Why IT Projects Fail

Lead Paper - SAI UKSteve Doughty

INTOSAI EDP Committee3rd Performance Audit SeminarLjubljana, Slovenia 14-16 May 2001

Why IT Projects Fail

•Introduction•Main factors•Recent developments in the UK•Issues for discussion

Introduction•Increasing dependency on IT•IT offers great opportunities but presents significant risks•Procurement methods have changed but same mistakes are made• UK Paper draws on more than 25 cases during the 1990s (Performance Audits, not IT Audits)•Examines problems, causes, impacts, lessons learnt

Impacts•Often wider impacts are overlooked•Can be wide ranging•Papers identifies 6 headings and gives examples of each

Impact onthe citizenthe use of public fundsability to manageability to produce financial accountsbusiness developmentanticipated benefits

Main factors

Themes Inception and design Management Relationships with Suppliers (dealt

with under the “IT Procurement” discussion)

Post implementation issues and learning lessons

Main factors 1

Inception and design of projects Seen as IT projects, rather than business

projects Business needs, business change, user

requirements Scale and complexity of projects, modular

and incremental development Delays increase the risk of being

overtaken by technological change

Main factors 2

Managing projects Leadership and responsibility People and skills Project management Risk management Contingency planning

Main factors 3

Relationships with suppliers discussed under the “IT

procurement” theme

Main factors 4

Post implementation issues and learning lessons Staff training Project review Realising benefits Learning lessons more widely

Recent developments in the UK

SPRITE Programme (Successful Projects in an IT Environment)

Gateway Reviews

SPRITE Business Focus and Direction

LeadershipBusiness case developmentMeasures of success

People and ResourcesSkills mappingSkillingCivil Service reform

Tools and TechniquesGuidanceReviewsSuppliers Information

Gateway Reviews

1. To confirm business justification 2. To confirm procurement method and sources

of supply 3. To confirm investment decision 4. To confirm readiness for service 5. To confirm in-service benefits

Issues for discussion 1

Diagnosis Are there any other problems or

factors?

Issues for discussion 3Improving success through better audit

Do audit reports result in better awareness and understanding? How has this been achieved?

Do audit reports improve success? What action has been taken by SAIs to improve

success? Can this be measured? Does audit review the “business project” as a whole? Do you have a standard structured approach for

auditing such projects? Does this help more easily identify reasons or success or failure?

What are the most difficult areas to audit? Any why? Is there “best practice” guidance in this area?