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Chapter 1 : Introduction to Project Management. Information Technology Project Management, Fourth Edition. Learning Objectives. Understand the growing need for better project management, especially for information technology projects. Explain what a project is

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chapter 1 introduction to project management

Chapter 1: Introduction to Project Management

Information Technology Project Management,Fourth Edition

learning objectives
Learning Objectives
  • Understand the growing need for better project management, especially for information technology projects.
  • Explain what a project is
  • provide examples of information technology projects
  • list various attributes of projects
  • describe the triple constraint of projects.
learning objectives3
Learning Objectives
  • Describe project management and discuss key elements of the project management framework
    • including project stakeholders
    • the project management knowledge areas
    • common tools and techniques
    • project success factors.
  • Understand the role of the project manager
    • by describing what project managers do
    • what skills they need
    • what the career field is like for information technology project managers.
learning objectives4
Learning Objectives
  • Describe the project management profession
    • including its history
    • the role of professional organizations such as the Project Management Institute
    • the importance of certification and ethics
    • the growth of project management software.
learning objectives5
Learning Objectives
  • How the changing business environment impacts IT.
  • The changing realities within the Information Technology field.
  • The corporate view of technology.
  • How the best practices approach impacts projects.
  • The value of benchmarking.
  • The difference between best in class versus world class.
  • Why quality is important in a project.
  • The five perspectives of quality.
  • The product, process, and business perspectives on quality.
introduction
Introduction
  • Many organizations today have a new or renewed interest in project management.
  • Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment.
  • The U.S. spends $2.3 trillion on projects every year, or one-quarter its gross domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds.*

*PMI, The PMI Project Management Fact Book, Second Edition, 2001.

project management statistics
Project Management Statistics
  • Worldwide IT spending continues to grow, and Forrester Research predicts that U.S. IT spending will grow by another 5.7 percent in 2005, to reach $795 billion.*
  • In 2003, the average senior project manager in the U.S. earned almost $90,000 per year, and the average Project Management Office (PMO) Director earned more than the average Chief Information Officer ($118,633 vs. $103,925).**
  • The Apprentice, the number-one U.S. reality television show in 2004, portrayed the important role of project managers.

*Butler, Steve, “IT Spending,” Analyst Views, February 2004.

**PMI, Project Management Salary Survey, Third Edition, 2003.

motivation for studying information technology it project management
Motivation for Studying Information Technology (IT) Project Management
  • IT projects have a terrible track record.
    • A 1995 Standish Group study (CHAOS) found that only 16.2 percent of IT projects were successful in meeting scope, time, and cost goals.
    • Over 31 percent of IT projects were canceled before completion, costing over $81 billion in the U.S. alone.*

*The Standish Group, “The CHAOS Report” (www.standishgroup.com) (1995). Another reference is Johnson, Jim, “CHAOS: The Dollar Drain of IT Project Failures,” Application Development Trends (January 1995).

advantages of using formal project management
Advantages of Using Formal Project Management
  • Better control of financial, physical, and human resources.
  • Improved customer relations.
  • Shorter development times.
  • Lower costs.
  • Higher quality and increased reliability.
  • Higher profit margins.
  • Improved productivity.
  • Better internal coordination.
  • Higher worker morale (less stress).
introduction to it project mgmt mgrs
Introduction to IT Project Mgmt Mgrs
  • IT Project Mgrs play a key role in project success.
  • More professionals are seeking more education/certification in Project Mgmt.
    • PMI—issues PMP—claimed to have 40K in 2002 and 57K
    • CompTia offers Project+
  • Fortune Magazine has called it Career Number 1
    • Average salary according to a 2000 report was $87,800 and some project mgrs can make up to $100K in base pay
the project management profession
The Project Management Profession
  • Professional societies such as the Project Management Institute (PMI) have grown significantly.
  • There are specific interest groups in many areas, such as engineering, financial services, health care, and IT.
  • Project management research and certification programs continue to grow.
project management certification
Project Management Certification
  • PMI provides certification as a Project Management Professional (PMP).
  • A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam.
  • The number of people earning PMP certification is increasing quickly.
  • PMI and other organizations are offering new certification programs (see Appendix B).
figure 1 3 top information technology skills
Figure 1-3. Top Information Technology Skills

Percentage of

Respondents

Information Technology (IT) Skill

Cosgrove, Lorraine, “January 2004 IT Staffing Update,” CIO Research Reports (February 3, 2004).

what is a project
What Is a Project?
  • A project is “a temporary endeavor undertaken to create a unique product, service, or result.”*
  • Operations is work done to sustain the business.
  • A project ends when its objectives have been reached, or the project has been terminated.
  • Projects can be large or small and take a short or long time to complete.

*PMI, A Guide to the Project Management Body of Knowledge

(PMBOK® Guide) (2004), p. 5.

examples of it projects
Examples of IT Projects
  • A help desk or technical worker replaces laptops for a small department.
  • A small software development team adds a new feature to an internal software application.
  • A college campus upgrades its technology infrastructure to provide wireless Internet access.
examples of it projects18
Examples of IT Projects
  • A cross-functional task force in a company decides what software to purchase and how it will be implemented.
  • A television network develops a system to allow viewers to vote for contestants and provide other feedback on programs.
  • A government group develops a system to track child immunizations.
project attributes
Project Attributes
  • A project:
    • Has a unique purpose.
    • Is temporary.
    • Is developed using progressive elaboration.
    • Requires resources, often from various areas.
    • Should have a primary customer or sponsor.
      • The project sponsor usually provides the direction and funding for the project.
    • Involves uncertainty.
project and program managers
Project and Program Managers
  • Project managers work with project sponsors, project teams, and other people involved in projects to meet project goals.
  • Program: “A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.”*
  • Program managers oversee programs and often act as bosses for project managers.

*PMI, A Guide to the Project Management Body of Knowledge

(PMBOK® Guide) (2004), p. 16.

the triple constraint
The Triple Constraint
  • Every project is constrained in different ways by its:
    • Scope goals: What work will be done?
    • Time goals: How long should it take to complete?
    • Cost goals: What should it cost?
  • It is the project manager’s duty to balance these three often-competing goals.
figure 1 1 the triple constraint of project management
Figure 1-1. The Triple Constraint of Project Management

Successful project management means meeting all three goals (scope, time, and cost) – and satisfying the project’s sponsor!

what is project management
What is Project Management?
  • Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.”*

*PMI, A Guide to the Project Management Body of Knowledge

(PMBOK® Guide) (2004), p. 8.

project stakeholders
Project Stakeholders
  • Stakeholders are the people involved in or affected by project activities.
  • Stakeholders include:
    • Project sponsor
    • Project manager
    • Project team
    • Support staff
    • Customers
    • Users
    • Suppliers
    • Opponents to the project
nine project management knowledge areas
Nine Project Management Knowledge Areas
  • Knowledge areas describe the key competencies that project managers must develop.
    • Four core knowledge areas lead to specific project objectives
      • Scope
      • Time
      • Cost
      • quality
    • Four facilitating knowledge areas are the means through which the project objectives are achieved
    • human resources
    • Communication
    • Risk
    • procurement management
    • One knowledge area (project integration management) affects and is affected by all of the other knowledge areas.
    • All knowledge areas are important!
project management tools and techniques
Project Management Tools and Techniques
  • Project management tools and techniques assist project managers and their teams in various aspects of project management.
  • Specific tools and techniques include:
    • Project charters, scope statements, and WBS (scope).
    • Gantt charts, network diagrams, critical path analyses, critical chain scheduling (time).
    • Cost estimates and earned value management (cost).
    • See Table 1-1 for other examples.
project portfolio management
Project Portfolio Management
  • Many organizations support an emerging business strategy of project portfolio management:
    • Organizations group and manage projects as a portfolio of investments that contribute to the entire enterprise’s success. (For more information, see Chapter 7, Project Cost Management.)
slide29

Improved Project Performance

  • The Standish Group’s CHAOS studies show improvements in IT projects in the past decade.*

*The Standish Group, “Latest Standish Group CHAOS Report Shows Project Success Rates Have Improved by 50%” (March 25, 2003).

why the improvements
Why the Improvements?

“The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.”*

*The Standish Group, “CHAOS 2001: A Recipe for Success” (2001).

project success factors
1. Executive support

2. User involvement

3. Experienced project manager

4. Clear business objectives

5. Minimized scope

6. Standard software infrastructure

7. Firm basic requirements

8. Formal methodology

9. Reliable estimates

10. Other criteria, such as small milestones, proper planning, competent staff, and ownership

Project Success Factors*

*The Standish Group, “Extreme CHAOS” (2001).

what the winners do
What the Winners Do*
  • Recent research findings show that companies that excel in project delivery capability:
    • Use an integrated project management toolbox that includes standard and advanced tools and lots of templates.
    • Grow project leaders, emphasizing business and soft skills.
    • Develop a streamlined project delivery process.
    • Measure project health using metrics, including customer satisfaction and return on investment.

*Milosevic, Dragan and And Ozbay, “Delivering Projects: What the Winners Do,” Proceedings

of the Project Management Institute Annual Seminars & Symposium (November 2001).

the role of the project manager
The Role of the Project Manager
  • Job descriptions vary, but most include responsibilities such as planning, scheduling, coordinating, and working with people to achieve project goals.
  • Remember that 97 percent of successful projects were led by experienced project managers.
table 1 3 fifteen project management job functions
Define scope of project.

Identify stakeholders, decision-makers, and escalation procedures.

Develop detailed task list (work breakdown structures).

Estimate time requirements.

Develop initial project management flow chart.

Identify required resources and budget.

Evaluate project requirements.

Identify and evaluate risks.

Prepare contingency plan.

Identify interdependencies.

Identify and track critical milestones.

Participate in project phase review.

Secure needed resources.

Manage the change control process.

Report project status.

Table 1-3. Fifteen Project Management Job Functions*

*Northwest Center for Emerging Technologies, “Building a Foundation for Tomorrow: Skills Standards for Information Technology,” Belleview, WA, 1999.

suggested skills for project managers
Suggested Skills for Project Managers
  • Project managers need a wide variety of skills.
  • They should:
    • Be comfortable with change.
    • Understand the organizations they work in and with.
    • Lead teams to accomplish project goals.
suggested skills for project managers36
Suggested Skills for Project Managers
  • Project managers need both “hard” and “soft” skills.
    • Hard skills include product knowledge and knowing how to use various project management tools and techniques.
    • Soft skills include being able to work with various types of people.
suggested skills for project managers37
Suggested Skills for Project Managers
  • Communication skills: Listens, persuades.
  • Organizational skills: Plans, sets goals, analyzes.
  • Team-building skills: Shows empathy, motivates, promotes esprit de corps.
  • Leadership skills: Sets examples, provides vision (big picture), delegates, positive, energetic.
  • Coping skills: Flexible, creative, patient, persistent.
  • Technology skills: Experience, project knowledge.
media snapshot good project management skills from the apprentice
Leadership and professionalism are crucial.

Know what your sponsor expects from the project, and learn from your mistakes.

Trust your team and delegate decisions.

Know the business.

Stand up for yourself.

Be a team player.

Stay organized and don’t be overly emotional.

Work on projects and for people you believe in.

Think outside the box.

There is some luck involved in project management, and you should always aim high.

Media Snapshot – Good Project Management Skills from The Apprentice
importance of leadership skills
Importance of Leadership Skills
  • Effective project managers provide leadership by example.
  • A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals.
  • A manager deals with the day-to-day details of meeting specific goals.
  • Project managers often take on both leader and manager roles.
history of project management
History of Project Management
  • Some people argue that building the Egyptian pyramids was a project, as was building the Great Wall of China.
  • Most people consider the Manhattan Project to be the first project to use “modern” project management.
    • This three-year, $2 billion (in 1946 dollars) project had a separate project and technical managers.
key people in early project mgmt
Key People in Early Project Mgmt
  • Frederick Taylor (1856-1915) an American industrialist and early pioneer of mgmt techniques.
    • In 1911 Taylor publishes a book Principles of Scientific Management, where he proposed work methods designed to increase worker productivity.
taylor s management principles
Taylor’s Management Principles
  • Analyze each job to specify optimal procedures
  • Match skills with tasks to be accomplished
  • Understand worker characteristics that are important for increased productivity
  • Train workers to be more productive
  • Set a ‘fair day’s work’ standard for productivity
  • Document worker performance
  • Reward performance with incentives and bonuses
henry gantt 1861 1919
Henry Gantt (1861-1919)
  • Became famous for developing the Gantt chart that is used in project mgmt.
  • Invented techniques such as
    • Milestone deliverables
    • Task durations
    • Estimate
  • Interesting enough his techniques have been virtually unchanged for over 100 years
slide45

The WBS is shown on the left, and each task’s start and finish dates

are shown on the right. First used in 1917, early Gantt charts were

drawn by hand.

figure 1 5 sample network diagram
Figure 1-5. Sample Network Diagram

Each box is a project task from the WBS. Arrows show dependencies

between tasks. The bolded tasks are on the critical path. If any task on the critical path takes longer to complete than planned, the whole project will slip unless something is done. Network diagrams were first used in 1958 on the Navy Polaris project before project management software was available.

dr w edwards deming
Dr. W. Edwards Deming
  • Often referred to as the father of quality.
  • His focus on quality led to the formation of the American Society of Quality Control
  • His techniques were first rebuked by US mgrs and were instead made famous by Japanese adoption.
  • Deming realized that mgmt was wrong to be committed to quotas and punishing for mistakes—instead they would have to be visionary leaders to achieve quality.
deming s 14 points
Deming’s 14 Points
  • Create constancy of purpose for the improvement of all products and services
  • Adopt new management philosophy.
  • Cease dependence on mass inspection
  • End the practice of awarding business on price tag alone
  • Improve constantly and forever the system of production and service
  • Establish training and retraining
deming s 14 points cont
Deming’s 14 Points Cont
  • Create mgmt leadership
  • Drive out fear-do not punish for mistakes
  • Break down barriers between staff areas
  • Eliminate slogans, targets for the workforce
  • Eliminate numerical quotas
  • Remove barriers to pride of proficiency
  • Institute a vigorous and continuous program of education
  • Tack action to accomplish the transformation
project management office pmo
Project Management Office (PMO)
  • A PMO is an organizational group responsible for coordinating the project management function throughout an organization.
  • Possible goals include:
    • Collect, organize, and integrate project data for the entire organization.
    • Develop and maintain templates for project documents.
    • Develop or coordinate training in various project management topics.
    • Develop and provide a formal career path for project managers.
    • Provide project management consulting services.
    • Provide a structure to house project managers while they are acting in those roles or are between projects.
project management software
Project Management Software
  • Enterprise PM software integrates information from multiple projects to show the status of active, approved, and future projects across an entire organization.
  • It also provides links to more detailed information on each project.
  • Many managers like to see status in color – red, yellow, and green.
ethics in project management
Ethics in Project Management
  • Ethics is an important part of all professions.
  • Project managers often face ethical dilemmas.
  • In order to earn PMP certification, applicants must agree to the PMP code of professional conduct.
  • Several questions on the PMP exam are related to professional responsibility, including ethics.
project management software54
Project Management Software
  • There are currently hundreds of different products to assist in performing project management.
  • Three main categories of tools:
    • Low-end tools: Handle single or smaller projects well; cost under $200 per user.
    • Midrange tools: Handle multiple projects and users; cost $200-500 per user; Project 2003 most popular (includes an enterprise version).
    • High-end tools: Also called enterprise project management software; often licensed on a per-user basis; VPMi Enterprise Online (www.vcsonline.com).
changing business environment
Changing Business Environment
  • IT flexibility is needed in the changing business environment.
  • Competition has moved to a more global platform for industries.
  • Companies must now deliver quality, efficient, market-driven strategies that require an IT intensive set of procedures.
corporate behavior changes
Historically

Functional hierarchy

Monopolistic, regulated

Stable, predictable conditions

Reactive

Energy

Loyalty and seniority

Mergers and acquisitions

Traditional sales approach

Operational support

Future

Teams or networks

Competitive, free market

Dynamic business conditions

Proactive, flexible, adaptive

Targeted services

Performance

Strategic alliances

Aggressive acquisition

Strategic enabler of business vision

Corporate Behavior Changes
impact on it
Impact on IT
  • IT has changed significantly from the past environments.
    • IT is now integrated into critical business strategies.
    • Senior management is more involved in IT planning.
    • Modular client / server systems are more prevalent.
    • Rapid development cycles replaced long development projects.
    • Customer needs and demands are more important in system development requirements.
corporate view of technology
Corporate View of Technology

Six 6 fundamental principles make the most of IT:

  • Align all IT decisions, actions, and measurement of performance with the business strategy of the organization as a while adds value to the business.
  • Most effective applications of technology emerge from industry-specific applications that make it possible to do new things of value in the marketplace.
  • Technologies evolve fast enough that new economies of scale and new functions become cost-effective or practical, providing new opportunities to use information technology in innovative, productive ways.
corporate view of technology59
Corporate View of Technology

(Continued):

  • Best practices in IT require a coordinated and effective use of many resources simultaneously: best organization, best skills, best people, best processes, and best computing.
  • Reorganizing organizations and redesigning work flows to make them technology friendly are rapidly turning out to be of key importance to improving the value of IT.
  • Since technology and business circumstances keep changing, the habits of continuous improvement, being curious to learn how others do things, and adopting the most relevant practices for your company’s operations are crucial to success.
best practices
Best Practices
  • A best practice is defined as:
    • Processes that are recognized as being the best by function or within an industry.
  • Benefits of best practices include:
    • Inspiration
    • Benchmarking
    • References
    • Skills Transfer
    • Continuous Improvement
best practice pitfalls
Best Practice Pitfalls
  • Five best practice implementation pitfalls include:
    • Copying a practice “as is”.
      • This can be a quick fix when you copy another organizations best practice. However, it does not address the specifics of your organization.
    • Failing to verify a best practice.
      • You make an assumption a practice you see at another company is a best practice without validating your assumption is true. If you compare this practice to your business activities, you may find you already have a better practice implemented.
best practice pitfalls62
Best Practice Pitfalls
  • (Continued)
    • Not keeping current.
      • If your business does not continue to improve and innovate, you are not keeping current. You need to understand if your business is current with practices or if you are falling behind others who continue to innovate and improve.
    • Not establishing relevance.
      • This occurs when a business does not align the practices with their overall business goals. At times, this practice may be popular, but not relevant to the business. Understanding success criteria can help alleviate problems with this practice.
best practice pitfalls63
Best Practice Pitfalls
  • (Continued)
    • Following trends.
      • The identified practice may be a fad in the business world. You must understand how this trend will help your business reach its objectives. Business politics can initiate this bad practice through individuals looking for a way to stand out among their co-workers.
role of benchmarking
Role of Benchmarking
  • Benchmarking can help identify best practices.
  • Benchmarking can be:
    • Measurement-based
      • These are often used to measure vendor performance, data center audits, product testing, and cost measurements.
    • Process-based
      • These are often used to help IT learn how to improve the value of a process.
      • Process-based benchmarking is expensive but it moves into the core of best practices.
world class best in class
World-Class, Best in Class
  • Organizations must be competitive
    • Best in Class is when you are the best at something within your industry.
    • World Class is when you are the best at something across industries.
quality
Quality
  • What is a Quality Project?
    • A product that meets or exceeds customer expectations.
  • Quality Perspectives
    • Ideal View
    • User View
    • Manufacturing View
    • Product View
    • Value-based View
quality type examples
Quality Type Examples
  • Ideal View
    • Quality is conceived in the minds eye.
    • This is an ideal we would like to achieve.
  • User View
    • Measure of quality from the user’s perspective.
  • Manufacturing View
    • Defines how quality conforms to manufacturing specifications.
    • Quality is measured during production and after delivery to the customer.
quality type examples68
Quality Type Examples
  • Product View
    • Looks at product quality from the inside-out, whereas the User and manufacturing perspectives look at quality from the outside-in.
  • Value-based View
    • Quality is determined by the amount the customer is willing to pay. The automobile market is an example of a value based quality perspective.
product quality
Product Quality
  • A quality product should:
    • Perform as expected.
    • Be learned easily.
    • Operate intuitively.
    • Have a goal of zero development defects.
process quality
Process Quality
  • A quality process should consider:
    • Where problems may occur.
    • When problems may surface.
    • How faults can be identified early in the project.
    • If fault management processes could detect and fix problems early.
    • If options exist to streamline the process, reduce complexity, and increase quality.
business perspective quality
Business Perspective Quality
  • Business quality should consider how technical quality translates to business value or quality.
  • Quality measurements:
    • Product up versus down time
    • Maintenance costs
    • Costs associated with product modifications
    • Dependent on expensive technology?
chapter summary
Chapter Summary
  • As the number and complexity of projects continue to grow, it is becoming even more important to practice good project management.
  • A project has several attributes, such as being unique, temporary and developed incrementally.
  • A framework for project management includes project stakeholders, the nine knowledge areas, tools and techniques, and creating project portfolios to ensure enterprise success.
  • Successful project managers must possess and development many skills and lead their teams by example.
  • The project management profession continues to mature as more people become certified and more tools are created.
summary continued
Summary Continued
  • IT is now a part of a corporations strategic planning.
  • Changes in information technology add more demands to the business and technology professionals.
  • Best practices give companies ideas to improve operations.
  • Benchmarking provide a measurement tool for comparison.
  • Quality should be integrated into the business and projects
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