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This page contains a single entry from the blog posted on May 7, 2008 1:20 AM. The previous post in this blog was Sauvie Island Bridge move killed. The next post in this blog is Hillary's last day?. Many more can be found on the main index page or by looking through the archives.

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Wednesday, May 7, 2008

We were right: New Portland computer system a disaster

As an alert reader warned us a few months back, the City of Portland's new computer system is fast becoming a financial black hole. Back then, the reader said it was $40 million over budget, which commenter Dave Lister (of all people) denied. In today's O it's reported that the project is $18.5 million over budget, and counting.

And guess what, Portland taxpayers. The city's going to run out into the shaky municipal bond market and borrow another $11.5 million to pour down its technology hole. The City Council will be authorizing the new bonds at its meeting this morning.

This is the city that likes to boast about its administrative and financial competence. And it wants to build a municipal fiber network. Give me a break.

Posted at 1:20 AM | Bookmark and Share

Comments (13)

Multonmah County & many other organizations use SAP enterprise software. Perhaps it's not the best solution, but it is certainly working for many large organizations around the world. I suspect the fly in the ointment is each burueau insisting on "tailoring" to fit thier own particular business model. These installations are usually much less painful when the tailoring is done to the business practices rather than the software itself.

According to lawn signs around town, "vote for Sam He's good for Portland"

As Oliver Hardy said to Stan Laurel "Well here's another fine mess you've gotten me into"

In Dave Lister's defense, he was just being fertilized like any Portland Building mushroom.

Add in the lawyer's fees, lost productivity, plus all the new consultant's fees to get up to speed on the customization completed thus far (think of it as research & development of sunk costs), it will be $40 million over budget before they issue their next press release.

The SAP sales people and consultants are unambiguous: you need to change your business practices and workflow in order to accomodate the SAP software package. Too much customization will diminish the holistic benefits of enterprise software, and raise your future administration costs significantly.

If you want a customized solution, don't buy SAP.

"Rust said there's little city administrators could have done differently."

Performance Bond?

(Not unlike a demand for the same pertaining to expected returns on use of bond proceeds to play in the stock market -- where public employees want only the upside of any such gamble and none of the downside risk for their private post-employment savings/investment.)

From the wikipedia link above:

"Performance bonds have been around since 2,750 BC and, more recently, the Romans developed laws of surety around 150 AD, the principles of which still exist."

. . . until now.

The parallel is the lack of accountability.

City administrators/commissioners could have awarded the contract to IBM or another huge implementation vendor.

Instead, the chose one of the smallest start-ups in the biz.

Worse yet: no deep pockets to sue.

Mmmmm, eating crow. Tastes a lot like chicken.

My lesson learned:

Commissioners are lied to by bureau heads. Bureau heads are lied to by consultants. Consultants are lied to by mid managers. Mid managers are lied to by project leaders. Project leaders are lied to by everybody else. The lies start at the bottom and work their way up.

I shoulda' known better.

Does a shade-tree mechanic lie when he tell's his wife that he'll be done with the tune-up in time for dinner?

Boy, I can't wait to vote for Sam so I can pay more tax and get less.
Sam, who is going to pay for every program you want, complete with overruns, when people get smart and move out of Portland? You don't want business in Portland, you want bicycles.
Why don't you and Leonard get a clue and follow Eric. I will tell you why, you can't make it in the private sector.

I'm in a different branch of government...and I'd take an opposite view of Dave's comment.

The pressure to lie comes from the top. Politicos at the top only want to hear the *good-news* Very few upper mgmt and mid mgmt have the spine to tell the truth straight. So those peons at the bottom (like myself) tell it straight and the no one gives a darn. Peons like me don't lie...we just don't say a hell of a lot and figure out how best to do our job and minimize jumping through the stupid hoops that have nothing to do with the task at hand.

Lesson learned (over and over) as a peon. Leaders will sink their teeth into any idea (good or bad) just to call it theirs. They really don't give a darn about what the people who actually do the work think about making the agency better. I may not work for the city - but I do work for another human bureaucracy that is currently in a similar situation.

JC..
I think you are right and I take back my bottom up statement. I think the consultants con the commissioners and the top managment has to admire the emperor's clothes, or get the axe. I'm sure the folks doing the work just shake their heads.... over and over again.

Just wait until Sam has become mayor and he doesn't have to face the voters for four years. He'll be volcano of stupid ideas. He'll want to place the Sauvie Island Bridge over PGE Park in order to create a bike link between downtown and the West Hills.

What happened here is that the City central payroll (reports to the Mayor) several years ago promulgated standard business practices which they then gave to the consultant. The consultant assumed that the City knew what it was talking about and designed the software to fit the business practices. Surprise. Most of the Bureau's weren't following the standard business practices because the Unions were going to each individual Bureau/Commissioner and getting them to adopt the pay practices that had been going on but that didn't fit the new business practices.

In other words this is one of those situations where having five different Commisioners getting to decide how to "interpret" what are supposed to be "standard" business practices comes back to bite the taxpayers. The consultant is going to make out big time once the courts get ahold of this one.

Greg C

Musician - and this would be worse than Potter's tenure how?

Even if Sam is as bad as you say, since Potter couldn't get the "strong mayor" system approved (thank God - as a former Detroiter, let me say Portland's system is infinitely better), how much damage can he actually *do*?

Adams has some good ideas. He also has some lousy ones - that's true of virtually every politician.

This city has a remarkably balanced transportation system - I think Adams will work to keep that. I shudder to think what Sho would do to that balance. This city can't cater solely to cars - we've seen that happen before: it's called "Detroit" or "Los Angeles" or "Atlanta". It ends with a dead downtown, surburban sprawl, and people who *HAVE* to use their cars to go anywhere.

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Dom Martinho, Tinto 2005
Chateau St. Jean, Cabernet, California 2007
Kirkland, Napa Cabernet 2007
Revelry, The Reveler, 2007
Joseph Drouhin, Chablis 2006
Altos Las Hormigas, Mendoza Malbec 2008
Alodio, Ribeira Sacra Mencia 2007
Charles Smith, Kung Fu Girl Riesling 2008
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Chateau Ste. Michelle, Columbia Valley Merlot 2005
Paranga, Kir-Yianni 2005
L. Guigal, Cotes du Rhone Rose 2007
Gloria Ferrer, Sonoma Brut
Kirkland, Napa Valley Meritage 2006
Abacela, Tempranillo 2006
Woodward Canyon, Columbia Valley Red
Santa Margherita, Pinot Grigio 2007
Mas Donis Barrica, Celler de Capcanes Red, 2005
Three Rivers, Merlot 2006
Raptor Ridge, Pinot Gris 2008
Lezaun, Rosado, Navarra
Lezaun, Red, Navarra
Hedges, Three Vineyards, Red Mountain 2005
Raptor Ridge, Pinot Gris 2008
Vega Sindoa, Cabernet-Tempranillo 2006
Inama, Soave Classico 2007
Alois Lageder, Lagrein Rosato 2008
Broglia, Gavi 2007
Marqués de Cáceres, Rioja Rose 2008
Spaltagna, Riserva Pinot Noir 2008
Portuga, Rose 2008
Warre's Warrior Port
Lange, Pinot Noir 2007
Chateau Guiraud, Le G, 2007
Falset, Garnacha Rose, Montsant 2006
Castello di Bossi, Chianti Classico 2004
Domaine Chandon, Pinot Noir, La Riviere Sonoma 2006
Brazin, Old Vine Zinfandel, Lodi 2006
B.R. Cohn, Silver Label Cabernet 2006
Casillero del Diablo, Cabernet 2007
Gentil Hugel, Alsace 2006
Mesoneros de Castilla, Ribero del Duero, Rosado 2008
Cor, Momentum 2007
Santa Margherita, Pinot Grigio 2006
Rubico, Lacrima di Morro d'Alba 2007
Gilstrap Brothers, Reserve Merlot 2003
Conundrum 2007
Chandler Reach, 36 Red
Santa Rita, Reserve Cabernet 2005
Marietta, Old Vine Red Lot 47
L'Ecole No. 41, Recess Red 2006
Dom Martinho, Red 2004
Beaulieu, Georges Latour 1994
Caymus, Cabernet 1995
Columbia Winery, Merlot 2005
Bergevin Lane, Columbia Valley Cabernet 2005
Savigny-les-Beaune, Les Lavieres 2003
David Hill, Reserve Merlot, Rogue Valley 2006
Educated Guess, Cabernet 2006
Maquis Lien, Red 2005
Charles Smith, Kung Fu Girl Riesling 2007
David Hill, Farmhouse White
Robert Mondavi Solaire, Cabernet 2005
Castello Monaci, Liante, Salice Salentino 2006
Ricardo Santos, Malbec 2006
Quinta da Espiga, Tinto 2006
Charles Smith, Holy Cow Merlot 2006
Charles Smith, Boom Boom Syrah 2006
Charles Smith, The Honorable Pinot Gris 2007
Santa Rita, Cabernet Reserva 2005
King Estate, Pinot Gris 2007
Gloria, Douro, Tinto 2002
Bogle, Petite Sirah Port, Clarksburg 2005
Cardwell Hill, Pinot Noir 2004
Silkwood, Red Duet Cabernet-Syrah 2004
Portuga, Vinho Branco 2006, 2007
Osborne, Solaz 2004
Santa Rita, Cabernet, Reserva 2005
Penfold's, Koonunga Hill, Shiraz Cabernet 2006
Chateau Ste. Michelle, Cabernet, Indian Wells 2004
Chateau Ste. Michelle, Merlot, Horse Heaven Hills 2004
Hannah Nicole, Red 2004
Penfold's, Koonunga Hill Shiraz Cabernet 2005
Protocolo, Red 2005
Woodbridge, Chardonnay 2006
Portuga, Vinho Branco 2006
Beaulieu, Cabernet, Rutherford 1998
Beaulieu, Cabernet, Rutherford 1996
Kirkland, Roogle Shiraz 2004
Garda, Classico Chiaretto
A to Z, Oregon Pinot Gris 2005
I Giusti & Zanza, Nemorino 2006
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Marques de Casa Concha, Cabernet 2005
Santi, Sortesele Pinot Grigio 2006
Al Muvedre, Tinto Joven 2006
Layer Cake, Shiraz 2006
Gritti, Ca' Andrea, Umbria red 2005
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Thomas Leithner, Zweigelt 2004
Cain Cuvee NV 3
Chateau Ste. Michelle, Merlot 2003
Meridian, Sauvignon Blanc 2005
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Paringa, Shiraz 2005

The Occasional Book

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William Shakespeare - A Midsummer Night's Dream
Ivan Doig - Bucking the Sun
Penda Diakité - I Lost My Tooth in Africa
Grace Lin - The Year of the Rat
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Rick Moody - Garden State
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David Sedaris - Dress Your Family in Corduroy and Denim
Anthony Holden - Big Deal
Robert J. Spitzer - The Spirit of Leadership
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Jeff Noon - Vurt

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