Lowering The Risks In Developing Do-It-Yourself Software Projects

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