Avoiding Conflict and improving Dispute resolution for IT Projects
Resolution November 2019
By Gerard Doolin
Introduction The commercial design, build, and delivery of software systems is about 50 years old. In contrast, the design, build, and delivery of physical buildings is about 4000 years old, with one of the oldest recognised buildings being the Pyramid of Djoser in Egypt, which was designed and built in 2700BC. Arguably, electronic and physical construction have key elements in common – a concept, a purpose based on anticipated use, related elements of design, build, resilience and maintenance – all dependant on quality of planning, delivery and management based on human engagement. However, it seems that stakeholders over time, and with experience, knowledge and refinement, have delivered better outcomes in physical building delivery than in IT software systems delivery. In fact, Software procurement, development, Implementation and Support and Maintenance engagements (in this article referred to as an IT Project) have had distinctly mixed success rates over the last 25 years (Success being classified as delivered on time and on Budget, and - regardless of functionality ultimately used – with a satisfactory business and User experience). The credentialed USA based Standish Consultancy Group in its 2015 Global Chaos report surveyed 50000 IT Projects globally and concluded that only 29% of IT Projects were successful, 52% were challenged and 19% failed. In this age, more than ever, organisations seek process or user experience transformation through the successful delivery of IT Projects. These projects are based on the evolution of Software capabilities (whether in storage or processing or analytics (AI) capabilities), their delivery platforms (evolving from server to desk top to lap top to smart phone and whether deployed Customer on premise or in the cloud (service provider data centre)), and the ability to capture and process data at scale and at the expanding edge (eg IOT). With ever accelerating technology model evolution, come ever more demanding expectations as to Implementation time, cost savings, revenue expectations, business process (eg automation) and User experience improvement. In this article, CEDR trained, NZIAC Mediation panel member and IT Project disputes mediator, Gerard Doolin, considers the causes of IT Project misalignment and ensuing contract disputes. This article follows on from a 2018-2019 research project undertaken by the author in conjunction with NZIAC (and NZIAC’s domestic service provider, NZDRC). That project is outlined in greater detail below. The research project has led to NZIAC and Gerard supporting the development of contextual dispute resolution methods that offer stakeholders early conflict resolution, IT Project reset, and relationship continuance, as distinct from the usual polarised fault-based exchanges that inevitably end up in arbitration or litigation. 2018-2019 research project on the causes of IT Project misalignment and contract disputes Research context The research project focused on IT Projects which, fundamentally, involve multifaceted elements, phases and various stakeholders. While procurement methods and project management methodologies continue to evolve, IT Projects are rapidly evolving around the aspects of self-learning Software, big data capture, distributed data centres, high speed networks, multiple device