How to Cause Information Technology Disasters William A. Yasnoff, MD, PhD Oregon Health Division.
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How to Cause Information Technology Disasters William A. Yasnoff, MD, PhD Oregon Health Division 1 Causing IT Disasters Risks of Information Technology Types of Disasters Disaster Strategies: Management Disaster Strategies: Technical Avoiding Disasters 2 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 3 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 4 Nolan & Norton Benefit/Risk Grid HI B E N E F I T S LO 5 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 6 Strategies for IT Failure Management Technical 7 Key Elements in IT Projects Time Features Budget 8 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 9 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 10 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 11 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 12 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 13 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 14 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 15 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 16 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 17 Strategies for IT Failure Management Technical 18 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 19 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 20 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 21 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 22 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 23 Avoiding Disasters Reasons for success and failure Warning signs of projects in trouble Paradigm for IT project implementation 24 Reasons Projects Fail Expectation Mismatch Poor communication Bad idea Forcing project delivery dates Assigning under-skilled managers No business sponsorship No comprehensive plan 25 Reasons Projects Succeed User involvement Management support Skilled, experienced project managers Clear requirements statement Comprehensive work plan Sound development methodology Prototyping Extensive Testing 26 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 27 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 28 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 29 Key Elements in IT Projects Time Features Budget 30