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Read our December 2010 issue.

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December 2010

Dear Colleague:

Welcome to our INSIGHT newsletter! As we come to the close of the year, it is a time to reflect on business in 2010. Although this has been a tough year for many, we hope that 2011 will be a prosperous year for each of you.

 

Financial chartMany of our clients have cut costs to the bare minimum and cut back on resources. One area that is frequently overlooked, however, is project overruns. According to the Standish Group, when projects go over budget, the average overrun is 56% above the original budget.

 

When these situations occur in the midst of critical strategic programs, project managers are forced to go back to their executive sponsors to request additional funding in order to complete the project. Given the choice of completion versus failure, executive sponsors rarely feel that they have a choice.

 

Peritius has shown its clients that we know how to deliver projects right the first time. We excel at planning and controlling projects properly and avoid the need to come back for additional funding. We manage projects through successful completion 96% of the time.

 

Contact us about your key initiatives if you want them completed right - the first time. And send us your suggestions for article topics for our upcoming newsletters. We look forward to hearing from you.

 

Happy Holidays!



Laura Dribin Werner
President & CEO
Peritius Consulting, Inc.

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Peritius
(per-it'-ee-us)

Derived from the Latin word peritus

more expert, skilled, experienced

On October 1, 2010, Integrated Systems Management became Peritius Consulting.


Business vs. IT Projects: Understanding the Differences

By Ricardo Viti, PMP

Senior Manager

 

It is a typical error to equate the requirements of business and IT projects. While the Project Management Institute does not differentiate between these types of projects, and it is true that the main phases can be the same, the frequent issues and risks are most certainly different.

 

What are those differences and how can you manage them?

 

Business meetingStakeholders
Typically, in an IT project, the stakeholders are accustomed to the process of implementation. They are familiar with the phases, deliverables and general mechanisms used to conduct a project. They are also aware that the project requirements must be well defined at the outset, and they see the value of testing and change management.

 

In a business project, stakeholders are less likely to be aware of project management processes. It is the job of the project manager to manage stakeholder expectations and to assist and advise along the way.

 

Experience
IT project-specific tasks have been standardized and repeated for ages from lists of requirements regarding design, development, testing and implementation. IT has continuously improved and developed multiple standard system lifecycle methodologies over the years. It is possible to evaluate the resources and time-used with precision.

 

With a business project, project-specific tasks are usually unknown, so it is important that the project manager work closely with the stakeholders and subject matter experts to define these tasks and estimate the work. It is necessary to make subject matter experts a crucial component of the process in identifying, planning and monitoring tasks closely.

 

Availability
Project team resources in an IT setting are usually created in the following ways:

  • taken from the internal IT department,
  • contracted from an IT services company,
  • outsourced to a managed services organization.

In many cases, these resources are able to devote their full energies to the projects at hand.

 

But a business project may need expert resources that can only be gathered from the particular business organization due to the complex subject matter and knowledge required of internal practices. These resources are often required to maintain a full-time "day" job in addition to the project at hand, causing an overload of responsibility. To avoid this overlap and insufficient time management, dedication to the project must be planned and agreed upon in advance.

 

Risks and Mitigations
As mentioned before, an IT project has a more "tried and true" process with less need for alteration in its steps, which therefore allows for sufficiently less risk. However, it is still important to employ risk management to ensure a positive outcome.

 

Risk management activities for a business project are critical. Everyone involved must clearly understand the potential obstacles that could impact the outcome of the project and how it benefits the business.

 

Business Projects on the Rise
As more and more business organizations choose to lead business initiatives, the role of the project manager becomes crucial. Experienced project managers can lead the business to establish standard project processes and provide coaching and mentoring to team members.

 

If you have a business initiative that needs some additional attention, contact Peritius Consulting. Managing strategic business initiatives is our specialty.


About Peritius

Peritius Consulting is a management consulting firm that helps its clients execute their strategic plans. For over 21 years, Peritius has helped its clients navigate from vision to reality, allowing them to realize their strategic ROI. Please contact us to learn more about how we can help you deliver strategy in the most effective, cost-efficient manner.

www.peritius.com   |    info@peritius.com     |     847-808-9999

 

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