Complaints about skill shortages in information technology are widespread today. But rarely is the cost of inadequate IT expertise as evident as in a recent Boston Globe story about a string of failed technology projects in the public sector.
• In Massachusetts, Deloitte Consulting was $6 million over budget and two years late in delivering a system to manage unemployment claims.
• Florida’s Miami-Dade County spent $30 million to overhaul the school district’s computer system before shutting down the project and having “virtually nothing” they could use from the money spent.
• California expected to spend $33 million to create a statewide case management system for its courts. Over seven years, the cost of the project exploded to $310 million.
A variety of complex factors no doubt contributed to these disasters. But a central cause was a shortage of critical skills needed to estimate, design and deliver more advanced technology systems in complicated bureaucratic organizations. Serious gaps existed in:
• Project management skills needed to oversee large, multi-stage initiatives. These were clearly missing from both government agencies and the consulting firms they hired.
• Technical skills required to create cost-effective systems that could work in resource-starved public sector environments.
• Leadership skills, which needed to include: (1) enough understanding about the realities of large IT system implementations to hold staff and contractors accountable for clear objectives; (2) the ability to negotiate inevitable changes; and (3) a willingness to make tough calls early when the projects went awry.
A future that promises ongoing resource constraints and rapid technological change means the challenges of large technical systems implementation aren’t going to get any easier. Leaders must take at least three steps to reduce the risk of critical skill shortages that can send major IT initiatives over a fiscal cliff.
1. Clarify critical skills needed to make the system successful over time.
One way to do this is to talk to executives who have implemented similar systems to find out what technical and program management capabilities are most essential for creating a winner.
2. Diagnose the current state of your capabilities and identify the skills and knowledge most at risk.
Leaders need to be asking – and answering – hard questions about the experience base of their key players and suppliers.
3. Develop strategies for recruiting, developing, and retaining people with critical capabilities.
One question project sponsors must continually ask of their managers and vendors is: what specifically are you doing to ensure that critical capabilities will be available to start and complete the initiative?
The shortage of sophisticated project management and technical talent will be an increasing bottleneck for large systems implementations in the years ahead. Failure to focus on these essential talent gaps up front guarantees millions more dollars will be wasted on projects like those described above.
Leaders must learn to manage the risks of skills gaps before it is too late. Contact us if you want to increase your chances of developing the capabilities you need to succeed in today’s economy.