Category Archives: project management

Winds of energy change blow through Germany and China

By David Bicknell

Change in government priorities and policies can drive structural change that generates significant investment and growth. That is now particularly the case in energy production projects in the aftermath of the Fukushima disaster.

From this article on Business Green, it appears that Germany  is set for a significant investment in wind power with the setting up of a number of offshore wind farms with new hydroelectric power plants in the offing too.

German energy companies and investors are ready to plough up to €60bn into overhauling the country’s power infrastructure, following the government’s pledge to phase out nuclear reactors.

The energy and water industry association BDEW issued a report on the first day of the Hanover industrial fair revealing that plans are underway to build or modernise 84 power stations with a combined capacity of 42GW.

As Business Green says, the report also provides one of the most detailed insights to date on how the German energy sector plans to cope with the government’s commitment to phase out nuclear capacity in the country post-Fukushima.

Another recent article shows that China is making similar investments in wind energy, spending the equivalent of £4bn in the North-Western Gansu region.

As Jonathan Watts reports, “Wind turbines, which were almost unknown five years ago, stretch into the distance, competing only with far mountains and new pylons for space on the horizon. Jiuquan alone now has the capacity to generate 6GW of wind energy – roughly equivalent to that of the whole UK. The plan is to more than triple that by 2015, when this area could become the biggest wind farm in the world.

“Although it is the world’s biggest CO2 emitter and notorious for building the equivalent of a 400MW coal-fired power station every three days, it is also erecting 36 wind turbines a day and building a robust new electricity grid to send this power thousands of miles across the country from the deserts of the west to the cities of the east.

“It is part of a long-term plan to supply 15 per cent of the country’s energy from renewable sources by 2020. Most of that will come from nuclear and hydropower, but the government is also tapping the wind and solar potential of the deserts, mountain plateaus and coastlines.”

Meanwhile, Britain could pump £13bn into the economy and create up to 10,000 jobs by upgrading its power distribution network with smart grid technology, according to a Reuters report.

The technology has the potential to transform the way electricity is generated, distributed and consumed just as the Internet transformed the way the world communicates.

The idea is to create a communication network to maximise efficiency in supply and demand and to cut costs for homes and businesses.

Related Reading

UK smart grid could create jobs, help economy

How many organisations are failing to deliver on their Agile developments?

By David Bicknell

How many organisations are struggling to see real value and business benefits from their Agile IT projects?

This blog, looking back at some of the predictions for Agile in 2012, argues that a number of organisations that have adopted Agile have an inability to understand its why and how, while others are inadaquately prepared for adoption, resulting in a failure to address management impact across teams and engineering practices in teams.

The piece cites the Cutter Consortium blog which, in looking ahead to 2012, argued that “many organisations worldwide will continue to adopt Agile. Most of them will do so with no expert guidance, with ho-hum results, and with little understanding of why they got those results.

It suggestted that, “People will continue to get their Agile skills certified while others rail against the value and implication of those certificates. Companies will still rely on head hunters to hire Agile coaches, and wonder why those coaches can’t seem to straighten out their Agile implementation.

“Organisations will continue to agonise over micro-estimation of detailed backlogs. They will continue to spend a pretty penny on “adding bodies” to projects riddled with technical debt, while not investing in the skills and habits their developers need to reduce or avoid increasing such debt. Managers will continue to use language like, “We just hired a resource in development” without investing proper attention in the hired person. And downsizings will continue until morale improves.”

Another blog predicted that, “Everyone will claim they are Agile, but that 50% of them will be wrong, and half of the rest won’t get any value from it. There are too many bad development practices at organisations that have too few people, with too little coaching, and hardly any tooling.”

Meanwhile, this survey suggests that Agile development has a higher priority in the private sector (in the US) than in the public sector.

So what is the true picture for Agile? Is it delivering project success, as JP Morgan and John Deere, have found? Or are some organisations adopting Agile almost as a fashion accessory, without really understanding where they’re going?

Related reading

Agile skills gain ground

JP Morgan adopts Agile in Australia

As Agile as a John Deere tractor

Are your IT projects ‘drivers’ or ‘supporters’?

By David Bicknell

An article by Art Langer in the Wall St Journal argues that IT projects are either ‘drivers’ or ‘supporters’.

Drivers are those projects and activities that affect the relationship with an organisation’s clients i.e. projects that drive revenue directly or indirectly. Supporters, on the other hand, are those everyday activities that are more operational in nature.

Langer cites the work that Dana Deasy has done firstly at Siemens  and more recently at BP.

He writes: “We all know that executives are more interested in implementing technologies to drive the business, than they are in using cutting-edge technology for its own sake. For Deasy, the biggest challenge was mostly building internal consensus about  how the technology would help  customers–and how Siemens could be more competitive in the marketplace.

“Deasy also had to show his executives that the evaluation of investments in these projects would be different than evaluations of other kinds of IT work. With e-business, the market reaction to different product and service offerings can be less certain.

“So Deasy established the concept of “revalidation.” Approved technology projects were reviewed every 90 days to determine whether they were indeed providing the planned outcomes, whether new outcomes needed to be established, or whether the technology was no longer useful.

“Siemens was moving from a traditional process of analyse-develop-deliver to a new process of sensing what a customer might want, and then responding to it more dynamically.”

Langer concludes by saying that, “The idea that all IT projects must succeed is outdated and unrealistic in true “driver” initiatives. CIOs must learn from Deasy’s lesson: If you are engaging in true “driver” initiatives, you cannot evaluate them on the “supporter” method of simple success rates.”

Interesting piece – worth a read.

How to Develop and Evaluate Strategic IT Projects

Standish Group: the 21 perils of using consultants

By David Bicknell

We always have a lot of time for the work of the Standish Group in the US on how and why IT projects fail.

The group’s recent Chaos newsletter makes some strong points about the perils of using consultants. (In fact, in all, it identified 21 perils!)

Standish argues that the number one consultancy misdeed is what is describes as “the X-Factor”. The X-Factor is the difference between what the consultant initially bids to win the contract, and what is ultimately delivered to the client. It is sometimes referred to as “low ball pricing.” These terms accurately reflect the standard practice of bidding on the project as defined. However, “there is conscious intent to solicit, promote, and champion requirements changes.” 

Standish Group continues: “The X-Factor will alter the ultimate deliverable from the project as initially defined and increase the cost. The X-Factor cost increase can occur through requirements analysis and validation. At the end of the process, the unselfish consultant provides recommendations for changes and/or additional requirements based upon user input and their own analysis, demonstrating that the project as originally defined and presented will not meet the business needs, which is something they knew all along. 

“The X-Factor final deliverable is not necessarily better. It might be worse. It is guaranteed to be different. Since requirements changes represent more money, the consultant will encourage changes at every opportunity. The end result of it being more billable hours for the consultant. The X-Factor and the other twenty factors message here is caveat emptor or let the buyer beware.

“On the surface, the X-Factor and the other twenty factors could be casually dismissed as justifiable and acceptable risks of doing business. In reality, they are carefully devised and skillfully practiced techniques designed to serve the primary objective of the consultant to maximize their profit.

“The addition of complexity and confusion is the common denominator. This gets manipulated into project expansion, schedule delays, requirements changes and additions, new hardware, new applications, system integration projects, and a “till death do we part” relationship. The consultant’s hooks are in so deep that the cost of terminating the relationship is unaffordable. The consultant will pretend to be a trusted and friendly advisor until the profit well runs dry.

“When a conflict occurs between the client’s interest and the consultant’s profit, the consultant will protect his profit. “Show Me the Money” was the mantra of the consulting world long before it became a signature line in a Hollywood movie. This mercenary depiction of consultants is not an individual or personal indictment. It reflects the nature of the industry. The behaviour pattern and mode of operation is a reaction to the “survival of the fittest” environment.

“Consultants are under enormous pressure to develop the business; and they face intense competition. This breeds their overly aggressive, relentless pursuit of the bottom line. The consultant is neither friend nor enemy; he’s an entrepreneur in business to make a profit.”

Admittedly, this X-Factor scenario will already be familiar to many companies in their dealings with consultants. Over the coming months, Standish says it plans to take a closer look at some of the other key factors to be aware of around using consultants.

Chaos Activity Newsletter

Why ignoring the human factor can lead to failed IT projects

By David Bicknell

In a column for the Wall St Journal, Frank Wander, a former CIO of the Guardian Life Insurance Company, has warned that ignoring the human factor is a sure route to the failure of IT projects.

He points out that, “Sixty years into the information economy, information technology projects, especially large ones, still fail, or under-perform, at disheartening rates. Trillions of dollars of collective project experience, and, what long ago, should have become a predictable undertaking, remains an area of dissatisfaction. Yet, the performance of our technology infrastructure (devices, networks, storage) has made quantum leaps forward over that same time period.”

He argues that workers are the most expensive, but least understood tool. In the insurance industry, for example, talent represents 63% of IT cost, according to a 2011 Gartner report.

He concludes: “As an industry, we must remove this blind spot, recruit the best talent, nurture it and unlock the full productivity potential by designing social environments where the chemistry enables IT to flourish. Companies that understand this, and embrace it, will win; the rest will compete in a race to the bottom.”

Desktop virtualisation may solve corporate data challenge but success relies on project clarity

By David Bicknell

I recently read a blog by Clarence Villanueva which made the worthy point that although many organisations now have smartphones and iPads, they still need to get corporate data on them.

Recent surveys  have suggested that 27% of companies support the iPad today, while another 31% plan to support it in the future. As Villanueva points out, as organisations begin to support connected devices such as iPads and smartphones, they will want to connect them to their enterprise data and applications. One solution for achieving that is desktop virtualisation.

According to Villanueva’s blog,  desktop virtualisation is an option because:

  • It facilitates employee access to enterprise data and applications from any platform-neutral device.
  • Certain solutions allow you to convert your existing laptops/desktops into thin clients, enabling you to lengthen the life cycles of the equipment, and
  • Patch management and updates are controlled more effectively, potentially lowering internal management costs.

The problem, as the blog points out, is that many organisations don’t know where to start on desktop virtualisation. And that hints  at some IT project problems further down the line, because solicitation of information from suppliers is messy.

As the blog says, “As companies reach out to these vendors, Forrester sees that incomplete information is shared and/or project goals are unclear, which results in confusion to the vendor and multiple rounds of questions and answers.

“One of the ways to overcome this challenge is to focus on internal collaboration and organise yourself before going out to market. The transformation of the desktop from the traditional status quo to a virtualised environment is complicated — it requires the collaboration of a variety of people. Desktop virtualisation  projects affect a multitude of business and IT areas….successful projects enlist the help of companies’ internal desktop management, networking, storage, security, and software licensing professionals for a unified solution.”

One organisation that seems to be making some headway on desktop virtualisation by knowing where it is headed is National Air Traffic Services (NATS).

The company recently gave a presentation on its move to a virtualised desktop environment as part of a business growth strategy that will see it target new international regions, new services and partners, and involve it in possible merger and acquisition activity.

NATS believes adopting desktop virtualisation will give it the ability to, according to Gavin Walker, its head of information solutions, “..scale at a fast pace….a key requirement.” 

NATS has 6000 employees, including operational. technical and general office workers who all have different user profiles in their use of IT. Many of them work across multiple sites, which is why NATS wants to have remote access to the corporate network from anywhere at any time.

It also wants to use the Cloud to enable it to scale as and when required and to adopt role-based computing with integrated identity management to help it deploy services and applications based on user profiling to improve the users’ experiences.

NATS says it has now completed the planning and discovery of the desktop virtualisation project, and by working with a virtualisation company, Point to Point,  now has a scaled down version of the desktop virtualisation system with Office 2010. The version, dubbed ‘Springboard’ has been rolled out to 100 people across the organisation, including NATS’ chief executive Richard Deakin and his executive team.

“Getting stakeholder investment can be a challenge as IT is seen to be taking money away from tbe bottom line,” says Walker. “Springboard helped us to demonstrate immediate results and provided an indication of what the system would be able to do once in place. This really is a change management programme supported by technology.”

Other Links

Computer Weekly: NATS delivers Office 2010, Visio and MS Project on virtual desktops

Universal Credit: who’ll be responsible if it goes wrong?

By Tony Collins

When asked whether Universal Credit will work, be on budget and on time, Ian Watmore, Permanent Secretary, Cabinet Office, gave a deft reply. He told Conservative MP Charlie Elphicke on 13 March 2012:

“From where I sit today, I think all the signs are very positive. I am never going to predict that something is going to be on time and on budget until it is.”

If the plans do not fall into place who, if anyone, will be responsible? In theory it’ll be Iain Duncan Smith, the Secretary of State for Work and Pensions. But as Watmore told the Public Administration Committee, there are several other organisations involved. Although the DWP and HMRC are building the IT systems, the success of Universal Credit also relies on local authorities, which are overseen by the Department for Communities and Local Government.

There are also the Cabinet Office and the Treasury whose officials seek to “ensure that what is going on is appropriate” said Watmore.

If Univeral Credit goes awry all the departments may be able to blame the private sector: the employers that must pass PAYE information to HMRC so that the Revenue’s Real-Time Information element of Universal Credit can work.

David Gauke is the minister responsible for HMRC so would he take some of the blame if Real-Time Information didn’t work, or was not on budget, or was delayed?

Or would the main IT suppliers Accenture and IBM take any of the blame? Highly unlikely, whatever the circumstances.

There is also a dependency on the banks.

But nothing is wrong … is it?

All those putatively responsible for Universal Credit continue to say that all is going well.

Duncan Smith told the House of Commons on 5 March 2012:

“We are making good progress towards the delivery of universal credit in 2013, and I have fortnightly progress meetings with officials and weekly reports from my office. I also chair the universal credit senior sponsorship group, which brings together all Government Departments and agencies that are relevant to the delivery of universal credit.

“Design work is well under way and is being continually tested with staff and claimants, and the development of the necessary IT systems will continue in parallel.”

He said that universal credit will reduce complexity by putting together all the benefits that are relevant to people going back to work – though benefit systems that are not relevant to the coalition’s “Work programme” will not be included in the DWP’s Universal Credit IT consolidation.

To reduce risks Universal Credit will be phased in over four years from October 2013, each stage bringing in a different group of claimants.

But …

Campaign4Change has asked the DWP to publish its various reports on the progress of Universal Credit and it has refused, even under the Freedom of Information Act. It seems the DWP’s secretiveness is partly because all of the risks related to Universal Credit have not been mitigated. We will report more on this in the next few days.

Meanwhile to try and answer the question in our headline: who’ll be responsible if Universal Credit goes wrong? The answer is: the private sector probably. Or rather nobody in the public sector.

Can hundreds of millions be spent on Universal Credit in an agile way?

Universal Credit suppliers Accenture and IBM look to India for skills.

Is Universal Credit a brilliant idea that’s bound to fail?

Universal Credit latest

Universal Credit and the banks.

California’s long-running courts’ IT project faces final verdict

By David Bicknell

If there was one place in the world you’d think might be able to get an IT project to improve courts’ systems right, it would be California, the home of Silicon Valley.

Unfortunately not. According to the San Jose Mercury News, there is a risk of the plug being pulled on a proposed system which was intended to link courts to each other and the state’s Department of Justice, and which would replace paper court files with electronic documents, allowing judges ‘with a click of a mouse’ to check everything from criminal histories to child support payments around the state.

But the 10-year project, which has so far cost $560m is running out of money. And now California, which as a state is strapped for cash, and is imposing budget cuts that are closing courthouses, is ready to pull the plug on the project altogether. 

The state’s Judicial Council, which is the court system’s policy arm, will tomorrow weigh up its options and make a decision whether to continue with the Court Case Management System (CCMS) or end the project.

A state audit last year made a catalogue of complaints against the state’s Administrative Office of the Courts for its lack of lack of oversight. It said that the AOC had: 

  • Inadequately planned for the statewide case management project and did not analyse whether the project would be a cost-beneficial solution to the superior courts’ needs.
  • Was unable to provide contemporaneous analysis and documentation supporting key decisions on the project’s scope and direction.
  • Did not structure the development vendor’s contract to adequately control cost and scope—over the course of seven years, the AOC entered into 102 amendments and increased the cost from $33 million to $310 million.
  • Failed to develop accurate cost estimates—in 2004 the cost estimate was $260 million and by 2010 the estimated cost was $1.9 billion.
  • Had not obtained the funding needed for statewide deployment and without full deployment to the 58 superior courts, the value of the project is diminished.
  • Must gain better support from the superior courts for the project—the superior courts of Los Angeles and Sacramento counties asserted that they will not adopt the system unless their concerns are resolved.
  • Did not contract for independent verification and validation (IV&V) of the statewide case management project until 2004 and independent project oversight services until 2007. The level of IV&V oversight was limited in scope and duration.
  • The statewide case management project may be at substantial risk of future quality problems as a result of the AOC’s failure to address certain of the consulting firm’s concerns.

In a telling quote, Chief Justice Tani Cantil-Sakauye, the Judicial Council’s chairwoman,  is reported to have said it may be time to reconsider the project, comparing it to having “a Ferrari in the garage, but we can’t afford the gas.”

The San Jose Mercury News reported that state lawmakers are now growing increasingly sceptical of paying for CCMS, with one committee last week voting unanimously to put most of the system upgrade on hold.

“Eight presiding judges, including those from trial courts in San Francisco, San Mateo and Los Angeles, last week urged the council to pull the plug,” the San Jose Mercury News said. 

When it was first approved more than a decade ago, the project was an ambitious one.  Its goal was to create one unified system for all of California’s trial courts. The upgrade had widespread support, including from the state’s then Governor Gray Davis, and California was flush with cash to pay for the project.

But as the project progressed, its cost increased, and it has since became a ‘lightning rod’ for California judges who have been absorbing more than $600 million in budget cuts over the past three years.

Now, the state wants to cut the judiciary’s losses and find less expensive ways to improve court technology, by, for example, allowing local judges to pick their own IT upgrades.

“Anyone will tell you, if you’re stuck in a hole, stop digging,” said Sacramento Superior Court Judge Maryanne Gilliard, a leader in the Alliance of California Judges, a CCMS critic. “We’ve spent 10 years on this project. It needs to be declared dead.”

However, the end of the project is not necessarily a forgone conclusion, proving the old adage that no failing IT project can easily be killed off. Now a separate audit released last week has suggested three more options:

  • Deploy the full CCMS program in one test county, San Luis Obispo, which would cost more than $20 million; or  
  • Install it in 10 counties, including Alameda, Marin and Santa Cruz, and wait for the end of the recession before taking it state-wide; or  
  • End the project now. 

The audit has however pointed out that with or without CCMS, many trial courts need technology upgrades that will cost some amounts of money. And it has projected that, by 2017, CCMS would save the state about $33 million a year by cutting the cost of everything from collecting fines to transferring court files from one county to another.

New York’s emergency call IT project: just 7 years behind schedule and $1bn overbudget

By David Bicknell

Everything is always bigger in America: the breakfasts, the buildings – and the IT project overruns. 

According to Government Technology, the call-takers behind New York City’s emergency 911 systems are now using the same technology and are sharing data.

The only problem is that, according to an audit from the City Comptroller John Liu, the expansive  – perhaps that should read  ‘expensive’ – upgrade is $1 billion over budget and seven years behind schedule.

Originally started in 2004, the Emergency Communications Transformation Program (ECTP) is now estimated to cost $2.3 billion, with full completion now expected in 2015.

The project initiated by  the New York City’s Department of Information Technology and Telecommunications (DoITT) set out to establish two public safety call centres in order to improve the resiliency and redundancy of 911 response, which formerly was decentralised within individual city agencies. The New York City Fire and Police departments are now operating in one of the two new call centres while construction work continues on the other building.

According to the audit report, New York employed Gartner as quality assutance consultants when the project began eight years ago, and the consultancy helped implement a series of modifications to the project’s scope and management when problems arose. DoITT contracted with Hewlett-Packard (HP) in 2005 to provide services as a system integrator1 for public safety answering centres (PSAC1) and as project manager over other contractors providing services and equipment for PSAC1.

Gartner subsequently made a series of telling comments on project governance, complaining of a lack of timely decision making; a lack of executive sponsorship participation; and no governance/communications centre administration plan.

Liu blamed the cost overruns on inadequate project management within the city’s administration.

“Taxpayers are just tired of hearing about out-of-control projects involving expensive outside consultants,” Liu said. “This is unfortunately yet another example of massive waste and delay due to City management that was at best lackadaisical, and at worst, inept.  New cost constraints put in place by my office will help curb overruns, though they cannot turn back the clock or put already wasted dollars back in taxpayers’ pockets.”

In his report Liu says:

“We found DoITT’s overall project management of the ECTP lacking – due to its initial underestimation of time and technical constraints involved in implementing the multi-agency mission-critical ECTP – which therefore did not allow for project completion on a timely basis.”

It went on: “The original project governance, roles and responsibilities and project controls  were found to be deficient by ECTP’s quality assurance consultant in 2006 covering the 2005-2006 initial time period of system integration work on the ECTP.

“Specifically, the QA consultant noted questionable judgement, poor decisions and deficiencies in the ECTP governance structure.”

It added that: “The effort… to implement a shared Computer Aided Despatch (CAD) system for Police, Fire and the Emergency Medical Services (EMS) Division was a major technical misstep. Due to technical obstacles, ECTP departs from one of its original goals of having a shared CAD. The New York Police Department (NYPD), the Fire Department and EMS will need to independently address their respective CAD systems requirements outside of the ECTP.”

The audit also points out a need for ongoing independent, external quality assurance which has been lacking since Gartner’s contract ended in March 2011.

Audit Recommendations

To address the audit issues, Liu’s office recommended:

  • DoITT, in conjunction with ECTP executive sponsors, should have its current governance strategy expanded, formulated into a plan, reviewed and formally approved by all stakeholders, and conveyed to all pertinent ECTP team members. The expanded areas should include operational coverage for  PSAC1 upon full completion and occupancy, and line of authority for operations within PSAC1 should be clearly defined and conveyed to stakeholders.
  • DoITT and the OCEC should increase its efforts to fill open positions with appropriately qualified personnel to ensure that the ECTP has sufficient resources required for the ongoing monitoring and management of the ECTP
  • DoITT should improve upon its current strategy to provide Quality Assurance coverage by retaining, on a temporary basis, independent quality assurance experts to monitor the balance of HP’s contractual performance for the duration of its contract.  In addition, DoITT should consider a Quality Assurance arrangement to monitor Grumman’s performance as primary contractor at PSAC2

In a letter responding to the findings, DoITT Commissioner Carole Post said that the 911 upgrade has significantly improved call capacity and that call-takers have moved successfully into the first new call centre.

In January, New York’s Mayor Michael Bloomberg celebrated the opening of the first public safety answering centre. The centre is able to handle 50,000 calls per hour, 40 times more than the average volume and nine times more than was received on Sept. 11, 2011.

“The changes we have made have eluded many administrations and the project has been a challenge, but we have never shied away from the tough decisions or taking on the difficult projects that will make New Yorkers safer and the city work better, and we never will,” Bloomberg said.

More background

New York Daily News report on the project’s history

City Comptroller John Liu’s Audit Report

Should Francis Maude say “no” to so many projects?

By Tony Collins

When Jack Straw was Secretary of State for Justice and Lord Chancellor, he told MPs on the Constitutional Affairs Committee in 2007 that when he abandoned projects there was a fuss at first and soon nobody noticed the project did not exist.

“There is always the option to abandon things. I did that in the Foreign Office with much complaint that the world might end.

“What happened was that we saved a lot of money and no one ever noticed the fact that that scheme did not exist…it is very frustrating that so many people, including the private sector, are taken in by snake oil salesmen from IT contractor who are not necessarily very competent and make a lot of money out of these things. I am pretty intolerant of this.”

Andrew Tyrie (Conservative): Do you suggest that the public sector has been taken in by snake oil salesmen?

Straw: I am saying that we are all taken in. There are plenty of disastrous IT examples in the private sector, BP and Sainsbury being two of them.

Tyrie: I was looking at the public sector.

Straw:

“I was looking at both. I think we all face problems whereby unless we are total IT experts there is a danger of being taken in by snake oil salesmen… It is a real problem and it is one that is inherent in IT; it is not just a problem for the public sector.

“The difficulty is that in the case of the public sector it is taxpayers’ money, not shareholders’ or customers’ money, and the mistakes are much more visible, but plenty of companies in the private sector have similar problems.”

Comment:

Should the Cabinet Office Francis Maude say “no” to so many projects? Clearly he’s doing the right thing if Straw’s remarks are anything go by. Would a  private sector board that has to watch every penny launch costly IT-related projects that weren’t really needed?