Archive for July, 2010

Get Back On Track

July 9th, 2010
Being a little past the midpoint of the 2010, now is as good a time as any to look at the progress of your IT projects for the year. You need to see what is on schedule and what is falling behind. A good project manager knows when to count their losses. However, just because a project appears to be set on course for failure does not mean it can’t be revived. Ron Ponce, a frequent contributor to CIO.com, recently published an article citing 4 steps to help struggling projects get back on track.

Step 1: Assess the Situation

Gather all of the information needed to make a decision on what must happen next for the project to survive. Ask key team members why they think the project is failing. Their input is vital in the recovery effort. You also need an answer to this question: how willing will people be to change the project’s scope, dates, and budget? If management and team members are not willing to be flexible, the project has little chance. This leads us to step 2.

Step 2: Prepare the Team for Recovery

Everyone has to accept the current project is failing and the current plan is flawed. Now you can define realistic goals and expectations. It is also important to develop a metric for measuring the success of the recovery effort. At this point it is imperative that the project manager and management establish a supportive environment. This puts the team on the track to success because they know management is behind them all of the way.

Step 3: Develop a Game Plan for Recovery

The recovery effort is like its own project. Therefore, it needs its own plan, separate from the original project. This plan cannot fail. It is important to set more short term goals to gauge the plan’s success. This will also allow for quicker corrections if something should go wrong.

Step 4: Execute the Game Plan

The key to this final step is clear and frequent communication. Everything needs to be in synch and the operation needs to run as smoothly as possible. Everybody, from management on down, needs to know they are being held accountable for the project’s recovery.

You can read Ron’s article in its entirety here. The piece is entitled “Project Management: 4 Steps to Get Flagging Projects Back on Track.” He goes into detail about some of the warning signs and determining factors for whether or not a project is worth saving.

 

Utilization Boom? Are Cloud Providers going to Change In-sourced Focus?

July 1st, 2010

We’ve been doing some extra research lately in preparation for this month’s IMF Forum, taking place on July 13th and 14th in Atlanta.  With regards to Cloud Outsourcing, we are noticing some interesting trends in the marketplace.  We’ll talk about a number of these in our presentation about Outsourcing in general at the meeting, but I wanted to share one concept with you ahead of time. 

At a high level, it appears as though pricing in the cloud (speaking strictly of a third-party provider for this example) is based on utilization.  It really remains to be seen how the costs per unit will change over time (in addition to the retained costs necessary to access a third-party cloud safely and effectively), but the fact that the pricing is structured this way will make for some interesting conversations within the IT organization.  Essentially, the message may be: “These providers charge only for what we use, and we have all this unused capacity built into our in-house model, so if we can drive a big jump in utilization, we should be competitive.”

I cannot recall a case where we’ve worked with a company on a benchmarking study and a major goal of that organization wasn’t to improve their utilization. So, if anything, this may just make the concept more salient to senior management.  It will be interesting to see what impacts this eventually has on delivery strategies. The industry as a whole will take some time to become entirely comfortable with their approaches to either adopting or competing with cloud providers.

One word of caution, however.  Remember that as a customer of a cloud IT provider you are charged per utilized unit, but at the end of the day you are paying for excess capacity along with all of the other customers.  The cost for the excess (which is necessary to give you on-demand increases, as well as protect everyone from failure) will be passed on in the rates you pay. As a result, longer-term attempts to get your unit costs (based on utilized units) in line with the provider’s rate may be a battle you can’t safely win.

We’ll discuss this concept and several others related to it during the Outsourcing and Project Management Forum on July 13th and 14th.  We hope to see you there!