August 21, 2000

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Methodologies
Continuous Process Improvement

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More on project management:

sidebar: Methodologies Vary According To The Project PDF file: Methodology Options The Joys Of Project Management (6/19/00) Managing Offshore Resources (6/12/00)

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Managers and users will also resist methodology implementations if they perceive that the project time lines will be extended, or that the project will cost more. Both groups must be educated about how methodologies reduce project costs and lengths during the implementation-planning phase. Perhaps most important, the company must be mentally and financially prepared for a new development process and structure.

Another major problem with methodologies is the perception of rigidity. Companies and their staffs seem to believe that a methodology must be followed to the letter. This creates resistance because developers and project managers believe they will be penalized for adapting to specific requirements. The reality is that every methodology is like a cookbook--and the approach must be seasoned to taste. Both managers and developers must be reassured that the purpose of a methodology is to add structure and consistency, not to constrain developer creativity and create more paperwork.

So, with all the cultural and process-management changes needed for a successful implementation, is a methodology worth the effort? If a company is to prove the benefits of a methodology, a return on investment analysis is helpful. For companies to calculate the benefits of a methodology, Dower says, they must add the costs of failed projects, excessive overruns, and redevelopment efforts due to use of inappropriate techniques and technology. Then add in the cost savings from elimination of frequent retraining (both user and IT), and excess tools, materials, and instructors. Finally, add in the cost savings from productivity improvements in building applications, and the productivity improvements that result from the use of the new applications. Companies can also add intangibles such as the estimated revenue generated by improvements in delivery time and the competitive value of early delivery of new products and services.

Of course, there are costs for purchasing and implementing a methodology. The methodology itself can be expensive, with some ranging from $200,000 to $500,000 for just the manuals and training software. In addition, companies must include training instructors' time and participants' time, as well as the cost of the materials and tools.

Companies must also realize that a methodology is not an end in itself, but a means to ongoing process improvement and best-practices development. Thus, companies must also include the costs of maintenance and ongoing, continuous improvement.

The methodology that a company chooses depends on the technology that's used, the degree of structure required or desired, the cost of the methodology and implementation project, the training required, and the degree to which the company is able to adapt to cultural changes.

Companies should choose methodologies that smooth the development process, are automated, and help developers do routine tasks more quickly, so they can concentrate on the creative, problem-solving tasks. A cost-benefit study should also be done on a methodology product before purchase.

Companies should also evaluate the methodology vendor for stability, product support, and available implementation assistance.

Methodologies are a part of the IT infrastructure, but they are often perceived as a cost without benefit. In reality, methodologies provide a consistent structure and approach to systems development, which results in lower project costs, shorter project cycle times, less confusion, and better-quality systems. Companies that apply methodologies must prepare for significant cultural changes and resistance from developers and managers.

One way to avoid this resistance is to implement a methodology with new technology. As companies purchase E-commerce or object-oriented technology, they can implement methodologies that are adapted to these new technologies as part of pilot projects. Methodologies will continue to change as vendors watch trends and adapt their products to new technologies. Companies must evaluate methodologies just as they would software, and purchase products that specifically fit their needs. Companies must also be aware of the tremendous cultural changes involved with a methodology implementation, and plan for those changes to prevent a revolt by IT staff and users.

Methodologies provide a foundation for project and process management, as well as integrated IT knowledge management, which uses methodologies to put organizations on the road to continuous improvement.

IT process improvement comprises three distinct phases or steps.

The first is to impress some kind of structure on the IT organization.

Process management is the next step, and involves examining the IT systems-development process and setting up a continuous improvement program. Process management may also involve automating the methodology for ease of use.

Finally, the information gleaned from process-management metrics and project reviews is fed into an IT knowledge-management and best-practices capture system for use by the entire enterprise.

This article discusses methodologies. Process management, IT knowledge-management, and best-practices capture will be discussed in future articles.

Charles Trepper is CEO of the Trepper Group, a Minneapolis consulting firm. He can be reached at chtrepper@trepper.com

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