1_ch01.ppt

Information Technology Project Management – Fourth Edition

By Jack T. MarchewkaNorthern Illinois University

Power Point Slides by Gerald DeHondtGrand Valley State University

Copyright 2012 John Wiley & Sons, Inc.

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The Nature of Information Technology Projects

Chapter 1


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Learning Objectives Describe the dominant eras of information systems called

the electronic data processing (EDP) era, the micro era, the network era, and the globalization era, and understand how managing IT projects has evolved during these eras.

Understand the current state of IT project management and how successfully managing IT projects remains a challenge for most organizations.

Explain the value-driven, socio-technical, project management, and knowledge management approaches that support ITPM.

Define what a project is and describe its attributes. Define the discipline called project management. Describe the role and impact IT projects have on an

organization. Identify the different roles and interests of project

stakeholders. Describe Extreme project management. Identify the Project Management Body of Knowledge

(PMBOK®) core knowledge areas.Copyright 2012 John Wiley & Sons,

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The Two End Points in a Project

InspirationOperation

A miracle occurs

1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

First ElectronicComputer

EDPEra

PCEra

NetworkEra

Globalization

IT and Modern Day Project Management


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Introduction Information Technology (IT) projects are

organizational investments that require Time Money And other resources such as people, technology,

facilities, etc. Organizations expect some type of value in return

for this investment IT Project Management is a relatively new

discipline that attempts to make IT projects more successful and combines traditional Project Management with Software Engineering/Management Information Systems


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An ITPM Approach Organizational resources are limited, so

organizations must choose among competing interests to fund specific projects

This decision should be based on the value a competing project will provide to an organization


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Modern Project Management Often credited to the U.S. Navy as an

outgrowth of the Polaris Missile Project in the 1950’s.

Focuses on reducing costs and product cycle time.

Provides an important link between an organization’s strategy and the deployment of that strategy. Can have a direct impact on an organization’s

bottom line and competitiveness.


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Which Situation is Worse? Successfully building and implementing a

system that provides little or no value to the organization?

Or… Failing to implement an information system

that could have provided value to the organization, but was underdeveloped or poorly managed?


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Why Do IT Projects Fail? Larger projects have the lowest success rate

and appear to be more risky than medium and smaller projects Technology, business models, and markets change

too rapidly so projects that take more than a year can be obsolete before they are completed

The CHAOS studies also provides some insight as to the factors that influence project success


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Why IT Projects Fail

The Software Crisis

The CHAOS study published in 1995 by The Standish Group found that although the U.S spent over $250 billion on IT projects, approximately… 31% were cancelled before completion 53% were completed but over budget, over

schedule, & did not meet original specifications For mid-size companies, average cost overruns were

182%, while average schedule overruns were 202%!


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Has the Current State of IT Projects Changed Since 1994? The Standish Group has continued to study IT

projects over the years. In general, IT Projects are showing higher

success rates due to Better project management tools & processes Smaller projects Improved communication among stakeholders More skillful IT project managers

But there is still ample opportunity for improvement!


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Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008

1994

1996

1998

2000

2002

2004

2006

2008

16%

27%

26%

28%

34%

29%

35%

32%

53%

33%

46%

49%

51%

53%

46%

44%

31%

40%

28%

23%

15%

18%

19%

24%

Sucessful Challenged Failed


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Rank 1994 2001 2006 2008

1 User Involvement Executive Support User Involvement User Involvement

2 Executive Management Support User Involvement Executive Management

Support Executive Support

3 Clear Statement of Requirements

Experienced Project Manager

Clear Business Objectives

Clear Business Objectives

4 Proper Planning Clear Business Objectives Optimizing Scope Emotional Maturity

5 Realistic Expectations Minimized Scope Agile Process Optimizing Scope

6 Smaller Project Milestones

Standard Software Infrastructure

Project Management Expertise Agile Process

7 Competent Staff Firm Basic Requirements Financial Management Project Management

Expertise

8 Ownership Formal Methodology Skilled Resources Skilled Resources

9 Clear Vision & Objectives Reliable Estimates Formal Methodology Execution

10 Hard-working, focused team Other Standard Tools and

Infrastructure Tools & Infrastructure

Table 1.1 Summary of CHAOS Study Factor Rankings for Successful ProjectsSources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS


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Table 1.2: IT Project Success Criteria Source: Source: http://www.drdobbs.com/architecture-and-design/202800777.

Criteria Response

Schedule

61.3% said it is more important to deliver a system when it is ready to be shipped than to deliver it on time.

Scope87.3% said that meeting the actual needs of stakeholders is more important than building the system to specification.

Money79.6% said that providing the best return on investment (ROI) is more important than delivering a system under budget.

Quality87.3% said that delivering high quality is more important than delivering on time and on budget.

Staff75.8% said that having a mentally and physically healthy workplace is more important than delivering on time and on budget.


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Rank Factors for Challenged Projects Factors for Failed (Impaired) Projects

1 Lack of user input Incomplete requirements

2 Incomplete requirements Lack of user involvement

3 Changing requirements & specifications Lack of resources

4 Lack of executive support Unrealistic expectations

5 Technology incompetence Lack of executive support

6 Lack of resources Changing requirements & specifications

7 Unrealistic expectations Lack of planning

8 Unclear objectives Didn’t need it any longer

9 Unrealistic time frames Lack of IT management

10 New technology Technology illiteracy

Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) ProjectsSource: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)


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Tata Consultancy Services 2007 Report Included 800 senior IT managers from

the UK, US, France, Germany, India, Japan, & Singapore: 62% of the IT projects failed to meet

their schedules 49% experienced budget overruns 47% experienced higher-than expected

maintenance costs 41% failed to deliver the expected

business value and ROI


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Improving the likelihood of success A Value-Driven Approach

Plain & Simple: IT Projects must provide value to the organization

Socio-technical Approach It’s not just about the technology or building a better

mouse trap Project Management Approach

processes and infrastructure (Methodology) resources expectations competition efficiency and effectiveness

Knowledge Management Approach lessons learned, best practices & shared knowledge Copyright 2012 John Wiley & Sons,

Inc.1-20

The PMBOK® Guide’s Definitions for Project and Project Management

A project is a temporary endeavor undertaken to create a unique product, service, or result.

Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.

A project manager is the person assigned by the performing organization to achieve the project objectives.


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The Context of Project Management – Project Attributes

Time Frame Purpose (to provide value!) Ownership Resources (the triple constraint) Roles

Project Manager Project Sponsor SME (domain & technical)[ Subject Matter Expert ]

Risk & Assumptions Interdependent Tasks

progressive elaboration – steps & increments Planned Organizational Change Operate in Environments Larger than the Project Itself


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The Triple Constraint

Figure 1.3 Copyright 2012 John Wiley & Sons, Inc.

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The Triple Constraint

Every project is constrained in different ways by its

1. Scope goals• What work will be done, what the sponsor or the customer expect

from the project?

2. Time goals: • How long should it take to complete the project what is the project

schedule?

3. Cost goals: • What should it cost to complete the project, and what is the project’s

budget?

“experienced project managers know that you must decide which aspect of the triple constraint is most important: if time is most important, then you must

often change the initial scope and/or cost goals to meet the schedule…”

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The Triple Constraint of Project Management

Extreme Project Management (XPM) A new approach & philosophy to project management

that is becoming increasingly popular Characterizes many of today’s projects that exemplify

speed, uncertainty, changing requirements, and high risks

Traditional project management often takes an orderly approach while, XPM embraces the fact that projects are often chaotic and unpredictable

XPM focuses on flexibility, adaptability, and innovation Traditional and new approaches together can provide us

with a better understanding of how to improve the likelihood of project success


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What is Project Management?

Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements” (PMI*, Project Management Body of Knowledge (PMBOK® Guide))

*The Project Management Institute (PMI) is an international professional society. Their web site is www.pmi.org.

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Project Management Framework

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9 Project Management Knowledge Areas

Knowledge areas describe the key competencies that 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 through which the project objectives are achieved (human resources, communication, risk, and procurement management)

1 knowledge area (project integration management) affects and is affected by all of the other knowledge areas

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PMI’s 9 Knowledge Areas1) Project integration management2) Scope3) Time4) Cost5) Quality6) Human resource7) Communications8) Risk9) Procurement

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Project Management Tools and Techniques

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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How Project Management Relates to Other Disciplines

Much of the knowledge needed to manage projects is unique to the discipline of project management

Project mangers must also have knowledge and experience in general management the application area of the project

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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

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Sample Gantt Chart

The WBS is on the left, and each task’s start and finish date are shown on the right using a calendar timescale. Early GanttCharts, first used in 1917, were drawn by hand.

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Sample Network Diagram

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

between tasks.

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Sample Enterprise Project Management Tool

In recent years, organizations have been taking advantage of Software to help manage their projects throughout the enterprise.

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The Project Management Profession

The job of IT Project Manager is in the list of the top ten most in demand IT skills

Professional societies like the Project Management Institute (PMI) have grown tremendously

Project management research and certification programs continue to grow

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Top Ten Most in Demand IT Skills

Rank IT Skill/Job Average Annual Salary 1 SQL Database Analyst $80,664 2 Oracle Database Analyst $87,144 3 C/C++ Programmer $95,829 4 Visual Basic Programmer $76,903 5 E-commerce/Java Developer $89,163 6 Windows NT/2000 Expert $80,639 7 Windows/Java Developert $93,785 8 Security Architect $86,881 9 Project Manager $95,719 10 Network Engineer $82,906

Paul Ziv, “The Top 10 IT Skills in Demand,” Global Knowledge Webcast (www.globalknowledge.com) (11/20/2002).

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Project Management Knowledge Continues to Grow and Mature

PMI hosted their first research conference in June 2000 in Paris, France, and the second one in Seattle in July 2002

The PMBOK® Guide 2000 is an ANSI standard PMI’s certification department earned ISO 9000

certification Hundreds of new books, articles, and presentations

related to project management have been written in recent years

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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.

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Growth in PMP Certification, 1993-2002

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Ethics in Project Management

Ethics is an important part of all professions

In order to earn PMP certification, applicants must agree to the PMP code of professional conduct

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Project Management Software

By 2003, there were hundreds of different products to assist in performing project management

Three main categories of tools exist: 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 2000 most popular High-end tools: Also called enterprise project

management software, often licensed on a per-user basis

Project 2003 now includes a separate version for enterprise project management.

The Project Management Body of Knowledge (PMBOK®)

The Guide to the Project Management Body of Knowledge (PMBOK® Guide) documents 9 project management knowledge areas

The PMBOK® Guide is published and maintained by the Project Management Institute (PMI) http://www.pmi.org

PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification

PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct


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Project Management Body of Knowledge Areas

Figure 1.8Copyright 2012 John Wiley & Sons,

Inc.1-45

4Q Process

Q1 - Measure

Q4 - Sustain Q3 - Improve

Q2 - Analyze

Define opportunity. Investigate to understand the current

state in detail.

Identify and confirm root causes of the problem.

Develop, pilot, and implement solutions that eliminate root

causes.

Maintain the improvements by standardizing the work methods or processes.

Copyright 2012 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without

express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John

Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no

responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.


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1_ch01.ppt

Documents

john wiley sons

traditional project

extreme project management

competing project

modern project managementoften

polaris missile project

larger projects

organizations strategy