X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

For many corporate managers, the Second Avenue Subway project in New York City serves as a chilling object lesson on the risks of budget and schedule overruns in major capital investments, including software implementations. Planned in 1968 and initially scheduled for completion in 1980, the city’s newest subway line was hammered by out-of-control costs, ceaseless delays, political wrangling, and a staggering collection of related obstacles. The first phase did not open until January 2017, and work on the rest of the line continues today. Besides coming in 37 years late, the project has so far cost $4.5 billion, about $700 million over budget, according to Freakonomics Radio host Stephen J. Dubner.

Although treasury management system implementations are unlikely to go as horribly awry as the Second Avenue Subway, these projects carry their own risks and costs, and there are numerous ways they can go wrong. Many of the pitfalls stem from errors in cost estimates during project planning. “The cost of implementation is frequently underestimated, with components of operating costs often the most overlooked,” notes Ed Page, managing director, technology consulting, for Protiviti. 

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.