1. © Prentice Hall 2002 12.1 CHAPTER 12 IT Project Management

2. © Prentice Hall 2002 12.2 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*

3. © Prentice Hall 2002 12.3 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

4. © Prentice Hall 2002 12.4 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

5. © Prentice Hall 2002 12.5 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?)*

6. © Prentice Hall 2002 12.6 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

7. © Prentice Hall 2002 12.7 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*

8. © Prentice Hall 2002 12.8 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*

9. © Prentice Hall 2002 12.9 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)*

10. © Prentice Hall 2002 12.10 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)*

11. © Prentice Hall 2002 12.11 PROGRAM EVALUATION & REVIEW TECHNIQUE (PERT) CIRCLES ARE ACTIVITIES ARROWS SHOW SEQUENCE VALUES ARE TIME UNITS (NOT TO SCALE) 12 3 4 5 6 78 5.5 3.2 7.0 2.8 10.3 1.9 13.1 1.4 12.0

12. © Prentice Hall 2002 12.12 GANTT CHART January February March April May June

13. © Prentice Hall 2002 12.13 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*

14. © Prentice Hall 2002 12.14 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)*

15. © Prentice Hall 2002 12.15 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*

16. © Prentice Hall 2002 12.16 RISK vs STAKE* TIME MONETARY VALUE STAKE RISKRISK *Frame, 1994

17. © Prentice Hall 2002 12.17 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

18. © Prentice Hall 2002 12.18 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

19. © Prentice Hall 2002 12.19 CHANGE EFFORTS* 6. PLAN FOR & CREATE SHORT-TERM WINS 7. CONSOLIDATE IMPROVEMENTS, PRODUCE MORE CHANGE 8. INSTITUTIONALIZE NEW APPROACHES * *Kotter, 1995

20. © Prentice Hall 2002 12.20 CHAPTER 12 IT Project Management