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Re: Justifying a Tech Project During Lean Times

18 Replies Last post: Jun 2, 2009 2:03 PM by Bart Perkins Go to original post 1 2 Previous Next
J. Schwan   2 posts since
May 4, 2009

Good points Bart.  We've found that your rapid delivery point is a huge selling point in getting things funded.  If the project can be broken up iteratively so that some business value is achieved in month one, it tends to help get the ball rolling.  The Agile/SCRUM development methodology is extremely helpful in making that happen.

Dennis Byron   1 posts since
Oct 3, 2008
16. May 12, 2009 10:16 AM in response to: J. Schwan
Re: Justifying a Tech Project During Lean Times

My comment would be that the headline is wrong, although the question is a good one. If a CFO thinks it’s a “tech project,” you have already lost the battle for funding.

 

I am making a distinction between a “tech project” (e.g., let’s restructure or upgrade the server farm or switch from Sage to Epicor AP software to save IT OPEX or some such thing) vs. a “business project” (e.g., let’s change the business process flow for supply chain automation to better serve customers and/or speed up capital turn). The second type of project can be either for costs savings or revenue enhancement and still get management approval if otherwise makes business sense.

 

This is also an industry oriented question. I don’t care how much business sense a project makes, it is probably not going to fly in financial services or automotive manufacturing in the near term because of lack of funds. Conversely, everything goes in healthcare delivery and government in the U.S. no matter how tangential to good business sense.

 

The other type of project that cannot be ignored is anything to do with government regulation; imagine the billions of IT dollars being wasted trying to track nickels and dimes of financial-services expense budgets so no one at a TARP-funded firm takes a customer to lunch.

J. Schwan   2 posts since
May 4, 2009

Amen, Dennis.  In my experience, regulatory projects are the only things that are actually getting funded in Financial Services, and with the timelines being so crunched, a colossal amount of money is being wasted due to the bubble-gum-tape solutions being put together to tactically address the regulators questions.  Instead of the money being spent on proactive controls, they are being spent on reactive reports.  Hardly a solution to the problems.

Bart Perkins   7 posts since
Oct 3, 2008

Dennis is absolutely correct. And I should have noted it a few weeks ago.

The best CIOs I know talk about business projects (or programs) which are IT enabled. The idea is simple but is often politically charged. Many CIOs have to bet their job in the first few weeks with a new company to make the point.

 

Several CIOs whom I respect, shut down projects in the absence of an Executive Sponsor with personal responsibility for the business case. Eventually all of the projects were restarted. The Executive Sponsor agreed to include harvesting the benefits into his/her annual performance objectives. And even though the CIOs had a few tough weeks they all kept their job

 

Message was edited by: Bart Perkins

Re: Justifying a Tech Project During Lean Times

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