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Conference of Informatics and Management Sciences

ICTIC 2013 March, 25. - 29. 2013

The Analysis of IT project management in the


Primorsko - goranska County
Bojan Meštrović, Sanda Martinčić - Ipšić Ljerka Tomljenović
Department of Informatics Polytechnic of Rijeka
University of Rijeka Rijeka, Croatia
Rijeka, Croatia ljerka@veleri.hr
bojan.mestrovic@uniri.hr, smarti@inf.uniri.hr

Abstract — The aim of this study was to analyze the situation in has suggested that IT projects are much more difficult to
the field of IT project management in the Primorsko - goranska complete than other projects for several reasons: it is difficult
County (Croatia). More specifically, the purpose was to identify to define project requirements and the desired quality of the
the similarities and differences in project management between end-product; rapid changes in technology mean rapid change in
companies in which IT is the primary activity and those in which resources used; projects usually involve several departments,
it is a secondary activity and serves as a support to the main all of which have different goals and views on how the project
business processes. The research focused on two phases of project should be performed [2]. Raković sees IT projects as specific
management: planning and control. and argues that for a successful performance, it is essential to
The survey was conducted through a web questionnaire and was
have project management methods implemented from the very
filled out by employees of 25 companies situated in Primorsko -
beginning of the project [3].
goranska County, 14 of which have IT as the primary activity
and 11 which have IT as a support to the main business The study “Bad Practices in Complex IT Projects” offers
processes. Through the survey, the demographic data, basic solutions on how to eliminate bad practices in managing
characteristics of IT projects and data related to project projects and how to perform them in the best way. Visković,
management, specifically to planning and control were collected. Varga and Ćurko offer three key-points: increase the level of
The survey results were analyzed by descriptive statistics and care in managing projects; improve communication between
suggest that the methodology of project management is present in
the project participants; increase the attention in working on the
certain areas, but the use of standardized project management
project methodologically correct [4].
methodology is rather limited. The survey indicates there is room
for improving the level of usage of project management in Michael Smith examined the importance of project
Primorsko – goranska County and also, consequently, the success management in South Africa in a study “Assessing the
of IT projects. Effectiveness of Project Management Practices in the South
African Communications Industry”. The goals of his study
Key words - project management, planning, control, Primorsko were to determine whether the project management methods
– goranska County (Croatia), costs, execution
that are considered the most advanced are used, and whether
the methods of planning and executing projects are effective.
I. INTRODUCTION Smith concluded that in most cases project management
By the Project Management Institute’s (PMI) definition, methods are being used, but only to a certain degree; e.g. risk
project management is the application of knowledge, skills, identification in the planning phase is one of the functions
tools and techniques to project activities in order to meet the which is not performed on a sufficient level and has a great
project requirements [1]. In today's business world, project possibility of improving [5].
management is of great importance. Although it was once In the next section, methodology of the research and its
thought that it has a lot more disadvantages than advantages, it limitations are presented. In Section 3., most important results
is now proven that a systematic approach to project are presented and discussed. Finally, conclusions and
management optimizes business. Its usefulness can be viewed suggestions for future work are given in Section 4.
through the prism of planning, cost control, human resources
and the usage of equipment during the project. The successful
implementation of project management is likely to result in the II. RESEARCH AND METHODOLOGY
success of projects. IT projects are in a way specific because of The main goal of this research was to analyze the state in
their dynamic and the fast-changing environment. the field of IT project management in Primorsko – goranska
County. In addition, the study analyzes the differences in
This study was conducted because of the significance of project management between companies in which IT is the
project management in today’s business world and the lack of primary activity and those in which it is a secondary activity
information on the application of project management in the and serves as a support to the main business processes. More
Primorsko – goranska County (Croatia). specifically, the aim of the research was to answer the
In a related study, several Serbian researchers characterized following questions:
project management as crucial for the IT projects. Marinović

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Conference of Informatics and Management Sciences
ICTIC 2013 March, 25. - 29. 2013

1. To which extent is the project management TABLE I. EXAMPLE OF A SET OF QUESTIONS USED IN THE
SURVEY
methodology used in companies operating in the
Primorsko – goranska County?
a) How is the planning phase performed? Please answer the following set of questions using the given
TABLE I. scale: 1 – never; 2 – sometimes; 3 – often; 4 – always; I do not
b) How is the control phase performed? know.

2. Which segments have similarities and differences in 1 2 3 4 I do not know


the use of project management in companies operating Milestones are used for projects.
in the Primorsko – goranska County, considering the
Main goals are specified by sub-goals.
type of IT activity (IT as a primary or secondary
activity)? The beginning and ending of each activity are
defined.
Considering the descriptive nature of the research,
quantitative data were collected through a web survey. The
survey consisted of 13 questions (49 items) and three types of
information (demographic data, projects’ characteristics, data III. RESULTS AND DISCUSSION
related to project management) were collected with it. A Likert
Before presenting the results, it is important to emphasize
scale, which allows measuring the level of agreement or
that the companies involved in this research that have IT as a
disagreement, was used for this. The survey was based on the
primary activity are very diverse. The range of their work
theoretical assumptions of project management, with a
differs largely: from design, implementation and maintenance
particular focus on the project phases of planning and control.
of information systems and computer networks, computer
The use of web survey proved practical for several reasons: maintenance, software, services, IT consulting, education and
training of users, production and sale of office machinery and
 the respondents were able to access it at the time that computers, to web design.
best suited them,
Due to such variety, the types of projects are very diverse
 it made the collection and processing of the data easy and it would be a difficult task to pinpoint how an average IT
 it eliminated the possibility of avoiding answering project in Primorsko – goranska County should look like. The
certain questions. IT projects in the companies which have IT as a supporting
activity also differ, which is understandable because of the
It is also important to mention the limitations of the diversity of their primary activities.
research:
Planning
 a relatively small number of respondents participated
in the research, One of the goals of the study was to describe the situation
in the planning phase in the IT project management. The focus
 the answers are based solely on the personal opinions was on the following elements of planning:
of the respondents,
Specifying sub-goals - if they are specified by the SMART
 the respondents are people at different positions principle (specific, measurable, attainable, relevant, time-
(managerial or lower positions) in their respective limited), they will facilitate the realization of major, general
companies and, therefore, they may have different goals [6].
perspectives on certain issues. Defining activity schedule – relates to the definition of the
The survey was completed by one employee from 25 order and duration of activities and development of the entire
companies from the Primorsko – goranska County (25 schedule by which the activities will occur.
respondents in total; one respondent per company), 14 of which Defining responsibilities – ensures the resolution of all
(56%) had IT as a primary activity, while 11 (44%) had IT as a doubts that the project team may have about the execution of
supporting activity to the main business processes. activities [1].
For the companies which have IT as a primary activity, Cost planning - it is essential to be able to determine the
38.5% of the respondents were managers, while others were IT total cost of the project and to make an assessment whether the
experts at lower positions. As for the companies with IT as a project can be performed at all, or how much benefit it can
secondary activity, 54.5% of the respondents were managers bring [7].
and 45.5% were IT experts at lower positions.
Planning in companies in which IT is the primary
activity
Although it is important to specify sub-goals to facilitate
the achievement of the principal objectives, and thus the entire
project, it is interesting to note that the respondents answered
that it always takes place in only 35.71% of projects (Fig 1.).
This might suggest that the usage of the standardized project

2nd International Conference SECTION


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Conference of Informatics and Management Sciences
ICTIC 2013 March, 25. - 29. 2013

management is limited, but it could also arise from the fact that place within the company, which allows them to determine the
the activities performed by the IT companies are very different, sub-goals more easily. On the other hand, outsourcing projects
and thus the types and scopes of their projects as well. For can lead to the communication problems between the client and
example, the development of software is performed through the contractor.
several phases, while servicing or sales imply simpler projects
that do not require a specific methodology. Time definition is very important for every project, but it
can be said that for the companies which have IT as a
Defining schedule, or rather, specifying the sequence of secondary activity, it is even more important, because their IT
activities and their beginnings and endings, is essential for the projects are directly linked to the other processes within the
project team members to fully understand the project plan. It company. In a well-organized company, there is a large
allows tracking the progress of the project and ensures interdependency between the processes. Therefore, the results
compliance with the deadlines. It also helps in identifying the according to which the beginnings and endings of activities are
need for adaptation (changes in the duration of the project often (54.55%) or always (36.36%) defined, are not surprising
activities, reallocation of resources). It is surprising that only at all.
28.58% of respondents answered that activities are always
time-defined, while slightly fewer (21.43%,) responded that it According to the results for the defined responsibilities at
companies where IT is a secondary activity, in almost all cases
only happens sometimes.
(90%) it is known who is responsible for performing each
Defining responsibilities ensures a better understanding of activity. Most of these companies have a clearly defined
individual assignments of the project team members. If hierarchy, which is transferred to the IT departments as well.
everyone on the team knows what their assignments are, it Because of interdependencies between the processes in these
increases the likelihood of achieving the sub-goals of the companies, planning is more detailed and includes defining
project. The results show that in 71.43% cases it is always responsibilities, as one of its main features.
defined who is responsible for each activity. This suggests that
the hierarchy within the IT companies is well defined, but it Most of the respondents answered that the costs are often
does not necessarily mean that they have well-organized (45.45%) or always (36.36%) planned by phases, and the
activities. In other words, given that the survey was completed similar results have been obtained for planning the costs by
by employees at different levels (managers, lower levels), their every single activity - often (36.36%) or always (36.36%).
perspectives probably differ. It is unlikely that employees at These results indicate the usage of project management to a
higher levels are familiar with the responsibilities for every certain degree. However, the reason can also be that IT
activity, just like the employees at lower levels are not familiar departments have limited budgets, because of which the cost
with the complete business management. planning needs to be performed to the detail.

Good cost planning is essential for projects for two reasons.


First reason is starting the project once the project plan is
confirmed by the feasibility study, and the second is the
ultimate success of the project if the budget does not require
too big deviation while performing the project. Although a high
percentage of the respondents answered that the costs are
planned by phases, in 21.42% of cases it still occurs only
occasionally, and in 14.29% of cases never. The reason for
such responses may be the lack of use of project management,
but it can also mean that it is not really necessary because of
the nature of projects (i.e. servicing and sales). This conclusion
arises from the fact that costs are sometimes planned for each
project activity in 64.29% cases. It can also be explained by a
large number of short-term projects – 28.58% of the projects
performed by the IT companies have a duration of less than
three months. However, all these results suggest that the use of Figure 1. MAIN GOALS ARE SPECIFIED BY SUB-GOALS
the standardized project management methodology in IT
companies is limited.
Planning in companies in which IT is the secondary
activity
The survey results indicate a high level of use of specifying
sub-goals in companies where IT is a secondary activity. In
54.55% cases, specifying sub-goals occurs always (Fig 1.). A
possible explanation for such a result are frequent large and
long-term projects within the companies of this type. Also,
their projects are internal and derived products are intended to
serve as a support to the primary business. Employees of the IT
departments more easily understand the processes that take

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Conference of Informatics and Management Sciences
ICTIC 2013 March, 25. - 29. 2013

Control complex or that the internal and external factors do not have
much impact on their execution.
Another goal of this research was to describe the situation
in the control phase in managing the IT projects in Primorsko – However, if the projects are not finished within the time
goranska County. The focus was on the following elements of planned, in most of the cases (64.29%), the deadline is simply
control: delayed. This is accomplished by the integrated change control
processes which serve to coordinate the changes in the whole
Cost control – controlling whether the costs per phases project.
correspond to those planned before the start of the project [7].
Control in companies in which IT is the secondary
Performance control – ensures that a project is executed by
activity
the quality standards set earlier and has a function of reporting
on the progress of the project. Cost control is very important in the IT departments in
companies in which IT is the supporting activity, because their
Time control – checking whether the activities and phases budgets are most likely even more limited due to the
are being performed by schedule set in the planning phase [8]. organizational complexity of companies.
Control in companies in which IT is the primary Result suggests that 81.82% of projects are finished within
activity the set budgets. The same percentage of respondents think that
Cost control is important because projects have limited the invested financial resources are effectively utilized. A
budgets. According to the results, 64.28% of respondents reason for this might be good cost planning, but it could also
reported that projects are finished within the set budgets. This mean that the projects are not of high complexity, so there are
result suggests good planning of the costs, and is supported not many unforeseen problems. In companies in which IT is
with the result by which 71.43% of respondents think that the the secondary activity, only 27.27% of respondents agree with
invested financial resources are effectively utilized. 57.15% of the statement that labor costs are proportionate to the work
respondents think that the labor costs are proportional to the done, which could be explained by the fact that 54.55% of
work done. This might be explained by the fact that 38.46% of respondents are at managerial positions in their companies.
respondents are managers at their companies. The reason for As a part of performance control, 81.82% of respondents
general satisfaction might also be found in the amount of believe that the projects are completed at the desired level of
average salary in the IT sector in the Croatia, which according quality. This is consistent with the results linked to cost
to the Central Bureau of Statistics from February of 2012 is at control, and also confirmed with the results linked to monthly
the very top with 11275 HRK (1505 EUR). comparison of planned and achieved – 54.55% of respondents
Performance control is used to ensure that project reaches answered that it is always done, while additional 18.18%
the set goals. Results indicate that 71.43% of respondents answered that it is done often. For the use of milestones in
believe that the projects are completed at the desired level of projects (Fig 2.), the results indicate that they are used always
quality. It is important to state that the questionnaire had not (36.36%) or often (45.45%). This implies a continuous and
defined the term quality, which could have affected detailed application of the project management principles.
respondents’ understanding of the concept. Still, this result is Results also show that a very high percentage (72.73%) of
interesting considering that the respondents answered that projects in companies in which IT is a secondary activity is
complexity of the projects is very high in 50% of the cases. A finished within the deadlines. A reason for this could be the
possible reason for this is working on projects which require interdependence of processes within the company, which
new and innovative solutions. requires compliance to time constraints and efficiency in
The obtained results suggest that the performance control is executing of projects. If the projects are not finished within the
at a high level and that reacting to the problems is timely. time planned, in most of the cases (63.64%), the deadline is
Contrary to such effective implementation of those aspects of simply delayed.
control, research has shown that the execution of the project is
always done through monthly comparison of planned and
achieved in only 21.43% of cases. For the use of milestones in
projects (Fig 2.), the results are evenly spread between options
rare, often, always. The main cause for this might be a variety
in the complexity and scope of the projects, but also the fact
that some of the activities that are done by IT companies (i.e.
servicing and sales), do not require special planning.
Time control ensures that the projects phases and the
projects in whole are being finished within the deadline. This is
very important with high-priority projects or the ones which
have pre-established penalties for not following the deadlines.
Results show that most of the projects (63.64%) in IT
companies are finished within the deadlines, a reason for which
might be sensible planning of the time needed for a certain Figure 2. MILESTONES ARE USED FOR PROJECTS
activity or phase. It is also possible that the projects are not too

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Conference of Informatics and Management Sciences
ICTIC 2013 March, 25. - 29. 2013

Similarities and differences in project management considering the type the companies which have IT as a primary activity and those
of IT activity that have it as a secondary activity.
The final goal of the research was to compare the use of The obtained results show that in companies in which IT is
project management in companies operating in the Primorsko - the primary activity, there is no standardized usage of project
goranska County. The following tables show the perceived management. Although in certain segments reported data
similarities and differences: shows that project management is applied to some extent, the
room for improvement is evident. For example, according to
theoretical assumptions, if major goals are set, it is essential
TABLE II. SIMILARITIES AND DIFFERENCES IN PROJECT
MANAGEMENT CONSIDERING THE TYPE OF IT ACTIVITY (IT AS that they are further specified with sub-goals to ensure their
PRIMARY OR SECONDARY ACTIVITY) – PLANNING PHASE. achievement. Also, if all the activities are defined, their costs
should be defined as well, so that feasibility of the whole
project can be determined. Furthermore, the implementation of
TABLE II. PLANNING PHASE control is very important because it enables the discovery of
 Cost planning per phases is done to an equal extent in both possible threats and provides a window for timely reaction with
types of companies corrective measures.
Similarities
 Major goals are specified by sub-goals in most cases The results related to the companies in which IT is the
 Responsibilities for each activity are well defined secondary activity show that these companies have somewhat
higher level of usage of project management. A reason for this
 Cost planning for each activity is applied much more might be found in the interdependencies between the various
frequently in companies in which IT is the secondary activity
processes within those companies, which require more detailed
Differences  Although in many cases the beginnings and endings of each planning of costs, time and responsibilities of project activities.
activity are defined, the results for this are much better for It is possible that the workers there better understand the
the companies in which IT is the secondary activity
companies’ processes, as opposed to the workers on an
outsourced project, because of the communication problems.
TABLE III. SIMILARITIES AND DIFFERENCES IN PROJECT
MANAGEMENT CONSIDERING THE TYPE OF IT ACTIVITY (IT AS A These research findings are consistent with the theoretical
PRIMARY OR SECONDARY ACTIVITY) – CONTROL PHASE. framework given in [4]. The vague definition of project’s goals
can cause serious risks in successful completion of projects,
which is why a good project definition should be one of the
TABLE III. CONTROL PHASE main focuses of the project team.
 Projects are finished within the deadlines in most cases The data obtained in this research can further be explored
(72.73%)
through the usage of classification trees or other statistical
 Projects are finished within the set budgets in most cases methods. Further research could also include the increase in the
(81.82%) number of questions, as well as broadening the base of
Similarities
 Projects are finished at the desired level of quality in most respondents to the whole country, to get a more complete
cases (81.82%) picture of IT project management in Croatia.
 Invested financial resources are effectively utilized in most
cases (81.82%) REFERENCES
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