CHAPTER 14 MANAGING PROJECTS
Project Management (Introduction) These numbers vary based on the study but… We spend about $1 trillion on IT projects 3 out of 10 project fail One in four does not following business rules and requirements Projects end up 66% over budget
Project Management (Problem Summary) Costs exceed budgets Time overruns Poor performance Benefits not realized
Why Projects Fail
Roles in Project Management
Project (Definition) A planned series of related activities for achieving a specific business objective Not necessarily an IT project Shipbuilding and overhauls Plant / factory upgrades and overhauls
Project Management (Definition) The application of knowledge, skills, and tools to achieve specific targets within specific budget and time constratints
Project Management (Tasks) Planning work and establishing a project timeline Assess risk Estimate required resources to accomplish work Organize work and assign human capital Organize and acquire material resources
Project Management (Tasks) Assign tasks Control project execution and project timeline Define scope of project Beware of scope creep While we are at it….
Choosing Strategic Projects (1) Projects should match organizational goals Projects should be prioritized Perform financial analysis to determine the best projects Develop an information systems plan
Choosing Strategic Projects (2) Establish key performance indicators (KPIs) by which we measure success Evaluate alternative projects Portfolio analysis Select projects based on a scoring model Based on benefits and risks Capital budgeting to measure value of capital investment projects
Project Risk Risk management is a new industry buzzword We assess risk based on several dimensions Size and complexity Level of structure Technical expertise
Project Risk (Size) Project risk increases as Project size grows Project complexity grows Because Large projects become more difficult to manage
Project Risk (Structure) For some projects, requirements can be clearly defined Users know what they want Developers know how to give users what they want “Decrease defects by 10 by adding QA checks” Some projects goals are less tangible and more nebulous
Project Risk (Technical Expertise) Companies must Either possess the human capital to complete the project Or acquire that human capital Or outsource that human capital
Change Management Courses are taught on this subject There are several books on effective change management KPIs End user involvement Systems analysis as a change agent Management support and commitment
Project Planning Create a project charter which clearly lists Scope Objectives Constraints Assumptions Create a project plan and timeline Pert and Gantt charts
Project Outsourcing We outsource to Tap into outside expertise Focus on core business goals rather than develop extensive IT infrastructure Reduce head count and expenses Minimize technology investment Reduce cost
Types of Outsoucring Onshore Nearshore Offshore
Measuring IT Performance (2) Efficiency metrics (The technology itself) System uptime (availability) Response time (time to render a Web page) Transaction processing performance (database transactions per second) Information accuracy
Measuring IT Performance (3) Effectiveness metrics (How well the technology works) Customer satisfaction Sales increases Cost reductions Use accounting and financial methods to assess Cost/benefit analysis, NPV, ROI, cash flow Usability How many clicks to accomplish a task
Measuring Success Efficiency and effectiveness metrics Critical success factors These should be quantitative Don’t create to many CSFs Key performance indicators How do we measure those CSFs WHAT YOU MEASURE IS WHAT YOU GET