Reference no: EM131816954

Dealing with Uncertainty

In the mid-1970s, I worked as a database disaster repairman. As an independent consultant, I was called by organizations that licensed the then-new database management systems but had little idea of what to do with them. One of my memorable clients had converted the company's billing system from an oldertechnology system to the new world of database processing.

Unfortunately, after they cut off the old system, serious flaws were found in the new one, and from mid-November to mid-January the company was unable to send a bill. Of course, customers who do not receive bills do not pay, and my client had a substantial cashflow problem.

Even worse, some of its customers used a calendar-year tax basis and wanted to pay their bills prior to the end of the year. When those customers called to find the amount they owed, accounts receivable clerks had to say, "Well, we don't know. The data's in our computer, but we can't get it out." That was when the company called me for database disaster repair. The immediate cause of the problem was that the client used the plunge conversion technique.

But looking deeper, how did that organization find itself with a new billing system so full of failures? In this organization, management had little idea about how to communicate with IT, and the IT personnel had no experience in dealing with senior management. They talked past one another. Fortunately, this client was, in most other respects, a well-managed company. Senior management only needed to learn to manage their IS projects with the same discipline as they managed other departments. So, once we had patched the billing system together to solve the cash-flow problem, the management team began work to implement policies and procedures to instill the following principles:

• Business users, not IS, would take responsibility for the success of new systems.

• Users would actively work with IS personnel throughout systems development, especially during the requirements phase.

• Users would take an active role in project planning, project management, and project reviews.

• No development phase would be considered complete until the work was reviewed and approved by user representatives and management.

• Users would actively test the new system.

• All future systems would be developed in small increments.

I cannot claim that all future development projects at this company proceeded smoothly after the users began to practice these principles. In fact, many users were slow to take on their new responsibilities; in some cases, the users resented the time they were asked to invest in the new practices. Also, some were uncomfortable in these new roles. They wanted to work in their business specialty and not be asked to participate in IS projects about which they knew little.

Still others did not take their responsibilities seriously; they would come to meetings ill prepared, not fully engage in the process, or approve work they did not understand. However, after that billing disaster, senior management understood what needed to be done. They made these practices a priority, and over time user resistance was mostly overcome. When it was not overcome, it was clear to senior management where the true problem lay.

Discussion Questions

1. In general terms, describe how the billing system might have been implemented using pilot conversion. Describe how it might have been implemented using parallel conversion.

2. If you were the billing system project manager, what factors would you consider when deciding the style of conversion to use?

3. If the billing system had been converted using either pilot or parallel, what would have happened?

5. Explain in your own words the benefits that would accrue using the new principles.

4. Summarize the reasons that users resisted these new principles. What could be done to overcome that resistance?

6. Suppose you work in a company where users have little to no active involvement in systems development. Describe likely consequences of this situation. Describe five actions you could take to correct this situation.