Analysis of Software project time overrun 1 M. P. Birla Institute of Management Analysis of factors that cause Software Project Time Overrun A dissertation submitted in partial fulfillment of the requirements for the award of MBA Degree of Bangalore University. Submitted By Sudip Kumar Basu Regd. No.: 05XQCM6096 Under the guidance of Prof. Jai Raj Nair M.P.BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARTIYA VIDYA BHAVAN.) BANGALORE-560001 2005-2007
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Analysis of Software project time overrun
1 M. P. Birla Institute of Management
Analysis of factors that cause
Software Project Time Overrun A dissertation submitted in partial fulfillment of the
requirements for the award of
MBA Degree of Bangalore University.
Submitted By
Sudip Kumar Basu Regd. No.: 05XQCM6096
Under the guidance of
Prof. Jai Raj Nair
M.P.BIRLA INSTITUTE OF MANAGEMENT
(ASSOCIATE BHARTIYA VIDYA BHAVAN.)
BANGALORE-560001
2005-2007
Analysis of Software project time overrun
2 M. P. Birla Institute of Management
DECLARATION
I hereby declare that the research work embodied in the dissertation
entitled, “Analysis of factors that cause Software Project Time
Overrun”, has been carried out by me under the guidance and supervision
of Prof. Jai Raj Nair, Assistant Professor, M. P. Birla Institute of
Management, Bangalore.
I also declare that this dissertation has not been submitted to any
University/Institution elsewhere for the award of any Degree/Diploma.
Place: Bangalore ( Sudip Kumar Basu)
Date: Regd. No.: 05XQCM6096
Analysis of Software project time overrun
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CERTIFICATE
I hereby certify that the research work embodied in the dissertation
entitled, “Analysis of factors that cause Software Project Time
Overruns” has been undertaken and completed by Mr. Sudip Kumar Basu
under my guidance and supervision.
I also certify that she has fulfilled all the requirements under the
covenant governing the submission of dissertation to the Bangalore
University for the award of MBA degree.
Place: Bangalore
Date: (Prof. Jai Raj Nair)
Internal Guide
MPBIM, Bangalore
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CERTIFICATE
I hereby certify that this dissertation titled “Analysis of factors that cause
Software Project Time Overruns” is an offshoot of the research work
undertaken and completed by Mr. Sudip Kumar Basu, under the guidance
of Prof. Jai Raj Nair, Assistant Professor, M. P. Birla Institute of
Management, Bangalore.
Place: Bangalore
Date: ( N. S. Malavalli)
Principal,
M.P.Birla Institute of Mgmt
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ACKNOWLEDGEMENT
I express my immense gratitude to Professor Jai Raj Nair, Assistant
Professor, M.P.Birla Institute of Management, Bangalore. He has been my
mentor and guide and his continuous encouragement and valuable
suggestions helped me at every stage of this project. I am grateful to Dr.
N.S. Malavalli, Principal, Directors and the staff of M.P.Birla Institute of
Management for their comments and encouragement at various phases of
this project.
I also extend my gratitude to all the 52 respondents from 19 software
companies across India for their prompt and timely help and guidance in
6. Smaller Project Milestones 9 NO ( 0) NO ( 0) YES ( 9) YES ( 9)
7. Competent Staff 8 NO ( 0) NO ( 0) YES ( 8) YES ( 8)
8. Ownership 6 NO ( 0) NO ( 0) YES ( 6) YES ( 6)
9. Clear Vision & Objectives 3 NO ( 0) NO ( 0) YES ( 3) YES ( 3)
10. Hard-Working, Focused
Staff 3 NO ( 0) YES ( 3) YES ( 3) YES ( 3)
TOTAL 100 10 29 100 85
With only 10 success points, the DMV project had virtually no chance of success. With
100 success points, Hyatt's reservation project had all the right ingredients for success.
With only 29 success points, the CONFIRM project had little chance of success. With 85,
Itamarati, while not as assured as Hyatt, started with a high success probability.
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3.3 Findings from literature review The literature review has been very informative as it has thrown light on the research and
articles that have been written on software project time overruns. Moreover it has helped
in identifying the degree of research that has been already done on the subject. It has
narrowed the scope of repetition and has formed the basis of secondary data for this
study.
The following are the conclusions drawn from each of the articles used for literature
review:
How to Be Agile
This article talks about the various factors that can result in project success. These are
slash the budget; if it doesn't work, kill it; keep requirements to a minimum; build on
success, not hope; keep your development teams small; and assign non-it executives to
software projects.
Project management: the criteria for success
As compared to the projects in 1994, the projects in 2000 were more successful in terms
of completion within budget, on time and with features originally required. The article
further goes on to tell that there are 10 factors that contribute to a projects success.
Although no project requires all 10 factors to be successful, the more factors present in
the project strategy, the higher is the confidence level. These factors are executive
support, user involvements, experienced project manager, clear business objectives, and
minimized scope, standard software infrastructure, firm basic requirements, formal
methodology, reliable estimates and others.
Failure Statistics
The project success rates for large software companies were the least when compared to
that of the medium and small software companies. The major reason for the failures
being project restarts that cause both cost and time overruns. Again the cost and time
overruns were more for the large companies than the medium and small companies.
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Failure Rate
The statistics presented in this article all converge to establish that:
An IT project is more likely to be unsuccessful than successful
About 1 out of 5 IT projects is likely to bring full satisfaction
The larger the project the more likely the failure.
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Chapter 4 Research Methodology
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4.1 Scope of the Study This study is restricted to the software projects only. The study does not analyze the
product success nor does it foray into any other types of project.
4.2 Type of research The project employs systematic, formal and descriptive research techniques. This is
primarily a qualitative research. This study is based on the data collected through
structured questionnaire and in-depth, unstructured and informal interview with key
personnel.
4.3 Data Collection Data sources consisted of primary and secondary. Sources of primary data include the
Software project leads, team leads and developers and testers with 4 or more than 4 years
of experience.
A structured questionnaire was developed and administered to generate the primary data.
Sources of secondary data included the information provided by various text books,
magazines and internet. Internet has been a major secondary source for the extraction of
the expert’s opinion.
4.4 Sampling technique The sampling techniques used are snowball sample technique and stratified sample
technique. The respondents for the study have been selected based on the years of
experience and expertise for the given role. Using these selected respondents furthers
contacts were established and then converted into respondents.
4.5 Sample population The sample population for the purpose of our study consists of all the software
professionals.
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4.6 Sampling frame The sampling frame for the purpose of our study consists of all the software professionals
in India who are currently employed in the role of project leads or team leads or software
developers and testers with experience of 4 years or more.
4.7 Sample Size The composition of the study sample consisted of Software project leads, team leads and
developers and testers with 4 or more than 4 years of experience. The respondents whom
we have approached are 52 in number.
4.8 Sample Description Respondents have been selected from across a cross section of software product and
services companies. They have been selected from 19 companies in total belonging to
large, medium as well as small sized companies. Out of total number of respondents, only
one respondent did not give any response for the organization name.
A company wise cross section of respondents is depicted in the graph below.
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Most of the respondents had an experience of more than 4 years in the software field with
64% belonging to the category of 4 years to 8 years, 13% belonging to the category of
more than 8 years and 23% belonging to the category of less than 4 years.
These figures are depicted in the chart shown below.
4.9 Instrumentation Techniques Structured Questionnaire: The primary data has been collected through structured
Questionnaires, which were administered to the respondents. One set of Questionnaire
has been developed to identify the factors that cause project time overruns. (Annex 1A).
4.10 Tools for data analysis Since our research topic is highly qualitative in nature, we are prompted to use simple
percentages so as to enable the data to be more succinct and amenable for easy
interpretation. We believe that simple treatment of data will be more useful in drawing
inferences from the data.
4.11 Limitations of the Study Research investigation is beset with time and resource constraints. Research is limited to
respondents in India across only 19 companies of large, medium and small size and hence
the limitation of generalization becomes obvious.
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Chapter 5
Data Analysis and
Interpretation
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5.1 Average number of projects undertaken Source: Field Investigation
Interpretation
On an average 7 projects were undertaken by the respondents. The number of projects
ranged between 1 and 40. This has been shown in the graph above.
5.2 Average time spent by the respondents on a typical project
Source: Field Investigation
Interpretation
On an average 10 person months were spent by the respondents on a project. The time
taken ranged between 3 and 36 person months. Out of 52 respondents 4 did not provide
any answer to this query. This has been shown in the graph above.
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5.3 Average team size of the respondents
Source: Field Investigation
Interpretation
The team size of the respondents varied between 2 and 30 members with an average of 9
member team. The above graph depicts the same.
5.4 Project Completion
Source: Field Investigation
Interpretation
65% of the respondents said that the projects mostly completed on time. Only 12% said
that the projects always completed on time while 6% said that the projects were never
completed on time.
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5.5 Product delivered with all the initial requirements
Source: Field Investigation
Interpretation
Majority of the respondents agree that the products that they delivered met all the
requirements as per the initial specifications. 63% said yes to the query while 35%
negated the query and 1 respondent did not respond to the query.
5.6 Proportion of features added later
Source: Field Investigation
Interpretation
63% of the respondents said that only 10-30% of the features were added later to the
product. 29% said that less than 10% of features were added later while 8% said that 30-
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50% of the features were added later. None of the respondents said that more than 50% of
the features were added later.
5.7 Managing large teams
Source: Field Investigation
Interpretation
A majority of respondents consider managing large teams as “Not so easy”. Only 8%
consider it as “Easy” and 4% consider it as “Very difficult”.
5.8 Problems faced in managing teams
Source: Field Investigation
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Interpretation
44% of the respondents find communication as a major problem in handling teams. The
next major problem faced is lack of experience of the team members followed by friction
between members and lack of management support.
The other problems identified by the respondents were:
1. People not taking end-to-end ownership.
2. Making them believe in what they are doing and explain them the need of
following some processes
3. Consistency in Competence and Commitment of the team members.
4. Skill of every team members is not at same level, so many times some are
more overloaded than others.
5. Team members not co-located (global team), Cultural differences.
6. Co-ordination of various interfaces among various components.
7. Co-ordination and resource sharing.
8. Timely reporting of issues in the project.
9. Balancing Team’s aspiration and Customer expectation.
10. Managements support to set realistic targets and convince customer of the
Same.
11. Member’s personal problems, immaturity, attitude, attrition.
5.9 Ways of overcoming team management problem
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Interpretation
31% of the respondents opted for more training courses as a viable option to overcome
the problems faced in managing teams while 29% opted for more project reviews and
19% opted for smaller teams. 21% of the respondents provided other solutions to over
come the problems faced in managing teams. This include the following
1. Motivation and making sure that each employee blends with the organizational
goals and the processes it follows.
2. Groom team for Company and also Manager style.
3. Define the processes very clearly during the planning stages and keep the team
updated about the same.
4. Explain the significance of the various steps and processes followed in the project
to the project team. This will help the team members answer the question: “Why
are we doing some specific activities?”
5. Management Support on Administrative & Infrastructure.
6. More time should be given in design and requirements phase.
7. Meetings, Constructive feedback, non-penalizing reactions on issues reported,
encourage honesty.
8. Leads & Project Managers undergo soft skills training and develop strategies for
excellence in the changing environment using innovation, displaying creative
leadership and building stronger teams.
9. Managements support to set realistic targets and convince customer of the same.
10. To have back up plans ready always by anticipating problem areas.
11. Team building exercises, Team lunches to reduce friction between team members
and improve communication between team members.
12. have some senior folks, effective training and mentoring.
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5.10 Increase in delivery time
Source: Field Investigation
Interpretation
None of the projects had time overruns of more than 3 months. 52% of the projects
overshot the time by less than 1 month and 48% overshot time b 1-3 months.
5.11 Usage of time tracking tools
Source: Field Investigation
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Interpretation
67% of the respondents use time tracking tools while the rest don’t use any sort of time
tracking tools. Most of the tools used were in-house developed and the others consisted
mainly of M/S Office Project, Excel Sheets, Lotus Notes, Rational Portfolio Manager,
CONCERTO and Outlook Calendar.
5.12 Other Measures employed to ensure on time delivery of
Project
Source: Field Investigation
Interpretation
Besides using time tracking tools, 31 of the respondents use Checks and Reviews, 30%
use Regular meeting, 25% use Careful planning, 8% Allocates extra resources, 1%
reduces functionality to ensure that the projects are delivered on time. Other measures
employed include the following:
1. Allocate rightly skilled resources.
2. Identify and track Milestones.
3. Proactively identify the possible risks and take the necessary mitigation steps.
4. Good next-level leadership, empowerment, open-communication.
5. Buffer management.
6. Proper estimation before hand.
7. Push back on some non priority requirement (Negotiate soft with customer).
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8. Proactive Risk identification and mitigation/management.
9. Proactive Customer reporting.
10. Proper allocation of work.
11. Backup resources.
5.13 Factors responsible for project time overrun The following charts depict the respondent’s attitude towards various factors that can be
held responsible for project time overrun. Each factor is measured over a scale of four:
Certainly Responsible, Responsible to a Great Extent, Responsible to Some Extent and
Not Responsible.
5.13.1 Lack of user input
Source: Field Investigation
Interpretation
37% of the respondents feel that lack of user input is to some extent responsible for
project time overrun while 36% feel that this factor is certainly responsible. Only 4% feel
that lack of user input is not responsible for project time over run.
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5.13.2 Incomplete requirements and specifications
Source: Field Investigation
Interpretation
This factor is considered by the majority of the respondents i.e. 48% of the total, as
certainly responsible for project time overruns followed by 31% of respondents who feel
that this factor is responsible to a great extent for project time overrun. 17% and 4%
voted for responsible to some extent and not responsible respectively. Hence this factor
turns out to be a major area of concern.
5.13.3 Changing requirements and specifications
Source: Field Investigation
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Interpretation
46% of the respondents consider changing requirements and specifications responsible to
a great extent for project time overrun and 31% feel that this factor is certainly
responsible. Only 4% feel that this factor is not responsible for project time overrun while
19% feel that it is responsible to some extent. Overall this factor can also be considered
as a major area of concern.
5.13.4 Lack of executive support
Source: Field Investigation
Interpretation
Lack of executive support is considered by 52% of respondents as responsible to some
extent for project time overruns and 29% feel that it is not responsible. Only 13% and 6%
feel that it is responsible to great extent and certainly responsible, respectively.
5.13.5 Technology incompetence
Source: Field Investigation
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Interpretation
41% of respondents feel that technology incompetence of the team members is to some
extent responsible for project time overrun, 31% feel that it is to a great extent
responsible,15% feel that it is certainly responsible and 13% feel that it is not responsible
for project time over run.
5.13.6 Lack of resources
Source: Field Investigation
Interpretation
33% of respondents feel that lack of resources is to great extent responsible for project
time overrun, 29% feel that it is certainly responsible, 21% feel that it is responsible to
some extent and 17% feel that it is not responsible for project time over run. Again, this
factor can be considered as an important factor to take care of to ensure on time delivery
of projects.
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5.13.7 Unrealistic expectations
Source: Field Investigation
Interpretation
34% of the respondents feel that this factor is certainly responsible for project time
overrun while 25% feel that it is responsible to a great extent. Only 10% feel that it is not
responsible and 31% feel that it is responsible to some extent. Overall, since majority of
respondents feel that it is certainly responsible, this factor is critical to avoid project time
overrun.
5.13.8 Unclear objectives
Source: Field Investigation
Interpretation
38% of the respondents feel that unclear objectives are responsible to some extent in
causing project time overrun. 27% opted for “Certainly”, 25% opted for “To a great
extent” and 10% opted for “Not responsible”.
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5.13.9 Unrealistic time frames
Source: Field Investigation
Interpretation
Majority of the respondents feel that this factor is responsible for project time overruns.
42% voted for responsible “To a great ex tent”, 29% voted for “Certainly” responsible,
19% voted for responsible “To some extent” and only 10% voted for “Not responsible”.
5.13.10 New technology
Source: Field Investigation
Interpretation
Half of the respondents feel that this factor is to some extent responsible while 19% feel
that it is not responsible. Only 25% and 6% feel that it is responsible to great extent and
certainly responsible, respectively.
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5.13.11 Lack of planning
Source: Field Investigation Interpretation
A major portion of the respondents consider this factor as very important. 36% feel that it
is certainly responsible for project time overrun, 21% feel that it is responsible to a great
extent, 35% feel that it is responsible to some extent and only8% feel that this factor is
not responsible for project time overrun.
5.13.12 Too many or complicated standards
Source: Field Investigation
Interpretation
This factor has net been give much importance by the respondents. 44% feel that too
many or too complicated standards are to only some extent responsible for project time
overrun, 27% feel that it is not at all responsible, 17% feel that it is responsible to a great
extent while only 12% feel that it is certainly responsible for project time overrun,
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Chapter 6 Summary of findings
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6.1 Summary of findings On an average 7 projects were undertaken by the respondents.
On an average 10 person months were spent by the respondents on a project.
The time taken ranged between 3 and 36 person months.
On an average the respondents worked in 9 member teams.
Majority of the respondents said that the projects mostly completed on time,
signifying that the project failure due to time overrun has decreased still
further from that in the year 2000.
Majority of the respondents agree that the products that they delivered met all
the requirements as per the initial specifications and hence project failure due
to the inability to meet all the requirements as per initial specification has also
reduced from the same in the year 2000.
Majority of the respondents said that only 10%-30% of the features were
added later to the product. Hence we can probably say that the time and effort,
both in human effort and in cost, spent on adding new features to the released
product have significantly decreased.
A majority of respondents consider managing large teams as not so easy. Thus
we can safely say that having large teams working on a project could be a
hindrance to the successful completion of the project.
Communication was considered by most of the respondents as a major
problem in managing the teams. The next most popular problem in handling
teams seems to be lack of experience of the team members.
More training courses for the team members and more project reviews were
considered by the respondents as the most effective ways to overcome the
problems faced in managing project teams. Among various other ways that
can help make the team management easier, significant emphasis was put on
the need for clarification and detailed explanation of the objective of the
project and the need for each process and step undertaken to complete the
project.
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As per the respondents’ replies, delivery time of the project exceeded by at the
most 3 months. This is again a significant improvement for the findings in the
year 2000.
Majority of the respondents said that they used time tracking or accounting
tools to ensure that the project met the deadlines. Most of the tools used were
in-house developed. Among the other tools used M/S Office Project, Excel
Sheets and Lotus Notes were the most favored ones. However, those that do
not use any time tracking or accounting tool constitute a significant
proportion. Hence some work needs to be done in this sphere to ensure that
such tools are used to effectively manage the software projects.
Checks and reviews and regular meetings were the most used measures
adopted to ensure that the projects met their deadlines. Other measures used
include proper allocation of resources, both human and technical resources
and Buffer management.
Among the various factors that cause project time overrun, incomplete
requirements and specifications is considered to be certainly responsible for
such overrun by the respondents. Changing requirements and specifications
and unrealistic time frames are considered as to a great extent responsible for
project time overrun. Factors like lack of executive support, technology
incompetence, unclear objectives, new technology and too many or too
complicated standards are considered to be responsible to some extent for
project time overrun. Other factors received mixed responses for the
respondents. Hence we can safely arrange these factors in decreasing order of
responsibility as follows:
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Factors responsible for project time overrun in decreasing order of Responsibility
1 Incomplete requirements and specifications 2 Changing requirements and specifications 3 Unrealistic time frames 4 Lack of executive support 5 New technology 6 Too many/complicated standards 7 Technology incompetence 8 Unclear objectives 9 Lack of user input
10 Lack of planning 11 Unrealistic expectations 12 Lack of resources
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Chapter 7 Recommendations
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7.1 Recommendations Software project teams should be smaller so that the team members can be
easily managed and there is no problem in communication between the
members.
Whenever any changes are made to the project such that the features of the
product deviate from the initial specifications, a thorough re-planning
should be done and extra resources should be employed (or taken away as
the case might be) so that the project itself is on schedule. The end user
should also be intimated about the changes made and should be made aware
of the consequences of such changes made. This will help in reducing the
time spent on making further changes to the product once it is released.
Extra effort should be made to ensure that all the team members are aware
of the happenings in the team. Effective communication channels should be
established. Each member of the team should be informed about the changes
in the project. This will help in better understanding and clarification of the
project.
Every team should have a good balance between its experienced and
inexperienced members. Experienced members can guide the inexperienced
members. This will help in reducing the development time that would be
consumed if the team is made up of only inexperienced members who will
learn and then perform. On the other hand if all the members in the team are
experienced, there are chances of increased friction between the members.
Hence a good balance has to be maintained.
More training courses should be arranged for the team members as well as
the team leaders and project managers. The training should be imparted in
the technical field as well as in the soft skills field. Training should be
designed such that the trainees can get information about the new
technologies that can be used in their work.
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Effective, regular and frequent project reviews should be performed so that
all the team members are aware of the happenings in the team. Such reviews
will also help in tracking the timely progress of the project.
Time tracking or accounting tool should be used to track the project
progress. Some recommended tools most widely used are M/S Office
Project, Excel Sheets and Lotus Notes.
While planning the project schedule, sufficient buffer and back up should be
allocated to account for team members going on leave due to ill health,
personal emergencies etc and also for training. Often, time spent on training
is not taken into consideration while planning the project schedule. This
should be accounted for in the schedule.
More effort and time should be spent in the project design and specification
gathering stages so that the specifications and requirements are complete
and absolutely no or very little changes are required to be made during the
actual development stage. For this, co-operation from the client is a must.
Hence client partnering should be established such that the client developer
relationship is based on trust, credibility and relevance.
The organizational climate also plays an important role in the performance
of its employees. It represents the employees’ perceptions of the way thing
are done in the organization. The climate that is created in the organization
can make a difference between the winning and losing in the market place.
The various elements that make up the organizational climate are clarity in
mission and direction, improvement in standards, responsibility, autonomy,
flexibility, rewards, recognition, team commitment, etc.
Team members should be encouraged to develop adaptability and creative
problem solving techniques.
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Annexure
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Questionnaire
Objective: To analyze the reasons behind software project time
overruns
1. Name of the organization:
2. Designation:
3. Years of Experience: < 4 years 4-8 years > 8 years
4. Number of Projects undertaken:
5. Average time spent on a typical project (in person months):
6. What was the average team size? _____________
7. Did the project get completed on time?
Always Mostly Sometimes Never
8. Was the product delivered with all the features/requirements as per initial
specifications?
Yes No
9. What proportion of features/requirements was added later?
<10% 10%-30% 30%-50% >50%
10. Do you consider managing a large team as
Easy Not so easy Difficult Very difficult
11. What problems do you face in organizing, coordinating and monitoring your
team?
Communication Lack of experience Friction between members
Lack of management support Others
Specify others ______________________________
12. What can be done to overcome the above problem?
More training courses Smaller teams More project reviews