In April 1994 the insurance company Giga Safe Corp. started a software
development project. Its goal was to develop a software to automate medical
insurance quotes. It was scheduled as a six-month project and should be ready
by January 1, 1995, when Giga Safe’s new rates were to be released. However,
although the project started with a highly motivated team and high expectations,
it missed all deadlines and was not completed until May 1995.
To sum things up, the project failed mostly because of bad scheduling and
planning, as well as insufficient management control and decreasing team
morale. With a more structured approach to project management and better
planning the project could have been completed in a shorter time.
Table of Contents
1 Introduction
2 Project History
3 Major Decisions during the Project
4 Problems Encountered during the Project
5 Project Analysis
5.1 Reasons for Failure
5.1.1 General Reasons
5.1.2 Reasons in the People Management Area
5.2 My Approach to Ensure the Project’s Success
5.2.1 Project Integration, Scope, and Time Management
5.2.2 Project Communications and Quality Management
5.2.3 Project Risk Management
5.2.4 Project Human Resource Management
6 Conclusion
7 References
Project Objective and Themes
The primary objective of this report is to analyze a failed software development project at Giga Safe Corp. to identify the root causes of its failure and to propose a structured management approach that could have led to a successful outcome.
- Analysis of overoptimistic scheduling and its negative impact on project lifecycle.
- Evaluation of management control mechanisms and internal communication failures.
- Investigation into team morale and human resource management issues.
- Assessment of the importance of risk management in IT projects.
- Development of best-practice strategies for project integration and scope management.
Excerpt from the Book
5.1.1 General Reasons
The most important reason for the whole project being such a disaster was overoptimistic scheduling. Although the project’s proposal was based on a 12-month schedule, the committee wanted the project with some complicated extra requirements to be done in only six months. Therefore, the project manager was convinced to do the project in this short timeframe. “Setting an overly optimistic schedule sets a project up for failure by underscoping the project, undermining effective planning, and abbreviating critical upstream development activities such as requirements analysis and design. It also puts excessive pressure on developers, which hurts long-term developer morale and productivity.” (McConnell, 1996, p. 44)
The tight time schedule affected the whole project lifecycle, but especially the concept and development phases, which are very important for a project’s success. The project manager wanted to save time and therefore hurried through these phases. He did some planning, but he did not plan the project in detail. Unfortunately, not going through these phases properly can affect the whole implementation phase. When the team came under pressure after they missed the first deadlines they abandoned their plans completely and fell into a “code-and-fix” mode instead.
Summary of Chapters
1 Introduction: This chapter outlines the motivation for the report, focusing on the prevalence of failure in IT projects and the use of a case study by Steve McConnell to derive lessons learned.
2 Project History: This section details the timeline of the Giga Safe Corp. software project, highlighting the struggle to meet aggressive deadlines and the eventual delays that spanned over a year.
3 Major Decisions during the Project: This chapter reviews the critical management decisions, such as the initial funding and the subsequent attempts to "recover" the schedule through overtime and forced compromises.
4 Problems Encountered during the Project: This chapter documents the specific operational challenges, ranging from hiring conflicts to unforeseen requirement changes and technical errors.
5 Project Analysis: This chapter provides a deep dive into why the project failed, categorizing the issues into systemic general reasons and human-centric management failures, while offering a corrected approach.
6 Conclusion: This chapter summarizes the key takeaways, emphasizing that artificial scheduling and poor planning inevitably lead to increased project costs and decreased staff retention.
7 References: This section lists the academic and professional sources utilized for the project analysis.
Keywords
Project Management, IT Project Failure, Software Development, Overoptimistic Scheduling, Team Morale, Risk Management, Requirements Analysis, Project Lifecycle, Management Control, Human Resource Management, Case Study, Productivity, Quality Management, System Development, Project Planning.
Frequently Asked Questions
What is this report fundamentally about?
This report provides a critical analysis of a failed software development project at an insurance company, Giga Safe Corp., examining why the project deviated significantly from its original goals and schedule.
What are the central themes of the report?
The core themes include the dangers of unrealistic scheduling, the necessity of rigorous project management methodologies, and the impact of team dynamics and management decisions on project success.
What is the primary objective of this analysis?
The primary objective is to identify the root causes of the project's failure and to outline a structured, alternative management approach that could have mitigated these issues and ensured project completion.
Which scientific or management framework is used for the critique?
The author applies the standards and principles set forth by the PMI Standards Committee and references expert insights from Steve McConnell’s work on rapid software development.
What topics are discussed in the main body of the report?
The report covers the project history, major decision-making points, specific problems encountered during execution, and a detailed analysis of failure causes regarding project management and human resources.
Which keywords best characterize this work?
Key terms include project management, IT project failure, overoptimistic scheduling, team morale, risk management, and software development lifecycles.
How did the change in rating forms affect the project?
The introduction of new, unforeseen customer details in the rating system necessitated complete redesigns of input forms, database structures, and communication objects, which severely disrupted the existing project plan.
Why was the hiring process identified as a problematic factor?
The project manager prioritized the immediate availability of contractors over their specific skills or team fit, leading to internal tensions, poor communication, and the eventual discovery of severe coding errors.
- Quote paper
- Andreas Thiel (Author), 2001, Critique of an Insurance Software Development Project, Munich, GRIN Verlag, https://www.grin.com/document/18248
