INFORMATION TECHNOLOGY

PROJECT MANAGEMENT

INTRODUCTION TO PROJECT
MANAGEMENT
1 Lecture 1
  Overview
 Project
 Project Management
 Project Portfolio Management
 History of Project Management
 Project Management Profession

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OVERVIEW
 Motivation for Studying Information Technology (IT) Project
Management (PM):
 The overall information and communications technology (ICT) market
grew by 6 percent to almost $3 trillion in 2010.
 IT Projects have a terrible track record.
 A 1995 Standish Group study found that only 16.2% of IT projects
were successful in meeting scope, time, and cost goals - 40%
success rate (2012).
 Over 31% of IT projects were canceled before completion, costing
over $81 billion in the U.S. alone.
 According to the Project Management Institute [1], 47% of unsuccessful
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projects are impacted by poor decision-making (2015).
OVERVIEW
 Many organizations today have a new or renewed
interest in project management.
 Until the 1980s, project management primarily focused
on providing schedule and resource data to top
management in the military, computer, and construction
industries.
 Today’s project management involves much more, and
people in every industry and every country manage
projects.
 Computer hardware, software, networks, and the use of
interdisciplinary and global work teams have radically 4
changed the work environment.
OVERVIEW
 The following statistics demonstrate the significance
of project management in today’s society, especially
for projects involving information technology (IT).
 Project Management Statistics:
 The U.S. spends $2.3 trillion on projects every year, or
one-quarter of its gross domestic product, and the world as
a whole spends nearly $10 trillion of its $40.7 trillion gross
product on projects of all kinds.
 Worldwide IT spending totaled more than $1.8 trillion in
2005, a 6 percent increase from 2004, and spending was
projected to grow 8 percent in 2006 and 4 percent in 2007. 5
$3.7 trillion in 2012, 2.5% increase from 2011.
OVERVIEW
 Project Management Statistics: (Cont’d)
 In 2005, the total compensation for the average senior
project manager was $99,183 per year in the United
States, $94,646 in Australia, and $106,374 in the United
Kingdom,
 Senior Project Manager RM 7,700, average (RM 10,000)
and maximum (RM 13,000)
 Project Manager RM 5,400, average (7,000) and
maximum (RM 9,000)
 The number of people earning their Project Management
Professional (PMP) certification is continuously increasing 6
(618,933) worldwide.
OVERVIEW
 Today’s companies, governments, and nonprofit
organizations are recognizing that to be successful,
they need to use modern project management
techniques, especially for IT projects.
 Individuals are realizing that to remain competitive in
the workplace, they must develop skills to become
good project team members and project managers.
 They also realize that many of the concepts of
project management will help them in their everyday
lives as they work with people and technology on a
day-to-day basis. 7
OVERVIEW
 Advantages of using formal project management:
 Better control of financial, physical, and human
resources.
 Improved customer relations.
 Shorter development times.
 Lower costs and improved productivity.
 Higher quality and increased reliability.
 Higher profit margins.
 Better internal coordination. 8
OVERVIEW
 Positive impact on meeting strategic goals.
 Higher worker morale (less stress).

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PROJECT
 What is a Project?
A project is “a temporary endeavor (attempt) undertaken
to create a unique product, service, or result” (PMBOK).
 Projects end when their objectives have been achieved
or the project has been terminated.
 Projects can be large or small and take a short or long
time to complete.

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PROJECT
 Examples of IT projects
A team of students creates a smartphone application and
sells it online.
A company develops a driverless car.
A small software development team adds a new feature to
an internal software application for the finance department.
A college campus upgrades its technology infrastructure to
provide wireless Internet access across the whole campus.
A cross-functional task force in a company decides what
Voice-over-Internet-Protocol (VoIP) system to purchase 11
and how it will be implemented.
PROJECT
 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. 12
PROJECT MANAGEMENT -
CONSTRAINTS
 Every project is constrained in different ways, often by its
scope, time, and cost goals – limitations/triple constraint.
 Scope: What work will be done as part of the project? What
unique product, service, or result does the customer or sponsor
expect from the project? How will the scope be verified?
 Time: How long should it take to complete the project? What is
the project’s schedule? How will the team track actual schedule
performance? Who can approve changes to the schedule?
 Cost: What should it cost to complete the project? What is the
project’s budget? How will costs be tracked? Who can
authorize changes to the budget?
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PROJECT MANAGEMENT
 The Triple Constraint of Project Management
 Successful project management means meeting all three goals
(scope, time, and cost) – and satisfying the project’s sponsor!

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PROJECT MANAGEMENT
 What is Project Management?
 Project management is “the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements” (PMBOK).
 Project managers strive to meet the triple constraint
by balancing project scope, time, and cost goals.

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PROJECT MANAGEMENT
 Project Management Framework

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PROJECT MANAGEMENT
 Nine Project Management Knowledge Areas
 Knowledge areas describe the key competencies that
project managers must develop.
 Four core knowledge areas lead to specific project objectives
(scope, time, cost, and quality).

 Four facilitating knowledge areas are the means through which

the project objectives are achieved (human resources,
communication, risk, and procurement management)

 One knowledge area (project integration management) affects

and is affected by all of the other knowledge areas

 All knowledge areas are important!!! 17

PROJECT MANAGEMENT
 Project Stakeholders
 Stakeholders are the people involved in or affected by
project activities.
 Stakeholders include:
 The project sponsor Users

 The project manager Suppliers

 The project team Opponents to the project

 Support staff

 Customers
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PROJECT MANAGEMENT
 Project Management Tools and Techniques
 Project management tools and techniques assist
project managers and their teams in various aspects of
project management
 Some specific ones include:
 Project charter (objectives), preliminary scope statement, and
WBS (total scope)

 Gantt charts (project schedule), network diagrams (activity

sequence), critical path analysis (predict total duration), and
critical chain scheduling (time management)

 Cost estimates and earned value management (performance 19

measurement)
 PROJECT MANAGEMENT
 Project Management Tools and Techniques (cont’d)
Knowledge Tools & Techniques
Area/Category
Integration management Project selection methods, project management methodologies, stakeholder
analyses, work requests, project charters, project management plans, project
management software, change
requests, change control boards, project review meetings, lessons-learned reports.

Scope management Scope statements, work breakdown structures, statements of

work, requirements analyses, scope management plans, scope verification
techniques, scope change control
Time management Gantt charts, project network diagrams, critical path analysis, crashing, fast
tracking, schedule performance measurements
Cost management Project budgets, net present value, return on investment, payback analysis, earned
value management, project portfolio management, cost estimates, cost management
plans, cost baselines
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Quality management Quality metrics, checklists, quality control charts, Pareto diagrams,
fishbone diagrams, maturity models, statistical methods,
test plans
 PROJECT MANAGEMENT

Knowledge Tools & Techniques

Area/Category
Human resource Motivation techniques, empathic listening, responsibility assignment
management matrices, project organizational charts, resource histograms, team building
exercises.
Communications Communications management plans, kick-off meetings, conflict
management management, communications media selection, status and progress
reports, virtual communications, templates, project Web sites
Risk management Risk management plans, risk registers, probability/impact matrices, risk rankings

Procurement Make-or-buy analyses, contracts, requests for proposals or quotes, source

management selections, supplier évaluation matrices

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PROJECT MANAGEMENT
 Project Success
 There are several ways to define project success:
 The project met scope, time, and cost goals.

 The project satisfied the customer/sponsor.

 The results of the project met its main objective, such as

making or saving a certain amount of money, providing a good
return on investment, or simply making the sponsors happy

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PROJECT MANAGEMENT
 What Helps Projects Succeed?
1. Executive support.

2. User involvement.

3. Experienced project manager.

4. Clear business objectives.

5. Optimizing scope.

6. Project management expertise.

7. Firm customer’s basic requirements.

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8. Skilled resources.
PROJECT MANAGEMENT
9. Reliable estimates.

10. Emotional maturity.

11. Agile processes.

12. Other criteria, such as small milestones, proper planning,

competent staff, and ownership.

13. Execution.

14. Tools and infrastructures.

15. Adequate funding.

16. Staff expertise.

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17. Engagement from all stakeholders.
PROJECT
 Project and Program Manager
 Project managers work with project sponsors, a project
team, and other people involved in a project to meet
project goals.
 Program: group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually (PMBOK).
 Program managers oversee programs and often act as
bosses for project managers. They provide leadership
and direction for the project managers heading the
projects within the program.
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PROJECT
 Examples of Common Programs in IT field:
 Infrastructure: An IT department often has a program for IT
infrastructure projects. This program could encompass several
projects, such as providing more wireless Internet access, upgrading
hardware and software, and developing and maintaining corporate
standards for IT.

 Applications development: This program could include several

projects, such as updating an enterprise resource planning (ERP)
system, purchasing a new off-the-shelf billing system, or developing a
new capability for a customer relationship management system.

 User support: In addition to the many operational tasks related to

user support, many IT departments have several projects to support
users. For example, a project might provide a better e-mail system or 26
develop technical training for users.
PROJECT
 Project Portfolio Management
 In many organizations, project managers also support an emerging
business strategy of project portfolio management.

 Organizations group and manage projects and programs as a

portfolio of investments that contribute to the entire enterprise’s
success.

 Portfolio managers help their organizations make wise investment

decisions by helping to select and analyze projects from a strategic
perspective.

 Need strong financial and analytical skills and understanding of how

projects and programs can contribute to meeting strategic goals.
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PROJECT
 Project management compared to project portfolio
management.

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PROJECT
 Sample project portfolio approach.

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PROJECT
 Three basic IT project portfolio categories:
 Venture: Projects in this category help transform the business. For example,
the large retail chain described in the opening case might have an IT project
to provide kiosks in stores and similar functionality on the Internet where
customers and suppliers could quickly provide feedback on products or
services. This project could help transform the business by developing closer
partnerships with customers and suppliers.

 Growth: Projects in this category would help the company grow in terms of
revenues. For example, a company might have an IT project to provide
information on its corporate Web site in a new language, such as Chinese or
Japanese. This capability could help the company grow its business in those
countries.

 Core: Projects in this category must be accomplished to run the business.

For example, an IT project to provide computers for new employees would30
fall under this category.
PROJECT
 Many organizations use specialized software to
organize and analyze all types of project data into
project portfolios.
 Enterprise or portfolio project management software
integrates information from multiple projects to show
the status of active, approved, and future projects
across an entire organization.

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PROJECT
 Sample project portfolio management screen showing
portfolio optimization

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PROJECT MANAGEMENT PROFESSION
 The profession of project management is growing
at a very rapid pace.
 Suggested Skills for Project Managers
 Project managers need a wide variety of skills.
 They should:
 Be comfortable with change.

 Understand the organizations they work in and with.

 Be able to lead teams to accomplish project goals.

 The Project Management Body of Knowledge 33

PROJECT MANAGEMENT PROFESSION
 Application area knowledge, standards, and regulations
 Project environment knowledge (different from
organization to organization).
 General management knowledge and skills.
 Soft skills or human relations skills.

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PROJECT MANAGEMENT PROFESSION
 The Role of the Project Manager
 Job descriptions vary, but most include responsibilities
like planning, scheduling, coordinating, and working with
people to achieve project goals.
 It has been reported that 97% of successful projects
were led by experienced project managers, who can
often help influence success factors.

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PROJECT MANAGEMENT PROFESSION
 The Most Important Skills and Competencies for
Project Manager
1. People skills

2. Leadership

3. Listening

4. Integrity (honesty), ethical behavior, consistent

5. Strength at building trust

6. Verbal communication
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7. Strength at building teams
PROJECT MANAGEMENT PROFESSION
8. Conflict resolution, conflict management

9. Critical thinking, problem solving

10. Understanding and balancing priorities

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PROJECT MANAGEMENT PROFESSION
 Different Skills Needed in Different Situations
 Large projects: leadership, relevant prior experience,
planning, people skills, verbal communication, and
team-building skills are most important.
 High uncertainty projects: risk management,
expectation management, leadership, people skills, and
planning skills are most important.
 Very novel projects: leadership, people skills, having
vision and goals, self-confidence, expectations
management, and listening skills are most important.
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PROJECT MANAGEMENT PROFESSION
 Importance of Leadership Skills
 Effective project managers provide leadership by
example.
A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals.
A manager deals with the day-to-day details of meeting
specific goals.
 Project
managers often take on the role of both leader
and manager.

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HISTORY OF PROJECT MANAGEMENT
 History of Project Management
 Some people argue that building the Egyptian pyramids
was a project, as was building the Great Wall of China.
 Most people consider the Manhattan Project (military-
led atomic bomb development) to be the first project to
use “modern” project management.
 Thisthree-year, $2 billion (in 1946 dollars) project had a
separate project manager and a technical manager.

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PROJECT MANAGEMENT PROFESSION
 Project Management Certification
 PMI provides certification as a Project Management
Professional (PMP)
A PMP has documented sufficient project experience,
has agreed to follow a code of ethics, and has passed
the PMP exam.
 The number of people earning PMP certification is
increasing quickly.
 PMI and other organizations are offering new
certification programs.
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PMI CERTIFICATIONS
 PMP (Project Management Professional) is one of eight
credentials offered by PMI:[17]
 Certified Associate in Project Management (CAPM)

 Project Management Professional (PMP)

 Program Management Professional (PgMP)

 PMI Agile Certified Practitioner (PMI-ACP)

 PMI Risk Management Professional (PMI-RMP)

 PMI Scheduling Professional (PMI-SP)

 Portfolio Management Professional (PfMP)

 PMI Professional in Business Analysis (PMI-PBA)

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GROWTH IN PMP CERTIFICATION

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PROJECT MANAGEMENT PROFESSION
 Ethics in Project Management
 Ethics, loosely defined, is a set of principles that guide
our decision making based on personal values of what
is “right” and “wrong”.
 Project managers often face ethical dilemmas.
 For example, several projects involve different payment
methods. If a project manager can make more money
by doing a job poorly, should he do the job poorly?
 Itis important for project managers to make decisions in
an ethical manner.
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PROJECT MANAGEMENT PROFESSION
 Project Management Software
 There are hundreds of different products to assist in
performing project management
 Three main categories of tools
 Low-end tools: handle single or smaller projects well.

 Midrange tools: handle multiple projects and users, MS

Project 2007 most popular

 High-end tools: also called enterprise project management

software, often licensed on a per-user basis.

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THANK YOU
 Q & A???

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