Consider changing tack if the project is not working out as expected.

A building products manufacturer decided to stay ahead of its competitors by introducing a computerised order scheduling and tracking system into its manufacturing operations. The benefits were expected to be a faster response time to customer's needs and the facility for real-time tracking of orders. Ultimately it was intended that the customer would be allowed access to the system.

An in-house project team was formed, including the financial controller, financial director and managing director, which decided that the required system would be created by upgrading and integrating the established IT systems within the company.

Consultants, four companies in all, were hired to handle different aspects of the design and implementation of the new system and a project manager was appointed who immediately embarked on an intensive IT training course.

The project hit many problems and the cost and time commitment of the project manager and project team was increasing rapidly. The team, with the help of the newly IT trained project manager, recognised that most of the problems originated from trying to adapt and build-on the existing IT systems which were outdated and inefficient compared with more recent systems.

They took the brave step of deciding to scrap the work done to date and start afresh with a completely new system. The inevitable increase in cost means that the return on investment in the new system will be longer than targeted.

However, now that the system is up and running response times to customer requests have been cut significantly and the response from both suppliers and customers is very positive. Errors in order processing have also been reduced.

Learning Points

• Periodically review ongoing projects and keep an open mind about the need to change tack.
• Do not be afraid to scrap work already completed, if that would be the best long-term option.
• Even when using multiple external vendors, an in-house project manager with a good appreciation of IT, can prove invaluable.