Copyright Course Technology 1999 1 Chapter 3: Project Integration Management

Copyright Course Technology 1999

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Chapter 3:Project Integration Management


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The Key to Overall Project Success: Good Project Integration 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 want to focus on too many details


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Project Integration Management ProcessesProject Plan Development: taking the

results of other planning processes and putting them into a consistent, coherent document—the project plan

Project Plan Execution: carrying out the project plan

Overall Change Control: coordinating changes across the entire project


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Figure 3-1. Framework for Project Integration Management


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Interface ManagementInterface management involves

identifying and managing the points of interaction between various elements of the project

Project managers must establish and maintain good communication and relationships across organizational interfaces

Controlling interfaces: large projects


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Large projectsThe number of interfaces must be

controlled forYou must organize large projects into a

collection of small projects going-on in parallel and largely autonomous

For each major component in the WBS, create an autonomous small project and project team

Tom Peters: The best teams sizes are groups of five people, roughly


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Project Plan DevelopmentA project plan is a document used to

coordinate all project planning documents

Its main purpose is to guide project execution

Project plans assist the project manager in leading the project team and assessing project status


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Attributes of Project PlansJust as projects are unique, so are

project plansPlans should be dynamicPlans should be flexiblePlans should be updated as changes

occurPlans should first and foremost guide

project execution


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Common Elements of a Project PlanIntroduction or overview of the projectDescription of how the project is

organizedManagement and technical processes

used on the projectWork to be done, schedule, and budget

information


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Table 3-1. Sample Outline for a Software Project Management Plan (SPMP)

Project Management Plan SectionsIntroduction Project

OrganizationManagerialProcess

TechnicalProcess

WorkPackages,Schedule, andBudget

SectionTopics

Projectoverview;projectdeliverables;evolution ofthe SPMP;referencematerials;definitions andacronyms

Process model;organizationalstructure;organizationalboundaries andinterfaces;projectresponsibilities

Managementobjectives andpriorities;assumptions,dependencies,andconstraints;riskmanagement;monitoringandcontrollingmechanisms;and staffingplan

Methods, tools,andtechniques;softwaredocumentation;and projectsupportfunctions

Workpackages;Dependencies;resourcerequirements;budget andresourceallocation;and schedule

IEEE Std 10581-1987


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Stakeholder AnalysisA stakeholder analysis documents

important (often sensitive) information about stakeholders such as– stakeholders’ names and organizations– roles on the project– unique facts about stakeholders– level of influence and interest in the

project– suggestions for managing relationships


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Table 3-2. Sample Stakeholder AnalysisKey Stakeholders

Ahmed Susan Erik Mark DavidOrganization Internal

seniormanagement

Project team Project team Hardwarevendor

Projectmanager forotherinternalproject

Role onproject

Sponsor ofproject andone of thecompany'sfounders

DNAsequencingexpert

Leadprogrammer

Suppliessomeinstrumenthardware

Competingfor companyresources

Unique facts Demanding,likes details,businessfocus,StanfordMBA

Very smart,Ph.D. inbiology,easy to workwith, has atoddler

BestprogrammerI know,weird senseof humor

Start-upcompany, heknows wecan makehim rich ifthis works

Nice guy,one of oldestpeople atcompany,has 3 kids incollege

Level ofinterest

Very high Very high High Very high Low tomedium

Level ofinfluence

Very high;can call theshots

Subjectmatterexpert;critical tosuccess

High; hardto replace

Low; othervendorsavailable

Low tomedium

Suggestionson managingrelationship

Keepinformed, lethim leadconversations ,do as hesays andquickly

Make sureshe reviewsspecifications and leadstesting; cando somework fromhome

Keep himhappy so hestays;emphasizestockoptions;likesMexicanfood

Give himenough leadtime todeliverhardware

He knowshis projecttakes a backseat to thisone, but Ican learnfrom him


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Project Plan ExecutionProject plan execution involves

managing and performing the work described in the project 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


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What Went Wrong?Many people have a poor view of plans based on past

experiences. Senior managers often require a plan, but then no one follows up on whether the plan was followed.

For example, one project manager said he would meet with each project team leader within two months to review their plans. The project manager created a detailed schedule for these reviews. He cancelled the first meeting due to another business commitment. He rescheduled the next meeting for unexplained personal reasons. Two months later, the project manager had still not met with over half of the project team leaders.

Why should project members feel obligated to follow their own plans when the project manager obviously did not follow his?


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Important Skills for Project ExecutionGeneral management skills like

leadership, communication, and political skills

Product skills and knowledge (see example of “What Went Right?”)

Use of specialized tools and techniques


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Tools and Techniques for Project ExecutionWork Authorization System: provides a

method for ensuring that qualified people do work at the right time and in the proper sequence

Status Review Meetings: regularly scheduled meetings used to exchange project information

Project Management Software: special software to assist in managing projects


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Overall Change ControlOverall change control involves identifying,

evaluating, and managing changes throughout the project life cycle

Three main objectives of change control:– Influence the factors that create changes

to ensure they are beneficial– Determine that a change has occurred– Manage actual changes when and as they

occur


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Figure 3-2. Overall Change Control Process


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Change Control on Information Technology ProjectsFormer 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


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Change Control SystemA 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

Often includes a change control board (CCB), configuration management, and a process for communicating changes


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Change Control Boards (CCBs)A formal group of people responsible

for approving or rejecting changes on a project

Provides guidelines for preparing change requests, evaluates them, and manages the implementation of approved changes

Includes stakeholders from the entire organization


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Making Timely ChangesSome CCBs only meet occasionally, so

it may take too long for changes to occur

Some organizations have policies in place for time-sensitive changes– “48 hour policy” allowed project team

members to make decisions, then they had 48 hours to reverse the decision pending senior management approval


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Configuration ManagementEnsures that the products and their

descriptions are correct and completeConcentrates on the management of

technology by identifying and controlling the functional and physical design characteristics of products

Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements


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Table 3-3. Suggestions for Managing Overall Change Control

View project management as a process of constant communications and negotiations

Plan for change Establish a formal change control system,

including a Change Control Board (CCB) Use good configuration management Define procedures for making timely decisions

on smaller changes Use written and oral performance reports to

help identify and manage change Use project management and other software to

help manage and communicate changes


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Need for Top Management CommitmentSeveral studies cite top management

commitment as one of the key factors associated with project success

Top management can help project managers secure adequate resources, get approval for unique project needs in a timely manner, receive cooperation from people throughout the organization, and learn how to be better leaders


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Table 3-4. What Helps Projects Succeed?

1987 Pinto and Slevin Clear project mission Top management

support Good project

schedule/plan Good client

consultation

1995 Standish Group User involvement Executive

management support Clear statement of

requirements Proper planning


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Need for Organizational Commitment to Information Technology (IT)If the organization has a negative

attitude toward IT, it will be difficult for an IT project to succeed

Having a Chief Information Officer (CIO) at a high level in the organization helps IT projects

Assigning non-IT people to IT projects also encourages more commitment


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Need for Organizational StandardsStandards and guidelines help project

managers be more effectiveSenior management can encourage

– the use of standard forms and software for project management

– the development and use of guidelines for writing project plans or providing status information

– the creation of a project management office or center of excellence


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Discussion QuestionsWhat are some of the crucial elements of

successful project plan execution? Describe a well-executed project you are familiar with. Describe a disaster. What were some of the main differences between these projects?

Discuss the importance of top management commitment and the development of standards for successful project management. Give examples of projects that failed due to a lack of top management commitment and a lack of organizational standards.


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Chapter 4:Project Scope Management


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Importance of Good Project Scope Management1995 CHAOS study cited user

involvement, a clear project mission, a clear statement of requirements, and proper planning as being important for project success

The program manager of Keller Graduate School of Management cites proper project definition and scope as the main reasons projects fail


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What is Project Scope Management?Scope refers to all the work involved in

creating the products of the project and the processes used to create them

Project scope management includes the processes involved in defining and controlling what is or is not included in the project

The project team and stakeholders must have the same understanding of what products will be produced as a result of a project and what processes will be used in producing them


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Project Scope Management Processes

Initiation: beginning a project or continuing to the next phase

Scope planning: developing documents to provide the basis for future project decisions

Scope definition: subdividing the major project deliverables into smaller, more manageable components

Scope verification: formalizing acceptance of the project scope

Scope change control: controlling changes to project scope


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Project Initiation: Strategic Planning and Project SelectionThe first step in initiating projects is to

look at the big picture or strategic plan of an organization

Strategic planning involves determining long-term business objectives

IT projects should support strategic and financial business objectives


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Table 4-1. Why Firms Invest in Information Technology

Reason for Investing in IT Projects Rank Based on Overall Value of ProjectsSupports explicit business objectives 1Has good Internal Rate of Return (IRR) 2Supports implicit business objectives 3Has good Net Present Value (NPV) 4Has reasonable payback period 5Used in response to competitive systems 6Supports management decision making 7Meets budgetary constraints 8High probability of achieving benefits 9Good accounting rate of return 10High probability of completing project 11Meets technical/system requirements 12Supports legal/government requirement 13Good profitability index 14Introduces new technology 15


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Identifying Potential ProjectsMany organizations follow a planning

process for selecting IT projectsFirst develop an IT strategic plan

based on the organization’s overall strategic plan

Then perform a business area analysisThen define potential projectsThen select IT projects and assign

resources


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Figure 4-1. Information Technology Planning Process


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Methods for Selecting ProjectsThere are usually more projects than

available time and resources to implement them

It is important to follow a logical process for selecting IT projects to work on

Methods include focusing on broad needs, categorizing projects, financial methods, and weighted scoring models


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Focusing on Broad Organizational NeedsIt is often difficult to provide strong

justification for many IT projects, but everyone agrees they have a high value

“It is better to measure gold roughly than to count pennies precisely”

Three important criteria for projects:– There is a need for the project– There are funds available– There’s a strong will to make the project

succeed


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Categorizing IT ProjectsOne categorization is whether the

project addresses– a problem– an opportunity– a directive

Another categorization is how long it will take to do and when it is needed

Another is the overall priority of the project


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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


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Net Present Value AnalysisNet 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


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Figure 4-2. Net Present Value Example

Excel file


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Return on InvestmentReturn on investment (ROI) is income

divided by investment ROI = (total discounted benefits - total

discounted costs) / discounted costs

The higher the ROI, the betterMany organizations have a required

rate of return or minimum acceptable rate of return on investment for projects


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Payback AnalysisAnother important financial consideration is

payback analysisThe payback period is the amount of time it

will take to recoup, in the form of net cash inflows, the net dollars invested in a project

Payback occurs when the cumulative discounted benefits and costs are greater than zero

Many organizations want IT projects to have a fairly short payback period


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Figure 4-3. NPV, ROI, and Payback Analysis for Project 1

Excel file


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Figure 4-4. NPV, ROI, and Payback Analysis for Project 2

Excel file


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Weighted Scoring ModelA weighted scoring model is a tool that provides a

systematic process for selecting projects based on many criteria– First identify criteria important to the project selection process

– Then assign weights (percentages) to each criterion so they add up to 100%

– Then 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 betterSee “What Went Right?” on pg. 87 for a description of

how a mortgage finance agency uses a weighted scoring model for IT projects


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Figure 4-5. Sample Weighted Scoring Model for Project Selection

Excel file


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Project ChartersAfter deciding what project to work on, it

is important to formalize projectsA 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


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Table 4-2. Sample Project Charter Project Title: Information Technology (IT) Upgrade Project Project Start Date: March 4, 1999 Projected Finish Date:

December 4, 1999 Project Manager: Kim Nguyen, 691-2784, [email protected] Project Objectives: Upgrade hardware and software for all employees

(approximately 2,000) within 9 months based on new corporate standards. See attached sheet describing the new standards. Upgrades may affect servers and midrange computers as well as network hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000 for labor costs.

Approach: Update the IT inventory database to determine upgrade needs Develop detailed cost estimate for project and report to CIO Issue a request for quotes to obtain hardware and software

Use internal staff as much as possible to do the planning, analysis, and installation


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Table 4-2. Sample Project Charter (continued)

Name Role ResponsibilityWalter Schmidt, CEO Project Sponsor Monitor projectMike Zwack CIO Monitor project, provide

staffKim Nguyen Project Manager Plan and execute projectJeff Johnson Director of IT Operations Mentor KimNancy Reynolds VP, Human Resources Provide staff, issue memo

to all employees aboutproject

Steve McCann Director of Purchasing Assist in purchasinghardware and software

Sign-off: (Signatures of all above stakeholders)

Comments: (Handwritten comments from above stakeholders, if applicable)This project must be done within ten months at the absolute latest. Mike Zwack, CIOWe are assuming that adequate staff will be available and committed to supporting thisproject. Some work must be done after hours to avoid work disruptions, and overtimewill be provided. Jeff Johnson and Kim Nguyen, Information Technology Department

Roles and Responsibilities:


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Scope Planning and the Scope StatementA scope statement is a document used

to develop and confirm a common understanding of the project scope. It should include– a project justification– a brief description of the project’s

products– a summary of all project deliverables– a statement of what determines project

success


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Scope Planning and the Work Breakdown StructureAfter completing scope planning, the

next step is to further define the work by breaking it into manageable pieces

Good scope definition– helps improve the accuracy of time, cost,

and resource estimates– defines a baseline for performance

measurement and project control– aids in communicating clear work

responsibilities


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The Work Breakdown StructureA work breakdown structure (WBS) is

an outcome-oriented analysis of the work involved in a project that defines the total scope of the project

It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes


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Figure 4-6a. Sample Intranet WBS Organized by Product


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Figure 4-6b. Sample Intranet WBS Organized by Phase


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Table 4-3. Intranet WBS in Tabular Form1.0 Concept

1.1 Evaluate current systems1.2 Define Requirements

1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements

1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief web development team

2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support


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Figure 4-7. Intranet WBS and Gantt Chart in Project 98WBS Gantt Chart

Project 98 file


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Approaches to Developing WBSsUsing guidelines: Some organizations,

like the U.S. Department of Defense, provide guidelines for preparing WBSs

The analogy approach: It often helps to review WBSs of similar projects

The top-down approach: Start with the largest items of the project and keep breaking them down

The bottoms-up approach: Start with the detailed tasks and roll them up


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Basic Principles for Creating WBSs1. A unit of work should appear at only one place in the WBS.

2. The work content of a WBS item is the sum of the WBS items below it.

3. A WBS item is the responsibility of only one individual, even though many people may be working on it.

4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical.

5. Project team members should be involved in developing the WBS to ensure consistency and buy-in.

6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item.

7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.

Cleland, David I. Project Management: Strategic Design and Implementation, 1994


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Scope Verification and Scope Change ControlIt is very difficult to create a good scope

statement and WBS for a projectIt is even more difficult to verify project

scope and minimize scope changesMany IT projects suffer from scope creep

and poor scope verification– FoxMeyer Drug filed for bankruptcy after

scope creep on a robotic warehouse– Engineers at Grumman called a system

“Naziware” and refused to use it


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Table 4-4. Factors Causing IT Project Problems

Factor RankLack of user input 1

Incomplete requirements and specifications 2Changing requirements and specifications 3Lack of executive support 4Technology incompetence 5Lack of resources 6Unrealistic expectations 7Unclear objectives 8Unrealistic time frames 9New Technology 10

Johnson, Jim, "CHAOS: The Dollar Drain of IT Project Failures," Application Development Trends, January 1995, www.stadishgroup.com/chaos.html


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Suggestions for Improving User InputInsist that all projects have a sponsor

from the user organizationHave users on the project teamHave regular meetingsDeliver something to project users and

sponsor on a regular basisCo-locate users with the developers


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Suggestions for Reducing Incomplete and Changing RequirementsDevelop and follow a requirements management

processEmploy techniques such as prototyping, use case

modeling, and Joint Application Design to thoroughly understand user requirements

Put all requirements in writing and keep them current

Create a requirements management databaseProvide adequate testingUse a process for reviewing requested changes

from a systems perspectiveEmphasize completion dates


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Discussion QuestionsGive examples of IT projects and why they

were or were not selected for implementation. What type of project selection process did the organization use?

Discuss the theory and practice behind using project charters, scope statements, and WBSs.

Describe a project that suffered from scope creep. Could it have been avoided? How? Can scope creep be a good thing? When?


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Documents

Copyright Course Technology 1999 1 Chapter 3: Project Integration Management