The Project Problem

Probably the best-known study of information technology project success rates was undertaken by the Standish Group, whose research showed that across industries, only 28 percent of IT projects are successful on average; 23 percent fail outright, and the remaining 49 percent are considered challenged based on the triple constraints of being on time, on budget, and as originally specified (Figure 9.2-1). Failed projects are those that are cancelled before completion. Challenged projects may be completed and operational, but they are

Figure 9.2-1 Project Success Rates

Figure 9.2-1 Project Success Rates

Successful: on time and on budget as originally specified

Challenged: completed and operational, but over budget, over schedule, and/or with reduced functionality

Failed: cancelled before completion

□ Challenged

Successful: on time and on budget as originally specified

Challenged: completed and operational, but over budget, over schedule, and/or with reduced functionality

Failed: cancelled before completion

□ Challenged

Source: Standish Group International, Extreme Chaos (West Yarmouth, Mass.: Standish Group International, 2001).

either over budget, over schedule, or delivered reduced or less than the originally specified functionality (or the failure to meet any combination of these triple constraint criteria).

Even with great success over sixty-four years of experience in business, HP is not immune to these project challenges seen throughout the IT world. With the largest technology merger in history of HP and Compaq, the new HP is a $70-plus billion company with an IT budget greater than $3 billion. The merger of two diverse cultures made it even more imperative to have a common project management language, processes, and repository of project management information.

In tough times especially, it is more important than ever before to focus on project management, and the quality of this effort is critical. The focus placed on project management discipline is really the path to IT success.

HP is now one of the fifteen largest companies in the world and we have over ten thousand IT professionals, working on over three thousand active projects all over the world at any point in time. We do use portfolio management, and for the first time in the company history, we now have all our IT projects in one common central database, a true enterprise-scale project management system.

We have also implemented a standard project management methodology based on industry standards but using our own internal best practices from HP's rich history. This standard methodology provides a way to compare programs and evaluate their potential for success.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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