PERCENTIX BLOG

Uh Oh, Your EPM Project is in Trouble...What Should You Do?

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First, let me say openly, it happens.  Yes, Enterprise Performance Management projects do occasionally go the "wrong" way, leaving a trail of tears, blown budgets, and irate Executive Sponsors.  Most research shows that IT projects (please realize that I consider EPM projects to be much more than IT projects but this is the best data point we have) have a 60% to 75% chance of falling short of expectations, which is just a nice way of saying that they fail.  So, the odds are against you before key stroke number one.  If someone tells you that they have never had a project go awry, they either have very little true experience or they are lying to you.  If a consulting firm tells you something along those lines, run...run like the wind and don't look back.

If you are in the middle of a bad project, keep reading.  If you are in the middle of a good project, keep reading.  If you are about to start a project, keep reading.  If you are perfect, without failure, and have an affinity to walk on water, hit Starbucks and buy yourself a well deserved cup of coffee.  

Now that I have everyone's attention, here are my top three recommendations on what to do if your EPM project is taking a turn for the worst.

1.   Don't Panic.  Stop and Think.

Generally reserved for personal emergency situations, this recommendation cannot be understated within a project based business world.  Your external project manager has just informed you that all key metrics involving scope, dollars, and time (the Consulting Trinity) are currently out of control and will only get worse.  It would be very easy to panic here, but instead now is the time to stop and think.  Realize that a physical reaction does not exist which will make the situation any different.  Jump, yell, throw a pen, slam your computer, it doesn't make any difference and you only make yourself look rather ridiculous in front of your colleagues, and they will remember this.

Instead, stay calm and consider the levers that you have to pull.  Every project has levers including people, cost, time, scope, expectations, etc.  I will describe how to do this in points 2 and 3 below but in the meantime, poise counts in this situation, and you would be well served to ingrain that in your thinking now.  And on another note, I know it may seem like the wrong time, but remember that you are about to have an extremely valuable experience.  In my opinion, almost anyone can handle a good situation, but it takes an extraordinary individual to deal with a bad business situation.  Navigate this field of land mines well and tough situations begin to look easy...and become the type of professional Executives value the most...people like them, frankly.

2.    Figure Out What to do Internally

• Identify the key internal players
• There are typically two players here: the internal players and the external players.  Internally, there is a key set of people that really matter to the project.  Usually, these individuals include the project sponsor (usually an Executive) and the end users, both of which are expecting you to get this project done with them in mind.  The project sponsor wants the project completed within the allotted dollars and probably isn't so time sensitive and the end users are more time sensitive and care less about the project budget.  Either way, you've got a problem and a formidable audience but not all participants are created equal.  Some have power and others have less power.  Figure out who has power and focus on them (a no-brainer, I know but you would be surprised what I have seen over the years).  Then...
• Talk to the those with power and influence and reset expectations
• Be honest.  Be brutally honest.  Paint the true picture of what is occurring, but also create a proposed plan of action to get the situation resolved.  Do not show up empty handed...you better have a proposed plan, but stress the "proposed" part.  You are there to explain the situation, sell your plan, and solicit feedback, which will ultimately get you the support you need.  If the project scope grew, say that.  If the consulting team is failing, say that.  If you need more money, say that.
• Only go to the well once...go twice and suffer a professional death
• Whatever you ask for must be more than sufficient to get the job done.  Your first instinct will be to sugarcoat the real numbers and timeline required to finish the project.  Resist all temptations to do this.  Put the real numbers and timeline out there.  Be fearless in this regard.  At the same time, you will need to introduce a new level of oversight to ensure this does not happen again.  Your plan should outline this new set of controls that will guarantee success.  Yes, I said guarantee, because, barring a sponsor driven expansion of scope/dollars, you only get to do this once.  Do it twice and you've lost all credibility and should probably get a job that isn't so project driven.
• Now that you have the funds and extended time, over communicate
• Ok, hotshot, you've successfully navigated the internal team.  Now is not the time to take a few days off and count your blessings.  Whip your team into shape.  Be merciless with deadlines and dollars.  Drop by the executive sponsor's office for 5 minutes at least once a week and let him know that you are pushing your hardest to get the job done.  Let him know your plan is working.  If your plan is not working, let him/her know that too.

3.    Figure Out What to do Externally

• Is it really the consulting team's fault?
• Chances are that you are working with an external consulting team that focuses on EPM.  Clearly the situation has not gone as you envisioned and the EPM utopia expressed within the consulting team's PowerPoint deck now seems like a slow trek thru the bowels of Hades.  But is it their fault?  Only you can make this assessment but I would strongly encourage you to be candid about this.  Do not simply use the consulting firm as a scapegoat.  That may solve your internal problem (everyone loves to hang the consultants...come on, admit it, it's fun) but in the long run, switching out the consultants for unfounded reasons only increases the cost to your company.  If the consulting team has held up their end of the bargain, be honest about that and be thankful that you have a consulting partner that has performed.  This is a valuable, and rare commodity.    That said, if the situation stems from actions taken, or not taken, by your consulting partner, you must confront them.  Demand an explanation.  Demand a remedy.  Determine whether or not the relationship is good for your company.
• If it is the consulting team's fault...
• Don't be afraid to switch the team out for another team.  Look, if it really is their fault, unless you are exceedingly close to finishing the project, it is likely that the actions will be repeated.  I am risking professional exile here, but there really are firms that have a "change order" strategy for their business.  This means that they will bid your project at a low dollar amount to win your business, then they will bank on change orders (requests/approval for more money and time) being processed.  Firms like this are counting on you to fear changing them out.  The mindset is: you've come this far with us, you will be hesitant to make any changes, so open up the checkbook.  If you feel this is what is occurring, I will say it again...run...run like the wind.
• What to look for in a replacement for the consulting team
• Some say that the definition of insanity is to do the same thing every time and expect a different outcome.  There's a great deal of truth in that and quite relevant when selecting a new consulting partner.  If you are set on switching out the consulting team, be sure to do your diligence on new prospects.  Look for a firm that has the type of client references you would respect.  Tell them about the situation you just faced and ask them how they would have dealt with it.  Be frank with new prospects.  Let them know that the stakes are high because you've asked for more money and time, and we all know you only get to do that once.  As a consulting professional, I hate to say this, but perhaps a financial holdback (some % of the billing fee) is in order place some skin in the game.  That may make sense and can create more urgency, etc.  But of all the traits to look for in your new consulting partner, I would submit that you need an expert that actually has turnaround experience.  Find someone that really has dealt with really bad project situations and literally turned them around.  Kind of like you just did (by following the rules within this invaluable blog...:)).  Find someone like you.

So there you have it, a quick and dirty primer on how to deal with a the EPM version of the Titanic.  I've hit the high points but have definitely skipped a lot due to time constraints.  If you have any questions or want additional insights, feel free to email me at tantunez@percentix.com.