Answer the following ethical case Two examples of massively mismanaged projects
ID: 2382769 • Letter: A
Question
Answer the following ethical case
Two examples of massively mismanaged projects are TAURUS and the ''Big Dig.'' The first, formally called the London Stock Exchange Automation Project, cost $575 million before it was finally abandoned. Although most IT projects have a reputation for cost over-runs, delays, and underperformance, TAURUS set a new standard. But even TAURUS Paled next to the biggest, most expensive public works project in U.S. history-Boston's 15-year-long Central Artery/Tunnel Project. Called the Big Dig, this was perhaps the poorest and most felonious case of project mismanagement in decades. From a starting $2 billion budget to a final price tag of $15 billion, the Big Dig cost more than the Panama Canal, Hoover Darn, or Interstate 95, the 1,919-mile highway between Maine and Florida. Read about one of these two projects (or another of your choice) and explain why it faced such problems. How and why do project managers allow such massive endeavors to fall into such a state? What do you think are the causes?Explanation / Answer
The answer relates to the project "TAURUS".
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TAURUS was an IT project which focussed on automating the back office functioning of LSE (London Stock Exchange). The primary objective behind this project was to reduce the paper work and develop an automated settlement transaction system. The initial phase of the project was considered to be successful, however, later on the project suffered major setbacks and was finally declared a failure.
Some of the factors that were considered as the main causes of failure included incorrect estimation of the time (18 months) required to complete the project. The project was developed with a relatively new techolongy and couldn't be properly tested because of the limited time. Another important reason was that the scope of the project was increased from the initial planned automation of security transactions to a multi-tasking system which involved processing of too many functions. The interests of too many parties had to be taken into consideration while designing and developing the project.
The project managers are required to break down a project into various small tasks and develop a proper schedule to ensure that these tasks are completed within the time estimated for the completion of each and every task. The objective behind any project should be clearly identified, documented and approved by the concerned authorities.
Too many interests (of different parties) in the project can result in deviation from the primary objective which can increase the complexity, costs and development period. The project managers should take into account all these factors at the planning stage. It is essential to work towards a common interest rather than making adjustments to the project in order serve the interest of all the parties. Any laxity on the part of project managers on this account can have devastating consequences as was observed in TAURUS as well.
Improper communication and outsourcing of key project functions can also result in failure of such big projects. In case of TAURUS, 2 different consultancies (which were actually competing firms) were involved with different independent tasks. No-one from the internal department was involved in the implementation and supervision of project. A project team should always involve internal staff as they have a better understanding of the functioning of the current system.