Read The Times Australia

Daily Bulletin

Lack of technical knowledge in leadership is a key reason why so many IT projects fail

  • Written by: Darryl Carlton, Industry Fellow, Swinburne University of Technology
Lack of technical knowledge in leadership is a key reason why so many IT projects fail

Implementing information technology projects in the public sector is challenging. And we seem to experience these challenges with a regularity that is both perplexing and frustrating. Think #censusfail, the myki smartcard fiasco and the Queensland Health payroll debacle, to name just a few.

Indeed, the failure rates of large-scale IT projects are unreasonably high across both the public and private sectors, with costs of failure reported in the hundreds of millions of dollars.

Read more: As census failure blame points at IBM, why we shouldn't be surprised by its failings

Researchers have been studying the causes of this kind of failure for decades – yet this appears to have had no impact on the problems organisations face when they undertake large-scale IT projects.

Only a few of these studies have considered the role played by the technical knowledge of project leaders. With colleagues, my own research finds the technical knowledge of leadership plays a key role.

Understanding the advice being given

We examined previous research alongside a case study of a large-scale public sector IT project failure. Reports on the project and documents obtained through freedom of information requests created a rich pool of data that allowed us to examine the life of the project as it unfolded over many years.

One of our main findings was underpinned by the idea that leaders require more than a passing familiarity with the technical skills required to do the job if they are to identify competence in those carrying out the work. Without this, the projects have a poor chance of success.

Technological competence needs to be specific, not generalised. The most senior executive with day-to-day accountability for the project, and who has a direct and material impact on project outcomes, must have experience with, and knowledge of, the technology being developed.

An inexperienced project leader will be incapable of comprehending the advice being provided if they lack the specific experience in the technical domain being managed. That means that it’s not sufficient to surround an inexperienced manager with experts upon whom they would theoretically turn to for advice.

Read more: 'Digital by default' – efficient eGovernment or costly flop?

The research and the case study demonstrate that an inexperienced senior executive defers to inappropriate sources for advice and support, choosing not to trust the advice of their internal experts. Instead, they are apt to treat technical disagreements as personality conflicts, and characterise critiques of the vendors’ performance as interference.

Technical skills on Australian boards

Australian public companies are investing in very large information systems projects and many of these are at risk. When these projects fail it can have a direct material impact on a company and its share price. And when projects are delivered with less than the required functionality, or at an inflated price, they negatively impact upon the performance and effectiveness of those businesses.

Effective oversight requires competence and experience. This means that the boards need some measure of IT knowledge if they expect to provide effective governance, risk management and strategic oversight of IT projects.

We have analysed Australian Stock Exchange publicly available information on the qualifications and experience of Australian directors in order to gain some insight into the digital competence of Australian boards.

Read more: The road to failure is paved with good intentions – here's how to turn them into action

After examining 35,000 director positions, with 37,500 reported qualifications, we found that just 6% of directors had qualifications in a STEM-related field, or possessed a PhD.

Most directors have qualifications in finance (18%) or accounting (19%). Lawyers figure strongly on boards with 9% representation, while mining qualifications count for 8% of board membership. Those with arts, business or other qualifications accounted for 40%.

The current composition of Australian boards of directors is heavily weighted towards finance, accounting and legal. While this background is not particularly surprising, it means that the accumulated knowledge and experience of Australian boards is not adequate to provide effective governance and oversight when it comes to the significant challenge of IT projects.

Focus on the problem, not the symptoms

Lots of factors contribute to the success of information systems projects: support from senior management; clear and realistic goals; a strong, detailed plan that’s kept up to date; good communication and feedback; the involvement of both clients and users; suitably qualified and sufficient resources; and effective change management.

But the absence of some or all of these factors are not a cause of project failure. Rather they are consequences of a poorly run project due to the situational incompetence of project leaders who have direct oversight and accountability for the day-to-day workings of the project.

Authors: Darryl Carlton, Industry Fellow, Swinburne University of Technology

Read more http://theconversation.com/lack-of-technical-knowledge-in-leadership-is-a-key-reason-why-so-many-it-projects-fail-101889

Business News

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

The Hidden Engineering Problem Inside Australia's Older Housing Stock

A significant share of Australian homes were built for a way of living that no longer exists. Houses...

DIY Rodent Control Vs Professional Help: When Is It Time To Call The Experts?

Rodents are one of the most frustrating pest problems for Australian property owners. Rats and mic...

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...