MITM743 Advanced Project Management Lecture 1 – Introduction to Project Management

Contents What is a Project Project Life Cycle IT Projects vs Other Projects Project Management The Project Management in IS/IT Context Project Management Processes Groups

What is a project? A specific objective must be completed within certain specifications Has a definite starting date and end date Has funding limitations Consumes resources (money, people, equipment) Made up of activities (tasks) Accomplished in teams – Teamwork makes the Dream Works

So, What Is a Project, exactly? A project is a temporary endeavor undertaken to accomplish a unique purpose the Project Management Institute Attributes of projects Unique purpose Temporary Require resources, often from various areas Should have a primary sponsor and/or customer Involves risk and uncertainty Has stakeholders

The Project LifeCycle STAGE 1: Conceptualizin g-and-Defining STAGE 2: Planning-and- Budgeting STAGE 3: Executing STAGE 5: Terminating- and-Closing STAGE 4: Monitoring-and-Controlling

IT Projects vs other projects projects can be in construction, aerospace, defense, space, government, etc. Each IT Project is unique and involves risk IT is continually changing IT projects has less visibility

IT Projects vs other projects tendency to spend too much time on concept definition and analysis Tendency to be less organizational maturity Maturity is a big issue here Watts Humphrey

Similarities of IT Projects and other projects have common basic attributes of projects starting point stopping point Duration Is finite, temporary For creating a deliverable or product Utilize resources accomplished in teams Consist of steps (tasks) Accrue cost, etc. involve risk, accrue expenditures, involve procurement, human resources, etc.

Project management involves Conceiving and Defining Definition of work requirements--WORK BREAKDOWN STRUCTURE--WBS Planning and Budgeting Determination of quantity and quality of work Determination of what resources are needed when Executing and Controlling Actual execution of the project tasks take place here Tracking progress Comparing actual to predicted outcomes Analyzing impact/Making adjustments Closing and Terminating What went right? What went wrong? What can be learned??

Successful Project management requires completion of the project on time within budget with the desired performance/technology level with good customer satisfaction/relations while using the assigned resources effectively What is the probability of pulling this off for IT projects?

Further elements of success include with acceptance by the customer/user without disturbing the main work flow of the organization without changing the corporate culture {unless that is the objective of the project}

Why do bad things happen to good projects? Poorly defined requirements Poorly conceived project deliverable No shared vision of what the project is to accomplish Poor planning No schedule No budget No concern for quality/risk/procurement Resources don’t materialize when they are needed Subcontractors don’t deliver on time Requirements change Technology changes

When is project management necessary? when jobs are complex when there are dynamic environmental considerations when constraints on time and budget are tight when there are several activities to be integrated when there are functional boundaries to be crossed

Project management encompasses many disciplines Operations management Operations research Psychology Sociology Organization theory Organizational behavior Systems thinking and management

GANTT CHART

Network CHART

Work breakdown 1

Work breakdown 2

Why IT Project Management IT Projects have a poor track record “Project manager” is the #1 position IT managers say they need most for contract help Often, this leads to distributed PM Projects create ¼ of the US and world GDP

The Triple Constraint Every project is constrained in different ways by its Scope goals Time goals Cost goals It is the project manager’s duty to balance these three often competing goals

PMI’s Definition of Project Management Project management is “a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end.” PMI*, Project Management Body of Knowledge (PMBOK Guide), 2008, pg. 5 *The Project Management Institute (PMI) is an international professional society. Their web site is

Stakeholders People involved in or affected by project activities Stakeholders include the project sponsor and project team The project sponsor is the person who funds the project support staff customers users upper management line management suppliers opponents to the project

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

Project Management Framework

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 and WBS (scope) Gantt charts, PERT charts, critical path analysis (time) Cost estimates and Earned Value Analysis (cost)

Advantages of Project Management Bosses, customers, and other stakeholders do not like surprises Good project management (PM) provides assurance and reduces risk PM provides the tools and environment to plan, monitor, track, and manage schedules, resources, costs, and quality PM provides a history or metrics base for future planning as well as good documentation Project members learn and grow by working in a cross- functional team environment Source: Knutson, Joan, PM Network, December 1997, p. 13

Relation with Other Disciplines Much of the knowledge needed to manage projects is unique to PM However, project managers must also have knowledge and experience in general management the application area of the project Project managers must focus on meeting specific project objectives

History of Project Management Modern project management began with the Manhattan Project, which the U.S. military led to develop the atomic bomb In 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shops In 1958, the Navy developed PERT charts In the 1970s, the military began using project management software, as did the construction industry By the 1990s, virtually every industry was using some form of project management

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

Code of Ethics PMI developed a project management code of ethics that all PMPs must agree to abide by Conducting work in an ethical manner helps the profession earn confidence Ethics are on the web at CAPM (Certified Associate in Project Management) Requires passing an exam prepared by PMI only.

Questions!! Give examples of activities that are projects Give examples of activities that are not projects How is project management different from general management? Why many it projects fails?

The Project Management in IS/IT Context

Projects Cannot Be Run in Isolation Projects must operate in a broad organizational environment Project managers need to take a holistic or systems view of a project and understand how it is situated within the larger organization

A Systems View of Project Management A systems approach emerged in the 1950s to describe a more analytical approach to management and problem solving Three parts include: Systems philosophy: View things as systems, interacting components working within an environment to fulfill some purpose Systems analysis: problem-solving approach Systems management: Address business, technological, and organizational issues before making changes to systems

Three Sphere Model for Systems

Understanding Organizations IT Project Management, Third Edition Chapter 2 Structural frame: Focuses on roles and responsibilities, coordination and control. Organizational charts help define this frame. Human resources frame: Focuses on providing harmony between needs of the organization and needs of people. Political frame: Assumes organizations are coalitions composed of varied individuals and interest groups. Conflict and power are key issues. Symbolic frame: Focuses on symbols and meanings related to events. Culture is important.

Organizations Structural Frame Most people understand what organizational charts are Many new managers try to change organizational structure when other changes are needed 3 basic organizational structures functional project matrix

Recognize the Importance of Project Stakeholders Recall that project stakeholders are the people involved in or affected by project activities Project managers must take time to identify, understand, and manage relationships with all project stakeholders Using the four frames of organizations can help meet stakeholder needs and expectations Senior executives are very important stakeholders

What Helps Projects Succeed? According to the Standish Group’s report “CHAOS 2001: A Recipe for Success,” the following items help IT projects succeed, in order of importance: Executive support User involvement Experienced project manager Clear business objectives Minimized scope Standard software infrastructure Firm basic requirements Formal methodology Reliable estimates

Need for Top Management Commitment Several studies cite top management commitment as one of the key factors associated with project success Top management can help project managers secure adequate resources, get approval for unique project needs in a timely manner, receive cooperation from people throughout the organization, and learn how to be better leaders

Need for Organizational Commitment to IS/IT If the organization has a negative attitude toward IS/IT, it will be difficult for an IS/IT project to succeed Having a Chief Information Officer (CIO) at a high level in the organization helps IS/IT projects Assigning non-IT people to IS/IT projects also encourages more commitment

Need for Organizational Standards Standards and guidelines help project managers be more effective Senior management can encourage the use of standard forms and software for project management the development and use of guidelines for writing project plans or providing status information the creation of a project management office or center of excellence

The Context of IT Projects IT projects can be very diverse in terms of size, complexity, products produced, application area, and resource requirements IT project team members often have diverse backgrounds and skill sets IT projects use diverse technologies that change rapidly. Even within one technology area, people must be highly specialized

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

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, and be able to lead teams to accomplish project goals Project managers need both “hard” and “soft” skills. Hard skills include product knowledge and knowing how to use various project management tools and techniques, and soft skills include being able to work with various types of people

Suggested Skills for Project Managers Communication skills: listening, persuading Organizational skills: planning, goal-setting, analyzing Team Building skills: empathy, motivation, esprit de corps Leadership skills: set examples, be energetic, have vision (big picture), delegate, be positive Coping skills: flexibility, creativity, patience, persistence Technological skills: experience, project knowledge

Most Significant Characteristics of Effective and Ineffective Project Managers Lead By Example Are Visionaries Are Technically Competent Are Decisive Are Good Communicators Are Good Motivators Stand Up To Upper Management When Necessary Support Team Members Encourage New Ideas Set Bad Examples Are Not Self-assured Lack Technical Expertise Are Poor Communicators Are Poor Motivators

Discussions What Practitioners Consider To Be The Skills And Behaviors Of An Effective People Project Manager What Went Wrong? Unsuccessful Information Technology Projects

Project Management Process Groups

Project management can be viewed as a number of interlinked processes The project management process groups include initiating processes planning processes executing processes controlling processes closing processes

Overlap of Process Groups in a Phase (PMBOK® Guide, 2000, p. 31)

Developing an IT Project Management Methodology Just as projects are unique, so are approaches to project management Many organizations develop their own project management methodologies, especially for IT projects Many organizations use the PMBOK as a guide in developing their IT project management methodology

Project initiation Initiating a project includes recognizing and starting a new project or project phase Some organizations use a pre-initiation phase, while others include items like developing a business case as part of initiation The main goal is to formally select and start off projects Key outputs include: Assigning the project manager Identifying key stakeholders Completing a business case Completing a project charter and getting signatures on it

Project charter

Project Planning The main purpose of project planning is to guide execution Every knowledge area includes planning information Key outputs include: A team contract A scope statement A work breakdown structure (WBS) A project schedule, in the form of a Gantt chart with all dependencies and resources entered A list of prioritized risks

Project Control Controlling involves measuring progress toward project objectives, monitoring deviation from the plan, and taking corrective actions Controlling affects all other process groups and occurs during all phases of the project life cycle Status and progress reports are important outputs of controlling

Project Closing The closing process involves gaining stakeholder and customer acceptance of the final product and bringing the project, or project phase, to an orderly end Even if projects are not completed, they should be closed out to learn from the past Project archives and lessons learned are important outputs. Most projects include a final report and presentations

Post-Project Follow-up Many organizations have realized that it’s important to review the results of projects a year or so after they have been completed Many projects project potential savings, so it’s important to review the financial estimates and help learn from the past in preparing new estimates

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