February 21, 2020

McKinsey & Company – 2012 – IT Projects

 

Percent of projects with budgets greater than $15 million that experienced:

Software – Avg. Cost Overrun: 66%,  Avg. Schedule Overrun: 33%, Avg. Benefits Shortfall: 17%

Nonsoftware – Avg. Cost Overrun: 43%, Avg. Sched. Overrun: 3.6%, Avg. Bene. Shortfall: 133%

 

45% of IT projects experience cost overruns. Here are a few reasons:

Missing Focus: 13%

Content issues: 9%

Skill Issues: 6%

Execution Issues: 11%

Unexplained Causes: 6%

 

The IBM Global Making Change Work Study – 2008

 

15% of projects either missed all goals or were stopped

41% of projects that fully met their objectives

44% of projects did not meet either time, budget or quality goals

 

Successful Projects:

Average – 41%

Bottom 20% – 8%

Top 20% – 80%

 

Major Change Challenges Identified:

Changing mindsets and attitudes – 58%

Corporate Culture – 49%

Complexity is underestimated – 35%

Shortage of resources – 33%

Lack of commitment of higher management – 32%

Lack of change know how – 20%

Lack of transparency because of missing or wrong information – 18%

Lack of motivation of involved employees – 16%

Change of process – 15%

Change of IT systems – 12%

Technology barriers – 8%

 

Project Success Factors Identified:

Top management sponsorship – 92%

Employee involvement – 72%

Honest and timely communication – 70%

Corporate culture that motivates and promotes change – 65%

Change agents (pioneers of change) – 55%

Change supported by culture – 48%

Efficient training programs – 38%

Adjustment of performance measures – 36%

Efficient organization structure – 33%

Monetary and non-monetary incentives – 19%

 

KPMG New Zealand Project Management Survey – 2012

 

70% of NZ companies experienced at least one project failure in 12 months

Over 50% of respondents do not consistently achieve stated project deliverables

98% completed less than five projects, but 44% spent more than $15 million on projects

 

Factors:

 

Formal Return on Investment Analysis Process:

Yes – 36

No – 59%

Don’t Know – 5%

 

Projects Aligned with corporate strategy:

Always – 41%

Usually – 52%

Sometimes – 7%

 

Projects Initiated with fully defined, supporting business case:

Always – 32%

Usually – 52%

Sometimes – 16%

 

Consistent application of risk management methodology by project managers:

Always – 13%

Usually – 54%

Sometimes – 31%

Never – 2%

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