Project Management in IT

So recently I have spent a lot of time looking a project management & methodologies in IT. This includes some of the following:

  • Prince2
  • Agile
  • XP (Xtreme Programming)
  • Waterfall Method

This got me thinking about the number of companies that actually use formal Project Management or Methodologies when working on projects. Understandably I am sure that Large Enterprises and Public Sector businesses have to use formal methodologies (maybe the lack of these is the reason the failures such as the NHS project) however what role do they have in SME’s (Small/Medium Enterprises)?

I work with a lot of SME’s on fairly major projects (rebuilding systems, upgrades from legacy systems, setting up whole systems for a new business etc), I personally would categorize my work as using some Agile Methods, along with XP; however I haven’t read through about these methodologies and decided this - I have done this through common sense and to fit with the client interaction that I have.

I’m wondering now… do any SME’s use large scale methodologies/project management schemes such as the 400+ step waterfall model. Could I ever imagine saying to a client “Sorry Sir - I have already gone past that stage, I’m not able to backtrack to add that feature in!”? I think this would very quickly end the relationship between businesses.