1. CHAPTER 14 MANAGING PROJECTS

2. 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

3. Project Management (Problem Summary) Costs exceed budgets Time overruns Poor performance Benefits not realized

4. Why Projects Fail

5. Roles in Project Management

6. 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

7. Project Management (Definition) The application of knowledge, skills, and tools to achieve specific targets within specific budget and time constratints

8. 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

9. Project Management (Tasks) Assign tasks Control project execution and project timeline Define scope of project Beware of scope creep While we are at it….

10. 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

11. 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

12. Project Risk Risk management is a new industry buzzword We assess risk based on several dimensions Size and complexity Level of structure Technical expertise

13. Project Risk (Size) Project risk increases as Project size grows Project complexity grows Because Large projects become more difficult to manage

14. 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

15. 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

16. 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

17. Project Planning Create a project charter which clearly lists Scope Objectives Constraints Assumptions Create a project plan and timeline Pert and Gantt charts

18. 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

19. Types of Outsoucring Onshore Nearshore Offshore

20. 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

21. 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

22. 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