Newsletters Welcome, Guest Log In | Register

Subscribe

Sign up now and get the best business technology insights direct to your inbox.

  • Daily Edge
  • Business Tools & Templates
  • Aligning IT & Business Goals
  • Maximizing IT Investments
  • IT Careers

Be a Guest Author

Have an opinion you would like to see published here?

6

Let's Get Small

by Doug Brockway, Plexius Group
Jan 8, 2010 1:07:10 PM

    Doug Brockway
Doug Brockway is the founder and Managing Principal for Advance Consulting. He blogs on IT management topics at Working on Step 2.

After toiling in obscurity, learning the hard way about stand-up comedy and how to play the banjo, Steve Martin started catching on in the 1970s, hitting the big time with a comedy album titled “Let’s Get Small.”

 

The title and the bit by that name are nominally an absurd twist on the drug culture of the time and the phrase “Let’s get high.” As it turns out, there is a theory that Martin was actually prescribing how to manage a portfolio of IT projects. (Note: Researchers have debunked the theory that Martin was recommending that IT management parade around the office with arrows through their heads and wearing Groucho Marx glasses…)

 

Whether that actually was Martin’s intent, here’s good advice for businesses. Keep project sizes small. Make sure you can get benefits early in projects.

 

The longer each project is, the less likely that you can properly define all its goals, much less achieve them, much less ensure yourself and your colleagues that the effort was worth it. If you have a long-term goal, a roadmap, that’s fine. Get there in pieces with tangible benefits coming from each step.

 

“The longer each project is, the less likely that you can properly define all its goals, much less achieve them, much less ensure yourself and your colleagues that the effort was worth it.”

    
Doug Brockway
Advance Consulting

The reason is that, no matter what we’re doing, from target sports to planning out a systems initiative, our aim is much better on short shots than it is on long ones. The longer the shot, or project duration, the harder it is to see, understand, explain and focus on the target. Even if you can do those, the longer the project duration, or shot, the harder it is to actually take aim at all, much less deliver what you intended.

 

With a little thinking, you can predict how far off your aim is likely to be and, using that information, have a sensible discussion about what should be the limits on individual project duration. To keep the example simple, let’s assume that whatever you think is the right thing to do today will, in one year’s time, be off by 20 percent. There are many reasons, among them: Technology will change, vendors will collapse, the economics of your business will change, skill sets will enhance, and new competitors will enter your market forcing new ways to compete.

 

If you had $3 million to spend and you embark on a large-scale, three-year project, due to compounding year-over-year change, your vision will be off by 20 percent after one year, 36 percent after two years, and nearly 50 percent after three. Few projects are managed that way, except for the “we have to replace the core systems” projects. The compound inaccuracy of vision and reality is one of the reasons so many of them result in runaway projects (I’m thinking of three that I’m familiar with right now).

 

If you took that same $3 million and spent it on a series of $1 million, one-year projects, the visions would miss the targets by 20 percent each year, but never more than that. Break it down again into six-month chunks and the maximum mis-alignment is 10 percent. Go “extreme” and require all projects to deliver value in three-month chunks and you’re never off by more than 5 percent:

 

 

 

In terms of protecting the bottom line, there is no question that making projects small is the best possible thing to do, to a point.

 

Just going from one-year projects to maximum six-month projects enhances the value for the dollar by 10 percent. This is big money, especially in tight money times.

 

This analysis must be tempered by the time, effort, and distraction you receive from repeatedly going back to the drawing board to set new goals. If you chunk up a long-term project, you frequently run the risk of losing funding from phase to phase as “higher priorities” arise or as the ROI on Step 3 is attacked as too weak to fund, even though it’s fundamental to Steps 3-6. Then there’s the ego/glory factor. Business and IT managers alike often prefer the big-budget projects with the big resume impact they carry.

 

This is where a plan or a roadmap comes in. Susan Cramm suggests you get the money but spend it right. What she’s on about here is something akin to the Apollo program. There was a goal set out: Get to the moon by 12/31/69. But the plan in 1961 only laid out the macro steps and the near-term efforts. On an effort like that, since it had never been done before, they couldn’t plan “beyond their headlights.” Most business projects are not that sophisticated. That said, the underlying business conditions and assumptions are constantly changing and so must project definitions.

 

Speaking of cramming… Do NOT use this as a license to request seven months of deliverables and their required effort in four months' time. This is an exercise in maintaining “alignment.” There are myriad ways people try to take time off a professional job. My personal favorite is “don’t do testing,” which is fine if you want to be highly productive at delivering systems that don’t work. The value of this approach lies only in keeping resources and time for tasks as they must be but re-adjusting your aim on a regular and timely basis.

 

If you set and execute a long-term vision, planned out up-front without downstream adjustment, you will miss the mark by a wide margin. Set long-term goals but limit your systems definitions, designs and efforts to short-as-possible projects with tangible benefits. At the end of each, take a short breath, reset your sights, and do it again. Get small. It’s the way to win.

Add a comment Leave a comment on this blog post.
Jan 8, 2010 2:39 PM Guest Dennis McDonald  says:

1. Some people use this logic to argue for an Agile approach.

2. The longer a project is the higher the probability that things Will Change (e.g., I just read a Government RFP where the first deliverable for a large project management effort is a Change Order Management System).

3. A cynic might extend your logic to say, "Obviously, then, if we reduce the length of the time-to-deliverable to zero we approach an infinite quantity of benefit!

4. Nice article. I agree with shortening the time to benefit. You might, though, be interested in this: "How Can Collaboration Systems and Social Media Complement Agile Project Management?" http://www.ddmcd.com/agile.html

 

Jan 8, 2010 3:42 PM Doug Brockway Doug Brockway    says in response to Dennis McDonald:

Dennis -

 

Yes, the agile-thang always comes up.  Its a different subject.  To use std headers from Big-4 proposals, the article here is about controlling Scope to maintain alignment and economic performance.

 

Agile is an Approach subject.  It can be helpful on large or small projects, though its a closer fit to the compact projects I advocate.

 

Doug8

Jan 8, 2010 4:53 PM Guest Joe Hand  says:

Doug,

 

You make some excellent points, and I'd like to add that, in my opinion,  the days of big, bulky, long term projects is over.  IT shops must be nimble and deliver value to the business quickly.   My motto as an IT Manager/Leader is "Speed to Value".

 

With ever advancing technology and the rapid change in business requirements, yesterday's project management style (along with it burdensome and bulky overhead) is quickly going the way of the dinosaur and the typewritter.   It you are not willing to change as an IT professional, you will find it very difficult to survive as IT organizations will continue to be challenged to do more with less.  

 

Joe Hand

Freedom Mortgage

Jan 10, 2010 8:08 PM Guest Bart Perkins  says:

Doug

 

I agree completely with your point that smaller is better.  However, not everyone agrees.  If you work for an organization that prefers big projects and has not gotten the small, "chunked" project message, what should IT leadership do?  What are the three to five things required to lay the foundation for the new way of operating?

Jan 11, 2010 10:48 AM Doug Brockway Doug Brockway    says in response to Bart Perkins:

Bart -

 

If your company doesn't get the small-is-better message your best path is to stay consistent with your current corporate mind-set or "culture", if you will, and lead by example.  By this I would suggest that you:

 

1.  Define and sell the big project

2.  Secure the funding

3.  Manage the project in stages

4.  Adjust the big project definition as stages deliver using the good will from the just-delivered-benefits to allow for the adjustment without losing the overall secured funding.

 

There is always going to be the need for the big project.  They should be managed this way.  At some point sell a change to your corporate approach to be the above.  When this is done medium-sized and small-sized projects, in chunks, will be able to draw on funds and large projects will be able to rest for 3-6 months if needs be (IT or business resources, other near term priorities, etc.) without losing overall funding and momentum.

 

Doug

Jan 30, 2010 6:04 PM Guest Tim Murphy  says:

Doug,

 

What you are speaking of I have always thought of as Tactical vs. Strategic.  The strategic, of course, being the blueprint or roadmap (the 3+ years), the tactical being the 3 month "sprints". 

 

Small is manageable, easily grasped and gives the project team those little "wins" to keep them going (and the funding coming).

 

Amen to your points in this article!

MarketScope for Project and Portfolio Management Applications

The MarketScope Report assesses vendors across a wide range of criteria, including: customer experience, product strategy, product/service offerings, business model, innovation, market understanding, market responsiveness, and track record.

Certainty in an Uncertain World: How PPM Can Help

Project portfolio management (PPM) tools have become a critical element in providing visibility and control for delivery of the right projects at the right time. This webinar examines what's ahead for PPM and how it can help your organization.

CRM

Technology that allows you to sell more, provide better service and significantly improve your bottom line.

Server Management

Management tips and product information to leverage the best value from your server investment.

Data Warehousing

Comprehensive storage solutions for better data access and retrieval, leading to better-informed business decisions.

Private Cloud

Products, vendor reviews, and expert commentary on building and managing company assets, sales tools, and collaborative abilities via a private cloud platform.