Practical Resolutions Inc.Toronto, Canada
Norman Schutz
[email protected]: (416) 941-8257 C: (416) 706-1511
Your Project World in 2012
AGENDA
Today
IT Dispute Resolution-Options Available
Early Dispute Resolution
The Road Ahead-Moving Forward
Today
...In the “new” economy, all work is project work. And you are your projects!......
-Tom Peters
Today
Current Operating Environment & Expectations Rise of IT Consumerism: End User
Influence on Corporate IT Game Changing expectations... IT
investments & project approvals require clear ROI
Involvement of CFO &/CEO in budget approvals up 15% -past year Gartner 2011
IT Dispute Resolution
Current Dispute Resolution Practices Escalation Process-Contract/SOW Risk of dispute escalates exponentially
with increase in project duration, business scope, cost, number of stakeholders, solution complexity, ability of new team to gel quickly
Influence over solution outcomes of Day to Day Stakeholders decreases over time
IT Dispute Resolution
Key Challenge: of Current Practices. Many risks not identifiable or
predictable at the outset of an IT engagement ability to mitigate risks through standard conventional means i.e. due diligence or contract negotiation limited.. this inevitably-sets the stage for conflicts and disputes arising with no predetermined options available to resolve these issues ..so contract escalation process kicks in......
IT Dispute Resolution
Most Frequently Used Solutions. In IT Today ...
Binding Arbitration: Outcome unpredictable..costs vary depending on prep work...process itself can be done quickly vs litigation option
Litigation..”Winner takes all” Average costs start at $ 000’s Prep work time consuming, disruptive to day to day business....?? over 70% of litigation usually settle before trial
Are These The Best Options?What can we learn ??
IT Dispute Resolution
Resolving IT Conflicts & Disputes via ADR-Key Differences
Facilitation and Mediation Interest based focused on disputant’s
underlying interests and immediate needs Established process led by independent
Mediator appointed by all participants Participants create and agree on solution true
win/win “Without Prejudice” IMPORTANT guarantees
confidentiality of information exchanged in negotiations can not be disclosed elsewhere including future legal actions etc
IT Dispute Resolution
Resolving IT Conflicts & Disputes through ADR
Facilitation and Mediation Cost effective:.. Mediation: $x,000’s
Litigation: $x00,000 Effort: Mediation: Day(s) Litigation:
Months-/Year(s) Higher degree of predictability of
outcome: 80% of mediation and facilitations reach a resolution of issues....
“Measurable ROI” for decision process
IT Dispute Resolution
Facilitation-Key Benefits & Uses Facilitator engages team in identifying root
causes of project disputes and the collaborative design and implementation of solutions to them
Can be made available at the outset of a vendor project to streamline contract negotiation process to enable start and deployment of resources in a timely manner
Project Management Captures and deals with potential issues ..Dispute Avoidance..Reduce Rework risk
IT Dispute Resolution Facilitation
Ideal solution for identifying gaps between multi-sourced vendor arrangements before they become issues
Complements ITIL and IT Service Management processes
Facilitator should be independent party with process and subject matter expertise in issues at hand for optimal results
“Insurance Policy” coverage in place to use when needed
Claimed to provide the Highest return for time invested of all dispute resolution processes....proviso need the right team chemistry– all driving to same outcome----
IT Dispute Resolution
Mediation Benefits similar to Facilitation Usually used whenc onflict has escalated into
formal dispute Mediator works with all parties in developing a
solution to the dispute at hand Mediator should have process training
industry expertise for maximum benefit (time and $)
Some courts now mandating Mediation before litigation (Europe/US/Ontario-Toronto..)
IT Dispute Resolution
Arbitration “Remedy Based” focused on legal rights Each side presents their position... decision
then made by arbitrator based on merits of case legal remedy etc
Can be more cost and time effective than other legal options
Binding and non Binding options
Change
It is not the strongest of the species that survives nor the most intelligent but the one most responsive to change.-Charles Darwin
A majority of ICT projects will experience conflicts at some point during their duration
Risk increases with complexity, size, number of participants and duration ...minimize risk by identifying issues early and start to resolve them in a timely manner..(when key decision makers still available)
Creative solutions not driven by $ restitution
Early Dispute Resolution Benefits Based on the Following
Assumptions
Early Dispute Resolution Solutions Concept evolved from desire to pro-actively deal with issues earlier reducing project dispute costs ($ & time)
Range of Options available... Best choice dependent on size, complexity and budget...pre contract negotiation stage best time to decide
Stakeholder “buy-in” is key-
Early Dispute Resolution
Facilitated Work Sessions
None of us is as smart as all of us
Ken Blanchard
Early Dispute Resolution
Case Study: IT Development ProjectProject Challenges
Project participants lack a common project vision and do not agree roles and responsibilities
Project loses momentum shortly after start key staff distracted by other events
Change management weak in process and frequent in occurrence
Early Dispute Resolution
Solution: Facilitated Work Shop Format Structured meetings with specific
goals and objectives Participatory meeting focused on
discussion and decisions All those vested in project in
attendance-no rain checks!
Facilitated Work Sessions
Benefits: Facilitated Work Session Measurable Benefits to costs average is
5:1 Ratio Common Benefits: Reduced effort and
scope creep -5-15 % Initial project plan phases more productive
total time saved 30-40% more traditional method
PRI Evolve methodology enhances group collaboration
Early Dispute Resolution
Partnering –Facilitated Work Sessions Not the sales-oriented “partnering”
commonly found in IT project plans and proposals...but a formal partnering relationship..
PRI Facilitator using Evolve creates mutual agreement and commitment transparency.
Best use: Strategic projects, multi party and dependencies
Early Dispute Resolution
Creative Leaders embrace the ambiguity of change and the challenge of adapting their organizations to the new realities of their marketplace
The Road Ahead
Facilitated Work Sessions
Best Results obtained in:
Change Management Disputes (Internal/External)
Value Proposition Fall-out
Risk Management Issues (Delivery Performance/Solution Relevance/Lifespan
The Road Ahead
Project Management (Working Sessions, Communication/Capability Issues)
Contract Negotiations( New /Early Re-Negotiation)
Partnering Initiatives (not the “sales "version of this)
)
The Road Ahead
..”Sooner...Faster..Smarter”...... Considering the expectations of your business
partners, suppliers and customers...Is this the right time for a different approach in
avoiding technology conflicts and resolving disputes?
The Road Ahead