South-Western - Management  
Questions of leadership; Survey of CIOs places lack of high-level planning, support among the primary reasons behind failure of IT projects.
Topic Information Technology
Key Words Information Technology, Leadership, CIO, business communication
InfoTrac Reference A117353640
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News Story

According to a recent survey by Healthlink, a Houston-based healthcare IT consulting firm, the views on the value of IT initiatives varies widely between the chief information officers and other senior management. While surveyed CIO's of hospital organizations are highly likely to be satisfied with the value derived from IT initiatives, top management does not always feel the same.

In fact, nearly one-third of respondents reported a major delay or failure of an IT-related business initiative in the past 18 months, and nearly 60% of surveyed organizations postponed or rejected plans for an IT initiative during that time. Surprisingly, the problems were rarely linked to technical failures or poor performance by vendors or consultants. Instead, most CEO's see the problem in the lack of cooperation and communication between them and senior management and the missing link between IT initiatives and business strategies. Too often, it is unclear who is in charge. When the CEO or the board is in control, they are often unable or unwilling to provide leadership, set actionable goals, take ownership and resolve conflicts. When the CIO continues to lead the project, problems can arise in reconciling implementation with the expectations of top management and the needs of front-line users.

Questions
1.

Why do IT projects have such a consistently low success rate?

2.

What should companies proactively do to reduce the failure rate?

Source John Morrissey. "Questions of leadership; Survey of CIOs places lack of high-level planning, support among the primary reasons behind failure of IT projects." Modern Healthcare, May 24, 2004: 32.
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