Now that the IFRS 17 regulation has gone live, it is the perfect time to ask the question, was your implementation project a success or a failure? But before we can answer it, we need to consider what is meant by a successful project. Did it achieve what it set out to do in terms of deliverables? Did it meet its planned goals in terms of cost, schedule, and quality? Will it leave a legacy and be successful when transferred to business as usual?
We need to look at the success of a project from two different aspects – was the project management successful and was the project itself successful? We can, however, end up with one aspect succeeding and the other failing. The key lies in our understanding of the two aspects of success:
Project Management Success
- Was the project managed correctly through the various phases of the lifecycle?
- Was all the governance documentation of the required quality, kept up to date and managed responsibly?
- Were baselines, risks and changes continuously monitored, analysed, communicated, and approved?
- Was stakeholder management planned and implemented throughout the project?
Project Success
- Was the project delivered on time, within budget and to the agreed quality?
- Were the agreed deliverables and outcomes delivered in the appropriate manner?
- Was there a positive, long-term impact achieved because of the project?
In summary, project management success tends to focus on the project process, including the typical practical project management tasks such as cost management, schedule management, risk management and quality management, whereas project success focuses on satisfying the overall goal or objective of the project.
Only by considering these aspects can we determine whether a project was truly successful or not.
Project management success can be achieved even when the project fails just as project success can be achieved even when the project management fails.
Two real-world examples can help us to understand the differences:
Kodak–Advantix: This project aimed to develop Kodak’s new Advantix photographic system. The project was very well managed from a project management perspective which resulted in the Project Management Institute (PMI) choosing it as the 1997 International Project of the Year and Business Week selecting the system as one of the best new products of 1996. However, Kodak’s stock price fell dramatically with the introduction of the Advantix system, in part because it failed to anticipate the accelerating move to digital photography.
Sydney Opera House: This is arguably one of the most recognised buildings in the world, yet the project to construct it was a spectacular failure from a project management perspective. Initially planned to take 4 years to construct, from 1959 to 1963, at an estimated cost of $7 million, it would finally be completed in 1973, 10 years late, at a cost of over $100 million. These days, the Sydney Opera House is considered one of the seven modern wonders of the world and was included on the UNESCO World Heritage List as ‘A masterpiece of human creative genius’ on June 28, 2007.
Kodak failed to forecast the onslaught of the digital age, consequently, the end-product was deemed a failure as it did not meet the strategic objectives of senior stakeholders whilst on the other hand, the Sydney Opera House project was significantly over budget and delivered 10 years late, but all that is now forgotten as the reality is, it is an enormous success.
IFRS 17 Implemention – Project Management Success or Project Success? Why not both?
How successful was your IFRS 17 implementation project? Was it a project management success? Maybe as part of the project, a new system was introduced. You met all of the deadlines and delivered what was requested by the accounting and actuarial teams, but it is now apparent that there are further integration challenges with another part of the business that should have been taken into consideration. Or on the flip side was it a project success?
Whilst the implementation of IFRS 17 might not be in the same league as the Sydney Opera House in terms of a legacy (or maybe it will be, only time will tell!), has the project satisfied the organisation’s ultimate objective and been worth any budget overspend? Are the new processes and systems delivering greater accuracy and efficiency?
Ultimately all stakeholders must agree on the critical success factors before the project starts and then those factors can be used to determine the overall project success upon completion of the project.
Get in touch if you would like to know more about how we help ensure your actuarial projects are a success or are still facing challenges with your IFRS 17 project.
