Executive Summary
This report aims to identify the root cause and factors contributing to the Grove International’s Customer Service Online project fiasco. Upon identifying these factors, this report should present valuable lessons derived from that failure, and from them determine an appropriate project governance strategy for future project success.
The Grove International’s Customer Service Online project was developed to improve the organization’s customer service, but apart from this, there is no evident necessity for developing the project. The Project Manager’s enthusiasm has convinced the user project team about the benefits of the application. This enthusiasm lead to chaos as limitations were not pointed out, due to this, unrealistic targets were set. Whilst everyone was focused on the end result, the important bits were missed, the management failed to provide an experienced project development team, and more so, they have failed to instill rigor in risk management throughout the project lifecycle.
Several issues arose even at the earlier stage of the project, some of which political. On a very crucial time members were found not being productive, and the worst lead to removal of one of the team members. The Project Manager had several meetings with the User Project Team to provide progress reports and present the system design specifications, however, failed to be truthful in delivering these reports. The Project Manager tend to accept every requests made by the user project team without considering time, and the scope of the project, and even acted without prior approval from the authority. These changes were not even documented. The Project Leadership’s incapability, lack of true mission and objective, and the failure of the Management to provide guidance and support introduced sufficient risk to compromise the project’s success.
Other significant recommendation pertains to stakeholder management and organizational change management. Implementation of the initial phase should have been done and whatever additional requirements be considered as enhancement to the system. It is always best to properly educate all stakeholders about how the proposed project may benefit them. This will positively fuel their enthusiasm and will ensure cooperation from all stakeholders.
Introduction Background
We all know the standard way of measuring project success as its timely delivery, being on or under budget, and if the system works as required. Project success is more than these measures and according to the lecturer of this Project Management course, even the ability of the management to stop a project when the objective has changed or is obviously gone can be considered a success. But what is really causing projects to fail, especially the case of Grove International’s Customer Service Online project?
Top 10 Sources of Project Failure
· Failure to appreciate the impact of a multi-project environment on single project success
· Irrational promises made due to a failure to take into account the variable nature of task performance.
· Irrational promises made due to a failure to take into account the statistical nature of project networks.
· Insufficient identification of dependencies necessary to deliver the project.
· Focus on (and active management of) only a portion of what should be the full project – a true bottom-line value adding outcome for the sponsoring organization.
· Reliance of due-date, train-schedule, and actual-against-budget-to-date performance to drive project performance, resulting the wasting of any safety included in the project and in the effects of Parkinson’s Law – Work will expand to fill the time allowed. The whole concept of “time allowed” is a major culprit.
· Wasting of resources through underutilization because they aren’t the “best resource” for the job.
· Wasting of the “best” resources through over-utilization, multi-tasking, and burn-out.
· Delivering original scope when conditions/needs change. Flip-side: accepting changes to scope without sufficient analysis of impact on the project.
· Multi-tasking, multi-tasking, multi-tasking, and multi-tasking.
Top 10 Sources of Project Failure (Focused Performance n.d.)
The above list relates so much in the case of Grove International and we can say that the organization is guilty of all of it plus more. The project was originally for the headquarters but then due to the Project Manager’s excessive enthusiasm the project which was supposed to work on an eight-month time frame grew in scope as the time frame continues to lessen. The project failed to start immediately as planned due to unavailability of human resources, the management failed to provide support in this aspect as they were unable to free experienced personnel that would support the project. However, when given an inexperienced staff, the Project Management wasted time and resources as he underutilized the allocated staff, instead of training them he spent time complaining and pushing the management to release experienced staff in their other commitments.
‘In an effort to take advantage of valuable new opportunities, multi-project organizations, more often than not, tend to launch projects as soon as they are understood, concurrently with existing projects, simultaneously with other new efforts, and unfortunately too often, without sufficient regard to the capacity of the organization. A common result is that the responsibility for sorting out an array of conflicting priorities often falls to project resources and their managers.’ (Patrick, 1999)
The project manager is also guilty of providing estimates with regards to time frame without taking into consideration the ambiguity of the project. Below is an illustration of the critical chain’s 2-point duration and iteration estimates.
<<<Illustration Removed>>> Two-Point Estimates and Risk Assessment/Avoidance/Mitigation (Source: www.focusedperformance.com/articles/ccrisk2.html#2d_durations)
‘The two-point estimation process is an excellent vehicle for further understanding risks and ways of addressing them. The first, commitment-level estimate should reflect the inherent task or iteration risk associated with the piece of the project in question.’ (Patrick, 1999) The project leadership failed to be realistic about the time frame and tend to agree with all the demands of the user project team. This can be seen as a way to cover the deficiencies of the project.At some stage of the project came an experienced analyst who took a lot of the responsibilities, however, “over-utilization” of this supposed to be best resource occurred. There was obviously no clear description of what the analyst should and should not do. This caused him to clash with the user project manager, thus wasting the ‘best resource’ that the project has.One of the top ten sources of project failure relates to delivering original scope when needs have changed. In the case of Grove International, it was the opposite. During one of the meetings with the user project team, new system design specifications were raised which the project leadership failed to negate, therefore, the assumption that the project team agreed to these new specifications arose and caused further turmoil. I have listed below the identified problems in relation to the Grove International Customer Service Online project.
- Lack of clear mission and objective.
- The Project leadership failed to be firm with the scope of the project.
- The Project leadership’s inability to say no.
- The Project leadership underestimated the user project team and did not realize that it is harder to deal with users with very little knowledge of IS as they tend to be more demanding and think everything is possible.
- The Project Manager does not have enough experience managing a project.
- Lack of real guidance from the management.
- The Project leadership wasted time complaining instead of training the available resources.
- The Project leadership failed to communicate properly to the project team members, therefore only one was productive.
- Lack of documentation for every change initiated.
- The Project Manager wanted to run his own show and even bypassed crucial approval.
- The Project team changed specifications and plans without proper consultation to the user project team.
- The Project Manager failed to provide truthful report and updates about the progress of the project, or lack of it.
Recommendation
Stakeholder Management and Organizational Change Management
In an economy where companies need to persuade investors to hold their stock, employees to work cooperatively with others, customers to buy a broader array of their products and services, and contractors to maintain strong supply chains, collaborative stakeholder relationships are key….The term stakeholder refers to individuals or groups who can affect or are affected by a corporation’s activities (Svendsen 1998, p.1).
In whatever project an organization may have all stakeholders will definitely be affected, directly or indirectly. Therefore, it is very important that all information about any project is properly disseminated from the very beginning. The stakeholders should be made aware of every single aspect of the project, this will entail cooperation from everyone knowing that they too will benefit or be affected by the project. In this case of Grove International, this is one of the things that are missing, the supposed to be stakeholders were very passive and the enthusiasm was left to the Project Manager. Let us start from the user project team who seem to be very inconsiderate and demanding. Their demands were very ambitious and unrealistic. This should have ended in the first place if the Project Manager only knew how to be realistic as well in his commitments. On one hand, the management failed to provide the true guidance that the project needs, from the moment human resource was requested. In order to further understand the relationship of stakeholders let us check the table below which illustrates the characteristics of old and new approaches to corporate-stakeholder relations.
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Stakeholder Management
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Stakeholder Collaboration
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Fragmented
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Integrated
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Focus on managing relationships
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Focus on building relationships
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Emphasis on buffering the organization
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Emphasis on creating opportunities and mutual benefits
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Linked to short-term business goals
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Linked to long-term business goals
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Idiosyncratic implementation dependent on division interests and personal style of management
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Coherent approach driven by business goals, mission, values, and corporate strategies
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Characteristics of Old and New Approaches to Corporate-Stakeholder Relations (Source Svendsen 1998, p.4)
Looking at the table above, it is quite interesting to see that stakeholder collaboration make so much sense to the Grove International case. If assigned as a consultant for this project, I would definitely suggest application of the above. The stakeholders in the Grove International case showed no genuine commitment to the project.
In whatever project, big or small, it is always best to involve all the stakeholders. To what extent does the public have to participate? All stakeholders should have been made aware of its roles to in achieving the project’s success. The following should be taken into consideration:
· Scope of representation
· Mode of participation
· Delegation of authority
· Locus of final decision
(Source Mazmanian & Nienaber 1979, pp. 33-34)
Everybody in a project should have a clear idea of how they will be affected by a proposed project. The best scenario in the case of Grove International to prove this was when the analyst was not even aware of what the scope of his role was, this lead to him being removed from the project. This was again, failure on the side of Project Manager to inform his team members of their roles and duties. The case also did not present a clear evidence of regular meetings, workshops, and brain storming.
The team should have also make use of a change request method instead of agreeing to every demands of the user project team or not disagreeing to it. The users may come up with wrong assumptions out of this. It is said that, ‘the use of information has a supplementary and supportive function for other methods of change, no matter what their target.’ (Katz & Kahn 1967, p.392)
One final recommendation I would like to make refers to proper identification of the user requirement. ‘This is where many projects fail, in that they do not specify correctly what the system should do. In fact many systems have just been given a deadline for delivery, a budget to spend, and a vague notion of what it should do.’ (http://www.coleyconsulting.co.uk/require.htm, 2001)The user project team of Grove International failed to provide clear requirements and expected that sky is the limit in that project.
Conclusion
Apart from the above recommendations from various resources, I strongly believe that if the Project Manager focused on his original project scope and did not give in to all the users’ changes, success would have been possible. Too much enthusiasm on the project manager’s part lured everyone to the belief that a project that complicated is feasible despite the time constraints and lack of resources. The project manager should have been firmed to the users about the delivery of the project he envisaged for the headquarters and upon successful completion of which, consider branching out to modules which will cover the field offices.
Reference
Katz, D. 1967, The Social Psychology of Organizations, John Wiley & Sons, Inc., NY
Mazmanian, D.A. & Nienaber J., 1979, Can Organizations Change?, The Brookings Institution, Washington, D.C.
Svendsen, A. 1998, The Stakeholder Strategy, Berrett-Koehler Publishers, Inc., CA
Frank, F. S., 1999, Program Management — Turning Many Projects into Few Priorities with TOC, Focused Performance, viewed 01 September 2007, http://www.focusedperformance.com/articles/multipm.html
Top 10 Sources of Project Failure, Focused Performance, viewed 01 September 2007, www.focusedperformance.com/toptenpm.html
What is a Requirement?, 2001 Reducing Your Acceptance Testing Risk, Coley Consulting, viewed 02 September 2007, http://www.coleyconsulting.co.uk/require.htm
Report by: “Susana Oliver”
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