Towards a methodology to help predict and reduce impact of projects on long-term costs, corporate strategy and existing IT infrastructure
- Publication Type:
- Thesis
- Issue Date:
- 2009
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This thesis contributes to the body of project management and systems development
knowledge, by investigating the success of a project beyond the standard criteria of
project budget, objectives and timelines used to judge project performance.
This research has been conducted as part of the UTS “Doctor of Project Management”
course, which encourages extension of the theoretical study of project management to a
commercial environment - by investigating problems related to practical applications of
project management.
This research attempts to highlight the unforeseen and unplanned impacts created by
projects which are often neglected and excluded from project evaluation and strategic
alignment. The goal of this study is to find ways to increase the overall benefits to
organisations achieved through projects, while minimising unplanned and unforeseen
negative impacts caused by projects.
To identify long-term impacts caused by projects, a case study is conducted with a real
example, focusing on a large, deemed to be successfully completed project within an
Australian financial organisation. The case study explores the environment, processes and
events throughout project cycle and identifies various factors that influence project flow
and create unforeseen impacts outside the planned project actions and outcomes. The
case study analysis showed that some crucial decisions made about the project would
have been different if some of those unplanned impacts were discovered earlier, for
example during the discovery stage of the project. The unplanned impacts resulting from
this project were manifested through extended timeline, additional costs and numerous
post-project systems interdependencies. Since the original decisions about the way in
which the project was implemented were largely based on financial factors, these impacts
would have been highly relevant to project planning and could have changed some
important decisions crucial to the conduct of the project by the organisation. The case
study is representative of how projects are managed in the case study organisation.
The findings from the case study are further extended trough a mini-survey of 123
professionals, who confirmed that unplanned impacts created by projects are worth
considering and managing. The survey respondents indicated that projects in their
organisations were mainly concentrated on short-term, often isolated business needs and
had little alignment with the overall strategy and coordination with other projects and
initiatives. While organisations are aware of the problem and keen to improve
management of unforeseen impacts and associated post-project costs, their efforts so far
are largely informal. Both the case study and survey indicated the need for a formal way
of managing the post-project impacts and alignment between projects and strategy within
organisations.
Based on the literature review, case study and survey results, the research arrived at a set
of findings and suggestions.
The suggestions are articulated through an organisational strategy alignment framework,
covering four management areas: strategy and senior management, business management,
systems development and project management. The main focus of the recommended
actions is around effective management of vendor relationship, strategic alignment and
unforeseen project impacts.
The recommended actions are grouped around the management areas as follows:
• Strategy and Senior Management Suggestions
• Vendor management strategy directions
• Strategy alignment directions
• Roles and responsibilities
• Business Management Suggestions
• Business impact analysis approach
• Project success evaluation
• Effective communication
• Systems Development Suggestions
• Technical impact analysis approach
• Solutions evaluation
• Business and vendor communication
• Project Management Suggestions
• Project planning and impact analysis
• Solution evaluation
• Strategy alignment
• Project success evaluation
• Utilisation of past experiences
• Effective communication
The findings and resulting suggestions of this research contribute to:
• Project management theory
• Project management and systems development practice
• Project management, strategic and IT management practice
The main focus of this research is the identification of factors that cause unforeseen
impact caused by projects on the IT environment and organisations. While the study
provides a number of suggestions to improve the effective management of these factors,
the detailed analysis of the recommended actions is not within the scope of this study and
is suggested as an area for further research.
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