Goudie Consult

Switzerland and Australia

Software Audits

It is well known that almost all software projects exceed budget by 100% and take twice as long as scheduled, and that in addition 50% of all projects are never completed.

However, it is almost unknown that, the reasons for these situations can almost always be identified by a project risk audit very early in the project life cycle, and if the management is so disposed, the problems can be quickly corrected.

The cost benefits of such identification are almost unbelievable – the savings in development costs can be expected to be almost 100 times the cost of the audit, and the subsequent additional sales revenue almost 20 times the development savings. That is sales revenue gain to audit cost is a factor of 2000.

What is the risk? There is only one risk associated with the audit, namely that the development personnel consider that their space is being invaded, and very few managers are prepared to take that risk. But do not forget that very few software managers survive the normal development failures!

I have been undertaking such audits for almost 20 years, with a very high success rate in identifying the risks, but with a very low success rate in convincing the mangers to take the necessary corrective actions.

However with the market and shareholder pressure on you to succeed, I expect that you will be prepared to make the necessary decisions.

I can undertake these audits for you with a level of discretion that your managers will be open and co‑operative.

Normally the risks fall into the three categories of:

1.       inadequately defined scope

2.     the planning does not adequately reflect the risk

3.     using too many new technologies

It should be noted that the initial project estimates and schedules would normally be achievable if the above risks were identified and managed.

If these audits are to be successful, the audit report must be submitted to a management level at least one level above that associated with the day‑to‑day relationships with the senior developers; normally this is to the business unit manager.

The audit should be seen as comparable with a high level company financial audit.

Although the gains to be expected from such audits are very significant they are achieved by eliminating waste and not by anticipating any direct productivity gains by the individual developers.

Experience shows that the critical decisions which are identified in these audits, are almost never taken within the development departments.