Software Projects Success and Informal Communication:

A Brazilian Bank Case Study

Leandro Zocaratto Rezende

, Edmir Parada Vasques Prado

and Alexandre Grotta

1,2 c

IS Post-graduation Program (PPgSI), University of São Paulo (USP), São Paulo, Brazil

IS Graduation Program, Federal Institute of São Paulo (IFSP), São Paulo, Brazil

Keywords: Communication Management, Project Success, Software Development.

Abstract: Technology project management is challenging. However, there are few works in the literature related to

informal communication and project success. Therefore, this research aims to analyse the influence of

informal communication on the short - and medium - term success of software development projects in a

Brazilian banking institution. This research is based on a literature review about project communication and

success. The research has a qualitative and descriptive approach and used an ex-post-fact strategy. Ten

software development project management professionals were interviewed at a large banking institution in

the first half of 2019. The research found an association between informal communication with project

efficiency and contribution to the project team. No association was found between this communication line

and customer contribution. In addition, it made more contributions in waterfall projects than in agile projects.

1 INTRODUCTION

There is a perception among specialists that

information technology projects fail regularly. Only

39% of software projects are completed on time and

on budget (The Standish Group, 2013). Even worst,

when considering different points of view from

researchers, practitioners and academics perspectives

(Al-Ahmad et al., 2009) there is still no single

measure of software project success (Shenhar & Dvir,

2007). Even when a project is considerate well-done,

there are still many reports of challenges and efforts

to overcome them (Al-Ahmad et al., 2009).

Most of the project issues are related to the human

aspects: behavioural, organizational or managerial

aspects (Hartman & Ashrafi, 2002). Embracing all

these aspects, the communication process is

accountable for many issues, including both its inputs

and outputs (Lu, Liu and Liu, 2009) and including the

informal communication process.

Another research gap is that project data relating

to communication is not usually collected and

analysed in parallel with the project execution. These

research approaches gap to capture the project

https://orcid.org/0000-0002-5543-9155

https://orcid.org/0000-0002-3505-6122

https://orcid.org/0000-0003-2549-138X

momentum data, such as informal communication

data. Instead of that approach, it is suggested to

collect and analyse data when the project is still going

on or, if not possible, at least when the project has just

been finished (Shenhar & Dvir, 2007; Lu, Liu and

Liu, 2009).

Even further, we performed a research and

discovered a gap that related communication and

software project success: there were only 11 papers

from both IEEE Xplore and ACM databases relating

these two factors from 2010 to 2019. These

researches were not related to developing countries.

Given these gaps relating communication and the

project success, this research aims to answer the

following research question: At a large Brazilian

bank, what is the informal communication influence

over the success when considered software

development projects?

The research objective is to analyse the influence

of informal communication on software development

projects from both short and medium terms

perspectives. We aim to analyse that objective

through communication data gathered during real

project development according to three following

criteria: i) project efficiency; ii) impact to customer;

Rezende, L., Prado, E. and Grotta, A.

Software Projects Success and Informal Communication: A Brazilian Bank Case Study.

DOI: 10.5220/0009346201690176

In Proceedings of the 22nd International Conference on Enterprise Information Systems (ICEIS 2020) - Volume 2, pages 169-176

ISBN: 978-989-758-423-7

169

and iii) impact to team members. This research

preparation was done during the first semester of

2019. The field research and data consolidation

occurred during the second semester of 2019.

2 LITERATURE REVIEW

Based on a literature review, this section defines the

two main concepts used by this research: software

project success, which is straight forward; project

communication, which is more complex and also

embraces informal communication definition. These

concepts are related in section 3 through the

framework used by this research to relate informal

communication and software project success.

2.1 Software Project Success

Project success might be defined as the project has

achieved its objectives and its benefits for the

organization (Shenhar & Dvir, 2007). This definition

sets at least three dimensions: cost, time, and scope

dimensions (Dvir, Raz & Shenhar, 2003). These

dimensions are also known as the triple constraint,

given they take into account the project planning

objectives. In order to accommodate both project

success and user/business perspectives, we choose a

multidimensional model to evaluate software project

success, which endorses five dimensions (Shenhar

and Dvir, 2007). (1) Project efficiency: the short-

term measure that addresses if the project was

completed in accordance with its plan, especially

schedule and budget; (2) Customer impact:

importance of customer requirements; (3) Team

Members / Staff impact: satisfaction, retention, and

personal growth of team members; (4)

Business/direct success impact: the direct impact

the project has on the organization; and (5) Future

impact: the medium-term measure that addresses the

organization's readiness for future projects.

2.2 Project Communication

Communication is an essential element of Project

Management (PM) given it ensures the successful

delivery of the project (Emmitt & Gorse, 2003).

Communication has seven elements as follows:

senders, encoding, the message itself, a transmission

channel, decoding, receivers, and feedback (Zulch,

2014).

In addition, when we consider de pair

send(s)/receiver(s), there is a need to consider at least

five other elements - communication line, levels,

method, approach and geographic dispersion – that

are detailed as follows. (1) Communication Line.

Regarding the communication lack/issues on

workplace and its root cause analysis, we choose two

communication types (Djajalaksana, Zekavat and

Moon, 2017) as follows: formal communication; and

informal communication. (2) Communication

Method. There are three communication methods

used to share information among project stakeholders

(PMI, 2017): interactive, active, and passive. (3)

Communication Levels. Regarding the place where

the members are located on, communication has two

different levels (Dow and Taylor, 2008): internal, and

external. (4) Communication Approach. There are

five communication approaches (PMI, 2017):

interpersonal, small groups, public, large scale, and

network. (5) Geographic Dispersion. We choose the

communication geographic dispersion according to

(Paasivaara e Lassenius, 2001) which is split into

three types: traditional, distributed, and inter-

organizational.

3 RESEARCH FRAMEWORK

This section presents the framework that analyses the

relationship between informal communication and

software project success. The first subsection presents

the research variables, and the second subsection

details the research question.

3.1 Research Variables

The framework is composed of an independent

variable, plus three moderating variables that may

impact the project success (PS), the dependent

variable. Figure 1 represents the research framework

graphically and these variables are detailed.

3.1.1 Independent Variable

The research model has a single independent variable:

informal communication (IC). It measures the degree

of informal communication the project has according

to three different levels: medium, high and very high.

Due to research data limitation, we could not capture

small or very small informal communication.

3.1.2 Dependent Variables

The research framework has three dependent

variables based on the success dimensions (Shenhar

and Dvir, 2007). These dimensions have negative or

positive impacts. Although there are five dimensions

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Figure 1: Research framework.

Figure 2: Research phases.

of success, only the first three refer to short and

medium-term results, which are the scope of this

research. The three dimensions used by this research

are: Project efficiency (PS1), that measures the

contribution to the achievement of time, cost, and

scope goals; Impact on the customer (PS2), that

measures the contribution to meet customer

requirements, satisfaction, and loyalty; and Impact

on team members (PS3), that measures the

contribution for staff satisfaction, employee retention

and professional growth of team members.

3.1.3 Moderating Variable

The research framework has a single moderating

variable: the project approach. This variable identifies

the type of approach used in the project. It is a

nominal variable with three categories: agile,

waterfall and hybrid (a mix of the two previous ones).

3.2 Research Questions

At the beginning of this paper, we stated the research

main question as follows: At a Brazilian bank, what

is the informal communication influence over the

success when considering software development

projects? Thus, we defined three guiding questions

(Q1 to Q3) based on the literature review (Mark &

Wulf, 1999; Aranda et al., 2010; Cataldo & Ehrlich,

2012; Zulch, 2014; Djajalaksana, Zekavat & Moon,

2017). We then related the IC with PS (PS1 to PS3)

in short/medium term projects. Q1: Does informal

communication have a positive impact on project

efficiency (PS1)? Q2: Does informal communication

have a positive impact on customer satisfaction

(PS2)? Q3: Does informal communication have a

positive impact on team members (PS3)?

4 RESEARCH METHOD

The case study is based on interviews with project

professionals, thus having a quantitative approach

(Creswell & Clark, 2013). The research phases, the

procedures for data acquisition and treatment, are

described as follows.

4.1 Research Phases

This research was developed according to four

different phases as seen in Figure 2. I) Literature

review: informal communication features and the

dimensions of project success. II) We defined the

framework, the research variables and the research

guiding questions. III) We set the methods and

procedures presented in this section. IV) We

conducted the field research, collected data through

interviews and consolidated the results present in

section 5. The literature review and the research

framework were completed in the first semester of

2019, while the data collection and consolidation

were done by the end of 2019.

Software Projects Success and Informal Communication: A Brazilian Bank Case Study

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4.2 Organization Characteristics

The researched company is one of the largest banks

in Brazil. It also has international projection. This

Bank has a well-defined IT area that is scaffolded by

a generous budget. This area has more than two

thousand employees working on several technology

projects. These projects serve in all areas, in which

there are different sizing and different PM methods.

These PM methods are mainly based on waterfall,

agile or

hybrid approaches.

4.3 Participants and Project Criteria

The participants accepted to engage to this research,

which represented a unique and highly valuable

opportunity for a case study based on (Yin, 2015).

Criteria to select participants were: (1) to have

experience in software development projects within

the financial industry; (2) to have participated in at

least three different project phases (from project

initial discussions to the implementation phase); (3)

to have an education level should include is at least

bachelor degree; (4) to have professional experience

of at least five years; (5) to have professionals from

several backgrounds, such as software engineers,

system developers or project leaders, is important;

and (6) to have at least ten IT professionals as

participants.

Criteria to select projects for this case study (Yin,

2015) were: (1) projects must have come from

different areas on the organization; (2) projects must

have been completed recently or are still in the final

stages or in the post-implementation phase, in order

to have short/medium term data; (3) projects might

have different sizing and (4) projects must have a

clear methodology - agile, waterfall or

hybrid.

4.4 Data Acquisition

We adopted individual interviews as an instrument

for data collection due to the qualitative nature of the

research (Yin, 2015). The interviews were conducted

with ten professionals who participated in different

projects related to software development.

We adopted the semi-structured interview

(Selltiz, Wrigthman and Cook, 1987), due to it has a

pre-establish a script that makes it easier to compare

information among participants. The script of the

interview consisted of open and closed questions. The

first interview was used as a pre-test to guide the other

interviews. Interviews were conducted in the second

half of 2019.

4.5 Data Processing

Data were processed using two different techniques.

First: content analysis, to categorize and interpret the

data collected in the interviews. According to

Neurendorf (2002), content analysis allows a

qualitative exploration of messages and information.

Second: judge analysis. This technique advocates

a judgment by a group of experienced experts in the

field (Medeiros et al., 2015). The expert group was

composed of participants from an individual

interview. They analysed the relationship between IC

and PS what was done previously one-by-one through

individual interviews. A group agreement means: the

number of specialists who agree with a statement is at

least the double of those that don’t agree with a

statement (Medeiros et al., 2015).

5 RESULTS AND DISCUSSION

This section presents de results under two

perspectives: the researched participants (people) and

the researched projects (software development ones).

We also present the informal communication results

over the software project success, as well as discuss

the results under the project approach perspective.

5.1 Samples: The Participants

Ten people have been selected for this research. We

analysed in the interviews the level of success

achieved by the projects and the research questions.

Interviews were named from E01 to E10. The first

interview served as a pre-test. We selected for the first

interview a specialist with more project experience

than the other ones to serve as a pre-test.

The questions and the script of the instrument

were validated by the pre-test, and the instrument was

adjusted to its final version based on this pre-test

results. We conducted individual interviews at a quiet

and private place in after-hours. The interviews were

recorded. All interviewees we previously informed

about the research objective and topics. We also

collect their consent before recoding their voices for

future transcription. Table 1 summarizes the

interviewees most relevant characteristics.

5.2 Samples: The Projects

Ten projects have been selected for this research.

software development activities in their scope, either

in part or in full. These have been started at different

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Table 1: Participants’ Sample Summary.

ID Age Gender Schooling University course Experience

(years)

Interview

duration (min)

E01 29 Male Post-graduated Information Systems 9 82

E02 25 Male Post-graduated Engineering 5 60

E03 26 Female Post-graduated Engineering 5 94

E04 28 Male Bachelor Computer Science 7 76

E05 28 Female Post-graduated Computer Science 6 47

E06 28 Female Bachelor Engineering 5 60

E07 31 Male Post-graduated Engineering 8 54

E08 29 Male Post-graduated Information Systems 9 38

E09 32 Male Post-graduated Engineering 5 51

E10 36 Female Post-graduated Engineering 18 52

Average: 29y Average: 8y Average: 61min

points in time between 2016 and 2019. The projects

were developed in seven different areas of the Bank:

three in the technology area, three in the risk analysis

area and the other ones in four distinct areas.

Nine projects were finished during the field

research, which made it possible to clearly identify

short or medium terms success criteria. The size of

the teams varied but an average was 49 members. The

smallest team had five members and the largest one

had 175 members. In addition, respondents

participated in at least three distinct project phases.

All projects achieved full or partial success, except

project E05, which was discarded from the sample

due to an issue with data. Table 2 summarizes the

relation between projects and participants.

5.3 Informal Communication and

Project Success

The research questions were analysed by means of the

following steps:

(1) Data collection. We collected participants’

data regarding informal communication in projects.

(2) Analyse the relationship between informal

communication and project success. We analysed

each interview to identify whether informal

communication influenced the project's success or

not. If so, we identified which dimensions of success

were influenced. To highlight this influence,

respondents were asked to give examples.

(3) Summary of results. We consolidated the

influence of IC on project success (PS1 to PS3). If the

results confirmed acceptance criteria, we then

confirmed the research questions.

Table 3 illustrates examples of the use of informal

communication by respondents. The following topics

describe the analysis of research questions.

5.3.1 Informal Communication and Project

Efficiency (Q1)

We asked participants if there is a positive association

between IC and project efficiency (PS1). Six of the

nine respondents (E02, E03, E04, E07, E08 and E09)

recognized that positive influence, thus meeting the

acceptance criterion (the number of respondents who

answered affirmatively is twice as many as the

others). Thus, the answer to question Q1 was

confirmed.

The following examples of excerpts from the

interviews that show that respondents recognized a

positive influence between IC and PS1:

E02. IC proved to be important due to the

timeliness of communication. That is, much faster

and positively impacting the project deadline.

E03. IC contributed positively to project success.

According to this respondent, “Telephone and instant

messaging makes informal conversations a lot easier

and this has contributed to the time efficiency”.

E04. IC had a positive influence on project

efficiency. “When communication occurs internally

to the team, it is more informal; conversely, when the

communication involves the customer, it tends to be

formal”.

E07. IC made it possible to know and understand

facts about the project itself that were not described

in the documents. It helped to better understand the

project.

E08. IC was highlighted as being extremely

important to the project. Even more important than

formal communication, and that it contributed to

communication efficiency.

E09. The interviewee considered that the IC was

positive for the project efficiency in the same way as

the interviewee E04.

Software Projects Success and Informal Communication: A Brazilian Bank Case Study

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Table 2: Projects Data Sample Summary.

ID Projects areas Success Project Team Approach Position

in Participation in

Achieved Status

Members

company* project phases**

M E S 1 2 3 4 5 6

E01 Pay-out system Succeed Finished 175 Agile ● ● ● ● ● ●

E02 Risk analysis Succeed Finished 55 Waterfall ● ● ● ● ● ● ●

E03 Technology Succeed Running 15 Agile ● ● ● ● ●

E04 Technology Partially Finished 10 Hybrid ● ● ● ● ● ●

E05 Risk analysis Failure Finished 5 Agile ● ● ● ● ● ●

E06 Technology Partially Finished 100 Agile ● ● ● ● ●

E07 Customer relationship Succeed Finished 10 Waterfall ● ● ● ● ● ● ● ●

E08 Banking agencies Succeed Finished 70 Waterfall ● ● ● ● ● ●

E09 Risk analysis Succeed Finished 11 Agile ● ● ● ● ● ● ●

E10 Human resources Succeed Finished 40 Hybrid ● ● ● ●

* M-manager; E-engineer; S-System analyst

** 1 ideation; 2 requirement definition; 3 software development; 4 test; 5 implantation; 6 post-implantation

Table 3: Use of informal communication.

ID IC usage

level

Examples

Daily project team IC activities Customer interaction Agile ceremonies

E01 Medium In-person conversations and text messages

E02 High Daily conversations between staff Customer calls for questions

E03 Medium In-person discussions Ceremonies use IC

E04 Medium IC with people who helped the project

E06 Medium It harmed the project because formal

techniques were used informally

E07 High Talk to staff to check on task progress Frequent conversations with

customers

E08 High Physical proximity of staff had key

importance to better communication

Daily meeting

E09 Medium IC used daily with the project team

E10 Medium IC used daily with the project team

5.3.2 Informal Communication and Impact

to Costumer (Q2)

We asked participants if there is a positive association

between IC and the impact on customers (PS2). Only

three of the nine respondents (E01, E02 and E07)

recognized a positive influence between IC and PS2,

which does not meet the acceptance criterion. Thus,

Q2 was considered as not valid.

5.3.3 Informal Communication and Impact

to Staff (Q3)

We asked participants if there is a positive association

between IC and the impact on staff (PS3). Seven of

the nine respondents (E01, E02, E04, E07, E08, E09

and E10) recognized those affirmatives as true. And

that meets the acceptance criterion. These are

interview excerpts where participants recognized a

positive influence between IC and PS3. These are the

samples of positive impact on team interactions:

E01. "We need to know how to identify the

subject and the manner of speaking, which can be

talked to team members because they have different

skills and personality."

E02. "IC allows you to answer questions quickly,

like through instant messaging or phone calls.”

E04. "The company has small meeting rooms with

capacity for up to four people, where informal and

productive conversations took place that positively

influenced the project."

E07. “Did you understand? Is everything going

well? How can I help you?” This kind of interaction

had a positive impact on the team.

These are other positive impact samples on staff:

E08. “The number of test cases we ran when we

were at a distance was much smaller than when we

met in person”.

E09. “With the project team, the contribution is

greater, but with clients, formal communication is

needed to keep track of requirements and priorities.”

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E10. For this interviewee, the informal language

was linked to intimacy and mutual understanding

between team members and collaborators from other

areas. Thus, IC contributes to improving the

relationship between team members and has a

positive influence on the project team.

Table 4 summarizes the results of the interviews

on IC that PS1 and PS3 have been confirmed. Thus,

IC influences short and medium terms success in

software development projects under two

dimensions: project efficiency and impact on staff.

This result is in line with the literature on informal

communication (Mark & Wulf, 1999; Aranda et al.,

2010; Cataldo & Ehrlich, 2012; Zulch, 2014;

Djajalaksana, Zekavat & Moon, 2017).

Table 4: Influence of IC on project success.

ID IC usage Project success

level PS1 PS2 PS3

E01 Medium Positive Positive

E02 High Positive Positive Positive

E03 Medium Positive

E04 Medium Positive Positive

E06 Medium

E07 High Positive Positive Positive

E08 High Positive Positive

E09 Medium Positive Positive

E10 Medium Positive

% positive answers 66,7 33,3 77,8

5.4 Analysis of Project Approaches

We also categorized the projects according to their

approach: agile or waterfall. Table 5 presents the

project sample classified by the approach. The project

approach was used as a moderating variable, and the

analysis is made by research question as follows.

Table 5: IC and project approach.

Approach Inter-

viewee

Project success

PS1 PS2 PS3

Agile E01 Positive Positive

E03 Positive

E06

E09 Positive Positive

% positive answers 50 25 50

Waterfall E02 Positive Positive Positive

E07 Positive Positive Positive

E08 Positive Positive

% positive answers 100 67 100

Hybrid E04 Positive Positive

E10 Positive

% positive answers 50 0 100

(1) Agile Projects Approach.

Most respondents did not agree that informal

communication has a positive impact on the agile

approach. Therefore, we did not confirm IC influence

on agile approach projects. However, we could

confirm that this communication line highly

influences waterfall projects, as well it has an

influence on team members of hybrid approaches.

(2) Waterfall Projects Approach.

According to respondents, IC had a positive

influenced on all the waterfall projects. At first

glance, the results contradict common sense because

this approach promotes less communication with the

customer, given this communication occurs usually at

the end of each phase. On the other hand, in the agile

approach, due to the emphasis on communication, it

is possible to modify the functionalities during project

development.

The researched Bank has large experience on

waterfall projects, and it is widely well-known by its

employees. The use of the agile approach started only

recently. This is reasonable to infer that the low

experience of its employees with the agile approach

and all the IC it carries on had made the employees

understand the informal line as part of the process,

while on waterfall projects IC is an advantage.

5.5 Research Limitations

This section presents the limitations of the research

and its validity. They are mostly related to the data

analysis technique and the generalization of the

results:

(1) Data analysis technique. The data collected in

the interviews were analysed using the content

analysis technique. The interpretation of this data was

made by the author, which attributes subjectivity to

the results.

(2) Results generalization. All respondents belong

to a single company and constitute a small sample,

which does not allow generalization of the research

results to other companies, based on 10 people that

worked for software development projects.

6 CONCLUSIONS

The objective of this paper was to analyse the

influence of informal communication on the software

project success from both short and medium terms

perspectives within the context of one large Brazilian

banking. To achieve this goal, qualitative/descriptive

research was carried out using the content analysis

technique. This research was carried out with 10

Software Projects Success and Informal Communication: A Brazilian Bank Case Study

175

experienced professionals. The answers to the

research questions and the contributions of this paper

are presented below.

Two of the three research questions had

affirmative answers. Thus, it was confirmed a

positive relation between informal communication

and software project success when considerate both

efficiency and project staff aspects. This result is in

line with the literature which emphasizes the

importance of informal communication in projects.

On the other hand, unlike the literature, the

benefits were achieved in waterfall projects only, not

on agile projects. This is reasonable to infer that on

agile projects, in which the informal communication

is quite common, people might not see additional

benefits on “additional” informal communication.

These results also point out to the fact we should

perform deeper research on hybrid approaches, given

its not conclusive results.

This research points out on informal

communication positive influence on customer

satisfaction. Despite being cited positively in some

interviews, most respondents highlighted that formal

communication (i.e., the reverse of informal) is the

most important one when dealing with the customer.

Recovering that this result applies to software

development projects, it is possible to infer that part of

this formal communication tendency/preference to

overcome the challenges related requirements

definition through a less flexible process at all. Maybe

team members expected the benefit is to avoid software

specification and validation conflicts for instance.

The contributions of this research are to overcome

the issues and increase the benefits of making the

projects more successfully at larger organizations,

such as the researched Bank. As future works, we

suggest: to conduct quantitative research to inquire

the relationships suggested by this research, aiming to

the generalization of the results; to investigate the

other communication patterns in addition to the

formality line; to deep understand the specific cases

where informal communication benefits different

project approaches such as agile, waterfall, and

hybrid approaches.

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