Senior IT management need to be aware of the risks that they face. For example, with quality control they need to set appropriate standards in place for all IT contracts. These should cover areas such as performance, reliability, functionality, as well as ongoing support.
Depending upon the project, it may also be worth considering other areas as well. This could include issues such as scalability, compatibility with existing systems, and the lifespan of the project.
Much of this can be done in a well crafted business requirement document and specification.
These should cover:
- Testing: Both alpha and beta--preferably with real data on a real system with appropriate loads.
- Customer acceptance procedures.
- Quality Management.
- Product recall procedures.
- Standards required: For example, ISA or other international standards such as IEEE, DOD and FDA.
- Retention and ease of access to all critical contracts.
Operational controls
CIOs also need to be aware that there are processes they need to put in place at the operational level as well.
It's important that IT departments ensure that all advertising material and brochures are checked by their legal counsel, and that sales staff do not make false statements in pursuit of a sale. It's advisable to have all staff trained so that they don't oversell.
Likewise, it's wise to maintain adequate insurance, and to also require all subcontractors or suppliers to provide your company with certificates of currency. These certificates should specify details such as dates of coverage, limits and matters covered.
Dispute resolution
Finally, whilst we all want to avoid disputes, they do happen. What can you do to minimise them?
At a minimum, maintain the following records and analyse them frequently for patterns which may suggest appropriate fixes:
- All suits, potential suits, letters of complaint, disputes or allegations of non-performance: Include details on why they arose, how they were settled and what was done to fix the problem.
- Product recalls: Including details of when, why and what was done to remedy the problem.
- Contract problems: Such as delays or non-performance: Why did they occur, for example, what unreasonable deadlines were promised to your customers?
As an added benefit, your insurance company will also be very pleased if you keep these records.
Andrew Fish is special counsel at law firm Herbert Geer & Rundle. He can be contacted at afish@hgr.com.au
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