Project dynamics and challenges
Of course, nothing ever goes as planned, and a large systems integration project is no different.
Even though the VIP project has only a 24-month schedule, several events have impacted the project
in one way or another.
For example, in February 1997, the VIP project changed GIS software vendors. Fortunately, the
project team was able to use all of its existing functional requirements documentation and move
quickly to a new platform. After all was said and done, thanks to strong vendor management and
relationships, the short period of time that was lost has been made up by efficiencies inherent with
the new platform.
Along those lines, the VIP project has also dealt with rapid prototyping and core product upgrades
during the life of the project. For example, Severn Trent Systems continues to release newer
versions of its work management system. The issue for the VIP project team is deciding the most
effective and efficient way to use the newest version of software available. This decision is typically
based on the benefits of the new software versus the time and resources required to install the new
version.
Another ongoing challenge is the potential impact that IES’ planned merger with Wisconsin Power
& Light and Interstate Power Company might have on the VIP project. By the time this paper is
published, in all likelihood, that merger will be complete. However, in the months leading up to the
merger, there has been significant discussion about how to integrate the three companies’ various
information systems.
Clearly, this issue is of great importance to many utility companies that are currently implementing
expensive and aggressive systems integration programs and to those that may also face a potential
merger and/or acquisition situation at any time.
IES has found it very valuable to involve its merger partners in the ongoing discussion, development
and implementation of the four technologies. The three companies can share experience and
knowledge with each other, and together, they can determine the strategic direction the company
must take to address the enterprise-wide technology needs of the newly formed organization. They
also know they must be selective about which technological opportunities the organization pursues.
However, before the best technical solutions can be agreed upon, common business processes must
be established enterprise-wide. This is not an easy task because each company has worked hard to
streamline its work processes, and it is difficult to identi~ the most appropriate for the entire
organization. From there, the issue becomes which technologies best support those practices.
One of the issues that IES and its merger partners have addressed is the different levels of
automation among the merger partners. Each company is at a different point in its automation
efforts. At the point of the merger, decisions must be made about which automation effort is the
most appropriate for the whole, newly formed organization.
Project management
Many books and conference papers have been written about project management. Because each
individual project has its own set of dynamics and challenges, it seems difficult to try to identifj
sure-fire ways to ensure strong project management and ultimately a successful project
implementation.
However, during the course of this systems integration project, the VIP project management team
has utilized some tactics that have proven successful.
In terms of schedule and scope management, the VIP project has taken a fairly new approach. Each
of the four VIP systems is being deployed in three phases: proof of concept, production, and
extended functionality. The proof of concept phase for all four technologies began at the same time.
During the proof of concept phase, IES leveraged off-the-shelf solutions and configured them for the
company’s specific needs. During the production stage, the VIP team refined and enhanced the
applications, based on user feedback, for production use and integration with other systems. The
extended functionality phase occurs once users become familiar with the technology, and they are
able to provide the project team with additional application ideas to enhance the systems.
This phased approach to the schedule has been effective for several reasons:
- It allows users to see the base product functionality as soon as possible and to fine-tune
production requirements.
- It is flexible enough to allow variances in delivery times between new technology and legacy
system integration.
- It effectively budgets for the first round of application enhancements.
Another project management method that has proven to be successful is the “80/20 Rule.”
Following this “philosophy” of sorts requires that the project team focus on the most important 80
percent of the project deliverables. These are the high payback items within the scope of work that
best support the business processes. The Project Team documents the smaller, more detailed items
that constitute the other 20 percent of deliverables and deals with them at an appropriate time later
in the project -- or defers them indefinitely.
One example of how the VIP team used the “80/20” rule is through software design and
implementation. The IES philosophy is to buy instead of build software. The VIP team looked
carefully for software packages that could give IES 80 percent of what the company needed. In turn,
IES did not spend large amounts of customization dollars trying to make up for the lacking 20
percent.
Strong and loyal executive sponsorship is key to good project management. The support of key
executives is vital to a project’s long-term survival for several reasons. The first reason is that the
project’s executive sponsors are responsible for communicating about the project and its progress to
their executive colleagues. If the executive sponsors keep the “higher-ups” informed about the
project’s benefits to the company, the project has reduced the risk of losing its funding. This
ongoing communication with other executives is also important in case a project sponsor retires or is
reassigned to a different area of the company.
In the case of the VIP project, the original executive sponsor retired from the company after about
eight months. However, because the team had built strong relations with other executives, including
the new project sponsor, the transition was smooth and did not negatively impact the project.
It is the executive sponsor’s responsibility to provide regular project updates to her colleagues. The
project schedule, risks, and issues are reviewed with the sponsor and select executives on a monthly
basis.
Conclusion
The goal of the VIP project is to help IES Utilities and its merger partners leverage their vast range
of data in order to transform the way that they do business. As a result of the VIP project, employees
will make smarter and quicker decisions and complete customer service orders much more rapidly.
Many of the positive benefits of the VIP project technologies will involve increased speed. Perhaps,
then, it makes sense that the VIP project, in particular its schedule, is in a highly aggressive and rapid
implementation mode.
