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    224 views37 pages

    Introduction To Project Management

    Uploaded by

    Paula Neagu
    Introduction to Project management

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    © All Rights Reserved
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    lutroduction to Project Management After reading this chapter, you will be able to: 1. Understand the yrowing need for better project management, especially far information technology projects | 2. Explain what a project is, provide examples of information technology projects, i Jist various attributes of projects, and describe the triple constraint of projects | 3. Describe project management and discuss key elements of the project man- | agement framework, including project stakeholders, the project management knowledge areas, common tools and techniques, and project success factars 4. Understand the role of the project manager by describing what project man- : agers do, what skills they need, and what the career field is like for informa- tion technofagy project managers | 4. Describe the project managernent profession, Including its history, the role of professional organizations jike the Project Management Institute, the i importance of cariification and ethics, and the growth of project manage- { ment software OPENING CASE 4 nine Roberts, the new Dirccior of the Project Management Office for a large retail chain, stood in front of five bundred people in the large corporate auditorium to explain the company’s new strategies. She was also broadcasting Lo thousands of other employees, suppliers, and stockholders throughout the world via the Internet. The company had come a long way in implementing new information systems 10 improve inventory control, sell products using the Web, and streamline the sales and distribution processcs. CHAPTER 1 However, the stock price was down, the nation’s cconamy was weak, and people were anxious tu hear about the company's new strategies. Anne began 10 address the audience, “Good morning. As many of ion as Director of do in this depart- you know, the Project Management Office. Most af what w our CEG promoted me to a new po: ment involves projects, and my role in this new position is to turn the company around by helping us effectively select and manage those projects, Our challenge is to develop a culture in which we all work logether {0 provide high-quality goads and services (o our con- sumers while earning a profit in this difficult market. To meet this challenge, we nist collaborate to focus on finding solution plex problems, We must decide what projecis will most benefit the company, haw we can cu is Lo corm nue to leverage the power of infor nation icchnology to support our business, and how we can exploit our human capital to successfully plan and execute those projects. If we sui cd, we'll become a world-class corporation.” “and if we fail? “Let's just say that failure is not an option,” Anne replied. ” someone asked from the audience, INTRODUCTION Many people aru! organizations today have a new or renewed interest in proj ecLinanagement, Until the 1980s, project management primarily focused on providing schedule and resaurce tlala io top management in the military arul construction inulusiries. ‘today’s project management involves much more, and people in every industry and every country manage projects, New technologies have become a significant lacior in many businesses. Computer hardware. solt= ware, networks, and the use of interdisciplinary and global work icams have radically changed the work environment. The stalistics below demonstrate the significance of project manayemicn| in today's society, especially for projects involving informatinn technology (IT): @ A 2001 report showed that the U.S. spends $2.3 willion on projects every year, an amour equal (o one-quarter of the nation’s gross damestic prod- ucl. ‘The world as a whole spends nearly $10 trillion of its $40.7 Willion ross product on projects of all kinds, More than sixteen million people regard project management as their prolession,! | Project Mansy Edition, 2007 jena Institute (PML), The PAT Project Man 1H Fact Book, Seeond INTRODUCTION TO PROJECT MANAGEMENT 3 @ Worldwide TP spending is cxpeered te grow by between 4 percent and 6 percent in the next few years. Forrester Research estimated that tech nology spending in the United States would total $752 billion in 2004, an increase of 4.4 percent aver 2003, Forrester also predicts that U.S. IT spending will grow by another 5.7 percent in 2005, to reach $795 billion? 8 fn 2003, Ihe average senisr projeet manager in the U.S, eamed almost $90,000 per year. The average salary of a program manager was $103,464, just slightly less than the average Chie! tuformation Officer {CIO} salary of § 103,925, The average salary for a Project Management Office (PMO} Director was §118,633,* @ In the U.5., the number-one reality television show in 2004, The Apprentice, portrayed the important role project managers play in busine: Fach week of Ihe slow, learns woulil select a project manager to lead chem in accomplishing that week’s project. The project manager sould be held partly responsible for the team’s success or failure, Whether you're uying Loa make money hy selling lemonade, canning a golf tournament, or developing a new information system, project managers play a vital role in business success, today’s companies, governments, and non-profit organizations are recogniz- ing that to be successlul, they need to be conversant with and use modern projec management techniques, Individuals are realizing that to remain come petitive, they must develop skills ta become good project team members and project managers. They also realize that many of the concepts of projecl man- agement will help chem in ihieiroverytlay lives as they work with people and technology on a day-to-day basis. @ivhad wont rirong? in 1995, the Standsh Group published an often-quotedi study entitled “CHAQS". This pres tigious consulting firm surveyed 365 information lechinology executive managers in the United States who managed more than 8,380 information technology application projects. asthe tile of the study suggests, the projects were in a state of chaas. United States com- : rattles suenit niote Usit $250 villian eeel! yea! ir the wally 1990s ur approntiestely 175000) information technology application development projects, Examples of these projects inclided creating new ciatabase fora state denarment of matar vehicles, developing a new system for car rental and hatel reservations, and implementing a client-server archilesc- ture for the banking industry. The survey found that the average cost of an information lechnoloay applicalion developement moject far a large company was more than $23 milk lion; for a medium company, it was mere than $1.3 million; and for asinall company, it was more than $434,000. Their study reported that the oversll success raze of information tech aligy pROjACls was only 16.2 percent, Ihe surveynrs defined success as meeting project goals on time and on budget. 2 Butler, Steve, FP Spending, Analyst Views, ¥ ' Project Management Instinuce (PMI, Pefe brane 2004 start, Td Feline, 2009. * CHAPTER 4 The study also found that more than 21 percent af information technology projects were canceled before completion, costing US, companies and gawarmnent agencies rrare ban $81 billion. The aulhars oof this study were adamant about the need tor better project mar- ement in the information technakagy industry, my explained, "Software development projects are in chaos, andl we can no longer imitate the three mankeys—liear a failures, see na falures, specs no f : lures."4 Many organisations claim that using project management provides advan- tages, such as: @ Better contral of financial, physical, and human resour Improved customer relations Shorter development times Lower ensts Higher quality and increased reliability Higher profit margins Improved productivity Beter internal coordination Higher worker morale this chapter introduces projects and project management, discusses the role of the project manager, aml provides important background information on this growing profession, Although project management applies to many differs ent industries and types of projects, this textbock focuses on applying project management to information (echuulagy projects WHATS A PROJECT? ‘ To disenss project management, it is important to understand the concept af a jnoijec, A project is "a temporary endeavor undertaken to cereale a unique prod uct, service, or result.”? Operations, on the other hand, is work done in organiza tions to sustain the business. Projects are different from operarions in that they end whcu (heir objectives have been reached or the project has been lerminated. Examples of Information Technology Projects Projects can be large or small and involve: ane: person. or thousands of people ‘They can be done in one day or lake years to complete, Information technology 4 fhe Staniish Group, “The CHAOS Report” tw sngroiep cma (1995), Abothe celerence ts Jodmson, Fim, “CHAOS: The Dollar Drain af TT Project Failures.” Apeticason development Vanuary 1995), » Brojevt Management Instirute, Inc. 44 PMBON® Guile) (2004, p. 5. Note: Pay INTRODUCTION TO PROJECT MANAGEMENT projects involve using hardware, softwarv, and/or networks 1o create a product, service, or resuli, Examples of information technology projects include the following a A help desk or echnical worker replaces laptops for a small depariment A small software development tear adds. a new feature te an internal sollware applicalion m@ A college campus upgrades its teclnolagy Tnfrastructure to provide wite- Tess Internet access: A. eross-[unclional task force in a company chase and how it will be implemented lecides what software to pur- @ Acompany develops 4 new system |o increase sales force productivity m A television network develops a system 10 allow viewers lo vate far cone stants aud provide ather feedback on programs a The automobile industy develops a Web site to streamline procurement a A government group develops a system to track child immunizations m A large group of volunteers from organizations throughout the world develops standards for a new communications technology Project Attributes AN you can see, projects come in all shapes and sizes, The following attributes help to define a project further: BA project has a-uerique puerpose. Feery project should have a well-defined abjective, For example, Anne Roberts, the Director of the Project, Management Office in the opening case. might sponsor an information technology collaboration project to develop a list and initial analysis of potential imformation technology projects that might improve operations Jor the company, The unique purpose of this project would be to create a collaborative report with ideas froin people throughout the company, The resulls would provide the basis for further discussions and projects. As in this example. projects result in a unique product, service, or result mA project is teuporary. & project has a delinite beginning and a detinite end. In the information technology collaboration project, Anne might form a tearm of peaple (work immediately on ihe project, and then expect a report and an executive presentation of the results in one month, a A pruject ix developed using progressive elaboration. Projects are often defined broadly when they begin, and as time passes, the specilic details of the project become more ¢lear. Therelore, projects should he deyeloped in increments. & project team should develop initial plang and then update them with more detail based on new information, For example, suppose a Jew people submitted itleas for the informatinn teclnolagy collaboration prejec!, but they did nor elearly address how the ideas would support the CHAPTER 1 business strategy of impeoving operations, The praject team might decide to prepare a questionnaire for people to fill in as they submit their ideas 10 improve the quality of the inputs. mA project requires resorerces, after fos varions aveas. Resources include people. hardware, soltware. or other assets, Many projects cross departmental or other houndaries ta achieve their unique purposes. Far the information technology collaboration project, people from information technology, marketing, sales, distribution, and other areas of the company would need to work te consultants to provide input. Once the project team has selected key proj- ects for implementation, they will probably require additional hardware, software, and network resources, People from other companies—product suppliers and consulting companies —will become resources tor meeting new project objectives. Resources, however, are limited. They must be uses! clicctively 10 meet project and other corporate goals. A projet shoul have 2 primary customer or spomsar, Mes projects have mary interested parties or stakeholders, bur someone must take the primary role of sponsorship. The project sponsor usually provides the direction and funding for the project. In this ease, Anne Roberts would be the span- sor for the information technology collaboration project. Once further information rechnology projects are selected, however, the sponsors for those projects would Le senior managers in charge of the main parts of the company allecied by the projects, For example, il the vice president of sales initiates a project to improve direct produet sales using the Internet, he ur she might be the project sponsor. 1 several projects related ta Internet technologies were undertaken, the organization might form a program. A program is “a group of related projects managed in a cooudi- nated way to obtain benefits and contre not available from managing ihem individually.** A program manager provides leadership for the proj ecl managers directing those projects, and the sponsors might come from several business areas, ther lo develop ideas, The company might also hire outside us 4 project fvalves wecertaiity, Because every project is unique, it is some times difficult to define the project's objectives clearly, estimate how long it will take to complete, or determine how much it will cost. External fac- ives als cause uncertainty, such as a supplier going out of business or a project team member needing unplanned time off. This uncertainty is one ol the main reasons project management fs so challenging, especially on jnrojects involving mew (echnolagics. A good project manager is crucial to a project's success, Project managers work with the project spansors, the project team, and the other people invalved in a projet ta meet project yoals Gabi, p16. INTRODUCTION TO PROJECT MANAGEMENT The Triple Constraint Lyery project is constrained in different ways by its scope, time, and cost These limitations are sometimes reterred to in project management as the triple constraint. To create a successful project, a project manager must eon sider scone, rime, and cost and balance these three often-competing goals. Lle er she must consider the following: gaals. & Scope: What work will be done as part of the project? What unique praduct, service, or result does the customer or sponsor expect from the project? a ‘Hime: How long should it take te complete the project What is the project's schedule? m Cost: What should it cost ta complete the project? What is the project’s budget? gure [+1 illustrates the three dimensions ef the tiple constraint, Hach area scope. time, and cost—has a target at the beginning of the project. For example, the information technology collaboration project might have avy ini tial scope of producing a forty- to fifty-page report and a one-hour presentation on thirty potential information technology projects, The project manager might lurther deline project scape by providing a deseriplion af cacl potential projet, an investigation of whar other companies have implemented for similar proj ects, a rough time and cost estimate, and assessments of the risk and potential payolf as high, ravalium, or low. The initial live cslimate for this project might be one month, and the cost estimate might be $50,000, These expectations provide the targets for the scope, time, and cost dimensions of the project. Managing te triple constrait involves making, trade-all’s between scope, time, and cost goals for a project. For example, you might need to increase the budget for a project to meet scope and time goals, Alternatively, you might lave tw reduce the seepe of # projet Io mee! tiyie and cost goals, Because proj ects involye uncertainty and limited resources, i is rare to complete many proj ects according to the exact scope, time, and cost plans originally predicted. Experienced project managers know that you must decide whieh aspect of the triple constraint is most important, If time is most important, you must often change the initial scope andéor cost goals to meet the schedule. If scope gcals are mos! jinpertant, you may need ta adjust time andfor east goals For example, to generate project ideas, suppose the project manager for the information technology collaboration project sent an e-mail survey to all employees, as planned, The initial time and cost estimate may have been one week and $5,000 10 collect ideas based on this ¢-mail survey, Now, suppose the e-mail survey generated only a few good project ideas, and (he scape waal was to. collect at least thirty yood ideas, Should the project team use a different method like focus groups or interviews to collect ideas? Even thaugh it was not in Che initial seope, line, or cost estimates, iL would really help the project CHAPTER 4 Since good ideas are ¢rucial 10 project success, it would make sense to inform the project sponsor that you want 10 make cost and/or schedule adjustments. Successful project management means meeting all three goals (scope, time, and cost}—and satisiying the project’s spansr! Target Figure 1-1, The Triple Canstraint of Project Management Although the triple constraint deseribes how the hasie elements of a project— scope, time, and cost—interrelate, other elements can also play significant roles. Quality is often a key factor in projects, az is customer or sponsor satistaction, Some people, in lact, refer to thy “quadruple constraint” of project maniagecaunt, including quality along with scope, time, and cost, Others believe thar qualicy considerations, including customer satisfaction, must be inherent in setting the scope, Hime, and cost goals ofa prajee. & project leairy may meet scope, tine, aril cost goals but fail to meet quality standards or satisy their sponsor, if they have not adequately addressed these concerns. For example, Anne Roberts may receive a fifly-paye repent describing thirty potential formation ech ualogy projeels and INTRODUCTION TG PROJECT MANAGEMENT 9 hear a presentation on the findings of the report, The project team may have completed dhe work on time and within the cost constraint, ul Lhe quality may have been unacceptable. Anne's viewy of an executive presentation may be very different from the project team's view. The project manager should be cammuni- cating will ie sporisier Haroughout the prajeet 1a make sure [he project mects his or her expectations. How can you avoid the problems that accur when you meet scope, time. and cost poals, ut lose sight of qjualily or eurstomer satisfaction? The answer is wyjecs mantagersent, whet trclucles more Haart meeting te triple constraiit WHAT 1S. PROJECT MANAGEMENT? Project management is “the application of knowledge, skills, tools and tech niques to project activities to meet project requirements."? Project managers must not only strive to meer specific scape, time, cast, and quality goals of proj- ects, they must also facilitate the entire process to meet the needs and expecta lions of Une people involved in or affected by project activilies Ligure |-2 illustrates a framework to help you understand project manage- ment. Key elements of this tramewark include the project stakeholders, project Management knowledge areas, project management Wools aud ieeliniques, ard the contribution of successfull projects to the enterprise Project Portfolio Projest | Scope Mat ay ie Stakonots rede aret ectations HR Mgt. Tense eae Toots and | fake? JEN ans i Time sg carmen Mat Cost aut Project ineegration Management isk Mat. Quality Precine, Mig Project 6 facilitating Functions Figure 1-2. Project Management Framework Pani, pea 10 CHAPTER 1 Project Stakeholders Stakeholders are che people inyalved in or affected by project activities and include the project sponsor, project team, support staff, customers, users, suji- pliers. and even opponents al Lhe puoje different needs and expectations, For example, building a new house Inown example of a project. There are several stakeholders involved in a heune construction project These stakarhollers often have very a well & The project sponsors would be the potential new homeowners. They would be the peaple paying for the house ared could be orva very tight budget, so Uhey would expert the contractor to provide accurate estimates of the costs involved in building the house. They would also need a realistic idea of when they could move in and what type of home they could alford given their Tnidget constraints. The new homeowners would haye to make important decisions to Keep the costs of the house within their budget. Can they alford to finish the basement right away? If they can afford 10 fenish the basement, will italfeet the projected moye-in date? In this example, the project sponsors are also the customers and users for the product, which is the house. = ‘The project manager in this example would normally be the general con- tractor responsible for building the house. He or she needs io work with all the project stakeholders ts meet their needs and expectations. & The project team for building the hause would include several conseruce Lien workers, electricians, carpenters, and so on, These stakeholders would need to know exacily what work they must do and when they need to do it, They wauld need to know if ilu: required materials and equipment will be at the construction site or if they are expected ta pro vide the materials and equipment, Their work would need to be coat nated since there are many interrelated factors involverl, For example, the carpenter cannot put in kitchen eabiners until the walls are completed. Support staff might include the buyers’ employers, the general contrac tar’s administrative assistant, and orher people who support other stake holders, The buyers’ employers might expect thelr employees to still complete their work bul allow sore flexibility so they can visit the build ing site or take phone calls related to building the house, The cunuaciue’s administrative assistant would support the project by eoorilinating meet ings between the buyers, the contractor, suppliers, and so on. = Building a house requires many suppliers. The supplives winild provide the wood, windows, floaring materials, appliances, and so on. Supplices would expect exact details on what items they need to provide, where and when to deliver those items, andl so an @ There may or may not be opponents of a project. In this example, there might be a neighbor who enposes the project because the workers are taking so much noise that she cannot concentrate on her work a1 home, INTRODUCTION TO PROJECT MANAGEMENT 1 ov the noise might wake her sleeping children. She might interrupt the workers to voice her complaints or even file a formal complaint, Or the neighborhood might have association rules conceming new home design andl cansiruction. I the homeowners did not lollow these rules, they might have to halt construction due to legal issues As you can see (vom tis example, there are many dilferent stakeholders on projects, and they all have different interests, Stakeholders’ neecls and expecta- tions are important in the beginning and throughout the life of a project, Successful project managers develop good relationships with project stakelwold- ers 10 understand and meet their needs and expectations. Project Management Knowledge Areas Project management knowledge areas describe [he key competencies that project managers must develop. The center ol Figure 1-2 shows the nine knowledge areas of projeet management, The four core: knowledge areas of project management include project scope, time, cost, and quality manage meri. These are core knowledge areas because they lead to specilie projcet objectives, Lief descriptions of each core knowledge arva arc as follows: m Project scope management involves defining and managing all the work required to complete the project successtully. & Project time management includes estimating how long it will take 10 complete the work, developing an acceptable: project sehedule, and ensur- ing timely completion al the prejec & Project cost management consists of preparing and managing the budger for the project Project quality management ensures that the praject will satisfy the stated or implied needs for which it was undertaken. ‘The four facilitating knowledge areas ef project management are human resource, communications, risk, aud procurement management. These are called facilitating areas because they are the processes through which the pyroj- ect objectives are achieved. Brief deseriprians of cach facilitating knowledge area are as follows: @ Project human resource management is concerned will making effective use of the people involved with Ihe praject & Project communications management involves generating, collecting, dis- seminating, and storing project information m Project risk management inchuides idenlilying, analyving, and responding to risks related la Ihe project & Project procurement management involves acquiring or procuring goods and services fora project from outside the performing organization 42 CHAPTER 4 Project integration management, the ninth knowledge area, is an oyerarch- ing function that alfects and is alfcciedl by all of the other knowledge areas Projec! managers must have knowledge and skills in all nine of these areas This text includes an entire chapter on each of these knowledge arcas, as all of them are crucial un project success. Project Management Tools and Techniques Thorits Carlyle, a famous historian and author, stated, “Man is a tool-using ani- mal, Without tools he is nothing. with tools he is all.” Av the world continues to become more complea, it is ever marc impartane far people to develop and use tools, expecially far managing important projects, Project management tools and techniques assist project managers and their ieams in carrying out work i all nine knowledge areas. Far example, some popular time-management tools aru! techniques include Gantt charts, project network diagrams, and critical path analysis. Table 1-1 lists same commonly used uals and techniques by knowledge area, You will learn ere about these and other tools and techniques throughout this text. Table 1-1: Common Project Management Tools and Techniques by Knowledge Area Kwow.eoce Awea/CaTecore Toous Alt TecHWIOUES Integration management Project selection methods, project management inethadulogy, stakeholder anatysis, project charters, jrojecl management plans, mroject management soft ‘ware, Uhange eontral boards, configuration manage ment, project review mcetings, werk authorizatian systems Scope management Project scone statements, wark breakdawn structares, Statements of work, Senne management plan, require inenly analysis, scope change contrat rayernent Gant eharis, project network diageanas, critical pal analysis, program evalniation review technique {PERL}, critical chain scherluling, crashing, fast tracking, mile stone reviews, Cost managemen Net pyeseint value, return Ore iavestinent, payback analysis, business eases, eaimed value management, pinject portfolio management, cost ws management plan, financial software Quality management Six Sigma, qualily control charts, Pareto diagrams fishbone or Ishikawa diagrams. quality audits, mam ity models, statistical setliucls Haman resource management Motivation wchniques, empathic istening, team con tracts, responsibility assignment matrices, resource histograuns, resource leveling, ream huilding exercises INTRODUCTION TO PROJECT MANAGEMENT Table 1-1: Common Project Management Tools and Techniques by Knowledge Area (continued) KMowLenGr ARFA/ CATEGORY. Tools AND TECHNIQUES. Communicalivns munagement Communications management plan. contlier man. iment, eoramunications media selection, enmmmunica- lions infrastructure, status reports, viral sommuunisagions, auplates, project Web sites Procurement management Make-pr-buy analysis cantracts, zequests for proposals ‘or quotes, soiree selection, negotiating, e-pracurement Risk: managesnent Rick management plaa, probability hanpact malts, risk ranking, Monte Carlo simulation, top-ten risk inem tracing Project managers must work with key stakeholders to deline what consti- tutes success for a particular project and strive to complete their projects successfully by applying appropriate tools and techniques, In many organi- vations, project managers also support an emerging business strategy of project portfolio management, in which organizations group and mane age projects asa porlfolia of investments that centribure to the entire enter- prise’s success. You will leam more about project portfolio management in Chapter 7, Project Gost Management. : of! What Went Right? Follow-up studies dane by Ihe Standish Group showed same improvement in the statisties for intormation technology projects in the past decede. The number of success 34 percent in 2002 IIT projects has mare than doubled, trom 16 percent in 1994 to a The number of failed projects has bern: cut in rin? 1 half, from 31 percent in 1994 to 15 percent @ The U.S, spent about the same amount of snaney an IT projects in 1984 and 2002 (6250 bitin and $255 billion, raspectely), burt the amount of money wasted on challenged and failed projects was dawn to $55 billion in 2002 compared te $140 uillan in 19948 Bven though thee have beers significant improvements in managing information techiol- ‘oy projects, there is still much room for improvement. The best news is that project managers are learning how ta succeed more often, “The reasons far Lhe incease in suecessful projects ‘wang, Fst, he averaye: cont ol a praject has been more than cut in half: Better tools have been crested to maritar and control progress and better sialled project managers with better rare agement processes are being used. The fact thal there are: joxesses is significant in itself." * The Standish Group, “Latest Standish Group Have Improved by 50%," (March 25, 2003), thie Standish Group, “CHAOS 2001; A Reelpe for Success IAMS Repnct Shows Projeer Shiccess Kates (anor). CHAPTER 4 Despite its advantages, project management is not a silver bullet that guar anices success on all projects. Project management is a very broad, allen cam plex discipline. What works an one project may not work on another, so it is essential for project manapers la continue to develop their knowledge and skills in managing projects. Iris also important to learn trom the mistakes and successes of others. Project Success Factors Why do some projects sieeeed and others fail? Can organizations provide a better environment to help improve project sticcess rates? There are no easy answers lo any of these questions, but many people are eouteibuting to our knowledge base t© continue to improve the theory amd practice of project management. lable 1-2 summarizes the results of the 2001 Standish Group study describing, in order of importance, whal [actors con tribule most 40 the success of information technology prajecis. Note that the study lists executive support as the most impor tant factor, overtaking user involvement, whieh way mast iinportant in the earlier studies. Also note that several nther success lactars can be strongly influenced by executives, such as cneouraging user involvement, providing dear business objec- tives, assigning an experienced project manager, using a standard saféware intra. structure, and following a formal methodology, Other suecess actors are related to gpull project seape and time management, such as having a minimized seope, firm basic requirements, and reliable estimates. In fact, 97 perent of sucresefi prajecte were led by experiertceel project manager, wha can often help influence all of these factors lt iirprove the probability of project success, Table 1-2; What Helps Projects Succoed? 1, Exceutive suppert 3, Uher ineolyemenie 3, Experienecd project manager 4. Clear business objectives 3, Miniinized seope 6, Standard software infrastructure 7, Fir basis requirements 8, Formal methodology 2. Reliable estimates 10, Other eviteria, such as small milestones, proper plauniny, competent stafl, and ownership the Suundish Group, "Extreme CIIAOS.* {2001} It is interesting t© compare sucess [actors for information technology prof ects in the U.S. willl those in other countries. A 2004 study summarizes results INTRODUCTION TO PROJECT MANAGEMENT of a survey of 247 information systems project practitioners in the Mainland of China, One of the study's key dindings is that relationship management is viewer) aya lop success factor for infarmation systems in China, while ir is not mentioned in U.S. studies. The study also suggested that having competent team members is less important in China than in the U.S. The Chinese, like the U.S, ineuded top ranayerenl support, user involvement, and a competent project manager as vital 10 project success. It is also important to look beyond individual project succeys rales anid fovus on how organizations as a whole can improve project performance. Research comparing companies that excel in project delivery (the "winners”) from those who do not found four significant best practices, The winners: L. Use ant integrated toolbox, Companies that consistently succeed in managing projects clearly define what needs ta be done ina project, by whom, when, and how. They use an imegraied taalbax, including project man- agement tools, methods, and techniques. They carefully select tools, align them with project and business goals, link therm lo meteies, anil provide them La project managers 1a deliver pesicive results 2, Grow project leaders, The winners know that strong project managers— referred to as project leaders—are crucial to project success. They also know thar a good project leader needs to be a business leader as well, with strong interpersonal and intrapersonal skills. Gompanics thal excel in project management often graw their project leaders internally, pro- viding them with career opportunities, training. and mentoring. 3. Develop a streamiined project detivery process. Winning companies have examined every step in the project delivery process, analyzed fluctuations in workloads, searched lor ways 10 reduce varialion, and eliminated bot- tlenecks to create a repeatable delivery process. All projects go through clear stages and clearly deline key milestones, All project leaders use shared rad map, focusing on key business aspects of their projects while integrating goals across all parts of the organization. 4. Measure pngieet healile using rreéries, Companies thar excel in project deliv- ery use performance metrics t0 quantify progress. They focus on a hand ful of important measurements and apply them to all projects, Metrics ohien include customer satistaction, return om investment, and percentage of schedule buffer consumed, You will learn how to use these metrics in later chapters.1" Project managers play an important role in making projects. and therefore organizations, successful. 2© Dong, Chang. K.B. Chuab, and Li zhal, “A Smady al Critical Stuceess Factor of Info rrnat System Prajeers in China,” Proceedings nf PMT Research Conference ¢004) "Milosevic, Dragan ancl And Ozbay, “Delivering Projects: What the Winners Do* Proceedings of the Pinject Management Instirme Annual Seminars & Sympasium [Navember 2001) 16 CHAPTER 1 THE. ROLE.OF THE PROJECT. MANAGER You have already read that project managers must work elasely with the ather stakeholders on a project, especially the sponsor and project leam. They have to be familiar with the nine project managemun! knowledge areas and the var- ous tools and cechniques telated Lo project management. Experienced project managers help projects suceced, Mut what do project managers da, exactly? What skills do they really need to do a gan jobs? The following section pro- viles brief answers to these questions, and the rest of this book vives more insight into the role of the project manager, Even if you never become a project manages, you will probably be part of a project team, and it is important for carn members to help their projec! managers, Project Manager Job Description A project manager can have many different job descriptions, which can vary tremendously hase on the organization and the project. For example, Monster.com inchides thousands of jab listings tor project managers. Helow are a lew edited postings rom june 2004; @ Project manager for a consulting firm: Plans, schedules, and contzals activities to fulfill identified objectives applying technical, theoretical, and managerial skills to satisfy project requirements. Coordinates and inte- grates (cam and individual ellarts and builds positive professional rela- tionships with clients anil associates. @ IT project manager for a linancial services firm: Manages, prioritizes, develops. and implements information technology solutions to meet busi- ness needs. Prepares and executes project plans using project manage meut software following a standard methodology, Establishes cross-functional evul-uscr teams defining and implementing projects on time and within budget. Acts a3 a liaison beiveen third party serview providers and end-users to develup and implement tech nulagy solutions, Participates in vendor contract development and budget management. Provides post implementation support, IT project imanager for a nem-profit consulting firm; esponsibil incluile business analysis. requirements gathering, project planning, hud- get estimating, developmen|, testing, and Implementation. Responsible for working with various resource providers to ensure development is com- pleted ina limely, high-quality, and cost-effective manner As you can see, the job description fora project manager can vary by indus- fry and by organization, but there are similar tasks that most project managers perlar regardless of these differences, A National Science Faundation study found that project management is a skill needed in every major information technology field, [rem database administratar 10 network specialist to technical INTRODUCTION TO PROJECT MANAGEMENT writer, Table |-4 lists filicen project management job functions that are tial for good project management sen: Table 1-3: Fifteen Project Management Job Functions 1. Define scape af project 2, Identify stakeholders, decision-makers, and escalation peacedures 3. Develop detailed tack list (work breakdown secuccure) 4, tstiniave dane reyuireimeies 5. Develop initial project management flowehart 6. Identify required rexourees and budget 7. Tivalliate project yequrirements $ Identify and evaluate risks 9. Prepare contingency plan 10, identify interdepencenicies 11. Inlentity andl track evitleal milestones 12, Participate in. project ph. 1. cure needed resources 14, Manage the change contral process 15. Report project starns “Building a Foundation fur tomarsowe Skills Standards for Information Technology, Millennium Fdition,” Nosthwest Center Cor Kinerging lechmulugies WCET}, Belleview, WA, 1999 Each of the job functions listed in Table 1-3 requires different skills, as de the duties described in the different joh descriptions. $a what skills do project managers need? Can they all be learned, or are some innate? How technical do IT project managers need to be? Suggested Skills far Project Managers As you can imagine, good project wnanayers should have many skills, The Project Management Body of Knowledge (PMBOK™® Guide 2004) suggests that the project management team understand and use expertise in the Callowing areas: m The project management body of knowledge a Application arca knowledge, standards, and regulations @ Project enviranment knowledge = General management knowledge and skills = Soft skills or human relations skills CHAPTER 1 ‘The previous section tnaduced the niu project management knowledge areas, as well as same tools and techniques project managers use. in general. ‘The following section focuses on the IT application azea, including skills requived in the project environment, gencral management, and solt skills, The project criviranment differs from organization to organization and proj ect 10 project, but there are some skills that will help in most project environ ments, These skills inchude understauding change, and understanding how organizations work within their social, political, and physical environments. Project managers must be comtortable leading and handling change, since mos! projects Inuoduce changes i arganizations and involve changes within the projects themselves. Project managers need to understand the organizations they work in and how products are developed and services are: provided. And they must also understand the sosial, physical, and political environment. 11 takes very different skills and behavior to manage a project for a Fortune 100 company in the United States than it does to manage a governmen| project lora new business in Poland. Chapler 2, ‘The Project Management and Information ‘technology Context, provides detailed information on these tapics. Project managers should also possess general management knowledge and skills, They should understand important topics related to financial managemem, accounting, procurement, sales, marketing, contracts, manulacturing, distribu- tion, logistics, the supply chain, strategie planning, lactical planning, operations management, organizational structures and behavior, personnel administration, compensation, benefits, career paths, and health and salety practices. Ou suru projects, it will be critical for the project manager lw have a lot of experience in one ar several of these general management areas. On other projects, the project manager can delegate detailed responsibility for some of these areas toa twat member, support stall, or even a supplicr. Even so, the project manager must be intelligent and experienced enough 10 know which of these areas are most important and who is qualilied to do the work, Ie or she must also make: andar take responsibility for all key project decisions: Achieving high performance on projects requires soft skills or human relations skills. Some of these sol skills include effective communication, influcncing the organization to get things dene, ltadership, motivation, negotiation, conflict man- agement, and problem solving. Why do project managers need good soit skills? One reason is that to understand, navigate, and meet siakeholders’ needy and expectations, project managers ueed lo lead, communicate, negotiate, solve prob- lems, and influence the organization at large. They need to be able 10 listen actively 10 what others are saying, help develop new approaches far suhang probe lems, and then persuade atliers | work (award achieving project goals, Project managers must lead their project teams by providing vision, delegating work. cre- ating an energetic and positive environment, and seting an example ol appropri= ate and effective behavior. Project managers must focus on teamwork skills in order to use their people effectively. They need to be able to motivate dilferent types of people and develop esprit de corps within the project tear ane with other project stakeluslers, Sine mast projects involve changes and trade-olls benween INTRODUCTION TO PROJECT MANAGEMENT 18 competing goals, it is important for project cmmay I helps project man 8 lo have strang coping skills rs maintain their sanity and reduce their stress lev els if they cope with criticism and constant change. Project managers must he flexible, creative, and sometimes palicnt. in working taward project goals: they inust also he persistent in making project needs known. Lastly, project managers must be able to make ellective use of technology as it relates to the speciliv jroj- ect, Making effective use of teelanolagy alien includes special product knowledge ar experience: with a particular industry, Project managers must make many deci sions and deal with people in a wide variety of disciplines, so it helps treimen- dously to have a project manager who is cen ident in using the special tools or leclinolagies that are the most effective in particular sewtings, In 2004, rnifions of people watched the first season of the LLS. reality television show called The Approntica, in which contestants vied for a lrigh-kevw! prsilion working for Ronald Irump. Tach week, Trump fired one contestant and sold the contestants bluntly why they were fired ar why they were spared. Irump’s reasons provide insight to nproving project management skills, as follows: hip and professionalism are crucial. No matter how smert you are {the first candidate tired had segrees in medicine and business, you must be prisessional how you deal with peop and display some leadership potential 2 Know what your sponsor expects from the project, and learn horn your mistakes Jason, the second person and filst project manager fired, decicled nat to take the time to meet with his project sponsors, causing his team to fail their assignment “Trump wanted overyone to remember that crucial mistake. 3. Trust your team and delegate decisions. Sam had, several problems as a team rember and project manager, but his lack of trust and respect for and trom his teammates led 10 his dwnfall 4, Know the business, Restaurants often: have the highest peofit margins an certain itermn, lke: drinks. Find cut what's mast important to your business when running projects. One team focused on incroesina ar sales and easily won the campelilon: shat week, Stand up for yourself. When Trump fired Kristi over the other women he explained his decision by saying thal Kristi didn‘l fight in while the other two did G. Bea team player. Tammy clearly did not get along willy her learn, arid ne one sup. ported her in the buzarcraem when her team lost Don’t be overly emotional and slay organized, Erika had a difficult time leading her ean in selling Tnumnp Ice, and she hecame flustered when they didn't get

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