Practical Resolutions Inc. Toronto, Canada Norman Schutz [email protected] T: (416) 941-8257 C: (416) 706-1511 Your Project World in.

Practical Resolutions Inc.Toronto, Canada

Norman Schutz

[email protected]: (416) 941-8257 C: (416) 706-1511

Your Project World in 2012

AGENDA

Today

IT Dispute Resolution-Options Available

Early Dispute Resolution

The Road Ahead-Moving Forward

Today

...In the “new” economy, all work is project work. And you are your projects!......

-Tom Peters

Today

Current Operating Environment & Expectations Rise of IT Consumerism: End User

Influence on Corporate IT Game Changing expectations... IT

investments & project approvals require clear ROI

Involvement of CFO &/CEO in budget approvals up 15% -past year Gartner 2011

IT Dispute Resolution

Current Dispute Resolution Practices Escalation Process-Contract/SOW Risk of dispute escalates exponentially

with increase in project duration, business scope, cost, number of stakeholders, solution complexity, ability of new team to gel quickly

Influence over solution outcomes of Day to Day Stakeholders decreases over time

IT Dispute Resolution

Key Challenge: of Current Practices. Many risks not identifiable or

predictable at the outset of an IT engagement ability to mitigate risks through standard conventional means i.e. due diligence or contract negotiation limited.. this inevitably-sets the stage for conflicts and disputes arising with no predetermined options available to resolve these issues ..so contract escalation process kicks in......

IT Dispute Resolution

Most Frequently Used Solutions. In IT Today ...

Binding Arbitration: Outcome unpredictable..costs vary depending on prep work...process itself can be done quickly vs litigation option

Litigation..”Winner takes all” Average costs start at $ 000’s Prep work time consuming, disruptive to day to day business....?? over 70% of litigation usually settle before trial

Are These The Best Options?What can we learn ??

There are three truths my truth, your truth, and the

truth...Chinese Proverb

IT Dispute Resolution

Resolving IT Conflicts & Disputes via ADR-Key Differences

Facilitation and Mediation Interest based focused on disputant’s

underlying interests and immediate needs Established process led by independent

Mediator appointed by all participants Participants create and agree on solution true

win/win “Without Prejudice” IMPORTANT guarantees

confidentiality of information exchanged in negotiations can not be disclosed elsewhere including future legal actions etc

IT Dispute Resolution

Resolving IT Conflicts & Disputes through ADR

Facilitation and Mediation Cost effective:.. Mediation: $x,000’s

Litigation: $x00,000 Effort: Mediation: Day(s) Litigation:

Months-/Year(s) Higher degree of predictability of

outcome: 80% of mediation and facilitations reach a resolution of issues....

“Measurable ROI” for decision process

IT Dispute Resolution

Facilitation-Key Benefits & Uses Facilitator engages team in identifying root

causes of project disputes and the collaborative design and implementation of solutions to them

Can be made available at the outset of a vendor project to streamline contract negotiation process to enable start and deployment of resources in a timely manner

Project Management Captures and deals with potential issues ..Dispute Avoidance..Reduce Rework risk

IT Dispute Resolution Facilitation

Ideal solution for identifying gaps between multi-sourced vendor arrangements before they become issues

Complements ITIL and IT Service Management processes

Facilitator should be independent party with process and subject matter expertise in issues at hand for optimal results

“Insurance Policy” coverage in place to use when needed

Claimed to provide the Highest return for time invested of all dispute resolution processes....proviso need the right team chemistry– all driving to same outcome----

IT Dispute Resolution

Mediation Benefits similar to Facilitation Usually used whenc onflict has escalated into

formal dispute Mediator works with all parties in developing a

solution to the dispute at hand Mediator should have process training

industry expertise for maximum benefit (time and $)

Some courts now mandating Mediation before litigation (Europe/US/Ontario-Toronto..)

IT Dispute Resolution

Arbitration “Remedy Based” focused on legal rights Each side presents their position... decision

then made by arbitrator based on merits of case legal remedy etc

Can be more cost and time effective than other legal options

Binding and non Binding options

Change

It is not the strongest of the species that survives nor the most intelligent but the one most responsive to change.-Charles Darwin

A majority of ICT projects will experience conflicts at some point during their duration

Risk increases with complexity, size, number of participants and duration ...minimize risk by identifying issues early and start to resolve them in a timely manner..(when key decision makers still available)

Creative solutions not driven by $ restitution

Early Dispute Resolution Benefits Based on the Following

Assumptions

Early Dispute Resolution Solutions Concept evolved from desire to pro-actively deal with issues earlier reducing project dispute costs ($ & time)

Range of Options available... Best choice dependent on size, complexity and budget...pre contract negotiation stage best time to decide

Stakeholder “buy-in” is key-

Early Dispute Resolution

Facilitated Work Sessions

None of us is as smart as all of us

Ken Blanchard

Early Dispute Resolution

Case Study: IT Development ProjectProject Challenges

Project participants lack a common project vision and do not agree roles and responsibilities

Project loses momentum shortly after start key staff distracted by other events

Change management weak in process and frequent in occurrence

Early Dispute Resolution

Solution: Facilitated Work Shop Format Structured meetings with specific

goals and objectives Participatory meeting focused on

discussion and decisions All those vested in project in

attendance-no rain checks!

Facilitated Work Sessions

Benefits: Facilitated Work Session Measurable Benefits to costs average is

5:1 Ratio Common Benefits: Reduced effort and

scope creep -5-15 % Initial project plan phases more productive

total time saved 30-40% more traditional method

PRI Evolve methodology enhances group collaboration

Early Dispute Resolution

Partnering –Facilitated Work Sessions Not the sales-oriented “partnering”

commonly found in IT project plans and proposals...but a formal partnering relationship..

PRI Facilitator using Evolve creates mutual agreement and commitment transparency.

Best use: Strategic projects, multi party and dependencies

Early Dispute Resolution

Avoid Distractions & Focus on what is Important

Creative Leaders embrace the ambiguity of change and the challenge of adapting their organizations to the new realities of their marketplace

The Road Ahead

Facilitated Work Sessions

Best Results obtained in:

Change Management Disputes (Internal/External)

Value Proposition Fall-out

Risk Management Issues (Delivery Performance/Solution Relevance/Lifespan

The Road Ahead

Project Management (Working Sessions, Communication/Capability Issues)

Contract Negotiations( New /Early Re-Negotiation)

Partnering Initiatives (not the “sales "version of this)

)

The Road Ahead

..”Sooner...Faster..Smarter”...... Considering the expectations of your business

partners, suppliers and customers...Is this the right time for a different approach in

avoiding technology conflicts and resolving disputes?

The Road Ahead

Questions

Questions

Case Study Examples