E. Wainright Martin Carol V. Brown Daniel W. DeHayes Jeffrey A. Hoffer William C. Perkins MANAGINGINFORMATIONTECHNOLOGY FIFTH EDITION CHAPTER 12 IT P ROJECT

E. Wainright Martin Carol V. Brown Daniel W. DeHayesJeffrey A. Hoffer William C. Perkins

MANAGINGMANAGINGINFORMATIONINFORMATIONTECHNOLOGYTECHNOLOGY

FIFTH EDITION

CHAPTER 12

IT PROJECT MANAGEMENT

© 2005 Pearson Prentice-Hall Chapter 12 - 2


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IT Project management requires knowledge of system development methodologies:

SDLC Prototyping RAD Purchasing life cycle



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Project Management Institute (PMI) International society of project workers Certified thousands of professionals since 1984 PM competencies certified by PMI include eight

areas:

Figure 12.1 Eight Project Management Competencies



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Most projects share common characteristics:

1. Risk and uncertainty highest at project start

2. Ability of stakeholders to influence project greatest at project start

3. Cost and staffing levels lower at project start and higher toward end

(PMI, 1996)



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Project:• Temporary endeavor to create unique product or service• Typically is a one-time initiative• Can be divided into multiple tasks• Requires coordination and control• Has a definite beginning and end



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Project:• Temporary endeavor to create unique product or service• Typically is a one-time initiative• Can be divided into multiple tasks• Requires coordination and control• Has a definite beginning and end

Program – a group of projects managed in a coordinated way to obtain benefits not available from managing them individually (PMI, 1996)


IT PORTFOLIO MANAGEMENT

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IT Portfolio – set of IT project initiatives currently in progress, as well as requests for IT projects that have not yet been funded


IT PORTFOLIO MANAGEMENT

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Project categories to help with prioritization: Absolute must A mandate due to security, legal, regulatory, or end-of-life-cycle

IT issues

Highly Desired/Business-Critical Includes short-term projects with good financial returns

Wanted Valuable, but with longer time periods for ROI (more than 12 months)

Nice to Have Projects with good returns, but with lower potential business value

(Denis, et al., 2004)


PROJECT INITIATION

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Project charter

Scope statement

Feasibility analyses Economic Operational Technical


PROJECT INITIATION

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Economic feasibility Formal cost-benefit analysis usually conducted ROI calculated when benefits can be easily measured Alternatives to ROI:

Figure 12.3 Alternatives to ROI for Justifying Investments


PROJECT INITIATION

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Project Manager Characteristics

Project manager can be: IS manager Business manager Both


PROJECT INITIATION

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Project Manager Characteristics

Figure 12.4 Nontechnical Skills for Superior Project Management


PROJECT INITIATION

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Project Sponsor and Champion Roles

Sponsor:

• Participates in the development of the initial project proposal and the feasibility studies • May personally argue for project approval• Is usually the business manager who financially “owns” the project


PROJECT INITIATION

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Project Sponsor and Champion Roles

Champion – a business manager who:

• Has high credibility as organizational spokesperson among user community• Is successful communicator of vision and benefits throughout the project


PROJECT PLANNING

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Three major components: Schedule Budget Staff (project team)


PROJECT PLANNING

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Scheduling

Work breakdown analysis: Identifies phases and task sequence to

meet project goals Estimates time of completion for each task Results in a project master schedule that

identifies date and deliverable milestones


PROJECT PLANNING

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Scheduling

Timeboxing – organizational practice in which a system module is to be delivered to user within a set time limit, such as 6 months

Work breakdown – a basic management technique that systematically subdivides blocks of work down to the level of detail at which the project will be controlled


PROJECT PLANNING

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Budgeting

Two traditional approaches to estimating costs:

Bottom-up Cost elements are estimated for lowest level of work tasks and then

aggregated to give total project cost estimate

Top-down (parametric cost estimating) Provides cost estimates for major budget categories based on

historical experience


PROJECT PLANNING

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Budgeting

Inexperienced estimators may:

1. Be too optimistic about what is needed to do the job

2. Tend to leave out components

3. Not use a consistent methodology, and have difficulty recreating their rationales


PROJECT PLANNING

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Staffing

Project staffing involves:

1. Identifying IT specialist skill mix needed

2. Selecting personnel who collectively have necessary skills and assigning them to work

3. Preparing personnel for specific team member work

4. Providing incentives to achieve project goals


PROJECT PLANNING

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Staffing

Figure 12.5 Counterproductive Characteristics of Project Team Environments

(Based on productivity study by Hughes Aircraft Company in Roman, 1986)

Counterproductive Characteristics


PROJECT PLANNING

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Planning Documents

Two typical planning documents:

Statement of Work (SOW) For the customer High-level document that describes what project delivers and when Contract between project manager and executive sponsor

Project Plan Used by project manager to guide, monitor, and control execution of project Reviewed by managers or committees that oversee project


PROJECT PLANNING

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Planning Documents

Two typical planning charts:

PERT (or CPM)

Gantt


PROJECT PLANNING

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Planning Documents

PERT (or CPM) Graphically models sequence of project tasks and

interrelationships using a flowchart diagram Depicts a critical path – sequence of activities that will take

longest time to complete Helps managers estimate effects of task slippage If used, less likely to have cost and schedule overruns


PROJECT PLANNING

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Planning Documents

Figure 12.6 PERT Chart Example

(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, Prentice Hall, 2001)


PROJECT PLANNING

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Planning Documents

Gantt Graphically depicts estimated times (and later actual times)

for each project task against a horizontal time scale Tasks presented in logical order along with bar graph

showing estimated time duration for each task on a calendar Useful for displaying a project schedule and tracking

progress of a set of tasks against project plan

© 2005 Pearson Prentice-Hall Chapter 12 - 27 Page 431 Figure 12.7 Gantt Chart Example

(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, 1st Edition, Copyright © 2001. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ)


PROJECT EXECUTION AND CONTROL

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Project plan needs to be refined and reassessed throughout life of project

Software project management tools commonly used to help initiate and monitor project tasks

Communication among project team members critical for task coordination and integration

Communication throughout project to all stakeholders is key to project success



Page 431 Figure 12.8 Status Reporting

(Roman, 1986)

Routine Project Status Reporting



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Managing Project Risks

PM Goal: Manage risk of failing to achieve project objectives

Causes of Risk: Human error Project scope changes Unanticipated technology changes Internal politics



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Figure 12.9 Ten IT-Related Risks and Potential Consequences

(Bashein, Markus, and Finley, 1997)

© 2005 Pearson Prentice-Hall Chapter 12 - 32 Page 434 Figure 12.11 Risk Controllability and Impact Grid

(Adapted from Hamilton, 2000)


© 2005 Pearson Prentice-Hall Chapter 12 - 33 Page 434 Figure 12.12 Risk Exposure: Risk versus Stake

(Adapted from Frame, 1994)




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Managing Business Change

Change management: Ability to successfully introduce change to individuals and

organizational units Key to project success Often involves change to power structures that must be recognized Can be facilitated by using change models, such as Lewin/Schein

change model



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Managing Business Change

Figure 12.14 Three Stages of Lewin/Schein Change Model

Lewin/Schein Change Model


PROJECT CLOSING

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IT project deliverables completed

Formal user acceptance obtained or failed project terminated

Common questions for team members: What went right on this project? What went wrong on this project? What would you do differently on the next project, based on your

experience with this project?


SPECIAL ISSUE: MANAGING COMPLEX IT PROJECTS

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Three factors critical to success of large, complex IT projects:

The business vision an integral part of project

A testing approach used at program level (not just individual application level)

Used a phased-release approach (rather than single rollout strategy)


SPECIAL ISSUE: MANAGING COMPLEX IT PROJECTS

Page 437Figure 12.15 Complexity Increases withOffsite and Offshore Resources (1 of 2)

(Adapted from Poria, 2004)

© 2005 Pearson Prentice-Hall Chapter 12 - 39 Page 437Figure 12.15 Complexity Increases withOffsite and Offshore Resources (2 of 2)

(Adapted from Poria, 2004)


SPECIAL ISSUE: POST-MERGER IT INTEGRATION PROJECTS

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What makes for a successful merger? Well-honed IT project management skills, and a program

management structure Retaining IT talent needed for post merger IT integration

efforts Quickly offering attractive retention contracts to key

personnel