You are on page 1of 40

MANAGING

INFORMATION
TECHNOLOGY
FIFTH EDITION
CHAPTER 12

IT PROJECT MANAGEMENT
E. Wainright Martin  Carol V. Brown  Daniel W. DeHayes
Jeffrey A. Hoffer  William C. Perkins

IT PROJECT MANAGEMENT
 IT Project management requires knowledge of
system development methodologies:



SDLC
Prototyping
RAD
Purchasing life cycle

© 2005 Pearson Prentice-Hall

Page 421

IT PROJECT MANAGEMENT
 Project Management Institute (PMI)


International society of project workers
Certified thousands of professionals since 1984
PM competencies certified by PMI include eight
areas:

© 2005 Pearson Prentice-Hall

Figure 12.1 Eight Project Management
Competencies

Page 421

IT PROJECT MANAGEMENT
 Most projects share common characteristics:
1.
2.
3.

Risk and uncertainty highest at project start
Ability of stakeholders to influence project greatest at
project start
Cost and staffing levels lower at project start and
higher toward end
(PMI, 1996)

© 2005 Pearson Prentice-Hall

Page 421

IT PROJECT MANAGEMENT
Project:




Temporary endeavor to create unique product or service
Typically is a one-time initiative
Can be divided into multiple tasks
Requires coordination and control
Has a definite beginning and end

© 2005 Pearson Prentice-Hall

Page 422

IT PROJECT MANAGEMENT
Project:




Temporary endeavor to create unique product or service
Typically is a one-time initiative
Can be divided into multiple tasks
Requires coordination and control
Has a definite beginning and end

Program – a group of projects managed in a coordinated
way to obtain benefits not available from managing them
(PMI, 1996)
individually

© 2005 Pearson Prentice-Hall

Page 422

IT PORTFOLIO MANAGEMENT
IT Portfolio – set of IT project initiatives currently in
progress, as well as requests for IT projects that have not
yet been funded

© 2005 Pearson Prentice-Hall

Page 422

IT PORTFOLIO MANAGEMENT
 Project categories to help with prioritization:

Absolute must
issues

A mandate due to security, legal, regulatory, or end-of-life-cycle IT

Highly Desired/Business-Critical
returns

Wanted

Nice to Have

Includes short-term projects with good financial

Valuable, but with longer time periods for ROI (more than 12 months)
Projects with good returns, but with lower potential business value

(Denis, et al., 2004)

© 2005 Pearson Prentice-Hall

Page 422

PROJECT INITIATION
 Project charter
 Scope statement
 Feasibility analyses


Economic
Operational
Technical

© 2005 Pearson Prentice-Hall

Page 424

PROJECT INITIATION
 Economic feasibility


Formal cost-benefit analysis usually conducted
ROI calculated when benefits can be easily measured
Alternatives to ROI:

© 2005 Pearson Prentice-Hall

Figure 12.3 Alternatives to ROI for
Justifying Investments

Page 424

PROJECT INITIATION
Project Manager Characteristics

 Project manager can be:


IS manager
Business manager
Both

© 2005 Pearson Prentice-Hall

Page 424

PROJECT INITIATION
Project Manager Characteristics

© 2005 Pearson Prentice-HallFigure 12.4 Nontechnical Skills for

Superior Project Management

Page 425

PROJECT INITIATION
Project Sponsor and Champion Roles
Sponsor:

• Participates in the development of the initial project
proposal and the feasibility studies
• May personally argue for project approval
• Is usually the business manager who financially “owns”
the project

© 2005 Pearson Prentice-Hall

Page 425

PROJECT INITIATION
Project Sponsor and Champion Roles
Champion – a business manager who:

• Has high credibility as organizational spokesperson
among user community
• Is successful communicator of vision and benefits
throughout the project

© 2005 Pearson Prentice-Hall

Page 425

PROJECT PLANNING
 Three major components:


Schedule
Budget
Staff (project team)

© 2005 Pearson Prentice-Hall

Page 426

PROJECT PLANNING
Scheduling

 Work breakdown analysis:


Identifies phases and task sequence to
meet project goals
Estimates time of completion for each task
Results in a project master schedule that
identifies date and deliverable milestones

© 2005 Pearson Prentice-Hall

Page 426

PROJECT PLANNING
Scheduling
Timeboxing – organizational practice in which
a system module is to be delivered to user
within a set time limit, such as 6 months

Work breakdown – a basic management technique that
systematically subdivides blocks of work down to the level
of detail at which the project will be controlled

© 2005 Pearson Prentice-Hall

Page 426

PROJECT PLANNING
Budgeting
Two traditional approaches to estimating costs:
 Bottom-up

Cost elements are estimated for lowest level of work tasks and then
aggregated to give total project cost estimate

 Top-down (parametric cost estimating)

Provides cost estimates for major budget categories based on
historical experience

© 2005 Pearson Prentice-Hall

Page 427

PROJECT PLANNING
Budgeting

 Inexperienced estimators may:
1.

Be too optimistic about what is needed to do the job

2.

Tend to leave out components

3.

Not use a consistent methodology, and have difficulty
recreating their rationales

© 2005 Pearson Prentice-Hall

Page 427

PROJECT PLANNING
Staffing
Project staffing involves:
1.

Identifying IT specialist

2.

Selecting personnel who collectively have necessary skills and
assigning them to work

3.

Preparing personnel for specific team member work

4.

Providing incentives to achieve project goals

© 2005 Pearson Prentice-Hall

skill mix needed

Page 427

PROJECT PLANNING
Staffing
Counterproductive Characteristics

(Based on productivity study by Hughes Aircraft Company in Roman, 1986)

© 2005 Pearson Prentice-HallFigure 12.5 Counterproductive Characteristics
of Project Team Environments

Page 429

PROJECT PLANNING
Planning Documents
Two typical planning documents:

Statement of Work (SOW)


For the customer
High-level document that describes what project delivers and when
Contract between project manager and executive sponsor

Project Plan

Used by project manager to guide, monitor, and control execution of project
Reviewed by managers or committees that oversee project

© 2005 Pearson Prentice-Hall

Page 429

PROJECT PLANNING
Planning Documents
Two typical planning charts:

PERT (or CPM)

Gantt

© 2005 Pearson Prentice-Hall

Page 429

PROJECT PLANNING
Planning Documents

 PERT (or CPM)



Graphically models sequence of project tasks and
interrelationships using a flowchart diagram
Depicts a critical path – sequence of activities that will take
longest time to complete
Helps managers estimate effects of task slippage
If used, less likely to have cost and schedule overruns

© 2005 Pearson Prentice-Hall

Page 429

PROJECT PLANNING
Planning Documents

(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, Prentice Hall, 2001)

© 2005 Pearson Prentice-Hall

Figure 12.6 PERT Chart Example

Page 430

PROJECT PLANNING
Planning Documents

 Gantt


Graphically depicts estimated times (and later actual times)
for each project task against a horizontal time scale
Tasks presented in logical order along with bar graph
showing estimated time duration for each task on a calendar
Useful for displaying a project schedule and tracking
progress of a set of tasks against project plan

© 2005 Pearson Prentice-Hall

Page 429

(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, 1st Edition,
Copyright © 2001. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ)

© 2005 Pearson Prentice-Hall

Figure 12.7 Gantt Chart Example

Page 431

PROJECT EXECUTION AND
CONTROL
 Project plan needs to be refined and reassessed throughout life of project
 Software project management tools commonly used to help initiate and
monitor project tasks
 Communication among project team members critical for task coordination
and integration
 Communication throughout project to all stakeholders is key to project
success

© 2005 Pearson Prentice-Hall

Page 430

PROJECT EXECUTION AND
CONTROL
Routine Project Status Reporting

(Roman, 1986)

© 2005 Pearson Prentice-Hall

Figure 12.8 Status Reporting

Page 431

PROJECT EXECUTION AND
CONTROL
Managing Project Risks

 PM Goal:

Manage risk of failing to achieve project objectives

 Causes of Risk:



Human error
Project scope changes
Unanticipated technology changes
Internal politics

© 2005 Pearson Prentice-Hall

Page 432

PROJECT EXECUTION AND
CONTROL
Managing Project Risks

(Bashein, Markus, and Finley, 1997)

© 2005 Pearson Prentice-Hall Figure 12.9 Ten IT-Related Risks and
Potential Consequences

Page 432

Managing Project Risks

(Adapted from Hamilton, 2000)

© 2005 Pearson Prentice-Hall Figure 12.11 Risk Controllability and
Impact Grid

Page 434

Managing Project Risks

(Adapted from Frame, 1994)

© 2005 Pearson Prentice-Hall Figure 12.12 Risk Exposure:

Risk versus Stake

Page 434

PROJECT EXECUTION AND
CONTROL
Managing Business Change

 Change management:



Ability to successfully introduce change to individuals and
organizational units
Key to project success
Often involves change to power structures that must be recognized
Can be facilitated by using change models, such as Lewin/Schein
change model

© 2005 Pearson Prentice-Hall

Page 433

PROJECT EXECUTION AND
CONTROL
Managing Business Change

Lewin/Schein Change Model

© 2005 Pearson Prentice-Hall Figure 12.14 Three Stages of

Lewin/Schein Change Model

Page 433

PROJECT CLOSING
 IT project deliverables completed
 Formal user acceptance obtained or failed project terminated
 Common questions for team members:


What went right on this project?
What went wrong on this project?
What would you do differently on the next project, based on your
experience with this project?

© 2005 Pearson Prentice-Hall

Page 436

SPECIAL ISSUE: MANAGING
COMPLEX IT PROJECTS
 Three factors critical to success of large, complex IT projects:

The business vision an integral part of project

A testing approach used at program level (not just individual
application level)

Used a phased-release approach (rather than single rollout strategy)

© 2005 Pearson Prentice-Hall

Page 437

SPECIAL ISSUE: MANAGING
COMPLEX IT PROJECTS

(Adapted from Poria, 2004)

© 2005 Pearson Prentice-HallFigure 12.15 Complexity Increases with
Offsite and Offshore Resources (1 of 2)

Page 437

(Adapted from Poria, 2004)

© 2005 Pearson Prentice-HallFigure 12.15 Complexity Increases with
Offsite and Offshore Resources (2 of 2)

Page 437

SPECIAL ISSUE: POST-MERGER IT
INTEGRATION PROJECTS
 What makes for a successful merger?
Well-honed IT project management skills, and a program
management structure
 Retaining IT talent needed for post merger IT integration
efforts
 Quickly offering attractive retention contracts to key
personnel

© 2005 Pearson Prentice-Hall

Page 438