Project ManagementAn Introduction

OverviewBackgroundProject ManagementDefinition and purposeElements of Project ManagementEnsuring a project is successfulProject management as a tool for strategy formulation and implementationDekar UrumsahSIM*

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ProjectsA General Definition

BackgroundCompetition is increasing as companies are able to rapidly imitate and improve on strategic products and servicesIT is increasingly playing a key role in this activities to the extent that it is now more common to refer to projects business initiatives that require IT enablementProjects with an exclusive IT content and purpose still existDekar UrumsahSIM*

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BackgroundWith every project there are huge of issues that require strict managementOne such very important area is that of Risk ManagementMost projects by their nature will consume resources and as a consequence a failed project could have serious consequence for an organisationDekar UrumsahSIM*

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BackgroundExamples of Project failures include;Australia- WestPac CS90USA- Oxford Health Plans IncOracle database project completed Sept 1996Company cited this failure as a possible factor in of 3rd quarter losses of $78m and additional 1st quarter income loss of $45mDekar UrumsahSIM*

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What is a Project?Directed at achieving a specific objective or set of objectives within a well defined time boundaryOne off activityThe tasks performed are out of the scope of normal operationsMay require specialist skills, resources, and capabilities of the organisation Dekar UrumsahSIM*

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DefinitionPearlson (2001, p218);A temporary effort undertaken to create a unique product or service.Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing way from similar products and servicesDekar UrumsahSIM*

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CharacteristicsDekar UrumsahSIM*Adapted, Pearlson (2001)

CharacteristicsNormal OperationsProjectLabour skillsLowHighTraining timeLowHighWorker autonomyLowHighCompensationHourly, weekly, monthly wageLump sum or contractMaterial input requirementsHigh degree of certaintyUncertainSupplier tiesLonger durationShorter durationRaw materials inventoryLargeSmallScheduling complexityLowerHigherQuality controlFormalMay be informalInformation flowsLess importantVery importantCommunicationLess importantVery importantDurationOn-goingTemporaryProduct or serviceRepetitiveUnique

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IT Project Vs Non IT ProjectIn the todays business world, this distinction is rapidly blurringMost Business projects have an IT enablement requirement, most IT projects fulfill a business needDekar UrumsahSIM*

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Project Success MetricsGeneral;On timeOn budgetMeets specificationsDelivers benefitsOthers;Software metricsNumber of lines of codeFunction pointsMan Hours (actual vs projected) etcHardware metricsAvailabilityUptimeThroughput etc

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Project ManagementDefinition and Purpose

Why Project ManagementCook and Pritchard (in Cleland 1998) argue that project management;Is a proven practiceIs a time saverIs a money/cost saverOptimize organisational efficiencyMeet customer needsDekar UrumsahSIM*

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Why Project ManagementOver the past fifty years or so more and more organisations have embraced PM as a disciplineConstruction industry was one of the first to use network diagrams, Work Break Down Structures (WBS) and Gantt ChartsProject Management now recognised as a value added profession with its own professional associations and institutionsDekar UrumsahSIM*

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DefinitionPearlson (2001, p219);Application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectation from a projectPM involves trade-offs;Scope vs TimeCost vs QualityExpectations vs RealityIdentified requirements vs Unidentified requirementsNeeds vs Wants (of different stakeholders!)Dekar UrumsahSIM*

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Project Managers RoleEnsure progress according to defined metricsIdentify risks and assess probability of occurrenceEnsure progress within constraints of time and resourcesCoordinate project activitiesNegotiate for resources on behalf of the projectDekar UrumsahSIM*

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Project ManagementElements of Project Management

Typical Project CycleFor ease of management, projects are typically broken down into phasesThese phases are usually estimates of time periods that will be required to complete certain tasksThe time continuum is punctuated by milestones (project gates) that specify review and evaluation pointsTypically these milestones will specify deliverables which determine the state of the project (may be tied to funding)Dekar UrumsahSIM*

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Typical Project Life CycleDekar UrumsahSIM**Project Life Cycle typically follows a bell shaped curve, peaking between implementation and termination

PhaseTask(s)Typical Deliverable(s)1PlanningProject Proposal2DevelopmentApproval to proceed3ImplementationSystem (Built or Acquired)4TerminationFinalise and prepare for testing

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Typical Project Cost CurveDekar UrumsahSIM*100%PlanningTerminationImplementationDevelopment*Not to scaleTotalProjectCostsTime

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The 10 ElementsSpecifying requirementsStructuring the projectSelecting the project teamPlanning and administrationRisk and opportunity managementProject controlVisibilityStatusCorrective actionLeadershipDekar UrumsahSIM*

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1. Requirements SpecificationDetermine what the deliverables areThis may require;Systems analysis and designDetermining stakeholdersModeling the specificationAssigning accountabilitySpecifying and defining proposed benefitsDetermining metricsetcDekar UrumsahSIM*

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2. Structuring The ProjectDetermine what the most suitable structure for the project will be;Pure functional structureSingle projectPure project structureMultiple projectsMatrix structureMultiple projects and unitsStructure will depend on organisational factorsDekar UrumsahSIM*

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3. Selecting The Project TeamProject Manager must acquire and manage all required resourcesSelection MUST be based on skill setsThis task becomes decidedly more complex in large environments with multiple projects running concurrently, such Matrix environmentsManaging people may be more difficult than managing the technical aspects of projectDekar UrumsahSIM*

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4. Planning and AdministrationBreak down project into manageable chunksSequence them so that they feed into each other correctlyStick to deliverables, attention to detail is criticalPlanning is an ongoing process throughout the life of the projectUse appropriate software tools to assist you in scheduling and managing your project eg MS ProjectDekar UrumsahSIM*

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5. Risk and Opportunity ManagementAs with planning, this is an ongoing task through out the projectIdentify risks and opportunitiesAssess likelihood of occurrenceAssess strength of potential impact of risks so you can minimise themAim to maximise on all possible opportunitiesMy advice- Always make sure you have a Plan BDekar UrumsahSIM*

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What is RISK?There are many definitions of riskSample definition;the probability of a material deviation from an anticipated outcomeThus;Risk is a probabilityRisk refers not just to probabilities of losses, or of gains, but to probabilities of deviations either downward losses or upward gains. Risk exists only if an objective existsDekar UrumsahSIM*

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Potential Project Risk AreasCost Analysis- NPV, IRR, Cost/BenefitOpportunity lostVendor managementSoftware development practicesPolitical riskProject Variables- Size, investment, technical riskBenefit risks- Business impact, customer needs, ROI, Organisational impact, expected improvements etcSolution risks- flexibility, compatibility, scalability, etc.Dekar UrumsahSIM*

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6. Project ControlVariables affecting quality of project control;Nature and number of entities to control- eg changes, tasks, people etcControl standards and project metrics Control authority- task responsibilitiesControl mechanisms- As defined in project scopeVariance detection- deviations from set pathsDekar UrumsahSIM*

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7. VisibilityManage intra and inter project communicationEnsure that all stakeholders are kept abreast of developments- e.g. have a newsletter for the projectUse all available resources for communication esp. regular meetings- Management by Walking around (MBW), face to face, teleconference, video conference, etcDekar UrumsahSIM*

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8. StatusMonitor all deliverablesEnsure that all milestones are achievedContinuously update project plan and communicate with all stakeholdersDekar UrumsahSIM*

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9. Corrective ActionWill depend on project statusMust be directed and specificEvaluate impact of corrective action before implementing taking into account knock on effect on subsequent tasksDekar UrumsahSIM*

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10. LeadershipManagement quality that combine the previous nine elementsLack of appropriate leadership can result in motivated people doing the wrong thingStrong leaders manage team dynamics, reward systems, and other factors to ensure project successDekar UrumsahSIM*

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Project TerminationEnsure you have an exit strategy to deal withTeam membersCustomersEnd usersSubcontractorsManagementProject manager (if outsourced)Dekar UrumsahSIM*

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Project TerminationThree types of termination;Positive terminationAll or most objectives metNegative terminationFailed projectPremature terminationWhen it becomes unlikely that project objectives will be metDekar UrumsahSIM*

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Ensuring Success - Ex Ante (before the event)Over and above the 10 elements, you need to create the right environment for project success;Project missionTop management supportHave accurate project plans and schedulesStakeholder consultation and involvementRecruit the right personnelUse appropriate technologyMonitoring and feedbackCommunicationIdentify risksDekar UrumsahSIM*

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Measuring Project Success- Ex Post (after the action)Four dimensions of success;Resource constraints- does project meet established time and budget criteria?Impact on customers- what are the benefits to our customers?Business success - what is the income/cost impact? Did the project meet investment goals?Future proofing - has the project enhanced portfolio such that we can build on it with future products and services?Dekar UrumsahSIM*

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Project Management Software

Project Management SoftwareMainstreamMicrosoft Project (Microsoft Corporation)SureTrak (Primavera Systems)Project Scheduler (Scitor Corporation)Time Line (Time Line Solutions)SuperProject (Computer Associates)Turbo Project (IMSI)Dekar UrumsahSIM*

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Project Management SoftwarePower users;Primavera Project Planner (Primavera Systems)Open Plan Professional (Welcome Software Technology)ProjectView (Artemis)Schedule Publisher (Advanced Management Solutions)SAS or Project Management (SAS Institute)Dekar UrumsahSIM*

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Project Management SoftwareClient/Server Platforms;Team Workbench and ABT Repository (ABT Corporation)Projectview (Artemis)AutoPLAN II (Digital Tools Inc)PROJECT /2 Series /X (PSDI)XPM partners (XPM Enterprise Work Management)Cascade (Mantix)Primavera Scheduling Engine & Automation Server (Primavera Systems)Panorama (Panorama Software)Dekar UrumsahSIM*

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Project Management As A ToolStrategy Formulation And Implementation

Success IS/IT using PMSuccess with IS/IT strategy formulation and implementation is more likely when;Corporate strategy existsIS/IT strategy exists and is closely aligned with overall corporate strategyPM is used and applied consistently to projectsThere is a built in learning process through which the organisation learns from previous projectsDekar UrumsahSIM*

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Success Probability MatrixDekar UrumsahSIM*(adapted Robson (1997)

Formal Project Management usedNo Formal Project ManagementIS/IT Strategy ExistsSuccess is LIKELYSuccess is POSSIBLENo IS/IT StrategyProblems are LIKELYFailure is EXPECTED

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SummaryProject Management is increasingly being used as a process for ensuring the delivery of project in general and IS/IT projects in particularPM is used to address manage tasks or group of tasks that may fall outside the scope of normal day to day operations. Such tasks are typically referred to as a projectDekar UrumsahSIM*

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SummaryWhilst the use of PM as a discipline may not guarantee success, but it does however increase the probability of successThe role of the project manager is criticalEvery project follows a typical project life cycle and we have identified 10 elements that combined with PM contribute greatly towards project successDekar UrumsahSIM*

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