Professional Documents
Culture Documents
David L. Olson
Core Concepts of Project Management
Copyright © Business Expert Press, LLC, 2020.
10 9 8 7 6 5 4 3 2 1
Keywords
project management; human factors; project implementation; project
organization
Contents
Preface...................................................................................................ix
References............................................................................................107
About the Author.................................................................................109
Index..................................................................................................111
Preface
This book addresses project management in the context of information sys-
tems. It deals with general project management principles, with focus on
the special characteristics of information systems. It is based on an earlier
text,1 but shortened to focus on essential project management elements.
Key features are a shorter introduction to project management, focus
on general project management, updating of Project Management Insti-
tute (PMI) material, and serving as an introduction to quantitative mate-
rial in the companion book.
The first chapter presents various statistics indicating endemic problems
in completing information system projects on time, within budget, at de-
signed functionality. While successful completion of projects is a challenge,
there are some things that can be done to improve the probability of suc-
cess. This book reviews a number of project management concepts. These
include developing organizational ability to work on projects, discussed in
Chapters 2 and 3. Sponsor expectations can be based on better information
if a good job of project selection is conducted, as discussed in Chapter 4.
Better systems development (to include requirements analysis and project
work breakdown structure—Chapter 5) can assure that proper resources
are acquired to accomplish a project. In projects with greater time pressure,
agile methods are often found appropriate (Chapter 6). Projects involve
high levels of risk, and schedule delays are often encountered. Chapter 7
discusses some related methodologies. Chapter 8 will discuss the impor-
tance of critical success factors in the context of project implementation.
This first book discusses the people and initial process aspects of
project management. Each chapter identifies related PMI material. The
companion book will cover important tools available to help successfully
manage projects.
Note
1. Olson (2015).
CHAPTER 1
Introduction to Project
Management
Key Points
• Characteristics of projects
• Projects as systems
• Basic project—critical success factors
What Is a Project?
A project involves getting a new, complex activity accomplished. Many
activities qualify as projects. Building the Golden Gate Bridge, transport-
ing the Statue of Liberty across the Atlantic, and the attempt to elect
Barack Obama as president were all major projects. So were the develop-
ment of the atomic bomb and sending men to the moon.
Each political campaign is a marketing project, just like other market-
ing projects to sell new products. You have each written a paper, which
was assigned as a “project.” These projects involved researching some topic
and organizing ideas into a cohesive, rational whole. In football, develop-
ing a promising young quarterback prospect is often a multiyear project,
including intensive coaching to learn the team’s offense, to learn the style
of teammates, development of leadership skills, passing technique, and
building endurance and strength. What television viewers might view as
natural talent may have involved the closely planned and coordinated
activities of quite a large number of people.
Projects
just like the first assembly line, the first round of sales calls is a project,
until a desired level of competence is attained. Projects include:
• Constructing something
? a road, a dam, a building, an information system
• Organizing something
? a meeting, an election campaign, a symphony, a movie
Project Characteristics
Because projects involve new activities, they typically involve high levels
of uncertainty and risk. One of the reasons assembly line operations are
efficient is that everyone does the same thing over and over, hour after
hour, day after day, year after year. This repetitiveness allows high degrees
of specialization, which in turn enables greater productivity. The activities
of many different people and machines can be balanced for maximum ef-
ficiency in an assembly line operation. Projects involve lower degrees of
efficiency than are obtained in assembly line operations.
Because of this higher degree of uncertainty, it is much more difficult
to estimate the level of resources required to accomplish a project than
it is for other forms of productive organizations. It is also more diffi-
cult to estimate the time required (which amounts to another resource).
Many projects are late, but not all projects take longer than estimated.
The Russian atomic bomb project was completed ahead of schedule, and
about the same time, the U.S. U-2 airplane project was finished in about
one-tenth of the estimated time. Yet, projects finished ahead of schedule
are still rare. Projects are collections of activities. If one activity is late,
other activities often have to wait for it to finish. If an activity is ahead of
schedule, those doing the work tend to be more careful, or slow down for
other reasons. The activities that follow often cannot start early anyway,
as the people and materials for those activities may not be available until
the originally scheduled starting time. For these and other reasons, it is far
more common for projects to be late than to be finished early.
Because of their temporary nature, projects inevitably involve gath-
ering together a diverse group of specialists to accomplish a variety of
4 CORE CONCEPTS OF PROJECT MANAGEMENT
tasks. Project team members often will not know each other very well,
at least in the beginning of the project. They will tend to be quite differ-
ent people, with different skill sets and interests. The primary feature of
a project is that it is a set of temporary activities conducted by ad hoc
organizations.
Information systems projects have many similarities to generic
projects. They consist of activities, each with durations, predecessor
relationships, and resource requirements. They involve high levels of
uncertainty and often suffer from time and cost overruns, while rarely
experiencing time and cost underruns. However, information systems
projects are different from generic projects in some aspects. While each
project is unique, there are usually many, many replications of the types
of information systems projects. Most are served by a standard method-
ology, with the need to identify user requirements, followed by design
of a system, production of the system, testing of the system, training
and implementation, and ultimately maintenance of the system. These
steps are not always serial, with many loops back to prior stages. They
involve the need for specialists in different areas of the information sys-
tems field, but these specialties are not as distinctly different as carpen-
try and electrical work. Systems analysts usually know how to program,
and testers know all of the other functions involved in a project. Proj-
ect team members from the development side usually understand each
other well. Information systems projects of course involve computers,
which is a distinct characteristic that has more impact than what might
have been apparent initially.
Types of Projects
Dimensions of Complexity
In the field of information systems, there is an old adage that you can
have any two of three things in a project. You can get it done on time,
you can get it done within budgeted cost, or you can get it done well.
If you are willing to wait, you can get the job done right within cost.
If you are willing to spend the money, you can get a good job done
quickly. Or, you can get the job done on time and within budget, with
the only reservation being that it will not perform as specified.
Modern Business
Business has grown much more complex, with interrelated currencies and
stock markets. The pace of business is at the speed of light, as stock trad-
ing is conducted electronically, oftentimes by artificial intelligence systems.
Information technology markets are less predictable. The outputs of many
companies are tied together through just-in-time systems with dedicated
suppliers. At the output end of production, producers and retailers are often
connected through electronic data interchange. The international aspect of
business is typified by arrangements such as GATT, NAFTA, and the Euro-
pean Economic Community. The rapid pace of change has resulted in the
disappearance of many companies, age-old organizations like the South-
west Conference, and entire countries like the Soviet Union.
In the rapidly changing world of business today, there is a growing
need to manage projects intelligently. Project management advanced a
great deal in the defense, aerospace, and construction industries. Tech-
niques developed for controlling the interrelated activities of many dif-
ferent organizations and crews can be applied to the field of information
systems, which includes many projects to install new applications or to tie
old applications together.
Project Entities
changes are needed. Quite often, management gives up and changes di-
rection. This is not always possible to do.
Numerous studies have been conducted on factors that lead to the
success of a project. These factors include planning, user involvement,
good communication, and sound monitoring of projects. Additional
factors that are repeatedly reported as important for the success of in-
formation systems project include top management support and a clear
statement of project objectives.
Three factors have consistently appeared as success factors in project
failure. These factors, which are also found in general kinds of projects,
comprise the following:
Client involvement
Top management support
Clear statement of project objectives
Summary
Project management has many features that are different from those of
repetitive operations. These include:
Glossary
Control subsystem. Means to manage project operations.
Project champion. Cheerleader who keeps motivation for the project
going.
Project entities. Types of people involved in the project.
Project failure. Standards for project goals that are not met (budget,
time, quality, as well as stakeholder expectations).
Introduction to Project Management 13
Thought Questions
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