IT Project Management PART 2 Lecturer: Dr. Gunter SENYURT

Understanding Fund. Of PM While the ancient Egyptians certainly followed some organized process to plan and build the pyramids, the history of modern project management dates from the 1950s. We have discussed the most popular definitions about what a project is at previous slides. Now it is time to discuss what project management is about.. There are many Project Management (PM) definitions out there but in common we can define PM as “organized common sense”. Lecturer: Dr. Gunter SENYURT

The PM seeks answers to six questions which are: Understanding Fund. Of PM The PM seeks answers to six questions which are: What business situation is being addressed? What do you need to do? What will you do? How will you do it? How will you know you did it? How well did you do it ? Lecturer: Dr. Gunter SENYURT

Understanding Fund. Of PM (1/6) What business situation is being addressed? * A project can correct a problem. The problem may be: 1. that the company is experiencing less than acceptable process performance. 2. a system may no longer meet the needs for which it was orginally put in place. 3. business conditions or requirements may have changed, and maybe the system itself may need to be changed as well; or legal requirements and regulations may have changed and the system needs to be updated. Lecturer: Dr. Gunter SENYURT

(1/6) What business situation is being addressed? Understanding Fund. Of PM (1/6) What business situation is being addressed? * A project that takes advantage of a previously untapped business opportunity. This could come about as a result of changing market conditions or the emergence of a new or improved technology. Lecturer: Dr. Gunter SENYURT

(1/6) What business situation is being addressed? Understanding Fund. Of PM (1/6) What business situation is being addressed? At the initiation stage of the project, before it is even approved, a brief statement is needed to identify the problem or opportunity being addressed. Lecturer: Dr. Gunter SENYURT

(2/6) What do you need to do? Understanding Fund. Of PM (2/6) What do you need to do? * Gathering and documenting client requirements is usually how the solution is defined. The solution should address the client’s real needs, and you must convince them that it is the needs not the wants that you will address. As you will discover, forming the solution is often very difficult to do especially at the beginning of the project. Lecturer: Dr. Gunter SENYURT

Understanding Fund. Of PM (3/6) What will you do? Once you understand what is needed, you and the client have to decide what can be done to meet that need. Of course you would like to meet all client requirements, but it may not be possible for all the time. Lecturer: Dr. Gunter SENYURT

Understanding Fund. Of PM (4/6) How will you do it? This is your plan for delivering an acceptable solution. The ideal plan will be cradle-to-grave description of the work done. In the traditional approach you should explain; how long it would take, how much it would cost, what resources would be needed and so on. But in recent approaches you can plan a little ahead and do a little iteratively. Lecturer: Dr. Gunter SENYURT

(5/6) How will you know you did it? Understanding Fund. Of PM (5/6) How will you know you did it? Business reasons (success criteria) were put forth for justifying to do the project. The success criteria should be stated at the beginning of the project in such a way that it is obvious that by the end of the project they have or have not been met. Lecturer: Dr. Gunter SENYURT

Understanding Fund. Of PM (6/6) How well did you do? There are two different things to consider in analyzing how well you did. The first is the quality of the product that was produced by the project. Lecturer: Dr. Gunter SENYURT

Understanding Fund. Of PM (6/6) How well did you do? The second is the process that was followed to produce the product. The correct analysis of the process that was followed will answer four questions; How well defined and documented were the PM process you chose to use? How well did the chosen process fit the needs of the project? How well did the team follow the chosen process? How well did the chosen process produce the expected result? D The first two provide input to needed PM process improvement. The last two provide input to needed practice improvement efforts (ex: trainings needs or improved processes for making project assignments.) Lecturer: Dr. Gunter SENYURT

2. Planning process group 3. Launching process group Defining the 5 process groups In addition to answering the six questions that a valid PM methodology must answer, whatever PMLC (Project Management Life Cycle) model you use must contain all of the following process groups; 1. Scoping process group 2. Planning process group 3. Launching process group 4. Monitoring and controlling process group 5. Closing process group In more complex situations, some or all of them might be repeated a number of times. Lecturer: Dr. Gunter SENYURT

(1/5) Scoping Process Group (PG); Defining the 5 process groups (1/5) Scoping Process Group (PG); This PG includes all processes related to answering the question “What do you need to do?(2/6)” It does not include any processes related to doing any project work. That project work is defined in the Planning PG. The Scoping PG also includes establishing the business success criteria that will be the metric used to answer the question “how will you know you did it? (5/6)” Lecturer: Dr. Gunter SENYURT

(1/5) Scoping Process Group (PG); The Scoping PG includes; Defining the 5 process groups (1/5) Scoping Process Group (PG); The Scoping PG includes; Recruiting the PM(project manager) Electing the true needs of the client Documenting the client’s needs Negotiating with the client about how those needs will be met Writing a one-page description of the project Gaining senior management approval to plan the project. Lecturer: Dr. Gunter SENYURT

(2/5) Planning Process Group (PG); Defining the 5 process groups (2/5) Planning Process Group (PG); The planning PG includes all processes related to answering the question “how will you do it?(4/6)” Lecturer: Dr. Gunter SENYURT

(2/5) Planning Process Group (PG); The Planning PG processes are; Defining the 5 process groups (2/5) Planning Process Group (PG); The Planning PG processes are; Defining all of the work of the project Estimating how long it will take to complete the work Estimating the resources required to complete the work Estimating the total cost of the work Sequencing the work Building the initial project schedule Analyzing and adjusting the project schedule Writing a risk management plan Documenting the project plan Gaining senior management approval to launch the project Lecturer: Dr. Gunter SENYURT

(3/5) Launching Process Group (PG); Defining the 5 process groups (3/5) Launching Process Group (PG); This PG includes all processes related to recruiting and organizing the team and establishing the team operating rules. These processes are preparatory to executing the project. After the preparations are settled the project will be executed (launched). Lecturer: Dr. Gunter SENYURT

(3/5) Launching Process Group (PG); Defining the 5 process groups (3/5) Launching Process Group (PG); The Launching PG includes the following processes; Recruiting the project team Writing a project description document Establishing team operating rules Establishing the scope change management process Managing team communication Finalizing the project schedule Writing work packages Lecturer: Dr. Gunter SENYURT

Work Package Structure Example

(3/5) Launching Process Group (PG); Defining the 5 process groups (3/5) Launching Process Group (PG); Handling these processes is more like art not science. Because you have to gather people not knowing each other and ask them to build up a project. At first, they are just a group not a team! Being fully aware of this, the project manager will conduct that first team meeting with care, giving team members an opportunity to introduce themselves and let them explain in what way they would contribute to the project. Lecturer: Dr. Gunter SENYURT

(4/5) Monitoring and Controlling Process Group (PG); Defining the 5 process groups (4/5) Monitoring and Controlling Process Group (PG); This PG includes all processes related to the ongoing work of the project. These processes are as follows; Establishing the project performance and reporting system Monitoring project performance Monitoring risk Reporting project status Processing scope change requests Discovering and solving problems Lecturer: Dr. Gunter SENYURT

(4/5) Monitoring and Controlling Process Group (PG); Defining the 5 process groups (4/5) Monitoring and Controlling Process Group (PG); As problems and change requests arise, the strength of your relationship with your client will, in large measure, contribute to the success or failure of the project. Lecturer: Dr. Gunter SENYURT

(5/5) Closing Process Group (PG); Defining the 5 process groups (5/5) Closing Process Group (PG); The closing PG includes all processes related to the completion of the project. These processes are as follow; Gaining client approval of having met project requirements Planning and installing deliverables Writing the final project report Conducting the post-implementation audit. Lecturer: Dr. Gunter SENYURT

Project Deliverables Example

Post Implementation Audit Example

Defining the 9 knowledge areas Scoping PG Planning Launching Monitoring & Control PG Closing Integration √ Scope Time Cost Quality HR Communications Risk Procurement Mapping of the nine knowledge areas to the five process groups Lecturer: Dr. Gunter SENYURT

Defining the 9 knowledge areas Project management life cycle (PMLC) is a sequence of processes that includes scoping, planning, launching, monitoring, controlling and closing the projects to which it applies. A valid PMLC always start with a single scoping process and ends with a single closing process. Process groups are the building blocks of project management methodologies not the project management it self. Lecturer: Dr. Gunter SENYURT

(1/9) Integration management knowledge area Defining the 9 knowledge areas (1/9) Integration management knowledge area This knowledge area addresses the glue that links all of the deliverables from the PG into a unified whole. This linkage begins with the project description document and extends to the project plan and its execution, including monitoring progress against the project plan and the integration of changes and finally through to project closure. Lecturer: Dr. Gunter SENYURT

(2/9) Scope management knowledge area Defining the 9 knowledge areas (2/9) Scope management knowledge area Scope management knowledge area is the identification and documentation of client requirements. For gathering and documenting the requirements you should choose the best-fit PMLC and develop a Work Breakdown Structure (WBS) that defines the work to be done to deliver those requirements. That prepares the team and the client with the information they need to estimate time, cost and resources requirements. Lecturer: Dr. Gunter SENYURT

Project Life Cycle Example

Work Breakdown Structure

(3/9) Time management knowledge area Defining the 9 knowledge areas (3/9) Time management knowledge area Time management includes both a planning component and a control component. The planning component provides time estimates for both the duration of a project task and the actual effort or labor time required to complete the task. The control component is part of the monitoring and controlling PG and involves comparing estimated times to actual times as well as managing the schedule and cost variances. Lecturer: Dr. Gunter SENYURT

Time Management Planning Example

Cost Time Variance Example

(4/9) Cost management knowledge area Defining the 9 knowledge areas (4/9) Cost management knowledge area Cost management also includes both a planning component and a control component like time management is. Lecturer: Dr. Gunter SENYURT

Cost Planning Management Sheet

(5/9) Quality management knowledge area Defining the 9 knowledge areas (5/9) Quality management knowledge area Good quality management is probably one of the knowledge areas that gets a rather casual treatment by the PM and the team. A good quality management program contains the following three processes; 1. Quality planning process There will be standards that the product and the process will have to meet. These may be external to the organization or internal. In addition, there will be project-specific requirements that must be met. Lecturer: Dr. Gunter SENYURT

(5/9) Quality management knowledge area Defining the 9 knowledge areas (5/9) Quality management knowledge area Good quality management is probably one of the knowledge areas that gets a rather casual treatment by the PM and the team. A good quality management program contains the following three processes; 1. Quality planning process 2. Quality assurance process Quality assurance includes activities that ensure compliance to the plan. Lecturer: Dr. Gunter SENYURT

(5/9) Quality management knowledge area Defining the 9 knowledge areas (5/9) Quality management knowledge area Good quality management is probably one of the knowledge areas that gets a rather casual treatment by the PM and the team. A good quality management program contains the following three processes; 1. Quality planning process 2. Quality assurance process 3. Quality control process This process involves the actual monitoring of the project using the quality tools, templates and processes. Lecturer: Dr. Gunter SENYURT

(5/9) Quality management knowledge area Defining the 9 knowledge areas (5/9) Quality management knowledge area Good quality management is probably one of the knowledge areas that gets a rather casual treatment by the PM and the team. A good quality management program contains the following three processes; 1. Quality planning process 2. Quality assurance process 3. Quality control process The focus on quality is usually on the product or deliverable that is produced. Lecturer: Dr. Gunter SENYURT

(5/9) Quality management knowledge area Defining the 9 knowledge areas (5/9) Quality management knowledge area Validation that a product is fit for use is the result of the product passing certain tests at various points in the product development life cycle. Passing these tests allows the product to pass to the next stage of development. Quality in this context means the product meets the following criteria: 1. It’s fit for use 2. It meets all client requirements 3. It delivers on time, within budget and accordingly to specifications. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Project managers do not involve into this management task. But in actual conditions this cannot be practical. The PM must involve in HR management as well. Because the skills and/or competency of the team you have to work with may not be ideal, staff development will be one area where PM and HRM share responsiblities. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Projects as Motivation and development tools; The PM sets the environment like a farmer and monitors the progress for the success of the project. Fortunately, you do have some information on how the professional staff realizes motivators and hygiene factors on the job. Motivators: are behaviors or situations that have a positive impact on the worker. Hygiene factors: by their absence, have a negative impact on performance, but do not necessarily motivate the worker if they are present. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area (Herzberg 1959) Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area (Herzberg 1959) Motivators: * Achievement * Recognition * Advancement and growth * Responsibility * The work itself Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area (Herzberg 1959) Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area (Herzberg 1959) Hygiene Factors: * Company policy * Administrative practices * Working conditions * Technical supervision * Interpersonal relations * Job security * Salary Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Note that motivators are related to the job, specifically to its main characteristics, whereas hygiene factors are related to the environment in which the job is performed. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area (Couger 1985) Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area (Couger 1985) Motivating factors (high to low) 1. The work itself 2. Opportunity for achievement 3. Opportunity for advancement 4. Pay and benefit 5. Recognition 6. Increased responsibility 7. Technical Supervision 8. Interpersonal relations 9. Job security 10. Woking conditions 11.Company policy Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Challenge; Professionals respond to the challenge. In general if you tell a professional that something cannot be done, his/her creative juices begin to flow. Usually, an hour or two on a new and challenging task per day is sufficient to keep a professional motivated throughout the day. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Recognition; Professionals want to know that they are progressing toward a professional goal. Publicly and personally recognizing achievements and following with additional challenges tells the professional that his or her contribution is valued. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Job design; Because the job itself is such an important part of the motivation which will be analyzed by five dimensions: * Skill variety * Task Identity * Task significance * Autonomy * Feedback Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Job design - Skill Variety - ; Jobs that do not offer much task variety or the opportunity to learn and practice new skills become boring for most people. In designing jobs, it is important to consider building in some task variety. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Job design - Task Identity - ; People need to know what they are working on. This idea is especially true for contracted team members. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Job design - Task Significance - ; Team members need to know whether their effort and success make any difference to the success of the project. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Job design - Autonomy - ; Proffesionals need to know “What to do?” not every detail about “how to do?” Professionals tend to be rugged(harsh) individualists. They want to exercise their creativity. They want freedom, independence, and discretion(ability to make decisions or choices) for scheduling their work while determining the procedures. they will follow to carry it out. Lecturer: Dr. Gunter SENYURT

(6/9) Human Resource -HR- management knowledge area Defining the 9 knowledge areas (6/9) Human Resource -HR- management knowledge area Several of the motivators are directly controlled or influenced by the actions and behavior of the PM regarding the work that the team member will be asked to do, such as; Job design - Feedback - ; Good, bad, or indifferent, professionals want to know how effective they are in their work. Paying attention to what a team member is doing is motivating in itself. Lecturer: Dr. Gunter SENYURT

(7/9) Communication management knowledge area Defining the 9 knowledge areas (7/9) Communication management knowledge area At the heart of many of the top ten reasons why projects fail is poor communication. As many as 70% of IS/IT project failures can be traced back to poor communication. It is not difficult to plan an effective communication management process, but it seems to be very difficult to execute the plan... Lecturer: Dr. Gunter SENYURT

(7/9) Communication management knowledge area Defining the 9 knowledge areas (7/9) Communication management knowledge area A good communication management process must answer three questions, which are; 1. Who are the project stakeholders? A person, group or organization that has interest or concern in an project is called stakeholder. Those who are affected by the project are stakeholders. Often there are the same group requesting the project, in which case they will be willing stakeholders. There are also unwilling stakeholders who are not affected or affected very little from the project. The PM should establish a clear communication in between these groups. Lecturer: Dr. Gunter SENYURT

(7/9) Communication management knowledge area Defining the 9 knowledge areas (7/9) Communication management knowledge area A good communication management process must answer three questions, which are; 1. Who are the project stakeholders? 2. What do you need to know about the project? Different stakeholders may be concerned about different parts of the project, such as; What input will I be required to provide to the project team? How can I make my needs known? When will the project be done? How will it affect me? Will I be replaced? Comm. Man. Plan will be effective only if it accounts for each group and their individual needs. Lecturer: Dr. Gunter SENYURT

(7/9) Communication management knowledge area Defining the 9 knowledge areas (7/9) Communication management knowledge area A good communication management process must answer three questions, which are; 1. Who are the project stakeholders? 2. What do you need to know about project? 3. How should their needs be met? This depends on the purpose of communication. In case of informing or giving feedback about the progress you should select different aproaches. Lecturer: Dr. Gunter SENYURT

(8/9) Risk management knowledge area Defining the 9 knowledge areas (8/9) Risk management knowledge area The effective PM treats risk management as a dynamic part of every project. The plan has got the following four following sections; 1. Risk Identification 2. Risk Assessment 3. Risk Mitigation 4. Risk Monitoring Lecturer: Dr. Gunter SENYURT

(8/9) Risk management knowledge area 1. Risk Identification Defining the 9 knowledge areas (8/9) Risk management knowledge area 1. Risk Identification In this part of the process, the entire team is brought together to discuss and identify the risks that are specific to the current project. Risks arise from several different directions but it generally can be classified into one of the following four categories; 1. Technical risks 2. Project management risks 3. Organizational risks 4. External risks Lecturer: Dr. Gunter SENYURT

(8/9) Risk management knowledge area 2. Risk Assessment Defining the 9 knowledge areas (8/9) Risk management knowledge area 2. Risk Assessment There are two major factors in assessing risk. The first one is the probability that the risk event will occur. The second one is the impact the risk will have on the project. Those risks which have at least 50 % probability should be considered in the risk planning. Lecturer: Dr. Gunter SENYURT

(8/9) Risk management knowledge area Defining the 9 knowledge areas (8/9) Risk management knowledge area 3. Risk Mitigation(taking risk relief measures) The next step is to define responses if any of the mentioned risks occur. Lecturer: Dr. Gunter SENYURT

(8/9) Risk management knowledge area 3. Risk Mitigation Defining the 9 knowledge areas (8/9) Risk management knowledge area 3. Risk Mitigation There are five different risk responses: 1. Accept (There is nothing to do, hope that it will not happen...) 2. Avoid (Project can be planned by avoiding the risk) 3. Contingency Planning (What to do if it happens) 4. Mitigate (Minimize the impact even if it happens) 5. Transfer (Pass the impact should the risk occur-Insurance-) Lecturer: Dr. Gunter SENYURT

(8/9) Risk management knowledge area 4. Risk Monitoring Defining the 9 knowledge areas (8/9) Risk management knowledge area 4. Risk Monitoring After risks are identified, the impact and probabilities are assessed and plans are figured out what to do about it, the remaining is monitoring the risks in the project level. Let the team be informed about the risks and remind them the possible risks. Lecturer: Dr. Gunter SENYURT

(9/9) Procurement Management knowledge area Defining the 9 knowledge areas (9/9) Procurement Management knowledge area As a project manager, you will always have projects for which you must obtain HW(hardware)/SW(software) or services from outside sources. This is known as procurement. 1. Vendor solicitation(making a request ) 2. Vendor evaluation 3. Vendor selection 4. Vendor contracting 5. Vendor management Lecturer: Dr. Gunter SENYURT

(9/9) Procurement Management knowledge area 1. Vendor solicitation Defining the 9 knowledge areas (9/9) Procurement Management knowledge area 1. Vendor solicitation After you have done your requirements gathering and made the decision that you need an outside vendor, you can prepare procurement documents for solicitation. This document formally is called as “Request for Proposal” (RFP). This documentation clears if and how vendors should respond to your needs. The more specific and clear you are, the better chance that the vendor will be able to respond to you quickly and effectively. Lecturer: Dr. Gunter SENYURT

(9/9) Procurement Management knowledge area 2. Vendor Evaluation Defining the 9 knowledge areas (9/9) Procurement Management knowledge area 2. Vendor Evaluation Before even reading the proposals, set the standards for choosing a given vendor. This lets you to select your vendor more precisely and forms clear communication with the different vendors even if they were not being selected. Lecturer: Dr. Gunter SENYURT

(9/9) Procurement Management knowledge area 3. Vendor Selection Defining the 9 knowledge areas (9/9) Procurement Management knowledge area 3. Vendor Selection Accordingly, by RFPs and special criteria you will decide a vendor name, but in some cases there can be multiple vendor names. Lecturer: Dr. Gunter SENYURT

(9/9) Procurement Management knowledge area 4. Vendor Contracting Defining the 9 knowledge areas (9/9) Procurement Management knowledge area 4. Vendor Contracting This stage must be crystal clear between both of the parties. Detailed RFP(request for proposal), WBS(work breakdown structure), cost, time and specifications, reporting and management schedules should be cleared and signed between the parts. Lecturer: Dr. Gunter SENYURT

(9/9) Procurement Management knowledge area 5. Vendor Management Defining the 9 knowledge areas (9/9) Procurement Management knowledge area 5. Vendor Management Closing out the contract is often an overlooked function of the project manager. It both certifies what has been done and gives all parties a chance to deal with open issues and final payments. Consider the followings as you bring a contract to a close; * There should be a clear understanding of when the project is finished. * After the contract is closed, make sure you file all of the materials used during the project. * Put all this information into a large file and keep it. Lecturer: Dr. Gunter SENYURT