130: Rigged bids, fake deadlines, and going 181x over budget

About this episode

A $6.9 million estimate. A $1.25 billion catastrophe. How fake deadlines, a rigged bid, and a steering committee allergic to bad news turned a routine payroll migration into one of the biggest project disasters in Australian history. What happens when project leadership treats risk management as optional, decision making gets diffused across committees, and a hard deadline turns out to be completely negotiable? You get one of the most instructive project failure case studies in project management history — and in this episode, Kim and Kate pour it out one painful lesson at a time. The subject is Queensland Health, the public healthcare provider for the Australian state of Queensland, employing roughly 85,000 people across about 300 sites. In 2005, their legacy payroll vendor gave them three years' notice: support ends June 30, 2008. Sounds like plenty of runway — until the organization waited two of those three years to act. By the time a consultant named Terry Burns (remember that name) ran the procurement and IBM signed a contract in December 2007, the original $6.9 million estimate had ballooned to a $98 million contract with just six months to deliver a system covering more