The Consequences of Failure by Carmi Levy
by: ARcomm
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Word Count: 488
What failure means to the individual
Depending on the nature of technology project failure, the ramifications can be significant. For instance, in 1988, it-cortex.com reports that Bank of America fired 225 employees in the wake of a serious technological malfunction that initially cost the company billions of dollars. Although these cases may be rare, there is little doubt that IT project failure often leads to finger pointing and mistrust and can result in plummeting staff morale, lower motivation, and a lack of employee commitment that may put the company at risk of ongoing project failure.
Failure and the business
Failure damages not only IT workers but the company itself. In some cases, project failure compromises a company’s reputation, particularly when external-facing applications malfunction. Failure can also compromise a company’s competitive edge and reduce its agility. The most damaging consequence of IT project failure is to the bottom line. A study conducted by KPMG shows that the average failed IT project can cost approximates million. For mid-sized companies, this magnitude of loss can potentially threaten corporate survival – and will certainly compromise profitability and shareholder returns.
These outcomes cannot be overlooked and must be addressed by all levels of the information technology department, from IT employees to the CIO. Prevention is, in fact, more effective than finding a way to solve a problem that has already surfaced.
An ounce of prevention
Although the consequences of project failure are dire, strategies exist to help IT departments improve their methods and strengthen their resources. Here are some suggestions:
Be reasonable — In a high stress environment, it is important to recognize the large workloads each IT worker has. Pushing staff to the limit can put too much pressure on them, raising the risk of making mistakes.
Pay attention to detail — IT projects involve many steps and different processes, and can require significant resource allocations. By breaking down project elements, assigning reasonable timelines, identifying responsibilities and required resources in advance, and adopting other project management best practices, companies can increase the odds of success.
Seek professional advice — IT consultants are available to provide a company with unbiased technical support. They can help refine your company’s project management and execution capabilities and identify any red flags that may compromise project success. Technology advisory may be the most effective preventative measure available.
IT project failure is a serious issue prevalent among companies in all industries. By learning from past mistakes and adopting preventive measures, you can position your organization to improve the odds of ongoing success.
Article Source: http://www.ArticleStreet.com/profile/arcomm-5706.html
About the Author
With well-regarded technology analysts on staff, and access to some of the field's top talent, AR Communications Inc. possesses in-depth insight into emerging technology industry trends. Since 1995, we have worked with some of the world's leading organizations, including Allstream, Deloitte, GMAC, IBM Canada, John Hancock Financial Services and Geosoft. Our commitment to customer satisfaction and exceptional service has allowed us to develop relationships with clients that span over 10 years. For more information, visit www.ar-com.com or contact us directly at 416.999.9248.
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