Three tips for successful IT projects
All too often, we hear about IT projects that end in disagreement and conflict, and some also end up in court. It's a shame because it's easy to avoid the project pitfalls becoming a minefield. Here are our three tips for successful IT projects.
The agreement with the customer is finally signed, and after several iterations with the customer, you and your team are finally tingling at the starting line. Everyone is excited but now comes the doubt. Did we include a sufficient buffer in the cost estimates? Did we take into account that we will take time for administration? Have we thought about infrastructure costs? You become uncertain and start to see pitfalls.
Most pitfalls in an IT project originate in ambiguity.
The customer usually wants predictability of the two project parameters, which in the IT world are becoming increasingly difficult to control; scope and cost. In a changing technological landscape, these two aspects can be very time-consuming to get under control. In some cases, securing the area and price takes so long that the need initially supposed to be solved has changed, and you have to return to the starting point. Therefore, we see an emerging trend that more people choose an R&D approach (research and development) to IT development. With an R&D approach, one accepts high uncertainty and frequent changes. In a more traditional project way of thinking, these are elements that you would prefer to minimize. Whichever approach you choose, there are pitfalls, but if you navigate correctly from the start, you can avoid creating minefields.
Success factor no. 1: Expectation management
It’s crucial that both parties enter the project with realistic expectations. IT development is innovation, and one must embrace the uncertainty it brings. If you cannot afford to fail, you should not start a digitalization and development project. Both supplier and customer must agree that there will always be conditions that have not been uncovered. Both must be willing to accept a certain degree of risk before starting the project. An excellent place to start is establishing a risk matrix at the beginning of the collaboration that is actively used throughout the project. Don't be surprised if new risks arise along the way. This is completely normal, but they must be made visible to both parties and handled jointly.
Success factor no. 2: Clear reservations about costs and timelines
Most businesses cannot start a project or development process without having an idea of the cost. It is, therefore, common to estimate what is to be developed. Still, if you are to provide cost estimates, it is essential to have clear reservations and assumptions about the estimates. It is natural that the scope is expanded, but one should know when it is expanded and make this visible to both parties. If time is the most critical factor for the deliveries, then this is absolutely essential for raising awareness of the consequences of the timelines in the project.
Furthermore, clarifying the difference between a cost estimate and a fixed price is important.
An estimate is not a fixed price. It is an indication of scope and complexity. A fixed price should only be used if all needs and building blocks are known. In typical development projects, fixed prices should be avoided because it makes change management difficult. This often leads to disagreement.
However, you should have frameworks when carrying out development. A timebox or a fixed budget allows for an R&D approach to IT projects while controlling costs.
Success factor no. 3: Correct agreements where everyone understands their contribution part
I dare say that no IT project goes well unless all parties involved are dedicated and have equal ownership of the deliverables. Some types of agreements take care of this better than others. The parties concerned must know the agreement's content well and agree on the risks at start-up. Therefore, set up a half-day meeting to review the contract and make sure that you have the same understanding of the points that deal with the scope, progress plan, and price regulations. Standard assignment agreements also handle critical areas such as testing, production setting, and approval. These are areas with potentially significant mercantile consequences. Bringing a neutral legal party to the meeting is a good idea.
Suppose it is essential to start the project quickly, and there is acceptance for development under the fail fast principle. In that case, the assistance agreement is much better suited than the classic assignment agreement.
At Cegal, we deliver the Project Office Service. This is a flexible service that helps you and your company succeed. The service supports various businesses in prioritizing which projects they should initiate to deliver on the company's vision and optimize the portfolio for maximum return. This means better management of risks, resources, quality, time, and scope. Project Office Service offers our customers a flexible framework for project planning, management, and execution of IT deliveries. Based on where your company is regarding digitalization, we adapt tools, methods, and degrees of direction. Our consultants are certified within known delivery forms, and we offer varied experience and expertise in project management, team management, flexible management, and product management.
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