10 Biggest IT Development Money Wasters
From Justin James and Techrepublic: IT Development Moneywasters
#1: Communication problems
#2: Process issues
#3: Refusal to go live and iterate (aka: insistence upon perfection)
#4: Penny wise, pound foolish
#5: Outsourcing missteps
#6: “The Longest Yard” (documentation and user training)
#7: Developers used as support staff
#8: Poor foundation for development
#9: Fail to know the business
#10: Neglect to calculate project ROI
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
Thanks to SCEA For Dan’s Lifetime Achievement Award
I received a lifetime achievement award from SCEA (Society of Cost Estimating and Analysis) this past week for the work in SEER advancing the state of the art and practice with parametric (mathematical) modeling of cost, schedule, risk & reliability for software development & maintenance (SEER for Software), hardware development, production, operations & support (SEER for Hardware), reducing the costs of parts, processes, and assembly (SEER for Manufacturing), and IT projects and operations infrastructure and services (SEER for IT).
I must say this award was unexpected.
I would like to thank all the members of SCEA for this award which, although awarded to me, I accepted on behalf of the entire Galorath team.
The award was presented by Bill Haseltine, SCEA president, at the international conference in Saint Louis. Bill discussed contributions as well as a few “Dan stories” throughout the years. One story included a bet about 20 years ago between Bill and Dan where Dan paid off with a signed dollar saying “you were right Bill.” Another was a story about Dan being so lost in a parking lot he thought his rental car had been stolen. Thankfully Bill didn’t tell how I computed the calories served at lunch (1965 calories…. a whole day’s food for most people) and used this as an example of data collection and the need for normalization. I felt responsible for so few people eating the dessert at my table.
Seriously, it is extremely rewarding to see so many use SEER for more successful projects and to make better decisions and to work with so many wonderful people at Galorath, our customers and partners.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
How To Successfully Execute Large IT Projects
Interesting article from cioinsight.com defines the items needed to make big IT projects successful. Of course viable effort, cost, schedule is key to the approach.
They identify lessons learned from over 75 large projects and identified five “Execution Planning” steps:
1. Start with the steering committee: At least two or three sponsoring executives.
2. Establish the core project team: Four to six people who make 80 percent of project decisions and setup the master schedule / effort / cost plan
3. Establish sub-teams: Sub-team leaders responsible for developing and executing detailed schedule, budget, scope plans in line with the master plan
4. Define roles and responsibilities: Build a one-page document that clearly defines objectives for all project members to remove ambiguity
5. Build a one-page master project timeline: With key “anchor dates” against which all sub-team leads are responsible for developing and executing detailed plans. DO THIS RATHER THAN THE TRADITIONAL BOTTOMS UP Approach. “experience suggests that successful large projects start with key top-down anchor dates set forth from the core project team”
From this I surmise cost estimating is a huge component of successful IT projects. Add rigour to the process.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
Eight Causes of Project Failures: UK Government IT Projects
From the POST report on UK Government IT projects, there are some insightful lessons on why projects fail. Now if we could only get the world to bring those into play early. We could avoid many project failures. Note number 6…. not taking the total ownership cost into account. That is why we stress total ownership costs (which many organizations don’t want to worry about until it is too late).
1. Lack of a clear link between the project and the organisation’s key strategic priorities, including agreed measures of success.
2 Lack of clear senior management and ministerial ownership and leadership.
3. Lack of effective engagement with Stakeholders.
4. Lack of skills and proven approach to project management and risk management.
5. Lack of understanding of and contact with the supply industry at senior levels within the organisation.
6. Evaluation of proposals driven by initial price rather than long-term value for money (especially securing the delivery of business benefits).
7. Too little attention to breaking development and implementation into manageable steps.
8. Inadequate resources and skill to deliver the total delivery portfolio.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
Information Technology (IT) IS Not Just A Commodity
I have just started reading a book on the next leap in productivity. The forward itself is so powerful I thought it was worth a BLOG.
Is say that when CEO’S, CFO’s, etc. are asked about IT they generally don’tcare. They say I care about business results, not IT nor running water, simple facts of life. This is a huge mistake because in most companies today because YOU CANT ACHIEVE BUSINESS RESULTS WITHOUT IT…Banks are big software companies with money… Even a ship is a big floating IT system of systems. so..
Top management should care about IT” because superior IT is a competitive advantage in a networked global economy.”
That is why SEER for IT and SEER for Software are so important… Bringing more success to IT projects and bringing competitive advantage.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
SEER Estimating United Conference At Manchester United Stadium, UK
I had the opportunity to review the agenda for the SEER Estimating United Conference at the Manchester United Football (Soccer) Stadium coming up March 19th. Very exciting to see the lineup of speakers and events. We will hear from organizations saving millions by using SEER, and from the inventor of the COSMIC function point method, for example. Estimation, planning, control and project success with SEER will be featured. More details will be on the galorath.com web site soon.
Speaking of football, in the UK everyone seems to have their favorite soccer team… Beyond the level in the US (My own kids are big fans of Manchester United and are envious of my opportunity to tour the stadium). My families closest thing to an obsession is they are big LA Lakers (Basketball) fans and live near Sasha)… one of the players But in the UK sports team loyalty seems to be an obsession.
SO please, SEER users who are not Manchester United Fans, forgive us and come to the conference anyway. 
And for US users who don’t want to travel so far, there is something for you coming in the fall that will be announced any day. Perhaps not as exciting as the conference in the UK, but will great speakers and interaction with other SEER users as well.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
The Cost Vs Benefit of Additional Bandwidth
You can never be too thin, too rich, or have too much bandwidth. As I think back over the years, from my original 30 character per second modem, to the big jump to 1200, then 2400 (240 Characters per Second) BAUD modems (SEER for Software was originally developed by a disbursed team using 2400 BAUD modems) to megabits of bandwidth.
We learned some years ago that speed was not the only consideration, but reliability was key as well. Once we had a DSL line that went down. 3 day turnaround to fix. Then a T1 vendor (high reliability 1.5megabits) who got in a fight with the phone company and got our line along with all their customers shut down.
We are making the big jump, once again in El Segundo, going from a t1 to a bonded t1 (3megabits)
And how will that impact productivity? Experience tells us there will be a few miserable days when the change brings the company to its knees (we have people scattered about the free world.) Our staff offered to run SEER-IT and estimate the project but I really didn’t want to know… we are going to go ahead and we know it will be ugly. Then, after the misery we expect to be servicing our remote employees twice as fast as we do now. Of course none of them will be happy since the average bandwidth in homes is still higher than 3megabits.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
The Mistake of Measuring Everything
I recently participated in a seminar with Larry Dribin of Pearl Street Group. Larry did a beautiful job with a talk called something like “You Get What You measure” Afterwards I added the corollary “If you measure everything you get nothing”
I have seen a number of organizations that just start measuring everything. They figure they will do something with the measurements sometime. Measurement becomes a burden with no ROI. And people can’t respond by doing the best job on what they are measured against. Read more
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
Bad Assumptions Invalidate Business Value and ROI Analysis
A recent email announced “ROI estimates in business fail primarily because managers give too much attention to the “payout” odds and too little attention to measuring and managing “probability” odds. A good risk and sensitivity analysis of the assumptions behind the predictions allows you to do both. ”
This is so true. Inappropriate or unlikely assumptions looking for payout based on the absurd (such as assuming that saving 1 minute per day of employees filling in their time card has a huge savings in a year) and a myriad of other traps cause business value and ROI to be appropriately produced using sound business case analysis.
In the same vein, absurd assumptions can cause cost and schedule estimates to be low. SEER evaluates the viability of assumptions, helping produce estimates that can actually be deployed.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
New SEER Functionality, Like a Kid in a Candy Store
It is interesting as the company has grown over the years and as I have gotten further and further from day to day software requirements and design, to see some of the amazing functionality coming out of our development group. Sometimes it makes me feel like a kid in a candy store.
I was struck by the newest version of the metrics and benchmarking. A Histogram in addition to a scatter plot. This is so handy. And nearly a surprise to me. (I did know they were doing it but didn’t see it until beta time)
I see some of the global estimation abilities that have gone into SEER for Hardware Electronics and Systems. Very nice!!!. Makes trades even faster. And these I didn’t know about until they were in the shipping product.
For SEER for IT, the newest scenario functionality is beautifully executed. Generate an entire IT system estimate by using a pattern and answering a few questions. I never saw this improved version until release.
And the Far out project… estimates unmanned spacecraft far out into the future. i just played with it a few weeks ago. It was released months ago. Very interesting.
Even some of our unreleased projects such as xippr (code name, ask and you can find out details) Amazing in its ability to ferret out project issues and potential problems.
And our top secret project… Amazing as I occasionally get glimpses into the builds.
As our processes continue to tighten (ISO 9001:2000 review coming up next month) I will be invited to attend more reviews… some of the fun surprises will disappear for me. I love seeing SEER evolve. Hats off to the development group.
Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.
Project Prediction Infographic
