480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 1 IT Project Management  Lecture 4 Objectives:  Understand the ‘Systems View’ of Project Management and its implications for project success

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 2 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 or will be situated within the larger organization

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 3 Projects Cannot Be Run In Isolation! “ There is so much talk about the system. And so little understanding.” By: Robert M. Pirsig “Zen and the Art of Motor cycle Maintenance”

480 Example to think about  The sales and marketing department has approached the IT department about adding a “shopping cart” feature to the web site. It would allow customers to place orders online, adding and removing items until they are ready to process their order (check out). The IT department is very excited because it would be a very cool technology to work with and put on the site.  But, someone, ideally senior management and the project manager, needs to take a step back and ask… 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 4

480 Questions???  Before we implement that feature, we need to examine how this will affect and be affected by other projects already underway?  What are our competitors doing?  When should this be done in relation to other projects waiting to start?  What legacy systems must we interact with?  Who is the key sponsor and how much support do we really have  etc… 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 5

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 6 “Systems Thinking”  allows projects to be viewed in the context of the entire environment including both inside and outside of the organization  Opposite of analytical thinking.  Analytical thinking, things are broken into progressively smaller parts and more highly specialized disciplines. CIT180, CIT280, CIT380

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 7 “Systems Thinking”  Systems thinking individuals look at the “whole organism” rather than just the parts.  Harold Kerzner wrote: “the ability to analyze the total project, rather than the individual parts is the first prerequisite for successful project management”

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 8 “Systems Thinking”  the ability to examine a problem or issue by first understanding the environment it exists within, before reducing the problem or issue into smaller components and finally managing the resolution of the problem or issue

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 9 ‘System’ Definition  “An organized or complex whole; an assemblage of things or parts interacting in a coordinated way.”  Characteristics  The whole is greater than the sum of its parts (body)  They are dynamic and exhibit some kind of behavior  Scope is in the eye of the beholder (or stakeholder)

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 10 ‘Systems View’  review of the interrelationship of Forces in the various subsystems  Is a dynamic process that integrates all activities into a meaningful total system  Systematically assembles and matches the part of the system into a unified whole  Seeks an optimal solution or strategy in solving a problem

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 11 Systems Terminology  Elements – smallest part of a system being studied (assignable activity or task)  Subsystems – a system is made up of subsystems, smaller systems that are part of a larger system such as the human heart is a subsystem of the human body or the accounts receivable subsystem is a part of the financial software system of the organization (subprojects or summary tasks)  Attributes – quantitative and qualitative characteristics of systems (Project; Cost/budget and Progress Data)

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 12 Systems Terminology  Environment – anything that lies beyond the decision maker’s control yet influences the behavior or outcome of the system  Boundary – what separates the system from the environment.  Most of what a Project Manager does exits on the boundary!

480 Project Environment 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 13

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 14 Systems Terminology Cont.  Objectives – human-made systems are designed to do something.  Constraints - every system has limitations forced on them from internal forces or external forces and sometimes the limits are self controlled  (Scope, Time, Cost; the triple constraints and others)  Requirement – a partial need to satisfy the objective

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 15 Systems Terminology Cont.  System Structure – elements and subsystems are linked together by some form of relationship. (Hierarchical & Network)

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 16 Systems Terminology Cont.  Inputs, Process, Outputs – Human-made systems accomplish things by converting inputs into outputs through a defined process Requirements “black magic” Completed Application

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 17 Systems Terminology Cont.  Open and Closed Systems  Closed – self contained, focus on internal workings (machine). Ignore the environment’s influence.  Open – just the opposite, they interact with the environment and adapt. (humans, organizations, projects)

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 18 Systems Terminology  Integration – “Systems Integration”; All of the elements “assemblage of parts”, must work in unison and adapt to changing environmental requirements for the system to perform optimally.  Performed by Systems Integrators  Managed by Project Managers

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 19 Impact on Project Management  Organizations are Open Systems  They must interact with the environment to survive  Managers must: Appreciate the need to assess forces in the environment Understand the forces that significantly affect their org. Integrate these forces into the organization’s goals, objectives, and operations  Role of the Project Manager Every project is influenced by outside forces, these alone should not be allowed to dictate the conduct of the project Must manage the behavioral and social aspects of the project

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 20 Impact on Project Management  Organizations are Open Systems - examples of projects due to forces in the environment:  The family leave act  2002 Sarbanes-Oxley or “public company accounting reform act and investor protection act”  2004 Tsunami (Indonesia) reconstruction, delayed outsourced tasks  2005 Katrina – New Orleans  2008 Hurricane Gustav – Gulf Coast just west of New Orleans  2008 – ? USA recession

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 21 A Systems View of Project Management  A systems approach emerged in the 1950s to describe a more analytical approach to management and problem solving  Made up of three parts:  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

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 22 A Systems View of Project Management The project management “systems” approach: 1.First take on a systems philosophy, understand the environment 2.Then conduct your systems analysis and finally 3.Perform systems management

480 10/27/2015 Copyright © 2010 Jeff Brewer Purdue University 23 IT Project Management  Lecture 4 Summary:  Understand System View toward Projects  Homework #1 Due Friday (tomorrow)  Lecture 5: Project & Product Methodologies