“Titanic Lessons for IT Projects” · • The Hershey Foods ERP system implementation failure ($112m) led to massive distribution problems and 27% market share loss. • The FoxMeyer

MultiMedia PublicationsAuthored by Mark Kozak-Holland, HP ServicesSeptember 20th, 2006Presentation for PMI NHwww.lessons-from-history.com

Strictly Proprietary & ConfidentialCopyright 2006 MultiMedia Publications

IT Projects from Hell“Titanic Lessons for IT Projects”“Titanic Lessons for IT Projects”

Page 2IT Lessons from Titanic Strictly Proprietary & Confidential

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Objectives: This presentation analyzes Objectives: This presentation analyzes Titanic’sTitanic’s construction constructionproject and voyageproject and voyage

• It explains how we can take stock and use lessons learnedto help understand key project issues.

• It looks at key decisions made during the project that led tocompromises and cutting corners in the project stages.

• It questions why the ship’s captain was unable to preventthe disaster.

• It makes a step by step comparison to today’s IT projects.


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As you probably know the success rate of IT projects is stubbornlyAs you probably know the success rate of IT projects is stubbornlylow as first shown by the “Chaos” reports from Standish Grouplow as first shown by the “Chaos” reports from Standish Group

• Only 29% of all IT projects finish on-time,on-budget, and with all the features andfunctions originally specified.

• Approximately 18% of all IT projects arecanceled at some point during thedevelopment cycle.

• About 53% of all IT projects are challenged,project is completed/operational but overbudget, over time, and fewer functions.

– Source: “Chaos, a recipe for success,” Standish Group, 2004. Part of aseries 1994, 1996, 1998, 2000, 2004 - 280,000 projects evaluated

• Hypothesis:– IT projects can set the seeds for future operational

failures that take months to come to light.– Most problems in an on-line operation can be

attributed back to poor decision making in the ITproject. Check

www.lessons-from-history.com


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Some notable project failures during the project implementation orSome notable project failures during the project implementation orinto operationinto operation

• The Hershey Foods ERP system implementation failure ($112m) led to massive distributionproblems and 27% market share loss.

• The FoxMeyer Drug ERP system implementation failure led to collapse of entire $5 bn company.• April 2006 Microsoft 's MSN search engine, the third most popular in the U.S., suffered an hours-

long outage as queries returned an error message instead of Web page results.• July 2005 HSBC admitted hardware failure caused a major systems crash that hit thousands of

customers for ATM, credit/debit, online services and internet, and it was the worst in its history.• June 2004, RBC fell behind processing salary deposits thousands of Canadian workers as

millions of transactions were affected by a computer glitch that caused payroll delays.• June 2004, an air traffic control computer failure saw massive air disruption across the UK. All

flights from UK airports were grounded after a problem at the National Air Traffic Service.• August 2004, a computer crash prevented thousands of UK pensioners collecting benefits

payments on the busiest day of year after the £500m Benefits Transfer system went down.• September 2004, hundreds of flights grounded for 3 hrs, Western US airports. A computer failure

stopped pilot/traffic controller contact. In 5 instances planes passed very close to each other.• October 2004, computer failure at Waikato Hospital (NZ) left thousands of health workers out of

pocket and forced the manual processing of patient records.• October 2004, Avis Europe took a €45m hit due to problems with a new ERP system.

Development halted with delays & higher costs due to implementation and design problems.• In November 2004, computer failure at the Department for Work and Pensions (DWP) stopped

80,000 staff from processing new pensions and benefits claims for several days.


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Considering the evolution of PM last 3 decades and the increasingConsidering the evolution of PM last 3 decades and the increasingmaturity of IT why do problems still occur? Why do some IT projectsmaturity of IT why do problems still occur? Why do some IT projectsstill fail catastrophically?still fail catastrophically?

• 2005 US Justice Department Inspector General report stated $170m FBI Virtual Case Fileproject was a failure, after five years and $104 million in expenditures. Over one 18-monthperiod, the FBI gave its contractor nearly 400 requirements changes.

• 2005 Department of Homeland Security put its $229 m Emerge2 program (a new financialIT system) on hold. Its future remains uncertain.

• 2005 UK Inland Revenue produced tax payment overpayments of $3.45 billion because ofsoftware errors.

• April 2005 inter-departmental warfare played a significant role in the failure of a $64million federal IT project.

• 2005 British food retailer J Sainsbury had to write off US$526 million it had invested in anautomated supply-chain management system.

• IRS project on taxpayer compliance took over a decade to complete and cost the countryan unanticipated $50 billion.

• Oregon DMV conversion to new software took eight years to complete and public outcryeventually killed the entire project.

• State of Florida welfare system was plagued with numerous computational errors and$260 million in overpayments!

• May 2005 major hybrid car manufacturer installed software fix on 20,000 vehicles. Theautomobile industry spends $2 to $3 billion per year fixing software problems.

• July 2004 a new government welfare management system in Canada costing $200m wasunable to handle a simple benefits rate increase. The contract allowed for 6 weeks ofacceptance testing and never tested the ability to handle a rate increase.

• 2004 Avis cancelled an ERP system after $54.5m is spent


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The costs of lost services are significant regardless ofThe costs of lost services are significant regardless ofindustry & relate back to decisions made in the projectindustry & relate back to decisions made in the project

Outage Costs By Industry

Industry Description By Minute By Hour

Package shipping Like Fedex $467 $28,000

Internet e-tailer (small) Like CDNow $750 $45,000

Computer vendor Like Dell $1,000 $60,000

Financial Institution Like Citibank (credit/debit) $1,300 $78,000

Retailer sales catalog Like Sears $1,500 $90,000

Internet e-tailer (large) Like Amazon $1,500 $90,000

Financial institution Like Charles-Schwab (brokerage) $1,500 $90,000

TV home shopping Like The Shopping Channel $1,550 $93,000

Telco Like ATT $2,000 $120,000

Pay-per-view Cable provider, like Rogers $2,500 $150,000

Network vendor Like Cisco $2,783 $167,000

Microchip manufacturer Like Intel $3,750 $225,000

Airline Like Sabre $36,000 $2,160,000


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Part of the explanation is complexity and as this has risen so hasPart of the explanation is complexity and as this has risen so hasthe risk. The internet brings further risks to the business world as itthe risk. The internet brings further risks to the business world as itexasperates the dependencies on on-line servicesexasperates the dependencies on on-line services

• Integration of solution into a complex environment ofapplications and databases.

• Interface to the Internet:– Puts backend operation on-line, exposes integration flaws to world.

• An online mortgage can be approved in 20 minutes, from days or weeks.– Carries high expectations of 24x7 service delivery and on-line access.– Enables fickle, savvy customers to click over to competitive services.– Increases speed that on-line services acquire mission critical status.– Expands B2B services to global 24x7, e.g., suppliers, resellers,

partners.

• Millions of lines of code• Integration with complex technologies• Massive user populations (to justify solution)


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Not only do projects need to be successful but have toNot only do projects need to be successful but have tocome in on time, e.g., like hot productscome in on time, e.g., like hot products

• Xbox get it right - launch window has to be “bang on”• Some product lifecycles last no longer than 4-6 months and

sometimes, 1 month• HP reduces laptop development cycle from 9 months to 4

weeks to respond to changing technologies and productobsolescence.


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Bad IT service performance, IT project success rates, & IT investmentsBad IT service performance, IT project success rates, & IT investmentsare no longer just a CIO problem but for the whole c-level executiveare no longer just a CIO problem but for the whole c-level executivewho need to deliver better projects and serviceswho need to deliver better projects and services

• Corporate benchmarking study identified serious deficienciesin senior executive management skills with IT projects. A lackof PM skills cut the benefits of IT projects by 25 percent.

• “Project governance practices today focus on makingcommitments, not keeping them. Executives are involved inselecting and approving projects, but rarely delivering them.”49% experienced one project failure in past 12 months.

• Source: KPMG's Global IT Project Management Survey, July 2005.

• The CIO and entire c-level executive need to understand:– The relationship between IT projects & on-line operations– What can go wrong in a complex on-line operation? the cost and impact?– How it can be prevented?– The return on investment for creating a strong online operation


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To better understand the relationship between on-line operationsTo better understand the relationship between on-line operationsand IT projects imagine yourself back in 1912 in one of and IT projects imagine yourself back in 1912 in one of Titanic’sTitanic’slifeboat being rescued by lifeboat being rescued by CarpathiaCarpathia. You ask yourself:. You ask yourself:

• How could such a disaster happen?• Why did the ship collide with ice?• Why did the ship sink it was supposed to invincible?• Why didn’t the ship slowdown through the ice field?• Was the ship carrying lookouts?• Who was in control of the ship?• Why were there so few lifeboat places?• Where there no other ships in the vicinity?• Why did it take so long for rescue?• Are these just the symptoms and not the causes?• We need to go back to 1909 and look at the project itself.


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In 1909 White Star was facing stiff businesses pressures noIn 1909 White Star was facing stiff businesses pressures nodifferent to corporations today executives responded with a newdifferent to corporations today executives responded with a newbusiness strategy and took advantage of emerging technologybusiness strategy and took advantage of emerging technology

• Increase in competition and new entrants.• Aging technology infrastructure, ailing and inferior business

services, leading to loss of market share and customers.• Invested in a technology infrastructure with 3 new super

liners to sweep Atlantic.• Pushed emerging technology to limits.• Addressed all three passage classes, priority on first-class.• Improved services by quality of

crossing and customer experience.• Ships built for space and comfort

(capacity) and not speed.

OlympicMauretania

15% faster 23% greater capacity


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The strategy required major new technology investments and theThe strategy required major new technology investments and thebusiness case was really solid. The business requirementsbusiness case was really solid. The business requirementsspecified a lavish ship with space that addressed 3 classes.specified a lavish ship with space that addressed 3 classes.

• Project “profitability analysis” showed a breakeven in 2 years.• The construction project would take 6 years.• A staggering 75% of revenue driven by first-class passengers.• The price of:

– 1st class suite - $4,350, 2nd class suite - $1,750, 3rd class ticket - $30.

• Titanic’s class segregation no different to how today’sorganizations cater to customer segments.

• By other ship standards third equivalent to second, andsecond to first.

• Space allocated:– 60% for 905 first-class passengers.– 7% for 1134 third-class passengers.


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In comparison for an IT project today the project team canIn comparison for an IT project today the project team canminimize risks with the following techniques:minimize risks with the following techniques:

• Ensure due diligence in examining the businessproblem, articulating competitive services, definingpotential costs, and assessing risk.

• Determine by segments customer/target audience, valuepropositions, create profiles and scenarios for these.

• Determine existing services to be integrated into the on-line operation, or data dependencies.

• Establish desirable service level targets to guide thearchitect.

• Carefully assess solutions driven by new emergingtechnology.

B EST PRACTICES


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And build a business case for the IT project that looks into theAnd build a business case for the IT project that looks into theoperational side and incorporates potential risks:operational side and incorporates potential risks:

• Determines the cost of unavailability, based on affected users.• Identifies and calculates hidden availability costs, especially

people costs.• Considers branding, image and prestige.• Highlights the exposure and risk, (potential for “bankruptcy”).• Ensure investments required to move on-line out-weigh costs

Revenue generating on-line operation Cost saving on-line operation

B EST PRACTICES


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You can compute your exposure to lost customers/profits byYou can compute your exposure to lost customers/profits bysurveying your customers on the items belowsurveying your customers on the items below

$ Profit Lostdue to lostcustomers%

Completelysatisfied

% Will NOTContinue

As Customer

SoughtAssistance

50%

Did not seekassistance

50%

%Dissatisfied

%Mollified

5%

25%

70%

45%Source: TARP Study

# of customerswho experiencea problem

X

X

X

X

X

X=

=

=

=

# Will NOTContinue

As Customer

X $ =..............

X $ =..............

X $ =..............

X $ =..............

B EST PRACTICES


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In In TitanicTitanic’s architecture stage like in any IT project Architects’s architecture stage like in any IT project Architectsfaced many investment optionsfaced many investment options

• They created a luxury liner with priority tofirst-class service and accommodationpriority on functional requirements (What).

• Harland and Wolff were the mostexpensive craftsmen in Europe

• Lavish attention and investments topassenger comfort implied an equivalencyin safety and operations features or nonfunctional requirements (How).

• The designers had investment choices insafety features, from lifeboats to the newtechnologies like bulkheads, a double-skinhull, and electric doors.

ThomasAndrews


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White Star made a large investment in a ship-builder’s model theWhite Star made a large investment in a ship-builder’s model themodern equivalent of an IT pilot. They used it to analyze allmodern equivalent of an IT pilot. They used it to analyze allexposures to the possibility of loss.exposures to the possibility of loss.

• White Star used early modelingtechniques to test the designsand identify vulnerabilities.

• Shipbuilders relied heavily onflow analysis or “static testing” toreview ship characteristics.

• This was a sound strategyconsidering the limited testingoptions available, and it identifiedproblems prior to construction.

• Risks of crossing Atlantic wellknown with 400 years of travel.


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The Architects were well aware of the risks in crossing theThe Architects were well aware of the risks in crossing theAtlantic. The model tested worst case failure scenarios.Atlantic. The model tested worst case failure scenarios.

• Running aground

• Collisions

Double skin bottom

60 feet

7 feet Hull bottomTank top

Waterline

Crumple zone

Front-endcollision60 feet

Side-oncollision


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In the architecture stage the project team can minimize risks withIn the architecture stage the project team can minimize risks withthe following techniquesthe following techniques

• Walkthrough the design, to catch problems early.• Walk along critical transaction paths end-to-end.• Complete “component impact analysis” and Architect to remove

single failure points.• Build security zones for access.• Avoid under-investing in non-functional requirements.• Avoid one technology, lack of diversity increases susceptibility.• Avoid complexity, strive for simplicity, design for manageability,

operability, scalability, performance, and ease of use.

B EST PRACTICES


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Titanic’s Titanic’s construction stage integrated many complex technologiesconstruction stage integrated many complex technologiesand selected safety features to reduce risksand selected safety features to reduce risks

• Many disparate technologies integrated andcontrolled from a single point, the bridge.

• In selecting the “availability level” and “safetyfeatures” assumptions were made about non-functional requirements. This led to overconfidence in ship safety as constructionprogressed.

• Investment dollars were put into expensivesafety features based on new technologies inpreference to lifeboats.

• A perception developed that Titanic wasunsinkable.


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Decisions were made that compromised individual safetyDecisions were made that compromised individual safetyfeatures and escalated the level of riskfeatures and escalated the level of risk

• No Titanic construction dollars werediverted from basic safety requirements toenhance the luxurious first-class.

• BUT esthetic factors like spacious publicareas compromised the bulkhead wallheight, built 10 feet above the waterline.

• The double skin not continued (narrowedinterior) was only 7 feet deep and belowthe waterline.

• 16 lifeboats were fitted rather than therecommended 48 (triple stacked) toprovide an uninterrupted view for first-class promenade decks


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By the end of construction By the end of construction Titanic’sTitanic’s safety systems were severely safety systems were severelycompromised. But officers and crew believed they had the safestcompromised. But officers and crew believed they had the safestship ever built and all risks had been mitigatedship ever built and all risks had been mitigated

• Safety regulations, for lifeboats, were hopelessly outdated byadvances in ship-building technology.

• Titanic was presented and sold at the highest safety level, but interms of passenger safety, it was at the low to medium level.

• The expensive construction effort was very misdirectedincorporating the earlier mistakes, of the requirements andarchitecture stages.


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In the construction stage the project team the project team canIn the construction stage the project team the project team canminimize risks with the following techniques:minimize risks with the following techniques:

• Identify building blocks (components vs prefab) andsolution alternatives (build versus buy).

• Identify non-functional alternatives (safety features).• Build in cycles. Start small (prototypes), and scale up.• Tier the solution, scale independently, and create

redundancy.• Review Government regulations that may impact.• Ensure business executives and sponsors are involved

throughout the construction, through steering committees.

B EST PRACTICES


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The business pressures for The business pressures for TitanicTitanic to go live were enormous with to go live were enormous withthe large investments tied up in its four-year construction.the large investments tied up in its four-year construction.

• Olympic was in dry dock for repair becauseof the collision with HMS Hawke, one sixth oforiginal cost. This delayed Titanic’s maidenvoyage by a month. Titanic's propeller shaftwas used on the Olympic.

• Extensive sea trials and testing were notconsidered critical partly because Olympicwas established in service.

• Olympic was a test bed or yardstick forTitanic. It is debatable how well theexperiences from Olympic were transferred.

• Formalized change-management/ controltheory not been established.

• Too much faith in Olympic’s track record.


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In the planning stage the project team can minimize risks withIn the planning stage the project team can minimize risks withthe following techniques:the following techniques:

• Review existing/previous projects with the PMO forcommonality.

• Follow a change-management process, use risk assessments.• Plan level of testing, and select right tests, and acceptance

criteria.• Assign operations services ownership and control of process.• Define alternatives to launch (withdrawal), and back-out plans.• Create a test environment that mirrors the live environment.• Prepare for increase in frequency of changes with the Internet.• Deploy in test environment first, run parallel to live

environment.• Ensure testing is broad not just on functions.

B EST PRACTICES


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The business pressures and pressing economic needs pushedThe business pressures and pressing economic needs pushedTitanicTitanic into service and resulted in limited testing completed into service and resulted in limited testing completed

• In reality Titanic’s testing consisted of the maiden voyageacross the Atlantic fully loaded with passengers.

• On leaving port, Titanic nearly collided with the steamer New Yorkcoming within four feet indicating the challenges in operating a verylarge ship.

• Only one lifeboat drill was performed. The crew was unprepared tohandle a disaster and the launch of all lifeboats.

• No time was spent in preparingthe crew for the maiden voyage.The crew of 900 had 83mariners.


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Titanic’sTitanic’s captain and officers were well aware of “Iceberg captain and officers were well aware of “IcebergAlley” and the associated risks.Alley” and the associated risks.

• A well known feature of the NorthAtlantic to experienced mariners.

• Winter of 1911 unseasonably mild.• April worst month for icebergs.• Sailing path moved 10 miles south.• Fate of French liner Niagara known.


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At this point in the project it is common to implement Service LevelAt this point in the project it is common to implement Service LevelAgreements. Bruce Ismay went further and compromised these.Agreements. Bruce Ismay went further and compromised these.

• Bruce Ismay published a shippingannouncement in the New York Times thatTitanic would arrive a day early to publishedschedule. This was a new service level thatproved to be fateful in pushing the ship to itsoperational limits.

• The passenger list was a “who’s who” ofpublic life, with 300 very famous people,collectively worth of over $500 million. Thisunderlined public confidence in the ship.


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In the testing stage the project team can minimize risks withIn the testing stage the project team can minimize risks withthe following techniques:the following techniques:

• Undertake business and technical risk assessments.• Ensure independent test teams with incentives to test

objectively.• Establish the ability to stop an implementation if testing fails.• Ensure that major testing, once under way, can be halted.• Ensure the change-management process has various

strategies for rapid promotion and implementation.• Avoid change-management process that lacks political

support and “teeth” to be effective.• Avoid giving developers deployment rights to live

environment.• Refine your service level objectives and agreements.

B EST PRACTICES


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The operating stage required the deployment of the ship intoThe operating stage required the deployment of the ship intoproduction and her maiden voyageproduction and her maiden voyage

• Titanic had a number of built-in feedback mechanisms that werediscounted, fudged (ice bucket test), or just ignored.

• Operators overloaded by commercial traffic (noise) did not passthe ice warnings (signal) along in a timely fashion.

• Ice-warning information eventually communicated through thehierarchy to Captain Smith wasn’t adequately acted on.

• The captain very resistant to technology relied on “gut” feel andexperience and undermined Marconigram information.

• The officers kept their binocularsand did not share them with thelookouts.


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During the operating stage Bruce Ismay was determined to proveDuring the operating stage Bruce Ismay was determined to proveTitanicTitanic was a superior ship to was a superior ship to Olympic Olympic and meet his new SLO,and meet his new SLO,dramatically increasing the risksdramatically increasing the risks

• The chain of command on board wasusurped as Bruce Ismay overrodeCaptain Smith and pushed the shipand crew continuously to its limits.

• The captain succumbed to thedirector’s pressure to sail at fullspeed through the danger area.

• The business pressure overrodethe operations services mandate.

• Stringent guidelines were brokenputting everything in jeopardy.


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The collision was inevitable and Murdoch almostThe collision was inevitable and Murdoch almostsucceeded pulling off a brilliant maneuver.succeeded pulling off a brilliant maneuver.

• All the feedback systems were compromised.• The ship reached its peak speed as three additional boilers

were lit, more than at any other time in the journey,.• Californian’s last radio message was ignored.• The lookouts warning came 37 seconds before the collision.• Officer Murdoch tried to dodge the iceberg and decelerate the

ship through a “port-around” or “S turn.”

Ice Shelf

Iceberg


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The ship grounded itself on the ice shelf in an effort to avoid a headThe ship grounded itself on the ice shelf in an effort to avoid a headon collision. Consistent testimonies of the collision describe it ason collision. Consistent testimonies of the collision describe it asinnocuous.innocuous.

• “I heard this thump, then I could feel the boat quiver and could feel a sortof rumbling..”

– Joseph Scarott Seaman

• “... It was like a heavy vibration. It was not a violent shock.”– Walter Brice Able Bodied Seaman

• “…I felt as though a heavy wave had struck our ship. She quivered under itsomewhat.”

– Major Arthur Peuchen First Class Passenger

• “I was dreaming, and I woke up when I heard a slight crash. I paid noattention to it until the engines stop.”

– C E Henry Stengel First Class Passenger

• “We were thrown from the bench on which we were sitting. The shock wasaccompanied by a grinding noise….”

– Edward Dorking Third Class Passenger

• “It was like thunder, the roar of thunder…”– George Beauchamp Fireman


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Unperturbed the bridge sends two assessment groupsUnperturbed the bridge sends two assessment groupsto survey the ship for damage.to survey the ship for damage.

• No sharp jolt of ship slamming horizontally into immovableobject.

• No rebound effect from side swipe or glancing blow.• No on thrown about, breakfast cutlery in dining rooms

barely rattled.• No deaths, no injuries, no broken bones. The ship quivered

or rumbled for several seconds.


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Two assessment groups surveyed the ship for damage.Two assessment groups surveyed the ship for damage.Bruce Ismay made a fateful decision to prove Bruce Ismay made a fateful decision to prove TitanicTitaniccould save herself.could save herself.

• The first group quickly return with an inaccurate report ofno major damage. They had descended only a few decks.

• Ismay’s dilemma as there were several options available forrecovery.

– Remain static and put out a distress call.– Restart the engines and limp back to Halifax.

• Before second group returned with architect and carpenterthe director took the decision to sail off the ice-shelf.

• First wireless message sent to White Star office in NewYork.

– “TITANIC PROCEEDING TO HALIFAX. PASSENGERS WILL PROBABLY LANDTHERE WEDNESDAY; ALL SAFE. SMITH”

– All true at 11:53 pm.

• The pumps could not keep up with the increased flooding.• The architect predicted the ship had 2 hours.


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In the operating stage the project team can minimize risksIn the operating stage the project team can minimize riskswith the following techniques:with the following techniques:

• Ensure the business/operations services refineSLAs, and adhere these.

• Structure support for one holistic client view ofthe service, avoid technology silos, assignoperations sole responsibility.

• Build problem-management processes basedon the speed of recovery, & recovery clock.

• Base proactive problem-avoidance around anearly warning system.

• Synthesize and route timely information fromfeedback mechanisms to decision-makers.

B EST PRACTICES


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And take a comprehensive approach to organization, processes,And take a comprehensive approach to organization, processes,and tools, a basis for continuous availability:and tools, a basis for continuous availability:

• Monitor strategic components critical to environmentavailability.

• Avoid claiming a project success too soon.• Monitor broadly across the whole environment after an

implementation.• Investigate environmental anomalies quickly using

cause-and-effect, delays may be costly.• Identify meaningful metrics in “User outage

minutes” rather than percentages of availability.• Re-evaluate the initial business case based on

returns and metrics.

B EST PRACTICES


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The officers and crew operated in a state of disbelief unable toThe officers and crew operated in a state of disbelief unable toperform an effective recovery. Panic ensued amongst passengers.perform an effective recovery. Panic ensued amongst passengers.

• The disaster assessment took 20 minutes, and 65minutes before the captain ordered lifeboats filled.

• Poor communication impeded passengers & crewfrom reacting, possibly deliberate to avoid panic.

• The hierarchical organizational structure andphysical segregation controlled information flow.

• Many passengers got up and went back to bed.• The first life-boat left half full reluctance to get in.• The crew skeptical that anything was serious. Any

recovery plan would have been poorly executed.• Launching 16 lifeboats took over 90 minutes. The

last 2 Englehardts were floated off upside down.


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In the operating stage the project team can minimize risks with theIn the operating stage the project team can minimize risks with thefollowing techniques:following techniques:

• Ensure once disaster is declared it is enacted according tothe plan and followed without hesitation.

• Ensure disaster recovery plans are easily accessible in theorganization.

• Nominate one group “guardian” (operations services) ofthe disaster recovery plan.

• Ensure staff adequately trained to follow disaster recoveryplans.

• Practice and rehearse disaster recovery plans regularly.

B EST PRACTICES


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Following Following TitanicTitanic’s disaster, both the U.S. and British authorities’s disaster, both the U.S. and British authoritiesconducted post-mortems. The U.S inquiry came close to uncoveringconducted post-mortems. The U.S inquiry came close to uncoveringthe cover up.the cover up.

• US inquiry called 82 witnesses,specialists and technical experts.

• Determined the ship had reachedtop speed through the ice-field withno attempt to slow down.

• Forced Bruce Ismay to remain inU.S. & grilled him over role asdirector, and relationship withcaptain, officers and crew.

• Recommended lifeboat space forevery person on all ships from U.S.ports; lifeboat drills; adequatemanning of boats; and 24-houroperation of radiotelegraphequipment.

• British inquiry saved White Starfrom bankruptcy to stop Germancompetition.

• Saw European war looming, neededlarge ships for troops and materials.

• Condemned Captain Lord for notresponding to Titanic’s flares.

• Criticized British Board of Trade forfailing to update lifeboat regulations.

• Today private lawsuits would havebrought White Star.

• Titanic unnerved western society’sfaith in technology progress.

• Olympic, served distinguished 24year career before being scraped.


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Lessons learned - what can you take from all this. Your ITLessons learned - what can you take from all this. Your ITproject is little different to project is little different to Titanic’sTitanic’s project. project.

• Historical analogy cuts away layers of jargon and complexitythat shroud project’s today.

• Roots of Titanic’s disaster were in the project, compromisesmade to safety features and elevation of expectations whichallowed business pressures to override operationalprocedures.

• This lead to numerous violations of the “rules of goodseamanship”.

• The probability of failure was very high because of theinability to recognize the introduced risks.

• Mark is available to speak (or run workshops) withyour organization (PMs and Executives)


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Mitigate risk from project outset through the application of bestMitigate risk from project outset through the application of bestpractices at each stage of the IT projectpractices at each stage of the IT project

• Best practices listed by project stage:– Project life cycle, deliverables and iteration– Business case for an online operation– Mission critical application dependencies– Architectural models and frameworks– Enterprise application integration and

interdependency of data– Organizational and process elements– Change and problem management– Use of metrics, service levels objectives and

agreements– Use of automation and Early Warning Systems– Disaster recovery & business continuity plans

B EST PRACTICES

Implementation of one best practice can save thousands of dollars


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Interested in getting signed copies, available today atInterested in getting signed copies, available today atSPECIAL DISCOUNT of 30%SPECIAL DISCOUNT of 30%

• Each book carries over 100 bestpractices

• Business receipt available, majorcredit cards taken

• Also available athttp://www.mmpubs.com/books-LFH.htmlAlso:www.lessons-from-history.com

• Please contact Mark:[email protected]

$20 - 30% discount

$30 - 30% discount


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Credits and SourcesCredits and Sources

• 1998 MERIT Project. Best Practices in Enterprise Management.• Bonsall, Thomas E. Great Shipwrecks of the 20th Century. New York: Gallery Books.• Bristow, Diana. Titanic: Sinking the Myths.• Brown, David. The Last Log of the Titanic. McGraw-Hill.• Davie, Michael. The Titanic: The Full Story of a Tragedy. The Bodleyhead Ltd.• Hyslop, Donald, Alastair Forsyth, and Sheila Jemima. Titanic Voices. New York: St.

Martin’s Press, 1998.• Lord, Walter. A Night to Remember. New York: Holt, Rinehart, & Winston, 1955.• Lord, Walter. The Night Lives On. New York: Holt, Rinehart, & Winston, 1985.• Spignesi, Stephen. The Complete Titanic. Birch Lane Press Group, 1998.• Thompson, Harvey. Customer Value Management. McGraw-Hill, 2000.• Wade, Wyn Craig. The Titanic: End of a Dream. New York: Rawson, Wade, 1979.• Wels, Susan. Titanic: Legacy of the World’s Greatest Ocean Liner. Alexandria, VA:

Time-Life Books, 2000.

• Illustrations were used courtesy of the Ulster Folk & Transport Museum


Copyright 2006

“Titanic Lessons for IT Projects” · • The Hershey Foods ERP system implementation failure ($112m) led to massive distribution problems and 27% market share loss. • The FoxMeyer

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