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Enterprises can outsource a lot of functions, but they cannot outsource the activity of looking out for their own best interests. If they do, they wind up in a very weak position where they depend on the kindness of strangers. 7 The continuous development of new systems to support evolving enterprise strategy requires that CIOs become very good at evaluating project activities and the likelihood of project success as they move through their development life cycle. Three Main Areas of Concern Answers to these questions help people connected with a project make accurate assessments and take appropriate corrective actions. Three main areas of concern need to be investigated on any development project: 1. The goodness of the system design. 2. The progress made in building the system. 3. The competence and confidence of the people on the project.
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Goodness of the System Design Notions that good designs must include state-of-the-art technology or complex processing logic are entirely misplaced. The goodness of a particular system design is measured by the combination of two probabilities. The first is the probability that the system will meet the performance criteria that were specified for it to accomplish its business goal or mission. The second probability is the probability that the system can be successfully built. The best system designs usually do not use state-of-the-art technology or complex processes for the very reason that newness and complexity tend to introduce uncertainty. Uncertainty reduces the probabilities that the system will perform as expected or that it can be built on time and on budget. The goodness of a system design can be accurately predicted by the extent to which it respects the seven strategic guidelines for designing systems. If a design omits only one of these guidelines as long as it is not the first guideline it may still be a good design. When a design disregards two guidelines there had better be very clear and convincing reasons. There
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must also be well-thought-out preparations to compensate for design omissions. Designs that disregard three or more of the guidelines will fail. The probability of building a successful system that violates this many guidelines is about the same as the probability of winning the lottery.
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Progress Made in Building the System Successful development projects move along at a smart pace. The pace of progress must be aggressive or the project tends to lose its focus and begin to wander aimlessly as the world passes it by. An aggressive pace requires two things: (1) rigorous application of the six tactical principles for running projects; and (2) effective time boxing. The CIO is responsible for applying the first tactical principle, which is to make sure there is a qualified full-time leader (system builder) for every project. It is then the responsibility of the system builder to effectively apply the other five tactical principles. There is no convincing reason to ignore any of these principles. When the system builder omits one or more of these principles, you need to do everything in your power to reinstate the missing principles. These principles are mutually reinforcing. Omitting even one principle creates a dynamic that undermines the application of all the others. The second requirement for moving projects along at a smart pace, effective time boxing, means that the activities of each project team are organized to follow a clear Define-Design-Build sequence for developing systems. The activities in each of these three phases need to be completed within the time-box constraints and budgets appropriate to each phase. The system builder works with the project team leaders to set the time boxes, and the project teams keep up the pace to meet their selfimposed deadlines. See 3 for an in-depth discussion of the Define-Design-Build sequence for ways to promote a tactical, agile IT organization. Competence and Confidence of People on the Project People charged with developing new systems must be competent and confident in order to succeed. Competent people who lack confidence move slowly. Confident people with no competence have even more trouble. Systems development people must possess both the know-how and leadership skills. CIOs can measure people s qualifications. The first type of measurement
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