A Computer System Implementation Gone Wrong:

A Study in Project Management

What’s the Problem?

•  In the late 1980s the institution faced increased competition.

•  Its antiquated processes and computer systems put it at a competitive disadvantage in attracting and keeping students.

•  Senior management decided to invest in an integrated student information system that would update and merge various unrelated databases into one fully functional system.

The Business Climate for Higher Education:

•  Highly competitive

–  College age (18-22 yr.) population declining

•  Numerous providers in a small geographic area

•  Limited capital expenditure funding

–  State funding for public institutions was declining

Climate at the Institution:

•  Technology dated from mid-1960s

•  Labor-intensive processes and procedures

•  Student body increasing

•  Funding for capital projects very limited

•  Complaints from “customers” about services

•  Competitors had advanced technology

The Decision Process:

•  Committee formed to investigate products and vendors, and recommend alternatives

•  Criteria established for acceptance

•  Final recommendation presented to Board of Trustees for approval

•  Project management team established

Criteria for Acceptance:

•  System needed to be compatible with current hardware

•  Long-term, on-site vendor support was required

•  Value for investment must be high

•  Product needed to provide a long-term solution

Recommendation Made:

•  Utilize beta testing opportunity

•  Promoted as the low cost alternative

•  Vendor consultant appeared at the board meeting

Problems Encountered:

•  Human resource problems

•  Technical problems

•  Financial problems

Human Resource Problems

•  Director of computing resigned within the first year after the project began

•  Lacking key staff in user departments

•  Project manager left soon after the director of computing was replaced

•  Senior management did not take an active role

•  Skill level of programmers and analysts was inappropriate or insufficient

Technological Problems:

•  Hardware vendor recommended that the system run from a dedicated mini-computer

–  Other beta sites followed this recommendation

–  Institution chose to split its current mini-computer instead of investing in more hardware

•  Insufficient DASD (memory) resulted in system slowdowns and crashes

Financial Problems:

•  Initial financial investment underestimated

•  Delays in project increased personnel costs in all areas

•  Expected revenue increases were delayed or lost due to delays in implementation

Effects of Problems on Implementation:

•  Project leadership disappeared

•  User departments stopped working on the project

•  Unable to attract talent needed for the project

•  Problems were not addressed quickly

•  Time delay in testing software programs

•  Cost overruns halted the project for six months

Lessons Learned

•  Critical that senior management be involved in such projects

•  Budget needs to include adequate contingency planning

•  Choose projects that match employee skill levels, or plan for contract employees

•  Utilize expertise of vendors and equipment manufacturers

Improving the Implementation:

•  Accurate assessment of the labor, skills, and hardware required

•  Quick replacement of leaderships positions

•  Clear timeline needed with due dates for milestone events

•  Adherence to the timeline by assigning responsibility and requiring regular reporting on progress

Improving the Implementation Continued:

•  Senior management involvement and commitment

•  Utilize advice and experience from beta sites

•  Recognize the need to pay for programming knowledge and talent

•  Utilize an evaluation process to solicit feedback on each phase of the project