Chapter 1:

Introduction to Project Management

Information Technology Project Management, Fourth Edition Applied Software Project Management

Advantages of Using Formal Project Management

Better control of financial, physical, and human resources. Improved customer relations. horter development times. !o"er costs. #igher $uality and increased relia%ility. #igher profit margins. Improved productivity. Better internal coordination. #igher "or&er morale 'less stress(.
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What Is a Project?
* project is +a temporary endeavor underta&en to create a uni$ue product, service, or result., .perations is "or& done to sustain the %usiness. * project ends "hen its o%jectives have %een reached, or the project has %een terminated. Projects can %e large or small and ta&e a short or long time to complete.
-PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide) '2//0(, p. 1.
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Project Attributes
* project2
#as a uni$ue purpose. Is temporary. Is developed using progressive ela%oration. 3e$uires resources, often from various areas. hould have a primary customer or sponsor.
The project sponsor usually provides the direction and funding for the project.

Involves uncertainty.
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Project and Program Managers

Project managers "or& "ith project sponsors, project teams, and other people involved in projects to meet project goals. Program2 +* group of related projects managed in a coordinated "ay to o%tain %enefits and control not availa%le from managing them individually., Program managers oversee programs and often act as %osses for project managers.
-PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide) '2//0(, p. 45.
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The Triple Constraint

Every project is constrained in different "ays %y its2
Scope goals2 6hat "or& "ill %e done7 Time goals2 #o" long should it ta&e to complete7 Cost goals2 6hat should it cost7

It is the project manager8s duty to %alance these three often9competing goals.

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Figure 1-1. The Triple Constraint of Project Management

uccessful project management means meeting all three goals 'scope, time, and cost( ; and satisfying the project8s sponsor<

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What is Project Management?

Project management is +the application of &no"ledge, s&ills, tools and techni$ues to project activities to meet project re$uirements.,-

-PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide) '2//0(, p. =.
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Figure 1-2. Project Management Framework

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Project Stakeholders
Stakeholders are the people involved in or affected %y project activities. ta&eholders include2
Project sponsor Project manager Project team upport staff ?ustomers @sers uppliers .pponents to the project
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Nine Project Management Knowledge Areas

Ano"ledge areas descri%e the &ey competencies that project managers must develop.
Four core &no"ledge areas lead to specific project o%jectives 'scope, time, cost, and $uality(. Four facilitating &no"ledge areas are the means through "hich the project o%jectives are achieved 'human resources, communication, ris&, and procurement management(. .ne &no"ledge area 'project integration management( affects and is affected %y all of the other &no"ledge areas. *ll &no"ledge areas are important<
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Project Management Tools and Techniques

Project management tools and techni$ues assist project managers and their teams in various aspects of project management. pecific tools and techni$ues include2
Project charters and scope statements. Bantt charts, net"or& diagrams, critical path analyses, critical chain scheduling 'time(. ?ost estimates and earned value management 'cost(. CC
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Project Portfolio Management

Many organiDations support an emerging %usiness strategy of project portfolio management2
.rganiDations group and manage projects as a portfolio of investments that contri%ute to the entire enterprise8s success. 'For more information, see ?hapter :, Project ?ost Management.(

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Project Management Process Groups

* process is a series of actions directed to"ard a particular result. Project management can %e vie"ed as a num%er of interlin&ed processes. The project management process groups include2
Initiating processes Planning processes EEecuting processes Monitoring and controlling processes ?losing processes
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Figure 3-1. Level of Activity and Overlap of Process Groups Over Time

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Mapping the Process Groups to the Knowledge Areas

Fou can map the main activities of each PM process group into the nine &no"ledge areas %y using the PMBOK Guide 200 . Gote that there are activities from each &no"ledge area under the planning process group. *ll initiating activities are part of the project integration management &no"ledge area.

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Table 3-1. Relationships Among Process Groups and Knowledge Areas

HPMBOK Guide 200 ! "# $%

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Table 3-1. Relationships Among Process Groups and Knowledge Areas (contd)

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Improved Project Performance

The tandish Broup8s ?#*. studies sho" improvements in IT projects in the past decade.Measure uccessful projects Failed projects Money "asted on challenged and failed projects 1994 Data 45I )4I K40/ B out of K21/ B !! Data )0I 41I K11 B out of K211 B "esult Jou%led #alved More than halved

-The tandish Broup, +!atest tandish Broup ?#*. 3eport ho"s Project uccess 3ates #ave Improved %y 1/I, 'March 21, 2//)(.
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Why the Improvements?

+The reasons for the increase in successful projects vary. First, the average cost of a project has %een more than cut in half. Better tools have %een created to monitor and control progress and #etter skilled project managers with #etter management processes are %eing used. The fact that there are processes is significant in itself.,-The tandish Broup, +?#*. 2//42 * 3ecipe for uccess, '2//4(.

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Why do software projects fail?

The team has an unrealistic idea a%out ho" much "or& is involved.
From far a"ay, most compleE pro%lems seem simple to solve Teams can commit to impossi%le deadlines %y %eing overly optimistic and not thin&ing through the "or& Fe" people realiDe the deadline is optimistic until it8s %lo"n

Why do software projects fail?

Jefects are injected early %ut discovered late.
Projects can address the "rong needs 3e$uirements can specify incorrect %ehavior Jesign, architecture and code can %e technically fla"ed Test plans can miss functionality The later these pro%lems are found, the more li&ely they are to cause the project to fail

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Why do software projects fail?

Programmers have poor ha%its ; and they don8t feel accounta%le for their "or&.
Programmers don8t have good control of their source code ?ode "ritten %y one person is often difficult for another person to understand Programmers don8t test their code, "hich ma&es diagnosing and fiEing %ugs more eEpensive The team does not have a good sense of the overall health of the project.

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Why do software projects fail?

Managers try to test $uality into the soft"are.
Everyone assumes that the testers "ill catch all of the defects that "ere injected throughout the project. 6hen testers loo& for defects, managers tell them they are "asting time. 6hen testers find defects, programmers are antagoniDed %ecause they feel that they are %eing personally criticiDed. 6hen testers miss defects, everyone %lames them for not %eing perfect.

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How can we make sure that our projects succeed?

Ma&e sure all decisions are %ased on openly shared information
It8s important to create a culture of transparency, "here everyone "ho needs information &no"s "here to find it and is comforta%le loo&ing at it. *ll project documents, schedules, estimates, plans and other "or& products should %e shared "ith the entire team, managers, sta&eholders, users and anyone else in the organiDation "ho "ants them. Major decisions that are made a%out the project should %e "ell9supported and eEplained.

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How can we make sure that our projects succeed?

Jon8t second9guess your team mem%ers8 eEpertise
Managers need to trust team mem%ers. Must %ecause a manager has responsi%ility for a project8s success, it doesn8t mean that he8s more $ualified to ma&e decisions than the team mem%ers. If you don8t have a good reason to veto an idea, don8t.

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How can we make sure that our projects succeed?

Introduce soft"are $uality from the very %eginning of the project
3evie" everything, test everything. @se revie"s to find defects ; %ut don8t eEpect the revie" to %e perfect. @se revie"s to gain a real commitment from the team. It8s al"ays faster in the long run to hold a revie" than it is to s&ip it.

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How can we make sure that our projects succeed?

Jon8t impose an artificial hierarchy on the project team
*ll soft"are engineers "ere created e$ual. * manager should not assume that programming is more difficult or technical than design, testing or re$uirements engineering. Managers should definitely not assume that the programmer is al"ays right, or the tester is al"ays raising false alarms.

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How can we make sure that our projects succeed?

3emem%er that the fastest "ay through the project is to use good engineering practices
Managers and teams often "ant to cut important tas&s ; especially estimation, revie"s, re$uirements gathering and testing. If it "ere faster to %uild the soft"are "ithout these practices, "e "ould never use them. Every one of these practices is a%out saving time and increasing $uality %y planning "ell and finding defects early. ?utting them out "ill cost time and reduce $uality.

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Project Success Factors*

4. EEecutive support 2. @ser involvement ). EEperienced project manager 0. ?lear %usiness o%jectives 1. MinimiDed scope 5. tandard soft"are infrastructure :. Firm %asic re$uirements =. Formal methodology >. 3elia%le estimates 4/. .ther criteria, such as small milestones, proper planning, competent staff, and o"nership

-The tandish Broup, +EEtreme ?#*. , '2//4(.

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What the Winners Do*

3ecent research findings sho" that companies that eEcel in project delivery capa%ility2
@se an integrated project management tool%oE that includes standard and advanced tools and lots of templates. Bro" project leaders, emphasiDing %usiness and soft s&ills. Jevelop a streamlined project delivery process. Measure project health using metrics, including customer satisfaction and return on investment.
-Milosevic, Jragan and *nd .D%ay, +Jelivering Projects2 6hat the 6inners Jo,, Proceedings of the Project Management Institute *nnual eminars N ymposium 'Govem%er 2//4 (.
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The Role of the Project Manager

Mo% descriptions vary, %ut most include responsi%ilities such as planning, scheduling, coordinating, and "or&ing "ith people to achieve project goals. 3emem%er that >: percent of successful projects "ere led %y eEperienced project managers.

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Table 1-3. Fifteen Project Management Job Functions*

Jefine scope of project. Identify sta&eholders, decision9 ma&ers, and escalation procedures. Jevelop detailed tas& list '"or& %rea&do"n structures(. Estimate time re$uirements. Jevelop initial project management flo" chart. Identify re$uired resources and %udget. Evaluate project re$uirements. Identify and evaluate ris&s. Prepare contingency plan. Identify interdependencies. Identify and trac& critical milestones. Participate in project phase revie". ecure needed resources. Manage the change control process. 3eport project status.

-Gorth"est ?enter for Emerging Technologies, +Building a Foundation for Tomorro"2 &ills tandards for Information Technology,, Bellevie", 6*, 4>>>.
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Suggested Skills for Project Managers

Project managers need a "ide variety of s&ills. They should2
Be comforta%le "ith change. @nderstand the organiDations they "or& in and "ith. !ead teams to accomplish project goals.

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Suggested Skills for Project Managers

Project managers need %oth +hard, and +soft, s&ills.
$ard skills include product &no"ledge and &no"ing ho" to use various project management tools and techni$ues. Soft skills include %eing a%le to "or& "ith various types of people.

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Suggested Skills for Project Managers

Communication skills2 !istens, persuades. %rgani&ational skills2 Plans, sets goals, analyDes. Team'#uilding skills2 ho"s empathy, motivates, promotes esprit de corps'team "or& spirit(. (eadership skills2 ets eEamples, provides vision '%ig picture(, delegates, positive, energetic. Coping skills2 FleEi%le, creative, patient, persistent. Technolog) skills2 EEperience, project &no"ledge.
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Media Snapshot Good Project Management Skills from The Apprentice

!eadership and professionalism are crucial. Ano" "hat your sponsor eEpects from the project, and learn from your mista&es. Trust your team and delegate decisions. Ano" the %usiness. tand up for yourself. Be a team player. tay organiDed and don8t %e overly emotional. 6or& on projects and for people you %elieve in. Thin& outside the %oE. There is some luc& involved in project management, and you should al"ays aim high.

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Table 1-4. Most Significant Characteristics of Effective and Ineffective Project Managers
*ffecti+e Project Managers H !eadership %y eEample H Oisionary H Technically competent H Jecisive H Bood communicator H Bood motivator H tands up to upper management "hen necessary H upports team mem%ers H Encourages ne" ideas
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,neffecti+e Project Managers H ets %ad eEample H Got self9assured H !ac&s technical eEpertise H Poor communicator H Poor motivator

Importance of Leadership Skills

Effective project managers provide leadership %y eEample. * leader focuses on long9term goals and %ig9picture o%jectives "hile inspiring people to reach those goals. * manager deals "ith the day9to9day details of meeting specific goals. Project managers often ta&e on %oth leader and manager roles.
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Table 1-5. Top Ten Most In-Demand IT Skills

"ank ,T Skill-.o# A+erage Annual Salar) 4 P! Jata%ase *nalyst K=/,550 2 .racle Jata%ase *nalyst K=:,400 ) ?L?QQ Programmer K>1,=2> 0 Oisual Basic Programmer K:5,>/) 1 E9commerceLMava Jeveloper K=>,45) 5 6indo"s GTL2/// EEpert K=/,5)> : 6indo"sLMava Jevelopert K>),:=1 = ecurity *rchitect K=5,==4 > Project Manager K>1,:4> 4/ Get"or& Engineer K=2,>/5 Paul Riv, +The Top 4/ IT &ills in Jemand,, Blo%al Ano"ledge 6e%cast 'www#glo&al'nowledge#com( '44L2/L2//2(.
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Figure 1-3. Top Information Technology Skills

70% 60% 60% 58% 42% 41%

Percentage of 3espondents

50% 40% 30% 20% 10% 0% Application development Project management

Database management

et!or"ing

Information Technology 'IT( &ill

?osgrove, !orraine, +Manuary 2//0 IT taffing @pdate,, ()O *e+earch *e"ort+ 'Fe%ruary ), 2//0(.
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History of Project Management

ome people argue that %uilding the Egyptian pyramids "as a project, as "as %uilding the Breat 6all of ?hina.

Most people consider the Manhattan Project to %e the first project to use +modern, project management.
This three9year, K2 %illion 'in 4>05 dollars( project had a separate project and technical managers.
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Figure 1-4. Sample Gantt Chart

6or& Brea&do"n tructure '6B (

The 6B is sho"n on the left, and each tas&8s start and finish dates are sho"n on the right. First used in 4>4:, early Bantt charts "ere dra"n %y hand.
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Figure 1-5. Sample Network Diagram

Each %oE is a project tas& from the 6B . *rro"s sho" dependencies %et"een tas&s. The %olded tas&s are on the critical path. If any tas& on the critical path ta&es longer to complete than planned, the "hole project "ill slip unless something is done. Get"or& diagrams "ere first used in 4>1= on the Gavy Polaris project %efore project management soft"are "as availa%le.
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Project Management Office (PMO)

* PM. is an organiDational group responsi%le for coordinating the project management function throughout an organiDation. Possi%le goals include2
?ollect, organiDe, and integrate project data for the entire organiDation. Jevelop and maintain templates for project documents. Jevelop or coordinate training in various project management topics. Jevelop and provide a formal career path for project managers. Provide project management consulting services. Provide a structure to house project managers "hile they are acting in those roles or are %et"een projects.
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Project Management Software

Enterprise PM soft"are integrates information from multiple projects to sho" the status of active, approved, and future projects across an entire organiDation. It also provides lin&s to more detailed information on each project. Many managers li&e to see status in color ; red, yello", and green.

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Figure 1-6. Sample Enterprise Project Management Tool

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The Project Management Profession

Professional societies such as the Project Management Institute 'PMI( have gro"n significantly. There are specific interest groups in many areas, such as engineering, financial services, health care, and IT. Project management research and certification programs continue to gro".

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Project Management Certification

PMI provides certification as a Project Management Professional 'PMP(. * PMP has documented sufficient project eEperience, agreed to follo" a code of ethics, and passed the PMP eEam. The num%er of people earning PMP certification is increasing $uic&ly. PMI and other organiDations are offering ne" certification programs 'see *ppendiE B(.
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Figure 1-7. Growth in PMP Certification, 1993-2003

80#000 70#000 60#000 # PMPs 50#000 40#000 30#000 20#000 10#000 0
1#000 1#$00 2#800 4#400 10#086 6#415 18#184 27#052 40#343 52#443 76#550

1$$3 1$$4 1$$5 1$$6 1$$7 1$$8 1$$$ 2000 2001 2002 2003

Year
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Ethics in Project Management

Ethics is an important part of all professions. Project managers often face ethical dilemmas. In order to earn PMP certification, applicants must agree to the PMP code of professional conduct. everal $uestions on the PMP eEam are related to professional responsi%ility, including ethics.

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Project Management Software

There are currently hundreds of different products to assist in performing project management. Three main categories of tools2
(ow'end tools2 #andle single or smaller projects "ellS cost under K2// per user. Midrange tools2 #andle multiple projects and usersS cost K2//91// per userS Project 2//) most popular 'includes an enterprise version(. $igh'end tools2 *lso called enterprise project management soft"areS often licensed on a per9user %asisS OPMi Enterprise .nline '""".vcsonline.com(.
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Chapter Summary
*s the num%er and compleEity of projects continue to gro", it is %ecoming even more important to practice good project management. * project has several attri%utes, such as %eing uni$ue, temporary and developed incrementally. * frame"or& for project management includes project sta&eholders, the nine &no"ledge areas, tools and techni$ues, and creating project portfolios to ensure enterprise success. uccessful project managers must possess and development many s&ills and lead their teams %y eEample. The project management profession continues to mature as more people %ecome certified and more tools are created.
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