1. Chapter 4: Project Integration Management
Information Technology Project Management, Sixth Edition
Note: See the text itself for full citations.

2. Learning Objectives
Describe an overall framework for project integration management as it relates to the other PM knowledge areas and the project life cycle
Explain the strategic planning process and apply different project selection methods
Explain the importance of creating a project charter to formally initiate projects
Information Technology Project Management, Sixth Edition

3. Learning Objectives (continued)
Describe project management plans development, understand the content of these plans, and review approaches for creating them
Explain project execution, its relationship to project planning, the factors related to successful results, and tools and techniques to assist in project execution
Describe the process of monitoring and controlling project work
Information Technology Project Management, Sixth Edition

4. Learning Objectives (continued)
Understand the integrated change control process, planning for and managing changes on information technology projects, and developing and using a change control system
Explain the importance of developing and following good procedures for closing projects
Describe how software can assist in project integration management
Information Technology Project Management, Sixth Edition

5. What is Project Integration Management ?
The integration of all project components (people, plans, work) and coordination of other knowledge areas throughout project life cycle to successfully complete the project
The integration of processes from all project process groups (initiation, planning, execution, control, and closing) throughout project lifecycle to achieve project goals
Information Technology Project Management, Sixth Edition

6. The Key to Overall Project Success: Good Project Integration Management
Integrating all project components (people, plans, work) together to achieve project goals
Maintain good communication and relationships with all stakeholders – interface management
Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle
Many new project managers have trouble looking at the “big picture” and focus on too many details
Project integration management is not the same thing as software integration
Information Technology Project Management, Sixth Edition

7. Example
Nick Carson recently became a project manager of a critical biotech enterprise
The project involved creating HW and SW for a DNA-sequencing instrument
Nick had been the leading software developer on the project before being the project manager
CEO asked him to deliver a production version of the SW for the DNA-sequencing instrument in nine months
Nick had the technical background to make the project success
Information Technology Project Management, Sixth Edition

8. Example (cont.) Nevertheless, top management was upset because:
Nick performed the role of SW integrator instead of project manager
He focused on technical issues rather than management issues and ignored the big picture of the project
He never provide top management with detailed plans or accurate schedules
He ignored key stakeholders (top management) and focus on his technical team
He thought the project integration management means SW integration
Information Technology Project Management, Sixth Edition

9. What Went Wrong?
The Airbus A380 megajet project was two years behind schedule in Oct. 2006, causing Airbus’ parent company to face an expected loss of $6.1 billion over the next four years
The project suffered from severe integration management problems, or “integration disintegration...Early this year, when pre-assembled bundles containing hundreds of miles of cabin wiring were delivered from a German factory to the assembly line in France, workers discovered that the bundles, called harnesses, didn't fit properly into the plane. Now Airbus will have to go back to the drawing board and redesign the wiring system.”*
*Matlack, Carol. “First, Blame the Software,” BusinessWeek Online (October 5, 2006).
Information Technology Project Management, Sixth Edition

10. Strategic Planning and Project Selection
Strategic planning involves determining long-term objectives, predicting future trends, and projecting the need for new products and services
Organizations often perform a SWOT analysis to aid in strategic planning (selecting project)
Analyzing Strengths, Weaknesses, Opportunities, and Threats
As part of strategic planning, organizations:
Identify potential projects
Use realistic methods to select which projects to work on
Formalize project initiation by issuing a project charter
Information Technology Project Management, Sixth Edition

11. Example: SWOT
A group of four people want to start new business in film industry
They create SWOT analysis as follows:
Strengths:
We have numerous contact in the film industry
Two of us have strong sales and interpersonal skills
Two has strong technical skills and familiar with sw tools
We all have impressive samples of completed projects
Weakness
No accounting/financial experience
No clear marketing strategy for product and services
Information Technology Project Management, Sixth Edition

12. Example (cont.) Opportunities Threats
Little money to invest in new projects
No company website and limited use of technology
Opportunities
Current client has mentioned a large project
Film industry continues to grow
Two major conferences this year where we could promote our company
Threats
Other companies can provide services we can
Customers prefer well established organization
High risk in film business
Information Technology Project Management, Sixth Edition

13. Example (cont.) Identifying Potential Projects
Find an external accountant to help run the business
Hire website developer
Develop a marketing plan
Develop a strong proposal to get the large project of the client
Plan to promote the company at two major conference this year
Information Technology Project Management, Sixth Edition

14. Mind Map of a SWOT Analysis to Help Identify Potential Projects
Information Technology Project Management, Sixth Edition

15. Information Technology Strategic Planning Process
Information Technology Project Management, Sixth Edition

16. Methods for Selecting Projects
There are usually more projects than available time and resources to implement them
Methods for selecting projects include:
Focusing on broad organizational needs
Categorizing information technology projects
Performing net present value or other financial analyses
Using a weighted scoring model
Information Technology Project Management, Sixth Edition

17. Focusing on Broad Organizational Needs
Project that meet broad organization needs are more likely to be successful
Broad organization needs such as
Improve safety
Increase morale (emotional condition, cheerfulness)
Provide better communications
Improve customer services
Selection based on the following criteria:
There is a need for the project
There are funds available
There’s a strong will to make the project succeed
Information Technology Project Management, Sixth Edition

18. Categorizing IT Projects
One categorization is whether the project addresses:
A problem: is undesirable situations that prevents organization from achieving its goals (example: slow IS needs processor, memory, and storage upgrade)
An opportunity: a chance to improve the organization (ex: new project that can make the organization)
A directive: new requirements imposed by management or government (ex: medical tech must meet rigorous (rigid) government requirements)
It is often easier to get approval and fund for the projects that address problems or directives to avoid hurting the organization
Information Technology Project Management, Sixth Edition

19. Categorizing IT Projects
Another categorization is how long it will take to do the project and when it is needed
Quick project
Project with specific time window
Another is the overall priority of the project
high priority project
medium priority project
low priority project
Always complete high priority project first even med. and low could be finished in less time
Information Technology Project Management, Sixth Edition

20. Financial Analysis of Projects
Financial considerations are often an important consideration in selecting projects
Three primary methods for determining the projected financial value of projects:
Net present value (NPV) analysis
Return on investment (ROI)
Payback analysis
Information Technology Project Management, Sixth Edition

21. Net Present Value Analysis
Net Present Value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
Projects with a positive NPV should be considered if financial value is a key criterion
The higher the NPV, the better
Information Technology Project Management, Sixth Edition

22. Calculating NPV using Excel
Information Technology Project Management, Sixth Edition

23. JWD Consulting NPV Example
Note: See the template called business_case_financials.xls
Information Technology Project Management, Sixth Edition

24. NPV Calculations
Determine estimated costs and benefits for the life of the project and the products it produces
Determine discount rate r (capitalization rate): it is the rate used in discounting future cash flow.
Calculate the discount factor, f, of year t as follows:
Information Technology Project Management, Sixth Edition

25. Return on Investment
Return on investment (ROI) is calculated by subtracting the project costs from the benefits and then dividing by the costs
ROI = (total discounted benefits - total discounted costs) / discounted costs
The higher the ROI, the better
Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects
Internal rate of return (IRR) can by calculated by finding the discount rate, r, that makes the NPV equal to zero
Information Technology Project Management, Sixth Edition

26. Payback Analysis
Another important financial consideration is payback analysis
The payback period is the amount of time it will take to recoup (reimburse), in the form of net cash inflows, the total dollars invested in a project
Payback occurs when the net cumulative discounted benefits equals the cummulative costs
Many organizations want IT projects to have a fairly short payback period
Information Technology Project Management, Sixth Edition

27. Charting the Payback Period
Information Technology Project Management, Sixth Edition

28. Weighted Scoring Model
A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria
Identify criteria important to the project selection process
Assign weights (percentages) to each criterion so they add up to 100%
Assign scores to each criterion for each project
Multiply the scores by the weights and get the total weighted scores
The higher the weighted score, the better
Information Technology Project Management, Sixth Edition

29. Sample Weighted Scoring Model for Project Selection
Information Technology Project Management, Sixth Edition

30. Project Integration Management Processes
Develop the project charter: working with stakeholders to create the document that formally authorizes a project—the charter
Develop the project management plan: coordinating all planning efforts to create a consistent document—the project management plan
Direct and manage project execution: carrying out the project management plan by performing the activities included in it
Information Technology Project Management, Sixth Edition

31. Project Integration Management Processes (continued)
Monitor and control the project work: overseeing project work to meet the performance objectives of the project
Perform integrated change control: coordinating changes that affect the project’s deliverables
Close the project or phase: finalizing all project activities to formally close the project or phase
Information Technology Project Management, Sixth Edition

32. Project Integration Management Proceses
Information Technology Project Management, Sixth Edition

33. Integration management processes summary
Information Technology Project Management, Sixth Edition

34. Project Charters Process
After deciding what project to work on, it is important to let the rest of the organization know
A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management
Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project; a signed charter is a key output of project integration management
Information Technology Project Management, Sixth Edition

35. Contents of a project charter
Project title and date of authorization
Project manager name and contact info
A summary schedule include the planned start date and finish date
Project budget
Project objectives
Project success criteria
A planned approach for managing the project
Roles and responsibilities
Sign-off section
comments
Information Technology Project Management, Sixth Edition

36. Project Charter for the DNA-Sequencing Instrument Completion Project
Information Technology Project Management, Sixth Edition

37. Charter (continued)
Information Technology Project Management, Sixth Edition

38. Project Management Plan Process
A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control
Plans created in the other knowledge areas a (scope plan, time plan, cost plan,…) are parts of the overall project management plan
Information Technology Project Management, Sixth Edition

39. Project management plan contents
Every project is unique
Every project has a unique project management plan depends on its nature and size
There are common elements in most project management plans
Information Technology Project Management, Sixth Edition

40. Common Elements of a Project Management Plan
Introduction or overview of the project
Description of how the project is organized
Management and technical processes used on the project
Work to be done (WBS)
Schedule
Budget information
Information Technology Project Management, Sixth Edition

41. Introduction Project name
A brief description of the project(needs, goals, estimated time, and cost)
Sponsor name and contact information
Project manager, key team members, name and contact information
Deliverables (sw, hw, technical reports, and training materials)
A list of important reference materials (project history and plans in other knowledge area)
A list of definition and acronyms
Information Technology Project Management, Sixth Edition

42. Description of project organization
Organizational charts:
Company organizational chart
Customers organizational chart
Project organizational chart :authorities, communications, and people
Project responsibilities: functions and activities, people assigned to them
Other organizational information: processes and major steps involved in them
Information Technology Project Management, Sixth Edition

43. Management and technical processes
Management objectives: top management’s view, priorities, major assumptions, and constraints
Project control: how to monitor project progress and handle changes
Risk management: how to identify, manage, and control risks
Project staffing: number and types of people required for the project
Technical processes: specific methodologies a project might used
Computer Aided Software Engineering (CASE) tools for software development
Specific format for technical reports
Information Technology Project Management, Sixth Edition

44. Work to perform(WBS)
Major work packages: use WBS to identify different work packages, provide a scope statement to describe them (refer to scope management plan)
Key deliverables: describe key products and their expected quality
Other work-related information: for example specific HW and SW used in the project
Information Technology Project Management, Sixth Edition

45. Schedule
Summary schedule: planned completion dates for key deliverables
Detailed schedule: provide more information on project schedule and discuss the dependencies that could affect the schedule (refer to schedule management plan)
Other schedule-related information: discuss assumptions in preparing project schedule
Information Technology Project Management, Sixth Edition

46. Budget Summary budget: total estimate of the overall project’s budget
Detailed budget: more detailed information on the budget (refer to cost management plan)
Other budget-related information: assumption, other important information related to financial aspects of the project
Information Technology Project Management, Sixth Edition

47. Creating Project Management Plan
Using software tools such as Microsoft Project 7 that provides templates and guidelines for preparing project management plan
Using agencies guidelines
DOD standard 2167, software project management plan
IEEE standard
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48. Sample Contents for a Software Project Management Plan (SPMP)
Information Technology Project Management, Sixth Edition

49. Project Execution Process
Project execution involves managing and performing the work described in the project management plan
The majority of time and money is usually spent on execution
The application area of the project directly affects project execution because the products of the project are produced during execution
Information Technology Project Management, Sixth Edition

50. Coordinating Planning and Execution
Project planning and execution are intertwined and inseparable activities
Project plan guides project execution
Good plan should help produce good products
Plans should document what good work results consist of
Experience gained from completed project is used to update plans
Information Technology Project Management, Sixth Edition

51. Coordinating Planning and Execution (cont.)
Those who will do the work should help to plan the work
Project team should develop skills in both planning and execution
In IT projects, programmers who create the code also write detailed specs (plans) of it
System analysts begin their career as programmers, so they understand what type of analysis they need to write a good code
Information Technology Project Management, Sixth Edition

52. Important Skills for Project Execution
General management skills like leadership, communication, and political skills
Technical and product, business, and application area skills and knowledge
In small project, project manager needs technical knowledge because they may need to do part of the work
In large project, project manger needs business and application knowledge more than technical knowledge
Use of specialized tools and techniques
Information Technology Project Management, Sixth Edition

53. Project Execution Tools and Techniques
Expert judgment: experts can help project managers and their teams make many decisions related to project execution (methodology, training approach, programming language, …)
Project management information systems: there are hundreds of project management software products available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet (Microsoft Project 2007 Appendix A) creates
Gant chart, network diagram, critical path analysis, …
Information Technology Project Management, Sixth Edition

54. Monitoring and Controlling Project Work
Monitoring project work includes collecting, measuring, and disseminating performance information in the form of performance report
A baseline (basis for judgment): is the approved project management plan plus approved changes
performance metrics: work performed, key deliverables, dates for completing deliverables, cost
Work should be done as planned otherwise an approved change request should be issued
Changes are inevitable on most projects
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55. Performance reports
Used to monitor project execution and control changes
Alert project manager to the issues that are causing problems and degrade performance
Project manager should decide if corrective or preventive actions are needed
Corrective actions should result in improvement in project performance
Preventive actions reduce the probability of negative consequence associated with project risk
Information Technology Project Management, Sixth Edition

56. Integrated Change Control
Identifying, evaluating, and managing changes throughout the project life cycle
Three main objectives are:
Identifying the factors that create changes to ensure that changes are beneficial
Determining that a change has occurred and communicate significant changes to stakeholders and top management
Managing actual changes as they occur
Information Technology Project Management, Sixth Edition

57. Change Control on Information Technology Projects
Former view: the project team should strive to do exactly what was planned on time and within budget
Problem: stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate
Modern view: project management is a process of constant communication and negotiation
Solution: changes are often beneficial, and the project team should plan for them
Information Technology Project Management, Sixth Edition

58. Change Control System
A formal, documented process that describes when and how official project documents and work may be changed
Describes who is authorized to make changes and how to make them
Information Technology Project Management, Sixth Edition

59. Closing Projects and Phases
To close a project or phase, you must finalize all activities and transfer the completed or cancelled work to the appropriate people
Main outputs include:
Final product, service, or result transition
Final report, historical info, lesson learned
Information Technology Project Management, Sixth Edition

60. Using Software to Assist in Project Integration Management
Several types of software can be used to assist in project integration management
Documents can be created with word processing software
Presentations are created with presentation software
Tracking can be done with spreadsheets or databases
Communication software like and Web authoring tools facilitate communications
Project management software can pull everything together and show detailed and summarized information
Business Service Management (BSM) tools
track the execution of business process flows
alignment project with business goals
Information Technology Project Management, Sixth Edition

61. Chapter Summary
Project integration management involves coordinating all of the other knowledge areas throughout a project’s life cycle
Main processes include:
Develop project charter
Develop project management plan
Direct and manage project execution
Monitor and control project work
Perform integrated change control
Close the project or phase
Information Technology Project Management, Sixth Edition