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ABSTRACT
Previous information systems (IS) research has
significantly improved the success rate of IS
projects, but the result is still far from satisfying. The effort to advance IS project management theories continues. One notable effort is
Ravichandran and Rai (2000). Based on quality
management principles, they developed a
model (the R&R model) describing a qualityoriented organizational system that leads to
software development quality performance.
This study analyzed Six Sigma to propose major
revisions to the R&R model. Six Sigma is a
recent approach to quality management with
proven effectiveness. The analysis of Six Sigma
suggested that several constructs in the R&R
model need to be respecified, leading to the definition of a new quality-oriented organizational
system. More importantly, the revised model
posits that the new organizational system leads
to IS project success that can be measured by
organizational performance improvement. This
study contributes to the literature and provides
practical guidance to IS project managers.
KEYWORDS: information systems; project
management; Six Sigma
INTRODUCTION
nformation systems (IS) project management has been an important
and exciting topic in both academic research and trade magazines. For
the past two decades, the trend of globalization and the rapid diffusion
of Internet technology have led companies to critically rely on various
information systems to achieve competitive advantage (Igbaria, Zinatelli, &
Cavaye, 1998; Ives & Learmonth, 1984; T. Powell & Micallef, 1997; Shuit,
2004). IS projects enable companies to provide better products or services.
Often the survival and growth of a company is dependent on the success of
critical IS projects (Haapaniemi, 1996; Nash, 2003). In addition, most IS projects require a substantial amount of investment and resources. To make it
even more challenging, the inherent uncertainty of IS projects is high due to
the technological complexities involved. All these make IS project management an interesting but challenging research topic.
Over the past two decades, research in IS project management has
helped dramatically increase the success rate of projects, but the results are
still far from satisfying. The CHAOS Report (The Standish Group, 1994, 2004)
showed that the IS project success rate was 34% in 2004, a significant
increase from 16% just ten years ago. Such an improvement is largely associated with the extensive research effort that spans across various areas,
including system development life cycle, project office management, project
risk management, and supplier management. However, it is worth
noting that still two-thirds of the IS projects were classified as failed or
challenged. The information systems application area actually had the
lowest project management maturity (Ibbs & Kwak, 2000). Clearly,
researchers need to conduct more studies to search for new theories or
revise existing theories for successful IS project management.
Six Sigma, a process improvement program that gained wide popularity
during the past two decades, provides an opportunity to advance theory
development for IS project management (Kwak & Anbari, 2006). Six Sigma
was developed by Motorola and has been shown to effectively improve performance within many companies (Pande, Neuman, & Cavanagh, 2000). The
success of Six Sigma at General Electric even led the company to claim that
Six Sigma is its business culture and strategy. Studies have shown that Six
Sigma can effectively improve the success rate of improvement projects
(Linderman, Schroeder, & Choo, 2006; Linderman, Schroeder, Zaheer, &
Choo, 2003). However, the IS project management literature has largely
ignored the advancement of project management practices brought by Six
Sigma. Therefore, this study tries to bridge an important gap in the IS project
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PAPERS
IS Project Management
Literature
Three Views of IS Project
Management
An extensive review of the IS project
management literature was first conducted. The effort identified three
views of IS project management in the
literature: the technical view, the social
and organizational view, and the integrated view. The technical view considers IS development as a technical task
and emphasizes the technology-driven
process of IS development, which
includes development methods, tools,
hardware, and software (Cooprider &
Henderson, 1991). Under the technical
view, technical factors are critical to IS
project success. Different studies have
identified different technical factors.
For example, Saarinen (1990) developed
a situational approach for choosing appropriate system development methods
and tools that contribute to IS project
success. Deephouse, Mukhopadhyay,
Goldenson, and Kellner (1996) studied
the effect of software processes on
project performance. Subramanian,
Jiang, and Klein (2007) found that prototyping, as an IS implementation
strategy, significantly affects both software quality and project performance.
In short, the technical view suggests
that the key to IS project success is the
careful selection and management of
technical factors.
The social and organizational view
considers social and organizational factors to be more important, and they
deserve more attention than the technical factors in IS development (Doherty &
King, 1998a, 1998b). Robey, Smith, and
Vijayasarathy (1993) found that participation, influence, conflict, and conflict
Leadership
Structure
Process
Outcome
Top
Management
Leadership
Management
Infrastructure
Sophistication
Process
Management
Efficacy
Software
Development
Quality Performance
Stakeholder
Participation
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Six Sigma
Overview
The term Six Sigma was first used at
Motorola in the 1980s (Barney, 2002).
Like many other companies, Motorola
found that the cost of poor quality was
as high as 15% to 20% of the sales revenue (Crosby, 1979). This is because
production processes have low capability. A large portion of the products do
not meet the customers requirement
62
Principle
Descriptions
Customer orientation
In Six Sigma, the importance of the customer has been emphasized to an unprecedented degree.
Customer orientation means actively seeking to understand and satisfy customer requirements.
Customer orientation is not new in quality management (Flynn, Schroeder, & Sakakibara, 1994) and IS
project management (Mathieson & Wharton, 1993). However, systematically supporting the principle
is unique in Six Sigma. For example, all Six Sigma improvement projects must make a business case
demonstrating the value to customers before they can be approved. In addition, the project benefits
must be clearly visible from the customers perspective. The business process owner, usually the internal customer of the project, is an indispensible member of the project team. Project selection committees use customer orientation as a principle to select and prioritize improvement projects (Eckes,
2000; Harry & Schroeder, 2000; Pande et al., 2000).
Resource dedication
Six Sigma mandates that organizations must use full-time improvement project leaders (called Black
Belts) as well as set up a formal organizational structure for project selection and management. Black
Belts are well-trained improvement experts. They are relieved from their daily duties and charged with
full responsibilities for improvement projects. The formal organizational structure includes other roles
such as Green Belt, Master Black Belt, and Champion. In short, Six Sigma requires organizations to
make substantial commitment and dedicate their best people to the most important projects (Eckes,
2000; Harry & Schroeder, 2000; Pande et al., 2000). In addition, many companies even use Six Sigma
as a leadership development program (Welch & Byrne, 2001). Success in managing a Six Sigma project
is believed to be a good predictor of success for any good manager (Schroeder et al., in press).
Common language
Six Sigma emphasizes the importance of having a common language and is built upon the principle
of process management. The basic premise for process management is that, aside from the diversity
demonstrated by different businesses, the underlying processes remain surprisingly similar. By using
the same language of process improvement, it is possible to share the learning both inside and across
organizational units. In other words, Six Sigma enables knowledge creation and dissemination (Choo,
Linderman, & Schroeder, 2007a, 2007b).
Standard method
Each Six Sigma project must follow the standard project management method. Using a standard
method is nothing new in the quality management literature, for example, the Plan-Do-Check-Act
(PDCA) (Shewhart, 1931, 1939) and Plan-Do-Study-Act (PDSA) (Deming, 2000) methods are well
known. However, Six Sigma has emphasized the importance of adhering to the standard method
to an unprecedented degree.
Benefits tracking
In Six Sigma, all projects must have clearly defined goals (Linderman et al., 2003). Each project must
be carefully audited on its intended and realized benefits. In most cases, benefits must be quantifiable
and linked to financial metrics. The measures must be certified by the organizations finance department or even the chief financial officer (Eckes, 2000; Pande et al., 2000; Schroeder et al., in press).
inherits the quality management philosophy. It emphasizes strong leadership, demands the creation of a dedicated organizational structure, and
mandates the adoption of disciplined
process management tools and techniques. Therefore, it is possible to revise
the R&R model to reflect the new development in quality management.
The analysis of Six Sigma also suggests what changes should be made to
the R&R model. First, the applicable
domain of the R&R model is restricted
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PAPERS
R & R model
Revised model
Construct
Definition
Domain
Leadership
Property
Structure
Process
Construct
Definition
Property
Construct
Definition
Stakeholder Participation
The degree to which work practices are
established so that a constituent group
contributes its knowledge base and
complements the knowledge resources of
other constituent groups involved in system
development
Programmers/analysts
Users
Vendors
Stakeholder Participation
The same as the R&R model but external
users are explicitly considered as stakeholders
IS Project Success
The organizational impact of the IS project,
measured in either financial terms or
value-add to customers
Emphasize:
Financial impact
Customer value-add
Property
Construct
Definition
Property
Outcome
Construct
Definition
Property
64
Add:
External users
of a quality-oriented organizational
system is not and should not be limited
to quality performance only. In fact, the
literature has clearly documented
the impact of quality management
practices on various organizational performance outcomes (e.g., Hendricks &
Singhal, 1997, 2001; T. C. Powell, 1995).
Therefore, extending the R&R model to
consider the impact on a wider set of IS
project success measures is both necessary and worthwhile.
This study proposes to restrict the
applicable domain of the revised theoretical model to the type of IS projects
that aim to improve business processes
through the use of information technology. This restriction eliminates other
types of projects that are inherently
differentfor example, projects such as
developing an operating system. This
restriction is proposed based on the fact
that the Six Sigma principles analyzed in
this study apply mostly to process
improvement projects (Schroeder et al.,
in press). Broadly speaking, Six Sigma
also includes Design for Six Sigma
(DFSS) and the associated define, measure, analyze, design, and validate
(DMADV) method, which is appropriate
for process/product development projects. However, research and practices
related to DFSS are still in their infancy.
It is conceivable that the five Six Sigma
principles in Table 1 may still be applicable to process/product development
projects. But a revised theory without
any restriction bears the risk of making
unsubstantiated conclusions. Therefore,
this study describes the applicable
domain of the revised model as: a theoretical model that articulates the relationship between a quality-oriented
organizational system and IS project
success measured by the organizational
performance improvement, with the
nature of IS projects restricted to business processes improvement type.
Outcome: IS Project Success
The expansion of the applicable
domain of the revised theory is closely
related to the issue of measuring IS
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Leadership
Structure
Process
Outcome
P1b
P2a
Customer-Oriented
Top Management
Leadership
Dedicated
Management
Infrastructure
P1a
Disciplined
Process
Management
P3
Information
Systems Project
Success
P5
P2b
Stakeholder
Participation
P4
P1c
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Conclusions
This study revised the Ravichandran
and Rai (2000) theoretical model (the
R&R model) to incorporate the latest
progress of quality management practices (i.e., Six Sigma). The R&R model
presented a quality-oriented organizational system for software development
quality performance. Six Sigma is a
recent successful approach to quality
management and has proven its effectiveness within many companies
(Pande et al., 2000). This study performed a critical assessment of Six
Sigma to propose major revisions to the
R&R model. A revised model was developed following the theory development
approach (Bacharach, 1989; Dubin,
1978). The applicable domain, constructs, and relationships between the
constructs in the original R&R model
were carefully examined and revised.
The revised model redefines the
quality-oriented organizational system
for IS project success. The revised
model emphasizes the importance of
being customer-oriented. It is explicitly
suggested that customer orientation is
an integral part of top management
leadership. The revised model also
specifically points out that the definition of customers has to be comprehensive to include external users. The
revised model then recommends that
organizations establish dedicated management infrastructure for IS project
success. Dedicated management infrastructure includes not only qualityoriented policies, but also dedicated
organizational structure and project
management
roles.
Dedicating
resources for IS project management
creates a supportive environment and
reduces the complexity of performance
measurement. Disciplined process
management then ensures that projects
70
are managed following standard methods, and project benefits are rigorously
tracked. Standard methods enable easy
and effective knowledge sharing.
Highly visible project results increase
employee acceptance to the methods.
As a result, stakeholder participation in
IS project management will be high.
This further enhances disciplined
process management. Successful IS
projects add value to customers and
eventually contribute to organizational
performance improvement.
This study makes three contributions to the literature. First and foremost, this study contributes to the
exploration of what IS project management can learn from Six Sigma. Six
Sigma represents an interesting
advancement in quality management,
but its implications to IS project management are not well understood. This
study is one of the first to bridge the
gap by analyzing Six Sigma principles
and practices from the IS project management perspective. Second, in light
of Six Sigma, this study redefined the
constructs in the original R&R model
for a new quality-oriented organizational system. The revised model also
specified the relationship between constructs in the form of testable propositions. This work contributes to further
theory development as well as lays a
good foundation for future empirical
research. Last but not least, the revised
model demonstrated the possibility to
establish a strong link from IS project
management to organizational performance through rigorous project
benefits tracking. The importance of
such a link has been well recognized in
the literature (Ibbs & Kwak, 2000), but
empirical support for the link was
mixed, probably due to the difficulty of
isolating the impact of IS projects from
other factors. Many IS studies thus
were forced to use other performance
measures such as system quality and
user satisfaction. The possibility of
establishing such a link will contribute
to the healthy development of the IS
field.
This study can provide useful guidance for practicing managers. Six Sigma
is an effective process improvement
program with many new practices,
tools, and techniques. Many companies have applied Six Sigma to improve
their business processes. Naturally,
managers may want to apply Six Sigma
to IS projects that have similar goals of
improving or streamlining business
processes. However, IS projects have
special characteristics including technical complexities (Xia & Lee, 2005),
flexibility (Lee & Xia, 2005), and project
risk (Baccarini, Salm, & Love, 2004;
Tiwana & Keil, 2006; Wallace, Keil, &
Rai, 2004b). This study reveals that the
essence of applying Six Sigma to IS
project success is to build a qualityoriented organizational system. The
definition of the constructs and their
relationships can provide practical
guidance to managers on how such a
system can be built.
Two limitations of this study need
to be recognized. First, Six Sigma is a
popular process improvement program, but research on Six Sigma is still
in its early stage. The revised model
hence should be regarded as an initial
attempt to systematically conceptualize Six Sigma for IS project management. The revised model might require
further refinement, but this is a normal
part of theory development and testing
process. Second, the applicable domain
of the revised theoretical model is
restricted to IS projects for business
process improvement. The restriction
is based on the definition of Six Sigma
as a process improvement program.
This study did not consider DFSS, which
is appropriate for process/product
development projects. This restriction
possibly can be released if future studies take DFSS into consideration.
This study can be extended in several ways. A natural extension is an
empirical examination of the revised
model. This requires the development
and validation of a measurement
instrument for the respecified constructs first. Empirical examination
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