Information Technology Project Management, Sixth Edition

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Information Technology ProjectManagement, Sixth EditionNote: See the text itself for full citations.Visit www.cie-wc.edu for more courses.

Understand the growing need for better projectmanagement, especially for information technologyprojects Explain what a project is, provide examples ofinformation technology projects, list various attributesof projects, and describe the triple constraint ofprojects Describe project management and discuss keyelements of the project management framework,including project stakeholders, the projectmanagement knowledge areas, common tools andtechniques, and project successInformation Technology ProjectManagement, Sixth EditionCopyright 20092

Discuss the relationship between project, program,and portfolio management and the contributions theyeach make to enterprise success Understand the role of the project manager bydescribing what project managers do, what skills theyneed, and what the career field is like for informationtechnology project managers Describe the project management profession,including its history, the role of professionalorganizations like the Project Management Institute(PMI), the importance of certification and ethics, andthe advancement of project management softwareInformation Technology ProjectManagement, Sixth EditionCopyright 20093

Many organizations today have a new or renewedinterest in project management Computer hardware, software, networks, and theuse of interdisciplinary and global work teams haveradically changed the work environmentThe world as a whole spends nearly 10 trillion ofits 40.7 trillion gross product on projects of allkindsMore than 16 million people regard projectmanagement as their profession Information Technology ProjectManagement, Sixth EditionCopyright 20094

Total global spending on technology goods, services,and staff was projected to reach 2.4 trillion in 2008, an8 percent increase from 2007In the U.S. the size of the IT workforce topped 4 millionworkers for the first time in 2008 In 2007 the total compensation for the average seniorproject manager in U.S. dollars was 104,776 per yearin the United States, 111,412 in Australia, and 120,364 in the United Kingdom The number of people earning their Project ManagementProfessional (PMP) certification continues to increase Information Technology ProjectManagement, Sixth EditionCopyright 20095

IT Projects have a terrible track record, as described in theWhat Went Wrong? A 1995 Standish Group study (CHAOS) found that only16.2% of IT projects were successful in meeting scope,time, and cost goals; over 31% of IT projects werecanceled before completionA PricewaterhouseCoopers study found that overall, half ofall projects fail and only 2.5% of corporations consistentlymeet their targets for scope, time, and cost goals for alltypes of project Information Technology ProjectManagement, Sixth EditionCopyright 20096

Better control of financial, physical, and humanresourcesImproved customer relationsShorter development timesLower costsHigher quality and increased reliabilityHigher profit marginsImproved productivityBetter internal coordinationHigher worker moraleInformation Technology ProjectManagement, Sixth EditionCopyright 20097

A project is “a temporary endeavor undertakento create a unique product, service, or result”(PMBOK Guide, Fourth Edition, 2008, p. 5) Operations is work done to sustain the business Projects end when their objectives have beenreached or the project has been terminated Projects can be large or small and take a shortor long time to completeInformation Technology ProjectManagement, Sixth EditionCopyright 20098

A technician replaces ten laptops for a smalldepartmentA small software development team adds a newfeature to an internal software application for thefinance departmentA college campus upgrades its technologyinfrastructure to provide wireless Internet accessacross the whole campusA cross-functional task force in a company decideswhat Voice-over-Internet-Protocol (VoIP) system topurchase and how it will be implementedInformation Technology ProjectManagement, Sixth EditionCopyright 20099

Green ITUnified communicationsBusiness process modelingVirtualization 2.0Social softwareInformation Technology Project Management, Sixth Edition10

In 2006, Baseline Magazine published “Where I.T.Matters: How 10 Technologies Transformed 10Industries” as a retort to Nicholas Carr’s ideas(author of “IT Doesn’t Matter”) VoIP has transformed the telecommunications industryand broadband Internet access Global Positioning Systems (GPS) has changed thefarming industry Digital supply chain has changed the entertainmentindustry’s distribution systemInformation Technology ProjectManagement, Sixth EditionCopyright 200911

A project: Has a unique purposeIs temporaryIs developed using progressive elaborationRequires resources, often from various areasShould have a primary customer or sponsor The project sponsor usually provides the direction andfunding for the project Involves uncertaintyInformation Technology ProjectManagement, Sixth EditionCopyright 200912

Project managers work with project sponsors, theproject team, and other people involved in aproject to meet project goals Program: group of related projects managed in acoordinated way to obtain benefits and control notavailable from managing them individually(PMBOK Guide, Fourth Edition, 2008, p. 9) Program managers oversee programs; often actas bosses for project managersInformation Technology ProjectManagement, Sixth EditionCopyright 200913

Successful projectmanagement meansmeeting all threegoals (scope, time,and cost) – andsatisfying theproject’s sponsor!Information Technology ProjectManagement, Sixth EditionCopyright 200914

Project management is “the application ofknowledge, skills, tools and techniques to projectactivities to meet project requirements”(PMBOK Guide, Fourth Edition, 2008, p. 6) Project managers strive to meet the tripleconstraint by balancing project scope, time, andcost goalsInformation Technology ProjectManagement, Sixth EditionCopyright 200915

Information Technology ProjectManagement, Sixth EditionCopyright 200916

Stakeholders are the people involved in oraffected by project activitiesStakeholders include: The project sponsorThe project managerThe project teamSupport staffCustomersUsersSuppliersOpponents to the projectInformation Technology ProjectManagement, Sixth EditionCopyright 200917

Knowledge areas describe the key competenciesthat project managers must develop 4 core knowledge areas lead to specific project objectives(scope, time, cost, and quality) 4 facilitating knowledge areas are the means throughwhich the project objectives are achieved (humanresources, communication, risk, and procurementmanagement 1 knowledge area (project integration management) affectsand is affected by all of the other knowledge areas All knowledge areas are important!Information Technology ProjectManagement, Sixth EditionCopyright 200918

Project management tools and techniques assistproject managers and their teams in variousaspects of project managementSome specific ones include: Project charter, scope statement, and WBS (scope) Gantt charts, network diagrams, critical path analysis,critical chain scheduling (time) Cost estimates and earned value management (cost) See Table 1-1 for many moreInformation Technology ProjectManagement, Sixth EditionCopyright 200919

“Super tools” are those tools that have high useand high potential for improving project success,such as: Software for task scheduling (such as projectmanagement software) Scope statements Requirements analyses Lessons-learned reports Tools already extensively used that have been found toimprove project importance include: Progress reportsKick-off meetingsGantt chartsChange requestsInformation Technology ProjectManagement, Sixth EditionCopyright 200920

What Went Right? ImprovedProject PerformanceThe Standish Group’s CHAOS studies showimprovements in IT projects in the past decade: The number of successful IT projects has more thandoubled, from 16 percent in 1994 to 35 percent in 2006The number of failed projects decreased from 31percent in 1994 to 19 percent in 2006The United States spent more money on IT projects in2006 than 1994 ( 346 billion and 250 billion,respectively), but the amount of money wasted onchallenged and failed projects was down to 53 billionin 2006 compared to 140 billion in 1994Information Technology ProjectManagement, Sixth EditionCopyright 200921

"The reasons for the increase in successful projectsvary. First, the average cost of a project has beenmore than cut in half. Better tools have beencreated to monitor and control progress and betterskilled project managers with bettermanagement processes are being used. The factthat there are processes is significant in itself.”**Standish Group, "CHAOS 2001: A Recipe for Success" (2001).Information Technology ProjectManagement, Sixth EditionCopyright 200922

There are several ways to define project success: The project met scope, time, and cost goals The project satisfied the customer/sponsor The results of the project met its main objective, such asmaking or saving a certain amount of money, providing agood return on investment, or simply making thesponsors happyInformation Technology ProjectManagement, Sixth EditionCopyright 200923

7. Firm basic requirements1. Executive support8. Formal methodology2. User involvement9. Reliable estimates3. Experienced project10. Other criteria, such asmanagersmall milestones, proper4. Clear business objectivesplanning, competent5. Minimized scopestaff, and ownership6. Standard softwareinfrastructure*The Standish Group, “Extreme CHAOS,” (2001).Information Technology ProjectManagement, Sixth EditionCopyright 200924

Recent research findings show that companies thatexcel in project delivery capability: Use an integrated project management toolbox(use standard/advanced PM tools, lots oftemplates) Grow project leaders, emphasizing business andsoft skills Develop a streamlined project delivery process Measure project health using metrics, like customersatisfaction or return on investmentInformation Technology ProjectManagement, Sixth EditionCopyright 200925

A program is “a group of related projects managed ina coordinated way to obtain benefits and control notavailable from managing them individually” (PMBOK Guide, Fourth Edition, 2008, p. 9) A program manager provides leadership and directionfor the project managers heading the projects withinthe program Examples of common programs in the IT field includeinfrastructure, applications development, and usersupportInformation Technology ProjectManagement, Sixth EditionCopyright 200926

As part of project portfolio management,organizations group and manage projects andprograms as a portfolio of investments thatcontribute to the entire enterprise’s successPortfolio managers help their organizations makewise investment decisions by helping to select andanalyze projects from a strategic perspectiveInformation Technology ProjectManagement, Sixth EditionCopyright 200927

Information Technology ProjectManagement, Sixth EditionCopyright 200928

A best practice is “an optimal way recognized byindustry to achieve a stated goal or objective”*Robert Butrick suggests that organizations need tofollow basic principles of project management,including these two mentioned earlier in this chapter: Make sure your projects are driven by your strategy; be able todemonstrate how each project you undertake fits your businessstrategy, and screen out unwanted projects as soon as possible Engage your stakeholders; ignoring stakeholders often leads toproject failure; be sure to engage stakeholders at all stages of aproject, and encourage teamwork and commitment at all times*Project Management Institute, Organizational Project Management Maturity Model(OPM3) Knowledge Foundation (2003), p. 13.Information Technology ProjectManagement, Sixth EditionCopyright 200929

Information Technology ProjectManagement, Sixth EditionCopyright 200930

Information Technology ProjectManagement, Sixth EditionCopyright 200931

Project managers need a wide variety of skills They should: Be comfortable with change Understand the organizations they work in and with Be able to lead teams to accomplish project goalsInformation Technology ProjectManagement, Sixth EditionCopyright 200932

Job descriptions vary, but most includeresponsibilities like planning, scheduling,coordinating, and working with people to achieveproject goals Remember that 97% of successful projects wereled by experienced project managers, who canoften help influence success factorsInformation Technology ProjectManagement, Sixth EditionCopyright 200933

The Project Management Body of KnowledgeApplication area knowledge, standards, andregulationsProject environment knowledgeGeneral management knowledge and skillsSoft skills or human relations skillsInformation Technology ProjectManagement, Sixth EditionCopyright 200934

1. People skills2. Leadership3. Listening4. Integrity, ethical behavior, consistent5. Strong at building trust6. Verbal communication7. Strong at building teams8. Conflict resolution, conflict management9. Critical thinking, problem solving10. Understands, balances prioritiesInformation Technology ProjectManagement, Sixth EditionCopyright 200935

Large projects: leadership, relevant prior experience,planning, people skills, verbal communication, and teambuilding skills were most importantHigh uncertainty projects: risk management, expectationmanagement, leadership, people skills, and planningskills were most importantVery novel projects: leadership, people skills, havingvision and goals, self confidence, expectationsmanagement, and listening skills were most importantInformation Technology ProjectManagement, Sixth EditionCopyright 200936

Effective project managers provide leadership byexample A leader focuses on long-term goals and bigpicture objectives while inspiring people to reachthose goals A manager deals with the day-to-day details ofmeeting specific goals Project managers often take on the role of bothleader and managerInformation Technology ProjectManagement, Sixth EditionCopyright 200937

In a 2006 survey by CIO.com, IT executivesranked the skills that would be the most indemand in the next two to five yearsProject/program management topped the list!Information Technology ProjectManagement, Sixth EditionCopyright 200938

SKILL PERCENTAGE OFRESPONDENTSProject/program managementBusiness process managementBusiness analysisApplication developmentDatabase managementSecurityEnterprise architectStrategist/internal consultantInformation Technology ProjectManagement, Sixth EditionCopyright 200960%55%53%52%49%42%41%40%39

The profession of project management is growingat a very rapid paceIt is helpful to understand the history of the field,the role of professional societies like the ProjectManagement Institute, and the growth in projectmanagement softwareInformation Technology ProjectManagement, Sixth EditionCopyright 200940

Some people argue that building the Egyptianpyramids was a project, as was building the GreatWall of China Most people consider the Manhattan Project tobe the first project to use “modern” projectmanagement This three-year, 2 billion (in 1946 dollars) projecthad a separate project manager and a technicalmanagerInformation Technology ProjectManagement, Sixth EditionCopyright 200941

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Information Technology ProjectManagement, Sixth EditionCopyright 200943

The Project Management Institute (PMI) is aninternational professional society for project managersfounded in 1969PMI has continued to attract and retain members,reporting 277,221 members worldwide by August 31,2008There are specific interest groups in many areas, likeengineering, financial services, health care, IT, etc.Project management research and certificationprograms continue to growStudents can join PMI at a reduced fee (seewww.pmi.org for details)Information Technology ProjectManagement, Sixth EditionCopyright 200944

PMI provides certification as a ProjectManagement Professional (PMP)A PMP has documented sufficient projectexperience, agreed to follow a code of ethics, andpassed the PMP examThe number of people earning PMP certification isincreasing quicklyPMI and other organizations offer additionalcertification programs (see Appendix B)Information Technology ProjectManagement, Sixth EditionCopyright 200945

350,000318,289300,000267,367250,000# 8618,18427,0521993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008YearInformation Technology ProjectManagement, Sixth EditionCopyright 200946

Ethics, loosely defined, is a set of principles that guideour decision making based on personal values of whatis “right” and “wrong” Project managers often face ethical dilemmas In order to earn PMP certification, applicants mustagree to PMI’s Code of Ethics and ProfessionalConduct Several questions on the PMP exam are related toprofessional responsibility, including ethicsInformation Technology ProjectManagement, Sixth EditionCopyright 200947

There are hundreds of different products to assist inperforming project managementThree main categories of tools: Low-end tools: handle single or smaller projects well, costunder 200 per user Midrange tools: handle multiple projects and users, cost 200-600 per user, Project 2007 most popular High-end tools: also called enterprise project managementsoftware, often licensed on a per-user basis, like VPMiEnterprise Online (www.vcsonline.com) – see front cover fortrial version information See the Project Management Center Web site or TopTen Reviews for links to many companies thatprovide project management softwareInformation Technology ProjectManagement, Sixth EditionCopyright 200948

A project is a temporary endeavor undertaken to createa unique product, service, or resultProject management is the application of knowledge,skills, tools, and techniques to project activities to meetproject requirementsA program is a group of related projects managed in acoordinated wayProject portfolio management involves organizing andmanaging projects and programs as a portfolio ofinvestmentsProject managers play a key role in helping projectsand organizations succeedThe project management profession continues to growand matureInformation Technology ProjectManagement, Sixth EditionCopyright 200949

Project management tools and techniques assist project managers and their teams in various aspects of project management Some specific ones include: Project charter, scope statement, and WBS (scope) Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time) Cost estimates and earned value management (cost)

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