Credibility LO14800

Michael Gort (gort@mail.com)
Sat, 30 Aug 1997 22:52:10 -0400

Replying to LO14794 --

In LO14694, Gray Southon writes:

"General managers need to be able to understand this balance and make
critical decisions about what they want from the system, and what can
expect from the staff. How competent are managers in doing this? "

Gray,

The statistics on project failures in IT would indicate that managers are
not very competent at managing a system of projects. Failure rates are
cited at 70% to 80%, when failure is defined at more than 50% over budget
or more than 30% behind schedule. There are several feedback loops in the
project management system that really disrupts a linear management
approach. For example, the poor quality of a system that is accepted
increases support effort for many years after delivery. Those additional
costs impact the ability to allocate sufficient resources to new projects.
The support burden may negatively impact retention, as developers leave
the team or the Company to escape the burden of supporting old,
problematic systems. Many problems do not appear until the initial
rollout is completed. As systems are rolled out to more and more
locations, scalability may become a problem. Loads on networks are
discovered. And so on, and so on.....

In businesses that are heavily reliant on project work, project management
should be a skill valued at the same level as operational management. As
more and more companies are downsizing, flattening and relying on
cross-functional teams, the project management function becomes more and
more critical. How many CEO's and other senior line managers recognize
the importance of project management?

-- 
Mike

Michael A. Gort Gort@mail.com (203) 637-9279

-----Original Message----- From: Gray Southon [SMTP:gsouthon@ozemail.com.au] Sent: Friday, August 29, 1997 11:39 PM To: 'learning-org@world.std.com' Subject: Credibility LO14794

Replying to LO14780 --

Michael Gort's discussion highlights that complex relationships between a dynamic, changing organisation wanting responsive technology and the technological constraints of reliable systems.

General managers need to be able to understand this balance and make critical decisions about what they want from the system, and what can expect from the staff. How competent are managers in doing this?

Gray Southon

Consultant in Health Management Research and Analysis 15 Parthenia St., Caringbah, NSW 2229, Australia Ph/Fax +61 2 9524 7822, mobile +61 414 295 328 e-mail gsouthon@ozemail.com.au Web Page: http://www.ozemail.com.au/~gsouthon/

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