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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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HI

HILO D O A B I L I T Y

BENEFITS

Nolan & Norton Benefit/Risk Grid

High Wire Acts Block Buster

Dud Bread & Butter

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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

Budget

Features

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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 in-house

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

Budget

Features