areas of IT covered by the
consultants
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7. Set Objectives
 Impose
rigid quarterly financial
performance objectives with required
cost-benefit analyses of all IT
expenditures
 Use IT to support and reinforce vertical
patterns of management reporting
 Do not support general objectives with
detailed IT project planning
 Always accept the lowest bid
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8. Control Information
 Restrict
contacts between departments
 Penalize criticism of IT systems
 Avoid discussions of failures or
conflicting views
 Minimize communication between
management and staff
 Centralize all IT operations and
development
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9. Avoid User Input
 Do
not consult with staff who will use or
be affected by new systems
 Provide minimal training in new IT
systems
 Automate all possible functions with the
goal of eliminating the maximum number
of staff
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Strategies for IT Failure
 Management
 Technical
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1. Technical Leadership
 Appoint
a technical project leader with
complete authority; do not involve users
 Ensure that team consists only of
programmers
 Give technical team complete financial
and decision-making autonomy
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2. Resources
 Provide
whatever resources are
requested at outset and as project
continues
 Do not involve managers or users in
resource allocation
 Provide latest state-of-the-art equipment,
software, and tools without regard to
other IT systems
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3. Planning
 Insist
on complete specification of system
in advance, including all deliverables,
tasks, and sub-tasks
 Require strict adherence to a timetable
completely defined in advance
 Allow continuous modification of
requirements throughout the project
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4. Feedback
 Avoid
discussing technical issues with
users
 Avoid user testing of system operational
concepts
 Develop complete working systems
without user involvement
 Insist on user cooperation in use of new
systems even if they do not benefit
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5. Technology
 Encourage
development of custom
software and tools rather than use of
commercial packages
 Encourage use of latest technology,
especially if unproven in operational
systems
 Avoid purchases of any capability that
can be developed in-house
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Avoiding Disasters
 Reasons
for success and failure
 Warning signs of projects in trouble
 Paradigm for IT project implementation
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Reasons Projects Fail
 Expectation
Mismatch
 Poor communication
 Bad idea
 Forcing project delivery dates
 Assigning under-skilled managers
 No business sponsorship
 No comprehensive plan
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Reasons Projects Succeed
 User
involvement
 Management support
 Skilled, experienced project managers
 Clear requirements statement
 Comprehensive work plan
 Sound development methodology
 Prototyping
 Extensive Testing
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Project Failure Warning Signs
 Lack
of agreement on goals
 Continuously changing requirements
 No written project implementation plan
 Rapidly growing budget
 Repeated contract modifications
 Major deliverables are late
 Project managed solely by contractor
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Paradigm for Success
 Behavior Modification
– management
– users
 Minimize
increments of change
 Use intermittent positive reinforcement
– provide real benefits to users
– what they want, NOT what you want
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Disaster Avoidance: Pearls
 Clear
goals supported by management
 Adequate budget and time
 Continuous user involvement
 Planning
 Use proven methods & technology
 Prototyping
 Minimize increments of change
 Behavior modification
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Key Elements in IT Projects
Time
Features
Budget
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