ATLANTA, Aug. 1, 2007 -- It is not a new idea that large technology projects are not IT projects as much as they are business / organizational transformation initiatives. Brand Velocity, Inc., a consulting firm that specializes in accelerated projects, has discovered that large technology projects are often not structured to succeed on this basis. And, unfortunately, the more important they are, the more a conventional project management approach breaks down.
Unfortunately, Project Directors fail too often, notes Jack Bergstrand, CEO of Brand Velocity, and all too often it is not their fault: "We first saw this problem a decade ago when we applied our corporate turnaround experience to a high profile SAP project. The Project Director - a highly skilled and respected business executive - was replaced when the project began to show signs of multi-million dollar cost overruns. Unfortunately, we have seen too many Project Directors just like him failing due to the project's structure rather than a lack of personal capabilities." Major technology projects commonly struggle because they are actually comprised of three distinct project types, which are very difficult to manage simultaneously. These three projects are: a large internal project; a large external consulting project; and a large consultant management project.
Weaknesses of internal projects
The internal projects in large technology initiatives are critical and commonly struggle for three reasons, according to Brand Velocity. First, they stall when senior independent resources are missing to facilitate rapid trade-off decisions. Second, they struggle when the most qualified full-time resources are missing or over-extended on the ground. And third, internal organizational dynamics often stall key projects when accelerated project management skills are missing.
Weaknesses of leveraged consulting projects
On the consulting side of the equation, large consulting firms use a leveraged hourly billed consulting model, where their most senior experts are leveraged within and across multiple projects, supported on-site by a hierarchy of less senior consultants. This approach works well for technology projects up to a point, according to Brand Velocity. However, the firm has found that when the leveraged model breaks down, it commonly does so for non-technical reasons driven by the internal project issues above, hourly based consulting incentives and too many inexperienced resources on the ground.
Stronger internal / external project management benefits everyone
Due to the factors above, Brand Velocity suggests that when companies are sold a large turn-key technology project approach, their company may be asking for trouble. Strong internal project management, external project management, and experienced consultant management are critical to success in large technology projects, and according to Brand Velocity, Inc., success requires a formal process for clear and consistent direction, rapid decision-making, and a strategic approach to consultant management.
To implement a company's most important technology projects more successfully, Brand Velocity has found that it is important to formally and independently manage the initiative's internal project, external project, and consultant management project - all three imbedded - through strong Project Director support.
On key technology projects, it is important for Project Directors to have independent and experienced support, especially when they have excellent business experience but have never run a large leveraged technology project before. Brand Velocity therefore recommends that Project Directors be professionally supported, at the rate of at least 2% of the project's overall cost, with senior business and consulting experience, organizational and leveraged consulting partner independence, and an accelerated project management approach. Done properly, Brand Velocity has seen this investment pay out quickly and significantly.
For more information please visit http://www.brandvelocity.com, or call Brand Velocity at 404-358-6061.
Press contact:
Jack Bergstrand
404-660-5240
jb@brandvelocity.com
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