Management Issues in Systems Development Lecture 28

Management Issues in Systems Development

Lecture 28

Today’s Lecture

Project Management What is Project Management The Job of a Project Manager Change Management Risk Management Tips for Good IT Project Management

Introduction

Companies are in three ‘businesses’:1. Infrastructure Management2. Customer Relationship3. Product Innovation

Traditionally companies have bundled the three (businesses)

Leads to compromises because the three have conflicting agendas

Introduction cont.

IS departments can be viewed as being in the same three businesses:

1. Operations are infrastructure management

2. The help desk is the customer relationship business

3. System development is product innovation

Introduction cont.

Infrastructure management: Goal = reducing costs

Providing infrastructure involves high fixed costsBattle = build scale

Management focus = Efficiency Standards

As we are seeing with operations and network management

Outsourcing?

Introduction cont.

Customer relationship: Goal = provide service PC support & help desks often outsourced

Especially in Europe & Asia (multilingual needs) Outsourcing offshore = increasing dramatically

Product innovation: Goal = speed

Provides nimbleness

Introduction cont.

Key to success = talent In IT, developers are “king” so they are given the

coolest tools

There are a number of management issues surrounding system development:

“Staffing, staffing, staffing”, As well as speed & nimbleness

Project Management

Today, much organizational work is performed via projects

In IS as well as other functions, being able to manage a project to completion, and deliver the expected outcome within the allotted time and budget, has become an increasingly valuable skill

Project ManagementWhat is Project Management?

Project Management is simply the management of a project May sound simple and self-evident BUT = doesn’t

make it easy! Many people get confused/concerned because IT

project management contains the dreaded ‘T’ word – Technology

In reality IT project management is not that much different from other forms e.g. construction

Project ManagementWhat is Project Management? cont.

A project is a collection of related tasks and activities undertaken to achieve a specific goal. All Projects (IT or other) should: Have a clearly stated goal Be ‘finite’

Clear beginning & end IT Project Management:

10% technical, 90% common sense Management styles vary as do backgrounds Key = keeping in mind, and under control the

numerous interdependencies GET THE JOB DONE!


Project Management Institute

Project Management encompasses five processes

1. Initiating2. Planning3. Executing4. Controlling, and5. Closing


– To become a certified PMP = must pass tests covering nine knowledge areas:

1. Integration2. Scope3. Time4. Cost5. Quality6. Human Resources7. Communication8. Risk 9. Procurement

Project ManagementThe Job of a Project Manager

Responsible for the following tasks:1. Setting Up the Project

Why A brief background of the project, and The business objectives to be achieved

What Key outputs to be produced Benefits

Project ManagementThe Job of a Project Manager

When List of milestones and expected timing

High level project plan Who

Project team Stakeholders – and their expectations

How Definition of the work that needs to be

undertaken Scope Specific exclusions

Project ManagementThe Job of a Project Manager cont.

Responsible for the following tasks cont.:

2. Managing the Schedule Schedule / project plan = heart of the project and main

communication tool High level first – then break down as you proceed Baseline and track Use automated tools Recommendations:


1. Focus on the date that tasks are/ will be completed rather than on the % of overall project completed

2. Review progress at least monthly, preferably more often

3. Focus on tasks to be completed Vs. those finished

4. Reforecast when new evidence comes to light


Responsible for the following tasks cont.:

3. Managing the Finances

Financial plan, who is accountable, benefits etc. Baseline costs and track

They will change! Need to know how much has been spent and how

much money is left


4. Managing the Benefits

Difficult to estimate but must try Base on same assumptions as costs Look at timings Track Why are we doing this????

Should we still be doing it?


Responsible for the following tasks cont.:5. Managing Risks, Opportunities and Threats

Risk mitigation and risk management Usually poorly done Risk logs Issue management

6. Soliciting Independent Reviews Health checks (of the project)

By someone independent (could be external)

Project ManagementChange Management

IS often assume a technically elegant system is a successful system. (IT’S NOT!!!)

Many technically sound systems have turned into implementation failures because the people side of the system was not handled correctly

System is only a success if it meets the users’ requirements and they are happy with it and with using it

Project ManagementChange Management

Information technology is all about managing change

New systems require changing how work is done

Focusing only on the technical aspects is only half the job – the other job is change management

Project ManagementChange Management cont.

Changing management = process assisting people to make change in their working environment Change – caused by the introduction of a new

computer system

People resist change, especially technological change, when they view it as a crisis. ‘Resistance’ includes: Deny the change Distort information they hear about the change Convince themselves and others the new system

will not change status quo


ODR (among others) offers a methodology to help companies manage technological change

Type of people involved in a change project Sponsor: the person or group that legitimizes the

change Change agent: the person or group who causes

the change to happen Target: the person or group who is being expected

to change and at whom the change is aimed


Methodology to manage technological change Conduct surveys with all three groups to determine:

Whether the scope of the project is do-able, or whether the organization is trying to change too much at one time

Whether the sponsors are committed enough to push the change through, or whether they are sitting back expecting the organization to change on its own

Whether the change agents have the skills to implement the change, or whether e.g. they are not adept at rallying support

Which groups are receptive to the change and which are resistant

THE BOC GROUPCase Example – Change Management

Industrial gas manufacturer – operates in 60 countries Industry= mature & highly competitive Competition = price & service $35million to improve position – reengineering BOC’s core

processes: 9 reengineering projects over 2 ½ years All team members guaranteed a job after project in

same or equivalent work Teams co-led by Business and Information

Management (IM) process leader, as IT major component of project

THE BOC GROUPCase Example – Change Management cont.

Each team member studied everything, not just a selected area: Existing processes How implementation should be handled Input into the training plan Devise the customer communication plan

Garnering True Executive Sponsorship


President = Executive Sponsor for all teams – not intimately involved with project

Vice presidents & directors = true executive sponsors

ODR teach sponsorship to the nine sponsors over 2 days Sponsors reluctant to go off site – they see no

relevance to program as they could not see any problems


The workshop allowed sponsors to deal with issues of the company’s ability to assimilate change, obstacles and so on

Realization: Teams can only put the tools in place; the organization

had to make the change happen Sponsors need to drive change through the

organization – planning their own strategies and examining possible consequences


One Change Project Process of paperwork for delivering gas products and

invoicing customers Handwritten – into – Point of Delivery handheld

Device (PODD) PODD:

Schedules downloaded overnight = pack truck in night


PODD accept signature of customer – print a receipt

Billing data automatically transmitted to headquarters

Team members absorb each others’ knowledge and become one entity rather than two


Involving Middle Management

Advisory council: Upward job – provide feedback on recommended

changes and implementation issues Downward job – describe recommendations to

employees & get their buy-in


Training the Drivers Created a six-hour training course

“A Day in a Driver’s Life” Perfect day with PODD (handheld device) Harder scenarios

Success – PODD team assessed its people aspects at the outset & mitigated the identified risks by: Holding the sponsorship event Involving middle management via the advisory council Thoroughly informing and training the truck drivers

Project ManagementRisk Management

Not all IT-based projects succeed

Many fail, especially the really large ones e.g. ERP, CRM

30 to 70% fail

Why? = Do not overcome their risks Technical Business

Technical risks Sub-performance, scope creep making it too complex Can’t always be predicted but they can be contained

Project ManagementRisk Management

Business risks

Business does not change properly to use the new systems

Are not as easily righted

Need to:

1. Assess the risk

2. Mitigate the risk

3. Adjust the project management approach

Project ManagementRisk Management cont.

Step 1: Assess the Risks Three predominant risk factors:

1. Leadership of the business change2. Employees’ perspective of the change3. Scope and urgency of the change

• Decision tree (Figure 10-1)

Project leader = executive(s) responsible for the change– Must be a business executive

It is the business, not IT that is required to change


• Contributes to success/failure? – 6 questions:1. Are they committed to the business case?2. Do they understand the extent of change in

work behaviour required for the project to succeed?

3. Are they formally motivated to pull off the change?

4. Are they at the appropriate org. level with the formal power…..?

5. Do they have experience with a project of similar scope, urgency and people impact?

6. Do they have informal power, such as credibility and respect?


Step 2: Mitigate the Risks

Project management styles Authoritative Vs. Participative

Project’s budget and timeframe Rigid Vs. Adjustable

Figure 10-2 Big Bang

Only appropriate when all 3 factors = positive


Improvisation Leadership and employee = positive but

scope or urgency place the project at risk Committed workforce can adapt etc.

Guided Evolution Used when only the employee perception

is negative Can be overcome by involving them

Top-down Coordination Only works when the leadership factor

supports the business change and when the leadership is respected, full-time and highly experienced in leading business change

DOW CORNINGCase Example: Project Management

Successful ERP implementation from 1995 to 1999 Each project phase had different business risks

Realizing this the project executive took a different project management approach in each phase

Phase 0: Get Ready Leadership = High Risk Employee Perception = High Risk Scope and Urgency = High Risk


Phase 1: Understand the New System Use the Improvisation approach of participative

management and flexible deadlines Concerned employee reticence in the later phases

so focus = on building commitment Phase 2: Redesign the Work Processes

Use the Guided Evolution approach of participative management with fixed deadlines

Phase 1 = got them committed but did little to get the work processes redesigned

Continued through the pilot – cutover to SAP at newly acquired European sub.

DOW CORNINGCase Example: Project Management cont.

Phase 3: Implement the ERP Worldwide

Use Top-down coordination with an authoritative management style and flexible timelines

Pilot’s success demonstrated management’s determination and shifted employee perception to the positive

Scope shifted to negative because it was ‘company wide’

DOW CORNINGCase Example: Project Management cont.

Phase 4: Complete Implementation

Use the Big Bang approach of authoritative management and firm deadlines

By the end of 1998, most of the sites had implemented so all the risk factors had turned positive

Initially conversion took 18 months. These later sites = 4

Tips for Good IT Project Management

the Ground Rules Open systems, industry standards, web-enabled etc.

Foster Discipline, Planning, Documentation and Management If the process is not controlled properly, anything can

happen or, more realistically, potentially nothing will happen

Obtain and Document the ‘Final’ User Requirements Don’t get too technical

Tips for Good IT Project Management

Obtain Tenders from All Appropriate Potential Vendors Include Suppliers in Decision Making Convert Existing Data

Task might appear quite simple but often causes the biggest headaches

Follow Through After Implementation Cross the t’s and dot the i’s in terms of

documentation, future maintenance processes etc.

Reasons for Success

Proper PlanningAppropriate User InvolvementStrong Visible Management SupportProject Manager(s) with Power and TimeGood Change ManagementWorking As A TeamProper Project Monitoring and ControlProper Project Closure

Summary

We covered Today,

Project Management What is Project Management The Job of a Project Manager Change Management Risk Management Tips for Good IT Project Management

Summary..


THE BOC GROUPCase Example – Change Management

Documents

Management Issues in Systems Development Lecture 28