© Prentice Hall CHAPTER 12 IT Project Management

© Prentice Hall PROJECT TEMPORARY ENDEAVOR TEMPORARY ENDEAVOR TO CREATE PRODUCT OR SERVICE TO CREATE PRODUCT OR SERVICE TYPICALLY ONE-TIME TYPICALLY ONE-TIME DIVIDED INTO TASKS DIVIDED INTO TASKS REQUIRES COORDINATION & CONTROL REQUIRES COORDINATION & CONTROL DEFINITE BEGINNING & END DEFINITE BEGINNING & END*

© Prentice Hall PROJECT CHARACTERISTICS* RISK & UNCERTAINTY HIGHEST AT START RISK & UNCERTAINTY HIGHEST AT START ABILITY TO INFLUENCE RESULTS HIGHEST AT START ABILITY TO INFLUENCE RESULTS HIGHEST AT START COST & STAFFING LOW AT START, HIGHER NEAR END, RAPIDLY DROP OFF AFTER COST & STAFFING LOW AT START, HIGHER NEAR END, RAPIDLY DROP OFF AFTER* *PMI, 1996

© Prentice Hall PROGRAM* GROUP OF PROJECTS GROUP OF PROJECTS MANAGED IN COORDINATED WAY MANAGED IN COORDINATED WAY TO OBTAIN BENEFITS NOT AVAILABLE FROM MANAGING THEM SEPARATELY TO OBTAIN BENEFITS NOT AVAILABLE FROM MANAGING THEM SEPARATELY* *PMI, 1996

© Prentice Hall PROJECT INITIATION PROJECT CHARTER: Describes objectives, scope, assumptions (results from feasibility analysis) PROJECT CHARTER: Describes objectives, scope, assumptions (results from feasibility analysis) RANK ALTERNATIVES: May require estimates of costs & times, judgment RANK ALTERNATIVES: May require estimates of costs & times, judgment WORK WITH THE NUMBERS: Sensitivity analysis, deal with uncertainties (does outcome change with change in input?) WORK WITH THE NUMBERS: Sensitivity analysis, deal with uncertainties (does outcome change with change in input?)*

© Prentice Hall PROJECT MANAGER CHARACTERISTICS* LEADING: Communicating, problem- solving LEADING: Communicating, problem- solving NEGOTIATING: Ability to get things done within organizational setting NEGOTIATING: Ability to get things done within organizational setting NON-TECHNICAL SKILLS NON-TECHNICAL SKILLS* *PMI, 1996

© Prentice Hall NON-TECHNICAL SKILLSETS COMMUNICATION: Listening, persuading COMMUNICATION: Listening, persuading ORGANIZATIONAL: Planning, goal-setting, analyzing ORGANIZATIONAL: Planning, goal-setting, analyzing TEAM-BUILDING: Empathy, motivation, esprit de corps TEAM-BUILDING: Empathy, motivation, esprit de corps LEADERSHIP: Sets example, energetic, vision, delegates, positive LEADERSHIP: Sets example, energetic, vision, delegates, positive COPING: Flexibility, creativity, patience, persistence COPING: Flexibility, creativity, patience, persistence*

© Prentice Hall KEY BUSINESS ROLES PROJECT SPONSOR: Executive participates in project proposal, argues for approval, has “ownership” of project, provides funds, oversees success, ensures benefits PROJECT SPONSOR: Executive participates in project proposal, argues for approval, has “ownership” of project, provides funds, oversees success, ensures benefits USER CHAMPION: Has credibility in affected community, continually communicates project vision & benefits USER CHAMPION: Has credibility in affected community, continually communicates project vision & benefits*

© Prentice Hall PROJECT PLANNING SCHEDULING: Involves work breakdown analysis, time estimates, sequence of tasks SCHEDULING: Involves work breakdown analysis, time estimates, sequence of tasks BUDGETING: Documents total costs, levels at which each is controlled. Bottom-up (cost and aggregate elements), top-down (sets total for project, assigns dollars to elements) BUDGETING: Documents total costs, levels at which each is controlled. Bottom-up (cost and aggregate elements), top-down (sets total for project, assigns dollars to elements)*

© Prentice Hall PROJECT PLANNING STAFFING: Identifies required skill mix, proficiency level, quantity, timeframe, provides incentives STAFFING: Identifies required skill mix, proficiency level, quantity, timeframe, provides incentives PLANNING DOCUMENTS: PLANNING DOCUMENTS: –STATEMENT OF WORK: High-level description of what project will deliver & when –PROJECT PLAN: Details of tasks (e.g., PERT, Gantt chart)*

© Prentice Hall PROGRAM EVALUATION & REVIEW TECHNIQUE (PERT) CIRCLES ARE ACTIVITIES ARROWS SHOW SEQUENCE VALUES ARE TIME UNITS (NOT TO SCALE)

© Prentice Hall GANTT CHART January February March April May June

© Prentice Hall PROJECT EXECUTION & CONTROL APPROVAL OF PLAN, SCHEDULE, BUDGET APPROVAL OF PLAN, SCHEDULE, BUDGET ASSIGN RESPONSIBILITIES & AUTHORITIES ASSIGN RESPONSIBILITIES & AUTHORITIES STATUS REPORTING STATUS REPORTING RISK MANAGEMENT RISK MANAGEMENT SOLVE PROBLEMS BEFORE THEY BECOME CRITICAL SOLVE PROBLEMS BEFORE THEY BECOME CRITICAL*

© Prentice Hall STATUS REPORTING SCHEDULE: SCHEDULE: –SCHEDULED & ACTUAL, OR FORECAST COMPLETION DATES –EXPLANATIONS OF DEVIATION(S) BUDGET: BUDGET: –TOTAL PROJECT FUNDING –EXPENDITURES TO DATE OF REPORT –CURRENT ESTIMATE OF COST TO COMPLETE –ANTICIPATED PROFIT/LOSS –EXPLANATIONS OF DEVIATION(S)*

© Prentice Hall IT-RELATED RISKS ORGANIZATIONAL: Competitive, reputation, technical ORGANIZATIONAL: Competitive, reputation, technical PERSONNEL: Personnel and expertise, non-use & unintentional misuse PERSONNEL: Personnel and expertise, non-use & unintentional misuse SYSTEMS PROJECT: Control design, project delay SYSTEMS PROJECT: Control design, project delay EXTERNAL SECURITY: External fraud, theft, crime. Extraordinary event EXTERNAL SECURITY: External fraud, theft, crime. Extraordinary event*

© Prentice Hall RISK vs STAKE* TIME MONETARY VALUE STAKE RISKRISK *Frame, 1994

© Prentice Hall LEWIN/SCHEIN CHANGE MODEL* UNFREEZING: Establish a felt need, create a safe atmosphere UNFREEZING: Establish a felt need, create a safe atmosphere MOVING: Provide necessary information, assimilate knowledge, develop skills MOVING: Provide necessary information, assimilate knowledge, develop skills REFREEZING REFREEZING* *Lewin, 1947, Schein, 1987

© Prentice Hall CHANGE EFFORTS* 1. ESTABLISH SENSE OF URGENCY 2. FORM POWERFUL GUIDING COALITION 3. CREATE A VISION 4. COMMUNICATE VISION 5. EMPOWER OTHERS TO ACT ON VISION * *Kotter, 1995

© Prentice Hall CHANGE EFFORTS* 6. PLAN FOR & CREATE SHORT-TERM WINS 7. CONSOLIDATE IMPROVEMENTS, PRODUCE MORE CHANGE 8. INSTITUTIONALIZE NEW APPROACHES * *Kotter, 1995

© Prentice Hall CHAPTER 12 IT Project Management