Welcome!

1. Welcome!

2. Agenda - AM Latest CHAOS Thinking - Jim Johnson First Workshop: Community Tim Chou: Is Enterprise Software Dead or Just Sleeping? Lunch… Five Workshops: Community, Awareness, Purpose, Pride & Excellence

3. CHAOS 2006 Survey Results Resolution of Projects

4. CHAOS Research Studies

5. Waste to Value Ratio

6. Waste to Value: Ratio Changes

7. The 10 Laws of CHAOS

8. The 10 Laws of CHAOS 1. Law of the Two Faces 2. Cheetah’s Law 3. Law of the Roads 4. Law of the Long-tailed Monster 5. Law of the 5 Deadly Sins 6. Law of the Mad Hatter 7. Panda’s Law 8. Law of the Empty Chair 9. Law of the Tuxedo 10. Hammer Law

9. 3 Pillars of IT Value Cost Gain (ROI) Risk

10. Cycle of Good

11. Cycle of Bad

12. Cycles Hard to Break Cycle of Bad • Pick save projects • Create Small Wins Hard to Stay in Cycle of Good • Good Measurements • Re-enforce behavior

13. IBEX HealthCheck Based on a Real Company Reader’s note: This assessment document is given as an example of the type of HealthCheck assessment capabilities of The Standish Group. This was an actual assessment, but the client’s name is not IBEX and some of the attributes of the real organization have been changed to protect the confidentiality of the true organization.

14. Report Outline Introduction Goal Engagement Components Rules of Engagement Engagement Process Overview of results Success Factor Results Observations Recommendations Next Steps

15. 1. About IBEX IBEX – Bank Mutual Service Firm • EFT Services POS & ATM • 1,000 Members • $200,000 average fee • $20 Million Project Spending • $3 Million Average Cost

16. Project History

17. 2. Motivation & Goal 5% Transaction fee reduction • Reduce operating costs • Increase transactions • Increase members 5% Features & Functions • 5% project budget • $20 Million Budget

18. 3. Components Plan & Prepare HealthCheck • Project Profiles HealthCheck Workshops • Projects – Functions Results • Recommendations • Next Steps

19. 4. Rules of Engagement Rule 1: There is no right or wrong answers. Rule 2. Every person’s opinion counts. Rule 3. Frank and honest answers only are to be given. Rule 4. Each group 4 to 8 members Rule 5. No workshop will last longer than one hour Rule 6. What happens in the workshop stays in the workshop Rule 7. All responses will be kept anonymous Rule 8. Top of the mind answers for everyone – no hiding Rule 9. Workshop is to work to building consensus Rule 10. Facilitator makes final determination

20. Workgroups Functional • Application Development • Business Operations • Executives • Finance • Project Management • Sales & Marketing Projects • ACH Upgrade • Customized limits • Fraud Detection • Gift Card Processing • Personalized ATM • SWIFT Interface

21. Engagement Process Obtain Accurate Results • Common Understanding Motivate Performance Improvement • Not Overwhelming Support Decision Making • Determine Direction

33. Strengths

34. Weaknesses

35. Observations 23 Successful Projects • Clearly Defined, small, Didn’t Executive 21 Failed Projects • Not Well Defined, Large & Complex 56 Challenged Projects • Broke along above lines

36. Recommendation

37. Next Steps Team-Building Workshop • Executives & Stakeholders • Team Workers Agile Optimization Workshops

38. Questions?