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Chapter 1

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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.  Shorter development times.  Lower costs.  Higher quality and increased reliability.  Higher profit margins.  Improved productivity.  Better internal coordination.  Higher worker morale (less stress).
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What Is a Project?
 A project is “a temporary endeavor undertaken to create a unique product, service, or result.”*  Operations is work done to sustain the business.  A project ends when its objectives have been reached, or the project has been terminated.  Projects can be large or small and take a short or long time to complete.
*PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (2004), p. 5.
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Project Attributes
 A project:
     Has a unique purpose. Is temporary. Is developed using progressive elaboration. Requires resources, often from various areas. Should 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 work with project sponsors, project teams, and other people involved in projects to meet project goals.  Program: “A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.”*  Program managers oversee programs and often act as bosses for project managers.
*PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (2004), p. 16.
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Fourth Edition 6 .The Triple Constraint  Every project is constrained in different ways by its:  Scope goals: What work will be done?  Time goals: How long should it take to complete?  Cost goals: What should it cost?  It is the project manager’s duty to balance these three often-competing goals. Information Technology Project Management.

Figure 1-1. time. and cost) – and satisfying the project’s sponsor! Information Technology Project Management. The Triple Constraint of Project Management Successful project management means meeting all three goals (scope. Fourth Edition 7 .

tools and techniques to project activities to meet project requirements.”* *PMI. p. skills. Information Technology Project Management. 8. Fourth Edition 8 .What is Project Management?  Project management is “the application of knowledge. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (2004).

Project Management Framework Information Technology Project Management. Fourth Edition 9 .Figure 1-2.

Project Stakeholders  Stakeholders are the people involved in or affected by project activities.  Stakeholders include:         Project sponsor Project manager Project team Support staff Customers Users Suppliers Opponents to the project 10 Information Technology Project Management. Fourth Edition .

Nine Project Management Knowledge Areas  Knowledge areas describe the key competencies that project managers must develop.  All knowledge areas are important! Information Technology Project Management.  Four facilitating knowledge areas are the means through which the project objectives are achieved (human resources. cost. and procurement management). Fourth Edition 11 . communication.  Four core knowledge areas lead to specific project objectives (scope. risk.  One knowledge area (project integration management) affects and is affected by all of the other knowledge areas. and quality). time.

Fourth Edition 12 . critical path analyses. critical chain scheduling (time).  Gantt charts. network diagrams.  Cost estimates and earned value management (cost).  Specific tools and techniques include:  Project charters and scope statements.Project Management Tools and Techniques  Project management tools and techniques assist project managers and their teams in various aspects of project management.  …… Information Technology Project Management.

Fourth Edition 13 .) Information Technology Project Management. see Chapter 7.Project Portfolio Management  Many organizations support an emerging business strategy of project portfolio management:  Organizations group and manage projects as a portfolio of investments that contribute to the entire enterprise’s success. (For more information. Project Cost Management.

Project Management Process Groups  A process is a series of actions directed toward a particular result.  Project management can be viewed as a number of interlinked processes.  The project management process groups include:      Initiating processes Planning processes Executing processes Monitoring and controlling processes Closing processes 14 Infomation Technology Project Management. Fourth Edition .

Level of Activity and Overlap of Process Groups Over Time Infomation Technology Project Management.Figure 3-1. Fourth Edition 15 .

Infomation Technology Project Management. Fourth Edition 16 .  Note that there are activities from each knowledge area under the planning process group.  All initiating activities are part of the project integration management knowledge area.Mapping the Process Groups to the Knowledge Areas  You can map the main activities of each PM process group into the nine knowledge areas by using the PMBOK® Guide 2004.

p. Fourth Edition 17 . Relationships Among Process Groups and Knowledge Areas •PMBOK® Guide 2004.Table 3-1. 69 Infomation Technology Project Management.

Fourth Edition 18 .Table 3-1. Relationships Among Process Groups and Knowledge Areas (cont’d) Infomation Technology Project Management.

* Measure Successful projects Failed projects Money wasted on challenged and failed projects 1994 Data 16% 31% $140 B out of $250 B 2002 Data 34% 15% $55 B out of $255 B Result Doubled Halved More than halved *The Standish Group. “Latest Standish Group CHAOS Report Shows Project Success Rates Have Improved by 50%” (March 25. Fourth Edition 19 . 2003).Improved Project Performance  The Standish Group’s CHAOS studies show improvements in IT projects in the past decade. Information Technology Project Management.

The fact that there are processes is significant in itself.Why the Improvements? “The reasons for the increase in successful projects vary. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. Information Technology Project Management. First.”* *The Standish Group. “CHAOS 2001: A Recipe for Success” (2001). Fourth Edition 20 . the average cost of a project has been more than cut in half.

Why do software projects fail?  The team has an unrealistic idea about how much work is involved. most complex problems seem simple to solve  Teams can commit to impossible deadlines by being overly optimistic and not thinking through the work  Few people realize the deadline is optimistic until it’s blown .  From far away.

the more likely they are to cause the project to fail 22 http://w .Why do software projects fail?  Defects are injected early but discovered late. architecture and code can be technically flawed Test plans can miss functionality The later these problems are found.      Projects can address the wrong needs Requirements can specify incorrect behavior Design.

23 http://w .Why do software projects fail?  Programmers have poor habits – and they don’t feel accountable for their work. which makes diagnosing and fixing bugs more expensive  The team does not have a good sense of the overall health of the project.  Programmers don’t have good control of their source code  Code written by one person is often difficult for another person to understand  Programmers don’t test their code.

 When testers find defects.  Everyone assumes that the testers will catch all of the defects that were injected throughout the project.  When testers miss defects.Why do software projects fail?  Managers try to test quality into the software. 24 http://w . programmers are antagonized because they feel that they are being personally criticized. managers tell them they are wasting time.  When testers look for defects. everyone blames them for not being perfect.

stakeholders. 25 http://w . users and anyone else in the organization who wants them.  Major decisions that are made about the project should be well-supported and explained. schedules. estimates. managers. where everyone who needs information knows where to find it and is comfortable looking at it. plans and other work products should be shared with the entire team.How can we make sure that our projects succeed?  Make sure all decisions are based on openly shared information  It’s important to create a culture of transparency.  All project documents.

26 http://w .  If you don’t have a good reason to veto an idea.  Just because a manager has responsibility for a project’s success. it doesn’t mean that he’s more qualified to make decisions than the team members.How can we make sure that our projects succeed?  Don’t second-guess your team members’ expertise  Managers need to trust team members. don’t.

 It’s always faster in the long run to hold a review than it is to skip it.  Use reviews to find defects – but don’t expect the review to be perfect. 27 http://w . test everything.  Use reviews to gain a real commitment from the team.How can we make sure that our projects succeed?  Introduce software quality from the very beginning of the project  Review everything.

28 http://w . or the tester is always raising false alarms.How can we make sure that our projects succeed?  Don’t impose an artificial hierarchy on the project team  All software engineers were created equal. testing or requirements engineering.  A manager should not assume that programming is more difficult or technical than design.  Managers should definitely not assume that the programmer is always right.

Cutting them out will cost time and reduce quality. we would never use them. requirements gathering and testing. reviews.  If it were faster to build the software without these practices.How can we make sure that our projects succeed?  Remember that the fastest way through the project is to use good engineering practices  Managers and teams often want to cut important tasks – especially estimation.  Every one of these practices is about saving time and increasing quality by planning well and finding defects early. 29 http://w .

Project Success Factors* 1. proper planning. Information Technology Project Management. User involvement 3. Experienced project manager 4. Firm basic requirements 8. “Extreme CHAOS” (2001). such as small milestones. Minimized scope 6. Clear business objectives 5. Formal methodology 9. and ownership *The Standish Group. competent staff. Reliable estimates 10. Standard software infrastructure 7. Fourth Edition 30 . Other criteria. Executive support 2.

“Delivering Projects: What the Winners Do. Fourth Edition 31 . Information Technology Project Management.What the Winners Do*  Recent research findings show that companies that excel in project delivery capability:  Use an integrated project management toolbox that includes standard and advanced tools and lots of templates. *Milosevic.” Proceedings of the Project Management Institute Annual Seminars & Symposium (November 2001). Dragan and And Ozbay.  Grow project leaders. including customer satisfaction and return on investment. emphasizing business and soft skills.  Measure project health using metrics.  Develop a streamlined project delivery process.

Fourth Edition 32 . and working with people to achieve project goals. scheduling.  Remember that 97 percent of successful projects were led by experienced project managers. but most include responsibilities such as planning.The Role of the Project Manager  Job descriptions vary. coordinating. Information Technology Project Management.

decisionmakers. WA.  Develop initial project management flow chart. and escalation procedures. Fourth Edition 33 . Information Technology Project Management. Prepare contingency plan. Identify and evaluate risks. Identify interdependencies. Report project status.  Identify stakeholders. *Northwest Center for Emerging Technologies.  Estimate time requirements. “Building a Foundation for Tomorrow: Skills Standards for Information Technology. Fifteen Project Management Job Functions*  Define scope of project.” Belleview.  Identify required resources and budget. Participate in project phase review.          Evaluate project requirements.Table 1-3. 1999. Secure needed resources. Identify and track critical milestones. Manage the change control process.  Develop detailed task list (work breakdown structures).

 Lead teams to accomplish project goals. Information Technology Project Management.Suggested Skills for Project Managers  Project managers need a wide variety of skills.  Understand the organizations they work in and with.  They should:  Be comfortable with change. Fourth Edition 34 .

 Soft skills include being able to work with various types of people.Suggested Skills for Project Managers  Project managers need both “hard” and “soft” skills. Information Technology Project Management. Fourth Edition 35 .  Hard skills include product knowledge and knowing how to use various project management tools and techniques.

persuades. sets goals. persistent. provides vision (big picture).  Organizational skills: Plans. project knowledge. Information Technology Project Management. energetic. positive.  Leadership skills: Sets examples. delegates.Suggested Skills for Project Managers  Communication skills: Listens. patient. motivates.  Team-building skills: Shows empathy. promotes esprit de corps(team work spirit).  Technology skills: Experience. creative. analyzes.  Coping skills: Flexible. Fourth Edition 36 .

and you should always aim high. Trust your team and delegate decisions. Think outside the box. Stand up for yourself. There is some luck involved in project management. Stay organized and don’t be overly emotional. Know what your sponsor expects from the project. Information Technology Project Management. Fourth Edition 37 . Work on projects and for people you believe in. and learn from your mistakes. Know the business.Media Snapshot – Good Project Management Skills from The Apprentice      Leadership and professionalism are crucial.      Be a team player.

Fourth Edition 38 Ineffective Project Managers • Sets bad example • Not self-assured • Lacks technical expertise • Poor communicator • Poor motivator .Table 1-4. Most Significant Characteristics of Effective and Ineffective Project Managers Effective Project Managers • Leadership by example • Visionary • Technically competent • Decisive • Good communicator • Good motivator • Stands up to upper management when necessary • Supports team members • Encourages new ideas Information Technology Project Management.

Importance of Leadership Skills  Effective project managers provide leadership by example.  Project managers often take on both leader and manager roles.  A manager deals with the day-to-day details of meeting specific goals. Fourth Edition 39 .  A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals. Information Technology Project Management.

163 6 Windows NT/2000 Expert $80.144 3 C/C++ Programmer $95.639 7 Windows/Java Developert $93.785 8 Security Architect $86.719 10 Network Engineer $82.664 2 Oracle Database Analyst $87.globalknowledge.906 Paul Ziv.903 5 E-commerce/Java Developer $89.Table 1-5. Top Ten Most In-Demand IT Skills Rank IT Skill/Job Average Annual Salary 1 SQL Database Analyst $80.829 4 Visual Basic Programmer $76. Information Technology Project Management. Fourth Edition 40 . “The Top 10 IT Skills in Demand.881 9 Project Manager $95.com) (11/20/2002).” Global Knowledge Webcast (www.

Lorraine. “January 2004 IT Staffing Update. 2004). Top Information Technology Skills 70% 60% 60% 50% 40% 30% 20% 10% 0% Application development Project management Database management Networking 58% 42% Percentage of Respondents 41% Information Technology (IT) Skill Cosgrove. Fourth Edition 41 . Information Technology Project Management.” CIO Research Reports (February 3.Figure 1-3.

$2 billion (in 1946 dollars) project had a separate project and technical managers.  This three-year.History of Project Management  Some people argue that building the Egyptian pyramids was a project. as was building the Great Wall of China. Information Technology Project Management. Fourth Edition 42 .  Most people consider the Manhattan Project to be the first project to use “modern” project management.

First used in 1917. Sample Gantt Chart Work Breakdown Structure (WBS) The WBS is shown on the left. early Gantt charts were drawn by hand. Fourth Edition 43 . Information Technology Project Management. and each task’s start and finish dates are shown on the right.Figure 1-4.

Network diagrams were first used in 1958 on the Navy Polaris project before project management software was available. If any task on the critical path takes longer to complete than planned. Information Technology Project Management. The bolded tasks are on the critical path. Sample Network Diagram Each box is a project task from the WBS. Arrows show dependencies between tasks. the whole project will slip unless something is done. Fourth Edition 44 .Figure 1-5.

 Provide a structure to house project managers while they are acting in those roles or are between projects.  Possible goals include:  Collect. and integrate project data for the entire organization.  Develop and provide a formal career path for project managers.  Develop or coordinate training in various project management topics.Project Management Office (PMO)  A PMO is an organizational group responsible for coordinating the project management function throughout an organization. organize. Information Technology Project Management.  Provide project management consulting services.  Develop and maintain templates for project documents. Fourth Edition 45 .

Project Management Software  Enterprise PM software integrates information from multiple projects to show the status of active.  It also provides links to more detailed information on each project. Information Technology Project Management.  Many managers like to see status in color – red. approved. Fourth Edition 46 . and future projects across an entire organization. yellow. and green.

Fourth Edition 47 . Sample Enterprise Project Management Tool Information Technology Project Management.Figure 1-6.

health care. Information Technology Project Management. and IT.The Project Management Profession  Professional societies such as the Project Management Institute (PMI) have grown significantly. financial services.  Project management research and certification programs continue to grow. such as engineering. Fourth Edition 48 .  There are specific interest groups in many areas.

agreed to follow a code of ethics.  PMI and other organizations are offering new certification programs (see Appendix B).Project Management Certification  PMI provides certification as a Project Management Professional (PMP).  The number of people earning PMP certification is increasing quickly.  A PMP has documented sufficient project experience. and passed the PMP exam. Information Technology Project Management. Fourth Edition 49 .

000 70.052 40.000 60.086 6.000 30.415 18.900 2. Growth in PMP Certification.000 0 1.000 1.800 4.343 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year Information Technology Project Management.000 52.000 20.184 27.Figure 1-7.000 40.550 # PMPs 50.443 76.000 10.400 10. 1993-2003 80. Fourth Edition 50 .

Ethics in Project Management  Ethics is an important part of all professions. applicants must agree to the PMP code of professional conduct. Fourth Edition 51 .  In order to earn PMP certification.  Project managers often face ethical dilemmas.  Several questions on the PMP exam are related to professional responsibility. Information Technology Project Management. including ethics.

 High-end tools: Also called enterprise project management software. cost $200-500 per user. VPMi Enterprise Online (www.  Midrange tools: Handle multiple projects and users. Fourth Edition 52 . often licensed on a per-user basis. cost under $200 per user. Information Technology Project Management.vcsonline.  Three main categories of tools:  Low-end tools: Handle single or smaller projects well.Project Management Software  There are currently hundreds of different products to assist in performing project management.com). Project 2003 most popular (includes an enterprise version).

 A project has several attributes. the nine knowledge areas. such as being unique. Fourth Edition 53 . tools and techniques. Information Technology Project Management. it is becoming even more important to practice good project management.  Successful project managers must possess and development many skills and lead their teams by example.  The project management profession continues to mature as more people become certified and more tools are created.  A framework for project management includes project stakeholders.Chapter Summary  As the number and complexity of projects continue to grow. temporary and developed incrementally. and creating project portfolios to ensure enterprise success.