| Mike Dunville* had a decision to make. As
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| | their clients.It should be no wonder then
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| the new operations manager for Alpha
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| | that dissatisfaction with IT contractors
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| Staffing, he wanted to make a difference
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| | has reached an all-time high. A poll of
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| at the dynamic staffing firm. The
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| | 200 MIS managers conducted by Information
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| principals of the firm had charged him
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| | Week revealed that 63 percent of them had
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| with making the day-to-day operations run
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| | either eliminated or rebid an IT service
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| smoothly and efficiently while they
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| | contract within a year. This was
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| concentrated on growing the business in
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| | typically due to unacceptable performance
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| today's challenging economy.With his
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| | or failure to deliver as promised.Why the
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| background in operations and finance in
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| | low success rate of home-grown
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| the insurance industry, Mike had
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| | "Do-It-Yourself" software projects?With a
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| confidently and successfully translated
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| | success rate of only roughly 40 percent,
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| some of those service practices into
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| | you might be tempted to accept the
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| Alpha's daily staffing and recruiting
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| | premise that the very complexity of
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| operations. Now it was time to take the
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| | custom software would have a bearing on
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| next step, and modernize the hodge-podge
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| | the success or failure of project. To a
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| of computer systems that until now had
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| | degree, this is true, however, the three
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| been reasonably adequate for their
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| | main causes of software development
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| three-office operation.But where to
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| | failure, as determined by industry
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| start? He needed a real staffing software
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| | surveys, are not related to the
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| package. Mike knew that the custom system
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| | technology itself, but to experience,
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| his former employer, an insurance giant,
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| | management, and politics. They are:1.
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| had implemented the year before had done
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| | Inexperience: Technologies and
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| wonders to improve efficiency and overall
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| | programming methods change rapidly. This
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| profitability. It had also taken three
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| | means that both business-side and/or
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| years to develop, and another to
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| | contract programmers and program managers
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| implement. In fact, when he had left,
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| | are not always up to speed on the latest
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| they were still making "customizations"
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| | development technology. What is more
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| -- a process he figured would go on
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| | important, IT-oriented program managers
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| forever.Mike didn't think that Alpha
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| | and programmers are rarely totally
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| could invest that kind of time or money.
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| | familiar with the business issues to be
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| Could he could bring in some business
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| | addressed, and so may not be able to make
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| software consultants and work with them
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| | the connection to the best technology
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| to develop a tailored package in a
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| | needed to address them.Consulting
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| shorter period of time? Mike knew that
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| | companies, including the largest and most
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| the continued success of Alpha Staffing,
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| | well-known of the accounting/IT
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| and its entrance into new markets and
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| | consulting firms, often use novice
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| business lines would be greatly dependent
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| | talent, fresh out of school, to handle
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| on a successful staffing software system
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| | programming and management chores. This
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| implementation.This reinforced Mike's
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| | inexperience leaves clients open to
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| doubts that one of the "off-the-shelf"
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| | potentially massive cost-overruns or,
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| staffing software packages would fit
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| | worse, a system that never works even
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| their needs, even if it were quicker and
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| | after years of development.You probably
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| easier to implement. The more he thought
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| | won't hear much about these consulting
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| about it, the more Mike felt that his
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| | firm failures though; both the firms and
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| decision on business automation would be
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| | their clients have a vested interest to
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| his biggest, and if wrong, his last. He
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| | keep such admissions of failure quiet.
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| reached for a bottle of antacid.Mike's
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| | Only when it reaches the "public scandal"
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| business is unique, like yours. Special.
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| | or "write-off" stage does such
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| Unlike any other competitor in the whole
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| | information become public knowledge.2.
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| wide world of staffing. Your business
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| | Management mis-objectives: Any firm
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| practices are equally different. As a
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| | trying to develop a staffing software
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| result, your staffing business requires
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| | project for itself must first fully and
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| specialized information technology that
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| | clearly define the objectives for the
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| addresses those unique needs. You are
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| | project. Few do this to the extent
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| convinced that with the right IT
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| | needed.Software development and
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| infrastructure -- the right staffing
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| | implementation is an incredibly complex
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| software -- you will be more efficient,
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| | process, even for a moderately sized
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| productive, and profitable. If you
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| | firm. Senior management must be involved
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| subscribe to this common belief, you,
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| | from the get-go. End-user considerations
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| like Mike, have three options to achieve
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| | are paramount if the technology is to be
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| that end:1. Develop your own custom
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| | fully accepted. Questions regarding
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| staffing software and technology
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| | business practices, methods, and future
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| infrastructure;2. Hire a consulting firm
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| | business or technology possibilities must
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| to develop the staffing software and IT
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| | be answered.Critical to the success of
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| for you;3. Buy from a staffing software
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| | the project is both established
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| IT vendor familiar with your industry.Of
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| | accountability and an understanding that
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| these three options, which do you think
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| | software development is inherently risky
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| is most likely to work the best, cost the
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| | due to rapidly advancing programming
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| least, and get implemented the fastest?If
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| | technology. It's useful to remember that
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| you, like the high-profile public
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| | the billions of dollars allocated to
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| staffing firms of Norrell (now Spherion)
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| | correcting Year 2000 computer problems
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| and Manpower choose to develop your own
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| | were the result of management and
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| software solution, you too may have a
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| | programming decisions made, in some
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| very expensive future write-off to enjoy.
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| | cases, in the 1960's.At a time when CEO's
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| In fact, Manpower's write-off for its
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| | often focus on the performance of the
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| failed three-year software development
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| | next quarter, trying to plan and manage
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| effort in the late 1990's was pegged at
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| | something that may take years and
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| $57 Million.The right answer to this
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| | millions of dollars is difficult at best.
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| perplexing question is to buy from a
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| | Even with long-range planning and
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| staffing software vendor who is
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| | management, mis-steps are fairly typical.
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| intimately familiar with the
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| | And it takes unusually strong and
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| industry.Surprised? After all, you're
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| | pragmatic business leadership to admit
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| special, unique, different, right? Well,
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| | that they've taken the wrong development
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| not exactly. Yes, it is very true that
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| | road and make any needed course
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| you and your competitors differ in a
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| | changes.3. CYA CIO's: The CEO who does
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| number of important areas, such as
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| | not want to get involved in software or
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| management styles and objectives.
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| | IT projects is often tempted to place all
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| However, you and all of your competitors
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| | of his eggs in the basket of a trusted
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| also share a wealth of common traits,
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| | CIO or similar IT manager. Doing so may
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| such as tracking employees and
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| | set the firm up for a humpty-dumpty
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| candidates, performing the business
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| | fall.Years ago, the MIS department was
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| transactions of orders and assignments,
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| | often referred to as the "glass house",
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| making payroll, and billing
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| | where massive mainframes resided,
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| customers.These shared business issues
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| | presided over a technical priesthood
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| are at the core of your staffing and
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| | whose mystic incantations were the
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| recruiting business, and it is these
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| | interface between the "big iron" and the
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| issues that a staffing software vendor
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| | information needed to run the business.
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| familiar with your industry is best
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| | Today, business-savvy CIO's and networked
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| qualified to address. After all, such a
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| | computer systems are the rule.However,
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| vendor has researched the issues to
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| | the firm's CIO and the MIS department may
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| develop the necessary technology. These
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| | still have a vested interest in the
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| industry-specific software vendors can
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| | technology and methodology with which
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| often implement a solution that can
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| | they are already familiar. They may want
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| handle 80 percent to 90 percent or more
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| | to protect their turf at all costs. As a
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| of your business operational needs. (It
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| | result, their tendency is to do things
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| should be noted however, that vendor
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| | "the way we've always done them", only
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| solutions may vary greatly in quality,
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| | bigger and more expensively.At the other
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| efficiency, and cost-effectiveness,
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| | extreme are sometimes visionary CIO's who
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| depending on their expertise and previous
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| | see a new IT project as an opportunity to
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| success in the marketplace).But let's say
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| | bring in the latest and greatest
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| that the "90 percent solution" that an
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| | technology, without fully understanding
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| industry-familiar vendor has to offer
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| | it or its applicability to the business.
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| just isn't enough for you. You want it
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| | Here, they may apply an attitude that if
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| all. Or you want some features or
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| | the business sotware is "not invented
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| functions that the vendors don't
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| | here", it won't work right.Either way,
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| have.Your options then are to either do
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| | the firm loses, (although the CIO and MIS
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| the job yourself or hiring the project
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| | department staff may gain some new
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| out to outside consultants. Both are
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| | programming skills they can use on their
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| similar in that you, the client, assume
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| | next job).Can you ensure the success of
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| the overall project management risks,
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| | any "Do-It-Yourself" home-grown software
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| and, in the case of doing the job
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| | project?With so many variables --
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| yourself, the programming chores for your
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| | technology, management, business
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| unique staffing software. If you decide
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| | practices, internal politics, competitive
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| to take either of these routes, do so
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| | issues, and more, it is virtually
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| with extreme care -- as industry surveys
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| | impossible to predict the success of any
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| indicate that there is nearly a 60
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| | custom software development project. At
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| percent probability of its
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| | best, you've only got a 40 percent chance
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| failure.According to one survey of
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| | of success. You can, however, improve
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| thousands of software projects, conducted
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| | your chances somewhat by following a few
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| by the Standish Group of Hanover,
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| | simple guidelines:1. Establish goals. The
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| Massachusetts, four of 10 software
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| | most important thing is to define,
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| projects failed outright. To make matters
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| | exactly, what you want to accomplish.
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| worse, an additional 33 percent of
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| | What is your firm's business plan? How
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| software projects were completed late,
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| | does IT relate and contribute to it? What
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| went over budget or were completed with
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| | should its objectives be? Be realistic in
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| fewer features and functions than
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| | setting the goals, then document them.
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| originally specified. Can your staffing
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| | Get buy-in on these goals from senior
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| business afford to make that kind of
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| | management all the way to end-user.2.
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| risky investment?In an even more
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| | Establish budget and time specifications.
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| unexpected finding, the study also
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| | No matter how you cut it, software
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| revealed that the use of IT consulting
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| | development is all about time and money.
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| houses -- even highly respected companies
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| | Working from your goals, consider the
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| such as Andersen Consulting (now
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| | cost to develop the software, AND those
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| Accenture) and Lockheed Martin --
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| | areas where budget and time requirements
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| increased the risk of a project's
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| | can increase exponentially. This includes
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| failure. This is astonishing because such
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| | testing, documentation, implementation,
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| consulting firms have staked their
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| | and end user training. And don't forget
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| reputations on and are hired for their
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| | ongoing support, development, and "bug"
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| claimed expertise at developing or
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| | fixing.3. Establish project milestones.
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| implementing enterprise software from
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| | Hand-in-hand with establishing your
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| such giants as SAP and PeopleSoft.But the
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| | budget and time-frame -- determine what
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| reason for their poor results is not so
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| | goals you have to achieve in the
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| surprising -- as it pointed to business
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| | development process to complete the
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| practices that leave a lot to be desired,
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| | project on-time and on-budget.
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| frequently at the considerable expense of
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