Archive for November, 2008

Nov 30 2008

Some thought of project change management

Published by xiaoming under Tech

I recently watched a BBC show called “Dream homes”, that basically talked about how to help people who had problems to decorate their awful house into a dream land within a limit budget. Normally, from the beginning, the house-owners and the show organizers came out a plan, say “budget 80 grand”. When the procurement and  engineering work started, with some changes happening, the budget always went up dramatically to double or even higher. Then they had to give up something in their original plan in order to cut down the cost. Along with the whole program, there were many changes, such as change of the engineering design, “shopping-list”, construction implementation. Sometimes, money were saved and sometimes lost by these changes. This show made me think of our software development projects that included lots of changes every release, every week even everyday. These changes might be initialized by business owners, end users, project managers, or development team. People in this show did not feel like being good at the change management that touched me off thinking about what good practices that we can use in project change management and how to use them.

Insight a traditional project change management approach, a change typically goes through at least 6-7 steps of a process from it is born to its end.

  1. Change initiation
  2. Change classification/Define
  3. Risk/Impact assessment
  4. Plan
  5. Change approval and notification
  6. Execution/Implementation/Test/Monitoring
  7. Change acceptance/record/closure

This process made sense to me theoretically, and I did went through several times of the whole process when I was an IT manager in a large organization. It certainly “worked”. However, I observed several phenomena that were either waste or dragged the whole thing to the opposite direction of the goal of the change. E.g.

  • People focused on a very detailed plan and it turned out none of the many times of execution actually went step by step following the plan.
  • Documentation maintenance was paid very much attention even than the actually the change itself, however two years later, no one actually went back to see any of those documents. I can tell the main reason behind the concreted documents was that people did not want to get into trouble if there were anything wrong concerned the change.

A process/plan driven management approach might caused the above problems. The underline reasons are that human-beings keen to protect themselves and achieve personal achievement firstly if you do not bind their performance with your organization’s value and achievement. However if people could be trained by value/goal driven thinking align with reactive/adaptive project management approach, those problems would be solved.

In a typical IT change project, however it is big or small, going through with the structure of the process is not a bad idea, meanwhile, put too much assumption or make the plan very much details could kill creativity and flexibility during the implementation of the change itself.

Software development project could be a bit different in change management. It is not easy to achieve the same understanding of cost-efficiency of each change, so it normally came to the situation, business stakeholders and development team went for slightly different direction during the implementation of a change. It might be worse, if there was change during the process of making a change. So, certainly it would be very inefficient to go through a whole process every time.

So what would be a good idea? When there was a change that was initialized, team can regard it as a task and put it into development task list, we can think it as a functional task, or defect or whatever it is easy for the team to understand. Then re-prioritize the task list and rank this new task (change). When team estimate the workload of this task, its impact on the existing system need to be considered. Sometimes, it might be just less costly if a change could be combined into some existing tasks that they have similar priority.

People who manage change plan should consider which option could put more business value into the software application and what the goal was to finally achieve. When people driven by value or goal, with a simple plan in hand, they could be very flexible during the implementation, so that the process and documentation just played a helper role rather commander.

Tips:

  • Sometimes, business stakeholders and development team could not easily have the same understanding the cost of a change. In this case, splitting the change into several tasks could make it easier to understand.
  • Use any chance such as meetings, daily catch up, project Wiki to communicate with the team about the changes that would be made and notify every sponsor and stakeholder.
  • IT need provide enough information for business to understand the cost and impact of a change and co-work to make a correct decision.
  • Make a change plan more goal-driven and not too detailed so that team can be more creative during the implementation.
  • Communicate more if it is possible, maybe development team can demonstrate a completed task that was not the complete change to business, so that team can check if they were going to a correct direction.
  • Risk and impact assessment is necessary however it does not need to be very formal or be written as documents.
  • The closure of a change should be able to be demonstrated in the real application.

Back to the beginning, if the house-owners could manage their changes in this way and well prioritize their task list and considering any change as one of task, their job might not be that painful, they might just get a fairly dream home.

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Nov 03 2008

The spring of IT is coming

Published by xiaoming under Tech

Dot-com bubbles

Looking back a decade ago, Dot-com bubbles in 1995-2001 especially its climax in 2000 was hardly forgotten. The decline of IT, specifically Dot-come business defeated the confidence of IT investors and employees. The IT industry did not fall over, innovation of hardware and software, Web 2.0, google and new age of Internet started fighting back to the business. Investors and marketing also doted Web business, such as success of SNS. More money came into IT industry. Enterprises invested more in IT in order to develop their business and bring innovation to help business going forward. Probably no one did imagine around 2000 that IT giant would be able to come back so attractively and vivid.

Financial crisis and Economics recession


Finance institutions are always the core of world economic system. Investment banks, funds have innovated a big amount of products and tools to make profit aggressively. IT played a crucial role of building information system to transfer information, calculate risks efficiently and guarantee the continuity of business. Financial system hugely depends on IT system. When the financial crisis spreaded all over the world in 2008, the Wall street experienced a scary nightmare in a coupe of months, Lehman Brother, Merrill lynch and Bear Stearns fell down over night. There were huge impact on other business too rather than financial business itself because lack of liquidity and loss of confidence of investment. Business started cut off cost and save enough liquidity to prepare for even worse economics situation. No one can ignore the fact that world economics recession. The UK chancellor reported that GDP decreased 0.5% in the 3rd quarter which means the economics of the UK, one of the world top 5 economies is recessing. The US is also experiencing a huge pain and injected more than 700 billion dollars into their financial system. Car manufactures, toy makers, and other manufacturing had to shut down their business.

Challenge of IT industry

IT industry can not escape from the economics recession. Unfortunately, the IT investment was hugely cut off. IT industry laid off employees. In people’s mind, IT cost money. I recently attended a economics discussion panel which was held by China Economics Research Center. I clearly remembered that one of the key note speaker said “IT had never produced productivity. 20 years ago, stock market can use telegram to transfer message and make the transaction without IT.” I personally very much disagree with his opinion, although it was not totally ridiculous. So what does IT do to help business? Generally, IT improves the efficiency and reduces the likelihood of making mistakes of business. It looks like that IT does not add value to business directly, however without IT, business can not grow so fast and so efficiently and there would not be such good service without the support of Information system and IT infrastructure. The financial crisis impact real economy directly and slow down the investment on IT indirectly. Now IT is facing a very critical time. Where is the way out? How much should IT industry worry?

Opportunities of financial industry

One of the way outs is to help the business better, faster and more customer focusing. Jamie Dimon CEO of JP Morgan Chase recently was interviewed by CCTV and through the whole conversation, he emphasized several times that the success of JP Morgan Chase was more customer focusing, better product and server, faster responded to the market. From what he believes, how can IT help financial industry more customer focusing, provide better service, product and faster respond to the marketing is one way out. Some real life examples are:

  • Short life-cycle of project delivery.
  • End-user, customer focusing design and continuous improvement
  • Cloud and Grid computing to help transaction faster and efficiently.
  • Business Intelligence to help analyzes customer’s preference etc.

There are definitely more that IT can do in order to help business to achieve their goals. One of the reason that the US learnt from the financial crisis is that lack of effective supervision and Inappropriate regulations. In order to build or reform the existing financial system, a set of new rules, regulations, tools and products would come out. A new system which can lower the risks of investment and make the whole process clear and easy to supervised. All these changes need new information system or business re-engineering of existing system. Only IT can help business to make that happen. It is a great opportunity for IT to server government, industry and business to build good basis of the better financial system  and go forward.

Real economy need IT innovation

During the economics recession, business is in a awkward situation, on one hand, they want to less spend and on the other hand they have to invest and innovate new ways of doing things in order to grow and increase profitability. Whatever primary, secondary industry, they have no choice to get rid of IT and live by their own. A good information system can bring them into the market faster with better service.
So, even it is still cold, it is close to the end of winter and there are more demand floating up and the spring of IT is coming.

So what shall IT do to be prepared for the coming spring?

As Jamie Dimon mentioned in his interview, looking back into the mistakes that we had made, learn from where we fell down. This is definitely one thing that IT should learn from the financial crisis. Reducing the risks of investment, pay more attention to how to help business to generate more productivity is the second aspect IT should be aware of. Be more customer/marketing focusing, better and faster, align with the growth of business, feel what business feel and be responsible for what business is.  More innovated ideas, products and brand new ways of doing things is always a way out. Certainly there are more things that IT can do instead of waiting for the end of the world. I believe that the spring of IT is coming after this short winter. There will be more opportunities than ever.

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