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