MANAGING PROJECTS

Press here to go to managing projects mainpage <

Managing/Developing Smaller Systems Projects

1. Definition of a Small, (or less Complex,) System

A reasonable definition of a simple system can be said to be a mirror image of a complex system and a complex system is one where:

• there are a number of subcontractors to manage (in excess of 2)
   
• the system crosses business functions, (e.g. sales and production)
   
• the risk of failure is medium to high
   
• timescales are tight
   
• BPR is involved
   
• there will be changes to hardware type or operating system
   
• the cost of the project as a percentage of business turnover is X or greater
   
• your existing IT capability or maturity is currently less than will be required

If your planned development involves ANY of these, then your procurement is not simple and you should go to Work package No. 6.

2. Pre-Requisities for Success

Having assessed your requirements, and critically reviewed your capabilities you need to ensure that they are compatible with your Business and IT Strategies . If such compatibility does not exist, even if your IT procurement is a technical success, there is a risk that it may be a business failure. You have reached the decision to develop your own system or to customise an "off-the-shelf" package. You may even have an idea of what the end "product" should look like.

Now is the time to ensure that you apply the processes and procedures to increase your chances of success.

3. Processes and Procedures

It is essential that you choose a good methodology or structured approach at the outset, (ideally one which is also operated by your potential suppliers.) You should stick to it, skimp on no part of it and use people with the right mix of skills and experience to manage it.

In effect you will be using the same processes and procedures as are required for the management of a complex system but their application will differ.

The difference in the way you apply the methodology can be likened to that between flying a light aircraft and a passenger jet. Essentially the process, procedure and knowledge required is the same - training, planning, ground checks, cockpit checks, etc. But they are applied less extensively or formally.

4. Risk Management

Even though you are managing a small, (or less complex,) project the risks still exist. You will need to continuously review how and why you came to this decision. Remember to keep testing it against your business requirements.

The major areas to continually monitor include:

• do you have the skills available, can you acquire them?
   
• does your supplier have the right skills and experience?
   
• what are the impacts on your working practices and financial procedures?
   
• does your project plan include time for negotiation, purchase, installation?
   
• have you planned for staff training, parallel operation of the new system as a pilot, refinement of operational procedures, controlled switch to live running, emergency reversion to the "old" system in case of disaster?
   
• are you managing the project professionally? Have you considered hiring an experienced Project Manager
   
• how are your sub-contractors/suppliers being managed?
   
• have you defined your supplier selection and product conformance testing requirements?
   
• have you checked the software version numbers, release dates, evidence of compliance, contract terms & conditions etc.
   
• Have you ensured that the recommended combination of software packages and hardware (especially identical version/release numbers) is already in operation elsewhere?
   
• have you arranged reference site visits? Do you have a checklist of what you will need to confirm during your visits, environment etc.

5. Customisation

If you have decided to customise an "off-the-shelf" product your motivation was probably along the lines of -

"Most of what exists in the standard product is right for us but we MUST have certain other facilities because that's the way we do things around here."

This is an understandable starting point but we cannot stress too strongly that customisation of existing products is almost as fraught with danger as developing your own. Customisation is never as simple as it sounds.

The supplier will need to be committed to supporting, (perhaps long-term,) two versions of the product. This may lock you in to this particular supplier. Do you want that?

You will be using a "non-standard" product, (unless your modifications become part of the standard product.) Are your support requests going to be handled as quickly or as readily as anyone elses?

All your future upgrade requirements could to be chargeable in excess of the norm. What is the likelihood of business changes occurring which might require system changes?

Remember, as with "start-from-scratch" developments, customisation always takes longer and costs more than might be assumed at first glance.

Therefore it is suggested that you seriously reconsider if it might be possible, by changing the way you do your business, to use the standard product.

6. Supplier Selection

Let's look at this from a reverse viewpoint, (the suppliers',) to see what we can learn.

Many systems integrators use a checklist to determine their chances of success in winning the business and assessing risk.

You should collate the following generic information on any prospective supplier:

• financial stability (3 years accounts as Article 29 of the EU Directive)
   
• experience of staff to sell, service and support your needs
   
• ability to develop applications/systems or have them developed for them
   
• do they offer a single source of supply or by using sub-contractors provide joint/several responsibility of a prime contractor?
   
• ability and experience (successful) to be able to manage sub-contractors
   
• research and development plans for both hardware and software
   
• how many similar systems installed together with project staff profiles?
   
• response times to and how service/support requests are managed
   
• training services provided
   
• location and availability of demonstration sites
   
• payment terms e.g. 20% with order, 30% on delivery, 45% on acceptance, 5% retained for 3 mths after acceptance

8. Supply Contracts

However simple there needs to be a contractual definition of what you are expecting, what the supplier is delivering/installing and how these requirements are going to be managed and the successful delivery demonstrated and accepted. See also WP 3

8.1 Supplier Contract T's & C's

Supplier statements will be required on the following:

8.2 Client Contract T's & C's

As the client, you will be expected to make statements on the following:

9. Evaluation and Validation Criteria

See Work Packages 3, 6 & 7 (May not be available at this site).

10. Summary

Having followed these guidelines and carefully assessed the risks at each stage you have placed yourself in an excellent position to experience a trouble-free procurement which will improve your organisation's business performance. Now, before signing the contract, make one more pass to see if you have overlooked anything. When you are sure you haven't, go to it and Good Luck.

Press here to go to managing projects mainpage <