Brightmoon Consulting & Training

On 1st of April 2015 (exactly one year from today), Malaysia is going to implement GST (Goods and Service Tax). It is known as VAT (Value-added Tax) in some countries. 

Many SMEs (Small, Medium Enterprises) are waiting for enactment of the act. This strategy could save the hassle at the beginning, and pay dearly price toward the end. For medium-sized companies, the recommended project duration is 12 to 18 months. Any duration shorter than this is inviting unnecessary chaos.

The potential issues SMEs could end up with when they do nothing now:-

1. Penalty on Late Registration
2. Penalty on inaccurate GST calculation
3. Penalty on incomplete GST reporting
4. Lost of profit due to previous contracts are formed without GST
5. Lost of business when unable produce tax invoice as some customers may want to claim input tax

The summarized effect is cash flow problem.

While waiting for the enactment of the act, SMEs can start the following:-

1. Understand more on GST implications to their business and industry, and aware what need to be prepared for GST
2. Form internal task force to oversee GST implementation related activities, and allocate a budget for GST implementation
3. Craft project management methodology to monitor deliverables from both tax consultants and internal departments - to ensure the GST proejct progresses are visibile to the management team
   

On the extreme end, what will happen when GST implementation get postpone (again). After the preparation steps above, SMEs are able to:

1. Make informed decision on future contract negotiation - GST clause will be included whenever the act is enacted
2. Disband the internal task force can disband and recall them when needed
3. Channel the allocated budget back to other usage or carry forward as management reserve for GST project
4. Use project management methodology crafted to gain visibility on other projects.

Conclusion
Ignorant is not a bliss now! It is better start the preparation now then later. Many large companies have started GST implementation projects. And big-4 audit firms are fully-booked with GST implementation projects for 2014. Large companies make informed decision from various sources. The GST is going to be here and this is an obvious sign that SMEs cannot ignore!

Have you ever questioned why so many large software projects failed one over another?

The main reason is they are using SDLC/ waterfall, which is widely known as Software Development Life Cycle. SDLC dictates the sequential steps in gather requirements, design, develop, testing and implementation. Each step must be completed before commencement of next step. When something goes wrong, the particular step is reworked and wasted. Thus, it means Software Dooming Life Cycle.

Doom Grooming Ground
SDLC has been part of college education syllabus, and many has showed the success stories. Many happy students scored distinction in their final year project by using SDLC. It gives further assurance the usefulness of SDLC in software project. Therefore, many projects nowadays are wholeheartedly adopt SDLC without second question. When the project size is still small, they tasted the sweetness of SDLC success.

Dooming Life Cycle Started
The dooming life cycle starts when the complexity and uncertainties of a software project getting higher. The obvious complexities are stakeholder and communication. Human always struggle to express themselves 100%; and unable 100% decipher the message. Such situation contributes to misunderstanding. This is primarily due to individual perception, exposure, personalities and education. Such cycle is endless and many projects are trapped in there.

The Realization
Many have noticed the risk of using SDLC in large project. Even the creator of SDLC, Dr. WInston W. Royce cited the usage of SDLC in large software project is inviting risk and failure. Such realization can comes from painful experience or learned from others. Some wise men have proposed two approaches in handling large software project:

1. Divide & Conquer - Split one large software project into several smaller software projects
   Pro - continue use all-time favorite SDLC
   Con - need to manage dependencies of these smaller projects
2. Be Agile/ Scrum - have smaller SDLC cycle (i.e. iteration cycle)
   Pro - able to adapt changes faster
   Con - need to adjust traditional way of planning & working

Recommendation
After knowing the risk of SDLC in large software project, my recommendation is to Be Agile/ Scrum:

1. The rate of uncontrollable changes is getting higher and more frequent. The more adaptive a project team is, the better chance of a project success.
2. Small projects can grow big after several phases. It's advantageous to be agile now than later.
3. Knowledge and experience of agile can be adapted to different projects or industries.

We wish your projects are successful since day-1 with the right foundation.

Typical project success criteria mentioned previously are on-time, on-budget and within scope.

This article is to shed some light on 10 Critical Success Factors (CSF), which have empirically proven in contributing directly and indirectly to success criteria above. However, without proper measurement, it would be challenging to have these CSF serve as a reputable benchmark.


The History
Two renowned experts (Pinto & Slevin) conducted this research over 400 projects across industries. They came out a diagnostic instrument to measure these 10 CSF - Project Implementation Profile (PIP). This is 360-degree approach to solicit feedback from all project stakeholders. Over two decades, it has been proven on its practicality and usefulness.

The Wake-up Call
There was on product development project in one multinational organization. Everyone was excited about the project, including the technology partner. However, something does not feel so right, and no-one is able to tell the exact.

After PIP was conducted, the shocking and ugly truth revealed itself. At the quick glance on its CSF rating (see figure below), this project is at the brink of extinction. They have been experiencing unnecessary fire fighting, chasing unreasonable deadlines and stressed working atmosphere.

The Priority of Remedial Actions
With the insights of CSF rating, there is always a chance to salvage the project.

1. Top priority is given to those CSF rating below 50
2. Second priority is given to those CSF rating below 80

Usage of PIP

1. Identify early indicators of project failure
2. Objectively benchmark across project performance
3. Facilitate in strategically and tactically thinking in entire project lifecycle

Concluding Remark
The success of adopting PIP in entire organization requires openness and higher project management maturity. Without that, PIP may be wrongly used as a political weapon. An independent third party could be invited in conducting PIP to ensure all project stakeholders are comfortable in voicing their honest and brutal feedback - anonymously. This third party will compile all feedback into one CSF rating (as seen in figure above).

Towards year-end, all successful individuals/ organizations will have a reflection on how they performed in 2013. Subsequently, they can plan how to increase/ elevate their success to new height in 2014.

Back to project management, the usual success statements are on-time, on-budget and within scope. These three are often used because they are easy to measure. And, this is how a project be profitable.

On the flip side of this success definition:-

1. Can a project deemed as a failure despite it met three criteria above? 
2. Can a project gauged as a success when it burst the time, budget and scope? 

These two questions are highly debatable. Nevertheless, the answers are absolute when we take into consideration of the behavioral aspects.


Critical Success Factors outlined by Pinto & Slevin provides holistic overview on project success.

1. Project Mission - Initial clearly defined goals and general directions.
2. Top Management Support - Willingness of top management to provide the necessary resources and authority/ power for project success.
3. Project Schedule/ Plan - A detailed specification of the individual actions steps for project implementation.
4. Client Consultation - Communication, consultation, and active listening to al impacted parties.
5. Personnel - Recruitment, selection, and training of the necessary personnel for the project team.
6. Technical Tasks - Availability of the required technology and expertise to accomplish the specific technical action steps.
7. Client Acceptance - The act of "selling" the final project to its ultimate intended users.
8. Monitoring and Feedback - Timely provision of comprehensive control information at each stage in the implementation process.
9. Communication - The provision of an appropriate network and necessary data to all key actors in the project implementation.
10. Troubleshooting - Ability to handle unexpected crises and deviations from plan.
    

All these factors are good on paper. Without proper quantification, they serve no purpose in project benchmarking. Next article we will share a way to translate qualitative inputs into numbers.

Till then, have fun reflecting now.