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Building confidence in executing IT programs

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Are your people aligned<br />

toward success?<br />

Decisions are constantly be<strong>in</strong>g made throughout the life of a project at all levels, both<br />

<strong>in</strong>ternally and externally, every day. EY’s experience has shown that a majority of these<br />

decisions are made by the project team with only a relative few be<strong>in</strong>g made by executives.<br />

These constant, day-to-day decisions determ<strong>in</strong>e the direction and success of the project.<br />

If decisions are aligned along the same priorities, the project will progress much more<br />

smoothly and efficiently with few decision delays and revisit<strong>in</strong>g of decisions. However, if<br />

decisions are not aligned with executive priorities, or executives have compet<strong>in</strong>g priorities<br />

among themselves, then compet<strong>in</strong>g forces may cause the decisions to be revisited,<br />

overruled or be delayed, as executives negotiate among themselves — this will cause the<br />

project to struggle and not achieve success.<br />

From our work with challenged organizations, we have found that when decision<br />

alignment is poor:<br />

• Decisions are revisited and overturned as stakeholders with higher authority change<br />

decisions to align with their own priorities.<br />

• Decisions are delayed as the team tries to get consensus among stakeholders with<br />

compet<strong>in</strong>g priorities.<br />

• The team becomes frustrated and refuses to make decisions that they are responsible<br />

for, delay<strong>in</strong>g risk and issue escalation (passive-aggressive), or they start mak<strong>in</strong>g<br />

decisions not aligned with the overall project success.<br />

It is critical that<br />

priorities are aligned<br />

throughout the project<br />

so that the project<br />

team makes decisions<br />

that are aligned with<br />

leadership’s def<strong>in</strong>ition<br />

of success.<br />

Poor decision priority alignment occurs more frequently on large complex projects, s<strong>in</strong>ce<br />

there are many more communication po<strong>in</strong>ts between executives and the project team.<br />

This means that only select <strong>in</strong>formation is communicated, less often and more formally<br />

than on smaller projects.<br />

Decision priority analysis<br />

The governance of a project can be divided <strong>in</strong>to three dist<strong>in</strong>ct tiers — executives (sponsor,<br />

steer<strong>in</strong>g committee, executive leadership team, etc.), leads (PM, PMO, architects, etc.),<br />

and teams (work stream leads). EY utilizes six success factors when analyz<strong>in</strong>g decisions —<br />

time, cost, benefits, scope, quality and team organization.<br />

Effective decision-mak<strong>in</strong>g is achieved when each tier’s top priorities are <strong>in</strong> agreement<br />

with<strong>in</strong> tiers (horizontally) and between tiers (vertically) and our analysis can provide<br />

visibility <strong>in</strong>to that horizontal and vertical alignment. When misalignment occurs, EY has<br />

found that there is a tendency for resources to align with the priorities of their functional<br />

areas, i.e., f<strong>in</strong>ance resources will align with the priorities of the CFO (usually “cost” and<br />

“benefits”), <strong>IT</strong> resources will align with the priorities of the CIO (usually “time” and “cost”)<br />

and operations resources will align with the priorities of the COO (usually “scope” and<br />

“quality”). This is why prior to the start of the project, the priorities of the six success<br />

factors must be agreed upon and communicated to the govern<strong>in</strong>g bodies and the<br />

project team.<br />

<strong>Build<strong>in</strong>g</strong> <strong>confidence</strong> <strong>in</strong> execut<strong>in</strong>g <strong>IT</strong> <strong>programs</strong> | 15

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