Success Rates for IT Implementation and Customization Projects

A recent study by the Standish Group of IT Implementation and Customization projects in companies with less that $200 million in annual revenue revealed that the majority of IT projects are NOT successful.

• 50.4% were challenged, meaning they were over budget, over time, and/or did not deliver the functionality as promised.
• Overall, these projects ran 214% of budget, took twice as long as expected (lack of planning).
• They delivered 74% of the functionality that was promised (lack of proving).
• 21.6% were cancelled altogether
• Only 28% were successful.

We call this the Plan > Prove > Purchase approach as opposed to the Purchase > Plan > Prove approach. It’s the best investment/insurance you can buy.

The low-risk approach to selecting a new software solution provides for the planning and proving (with your data) before you purchase software. You always need to plan, but most companies do it after the purchase rather than before. By engaging the software company to plan and create a proof-of-concept system before you purchase their software, you can confirm that the package actually does all the critical functions and processes required.

We understand the risks associated with purchasing software. If the company showing you software doesn’t want to help reduce your risk, they are “just a vendor,” and not a potential partner.

Think about the last IT project your organization was involved with.

• Was it on budget?
• Was it on time?
• Did it deliver the functionality as promised?

The Synergy methodology helps ensure projects lead by our team of certified professionals are in the SUCCESS quadrant every time.

The following process defines how Synergy Business Solutions can best help you and your organization finalize your software evaluation and selection, and commence an implementation with the full confidence you will fully succeed.

The Process:

1. Gather Information - to understand how best to provide leadership we need to get information about the following areas:
   
   1. Organization's mission statement, goals, objectives, strategies, nature of the business, and key issues
   2. Future plans – growth, change
   3. Key stakeholders impacted by the scope of the project – their roles and the impact
   4. Executive sponsor (decision maker) and selection-project leader
   5. Compelling reasons to change
   6. Critical success factors for project
   7. How will the decision be made, who will make it, and what is the process
   8. Critical needs requirements
   9. Project timing
   10. Project budget
   11. Go-live date
   12. What other companies and packages are being evaluated
       
       
2. Determine and agree on evaluation plan and project timetable
   
   
3. Determine viability of solution:
   1. Are the reasons to change compelling?
   2. Can we provide an effective and successful solution?
   3. Can we solve it better than any other company?
   4. Can we provide strategic, as well as tactical benefits?
   5. Are the requirements sufficiently defined?
   6. Does the organization meet most of the characteristics of an A-level client? (See below)
   7. Can we provide the solution with a good ROI and a justifiable budget?
      
      
4. Present and confirm solution - ongoing:
   1. Business Fit:
      1. Confirm our understanding of your business objectives
      2. Confirm solution fits the needs
      3. Confirm company cultures match
      4. Receive confirmation from executive sponsor
   2. Initial software solution
      
      
5. Do initial planning and create proof-of-concept system:
   1. Introduce project staff
   2. Conduct needs assessment (Plan)
   3. Present proof-of-concept system (Prove)
      
      
6. Facilitate due diligence:
   1. Present draft proposal
   2. Answer questions
   3. Provide references
      
      
7. Present final proposal and complete contract approval (Purchase)

Synergy’s Investment:

1. Evaluation plan and project timetable
2. Business-fit presentation
3. Software-solution presentation
4. Software and estimated implementation/training services proposal
5. Customer references
6. Implementation approach that meets your business objectives

Your Investment:

1. 30-minute meetings with each key stakeholder
2. 1-hour meeting with executive sponsor to present and confirm business fit and evaluation plan
3. 3-hour meeting with stakeholders to present initial software solution and preliminary proposal
4. Appropriate needs requirements meetings (Plan) to prepare documented needs assessment (40 to 60 hours)
5. Proof-of-concept configuration and documentation (40 to 80 hours)
6. 3- to 4-hour meeting with stakeholders to present proof-of-concept system (Prove)
7. 1-hour meeting with executive sponsor to present final proposal
8. 1-hour meeting with executive sponsor to finalize project and contract (Purchase)

The Results

1. Clear, proven solution strategy with business fit agreed upon
2. Risks understood, reduced, and well managed
3. Key stakeholders’ strategic objectives understood
4. Strategic implementation partnership established

A-Level Clients

Organizations that represent the lowest risk to themselves, their implementation project, and to Synergy Business Solutions, typically possess the characteristics listed below. Clients and prospective clients who do not possess these characteristics represent a higher degree of risk and the potential of producing a “challenged” or “cancelled” project (see graphic above.) The organization’s return on investment will be lower, and their investment payback period will be longer. It is the direction of Synergy to identify, attract, and retain clients with the following characteristics.

A-Level Client Characteristics

1. 1.They perceive the acquisition of a new accounting and business information system as an investment as opposed to a cost.
2. They have a strong and supportive management team.
3. They have qualified accounting staff.
4. They are committed to Microsoft technology.
5. They value quality services.
6. They believe in a planned approach.
7. They manage their own expectations through frequent and healthy communication.
8. They believe in a team approach.
9. They regard leadership in their industry as important.
10. They exhibit and appreciate a high degree of professionalism.
11. They have an established and enjoyable work atmosphere.
12. Their executive and financial managers are committed to the project.