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Copyright Course Technology 20011Chapter1:IntroductiontoProjectManagementCopyright Course Technology 20Copyright Course Technology 20012ITProjectshaveaterribletrackrecordA1995StandishGroupstudy(CHAOS)foundthatonly16.2%ofITprojectsweresuccessfulandover31%werecanceledbeforecompletion,costingover$81BintheU.S.aloneTheneedforITprojectskeepsincreasingIn1998,corporateAmericaissued200,000new-startapplicationdevelopmentprojectsIn2000,therewere300,000newITprojects,andIn2001,over500,000newITprojectswerestartedMotivationforStudyingInformationTechnology(IT)ProjectManagementCopyright Course Technology 20Copyright Course Technology 20013WhatIsaProject?AprojectisatemporaryendeavorundertakentoaccomplishauniquepurposeAttributesofprojectsuniquepurposetemporaryrequireresources,oftenfromvariousareasshouldhaveaprimarysponsorand/orcustomerinvolveuncertaintyCopyright Course Technology 20Copyright Course Technology 20014SamplesofITProjectsNorthwestAirlinesdevelopedanewreservationsystemcalledResNet(seechapters11-16)Manyorganizationsupgradehardware,software,andnetworksviaprojects(seechapter5openingandclosingcase)Organizationsdevelopnewsoftwareorenhanceexistingsystemstoperformmanybusinessfunctions(seeexamplesthroughoutthetext)Note:“ITprojects”referstoprojectsinvolvinghardware,software,andnetworksCopyright Course Technology 20Copyright Course Technology 20015TheTripleConstraintEveryprojectisconstrainedindifferentwaysbyitsScopegoals:Whatistheprojecttryingtoaccomplish?Timegoals:Howlongshouldittaketocomplete?Costgoals:Whatshoulditcost?ItistheprojectmanagersdutytobalancethesethreeoftencompetinggoalsCopyright Course Technology 20Copyright Course Technology 20016The2001StandishGroupReportShowedDecided ImprovementinITProjectSuccessRatesFromthe1995StudyTime overruns significantly decreased to 63%compared to 222%Cost overruns were down to 45%compared to 189%Required features and functions were up to 67%compared to 61%78,000 U.S.projects were successful compared to 28,00028%of IT projects succeeded compared to 16%Copyright Course Technology 20Copyright Course Technology 20017WhytheImprovements?The reasons for the increase in successful projects vary.First,the average cost of a project has been more than cut in half.Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used.The fact that there are processes is significant in itself.“*The Standish Group,CHAOS 2001:A Recipe for Success(2001)Copyright Course Technology 20Copyright Course Technology 20018WhatisProjectManagement?Projectmanagementis“theapplicationofknowledge,skills,tools,andtechniquestoprojectactivitiesinordertomeetprojectrequirements”(PMI*,ProjectManagementBodyofKnowledge(PMBOKGuide),2000,p.6)*The Project Management Institute(PMI)is an international professional society.Their web site is www.pmi.org.Copyright Course Technology 20Copyright Course Technology 20019Figure1-2.ProjectManagementFrameworkCopyright Course Technology 20Copyright Course Technology 200110ProjectStakeholdersStakeholdersarethepeopleinvolvedinoraffectedbyprojectactivitiesStakeholdersincludetheprojectsponsorandprojectteamsupportstaffcustomersuserssuppliersopponentstotheprojectCopyright Course Technology 20Copyright Course Technology 2001119ProjectManagementKnowledgeAreasKnowledgeareasdescribethekeycompetenciesthatprojectmanagersmustdevelop4coreknowledgeareasleadtospecificprojectobjectives(scope,time,cost,andquality)4facilitatingknowledgeareasarethemeansthroughwhichtheprojectobjectivesareachieved(humanresources,communication,risk,andprocurementmanagement1knowledgearea(projectintegrationmanagement)affectsandisaffectedbyalloftheotherknowledgeareasCopyright Course Technology 20Copyright Course Technology 200112ProjectManagementToolsandTechniquesProjectmanagementtoolsandtechniquesassistprojectmanagersandtheirteamsinvariousaspectsofprojectmanagementSomespecificonesincludeProjectCharterandWBS(scope)Ganttcharts,networkdiagrams,criticalpathanalysis,criticalchainscheduling(time)Costestimatesandearnedvaluemanagement(cost)Copyright Course Technology 20Copyright Course Technology 200113Figure1-4.SampleGanttChartThe WBS is on the left,and each tasks start and finish dateare shown on the right using a calendar timescale.Copyright Course Technology 20Copyright Course Technology 200114Figure1-5.SampleNetworkDiagramEach box is a project task from the WBS.Arrows show dependenciesbetween tasks.The bolded tasks are on the critical path.If any tasks on thecritical path take longer than planned,the whole project will slip unless something is done.Copyright Course Technology 20Copyright Course Technology 200115MoreAdvantagesofProjectManagement*Bosses,customers,andotherstakeholdersdonotlikesurprisesGoodprojectmanagement(PM)providesassuranceandreducesriskPMprovidesthetoolsandenvironmenttoplan,monitor,track,andmanageschedules,resources,costs,andqualityPMprovidesahistoryormetricsbaseforfutureplanningaswellasgooddocumentationProjectmemberslearnandgrowbyworkinginacross-functionalteamenvironment*Knutson,Joan,PM Network,December1997,p.13Copyright Course Technology 20Copyright Course Technology 200116HowProjectManagement(PM)RelatestoOtherDisciplinesMuchoftheknowledgeneededtomanageprojectsisuniquetoPMHowever,projectmanagersmustalsohaveknowledgeandexperienceingeneralmanagementtheapplicationareaoftheprojectProjectmanagersmustfocusonmeetingspecificprojectobjectivesCopyright Course Technology 20Copyright Course Technology 200117Figure1-3.ProjectManagementandOtherDisciplinesCopyright Course Technology 20Copyright Course Technology 200118HistoryofProjectManagementModernprojectmanagementbeganwiththeManhattanProject,whichtheU.S.militaryledtodeveloptheatomicbombIn1917HenryGanttdevelopedtheGanttchartasatoolforschedulingworkinjobshopsIn1958,theNavydevelopedPERTchartsInthe1970s,themilitarybeganusingprojectmanagementsoftware,asdidtheconstructionindustryBythe1990s,virtuallyeveryindustrywasusingsomeformofprojectmanagementCopyright Course Technology 20Copyright Course Technology 200119TheProjectManagementProfessionA1996Fortunearticlecalledprojectmanagementthe“numberonecareerchoice”ProfessionalsocietiesliketheProjectManagementInstitute(PMI)havegrowntremendouslyAveragesalariesforprojectmanagersareover$81,000Copyright Course Technology 20Copyright Course Technology 200120ProjectManagementKnowledgeContinuestoGrowandMaturePMIhostedtheirfirstresearchconferenceinJune2000inParis,FranceThePMBOKGuide2000EditionisanANSIstandardPMIscertificationdepartmentearnedISO9000certificationHundredsofnewbooks,articles,andpresentationsrelatedtoprojectmanagementhavebeenwritteninrecentyearsCopyright Course Technology 20Copyright Course Technology 200121ProjectManagementCertificationPMIprovidescertificationasaProjectManagementProfessional(PMP)APMPhasdocumentedsufficientprojectexperience,agreedtofollowacodeofethics,andpassedthePMPexamThenumberofpeopleearningPMPcertificationisincreasingquicklyPMIandotherorganizationsareofferingnewcertificationprograms(seeAppendixB)Copyright Course Technology 20Copyright Course Technology 200122Figure1-6.GrowthinPMPCertification,1993-2000Copyright Course Technology 20Copyright Course Technology 200123ProjectManagementSoftwareBy2001,therewerehundredsofdifferentproductstoassistinperformingprojectmanagementThreemaincategoriesoftools:Low-endtools:Handlesingleorsmallerprojectswell,costunder$200peruserMidrangetools:Handlemultipleprojectsandusers,cost$200-500peruser,Project2000mostpopularHigh-endtools:Alsocalledenterpriseprojectmanagementsoftware,oftenlicensedonaper-userbasisCopyright Course Technology 20Copyright Course Technology 200124YouCanApplyProjectManagementtoManyAreasProjectmanagementappliestoworkaswellaspersonalprojectsProjectmanagementappliestomanydifferentdisciplines(IT,construction,finance,sports,eventplanning,etc.)ProjectmanagementskillscanhelpineverydaylifeCopyright Course Technology 20Copyright Course Technology 200125Chapter2:TheProjectManagementContextandProcessesCopyright Course Technology 20Copyright Course Technology 200126ASystemsViewofProjectManagementAsystemsapproachemergedinthe1950stodescribeamoreanalyticalapproachtomanagementandproblemsolvingThreepartsinclude:Systemsphilosophy:Viewthingsassystems,interactingcomponentsworkingwithinanenvironmenttofulfillsomepurposeSystemsanalysis:problem-solvingapproachSystemsmanagement:Addressbusiness,technological,andorganizationalissuesbeforemakingchangestosystemsCopyright Course Technology 20Copyright Course Technology 200127Figure2-1.ThreeSphereModelforSystemsManagementCopyright Course Technology 20Copyright Course Technology 200128ProjectPhasesandtheProjectLifeCycleAprojectlifecycleisacollectionofprojectphasesProjectphasesvarybyprojectorindustry,butsomegeneralphasesincludeconceptdevelopmentimplementationsupportCopyright Course Technology 20Copyright Course Technology 200129ProductLifeCyclesProductsalsohavelifecyclesTheSystemsDevelopmentLifeCycle(SDLC)isaframeworkfordescribingthephasesinvolvedindevelopingandmaintaininginformationsystemsTypicalSDLCphasesincludeplanning,analysis,design,implementation,andsupportCopyright Course Technology 20Copyright Course Technology 200130SampleSDLCModelsWaterfallmodel:haswell-defined,linearstagesofsystemsdevelopmentandsupportSpiralmodel:showsthatsoftwareisdevelopedusinganiterativeorspiralapproachratherthanalinearapproachIncrementalreleasemodel:providesforprogressivedevelopmentofoperationalsoftwareRADmodel:usedtoproducesystemsquicklywithoutsacrificingqualityPrototypingmodel:usedfordevelopingprototypestoclarifyuserrequirementsCopyright Course Technology 20Copyright Course Technology 200131Figure2-3.SpiralModelofSoftwareDevelopment(Boehm,1988)Copyright Course Technology 20Copyright Course Technology 200132DistinguishingProjectLifeCyclesandProductLifeCyclesTheprojectlifecycleappliestoallprojects,regardlessoftheproductsbeingproducedProductlifecyclemodelsvaryconsiderablybasedonthenatureoftheproductMostlargeITproductsaredevelopedasaseriesofprojectsProjectmanagementisadoneisalloftheproductlifecyclephasesCopyright Course Technology 20Copyright Course Technology 200133WhatWentRight?The real improvement that I saw was in our ability toin the words of Thomas Edisonknow when to stop beating a dead horse.Edisons key to success was that he failed fairly often;but as he said,he could recognize a dead horse before it started to smell.as a result he had 14,000 patents and was very successfulIn IT we ride dead horsesfailing projectsa long time before we give up.But what we are seeing now is that we are able to get off them;able to reduce cost overrun and time overrun.Thats where the major impact came on the success rate.”Cabanis,Jeannette,A Major Impact:The Standish Groups Jim Johnson On Project Management and IT Project Success,PM Network,PMI,September 1998,p.7Copyright Course Technology 20Copyright Course Technology 200134UnderstandingOrganizationsStructural frame:Focuses on roles and responsibilities,coordination and control.Organization charts help define this frame.Human resources frame:Focuses on providing harmony between needs of the organization and needs of people.Political frame:Assumes organizations are coalitions composed of varied individuals and interest groups.Conflict and power are key issues.Symbolic frame:Focuses on symbols and meanings related to events.Culture is important.Copyright Course Technology 20Copyright Course Technology 200135WhatWentWrong?Many data warehousing projects are side-tracked or derailed completely by politics.Data warehousing projects are always potentially political because they cross departmental boundaries,change both the terms of data ownership and data access,and affect the work practices of highly autonomous and powerful user communities.Many organizations fail to admit that many data warehousing projects fail primarily because management and project teams do not understand and manage politics.Marc Demarest found over 1200 articles on the topic of data warehousing based on a journal search he did from July 1995 to July 1996.Many of those articles offer advice on how to run successful data warehousing projects and focus on the importance of design,technical,and procedural factors,when,in fact,political factors are often the most important in helping these projects succeed.Copyright Course Technology 20Copyright Course Technology 200136ManyOrganizationsFocusontheStructuralFrameMostpeopleunderstandwhatorganizationalchartsareManynewmanagerstrytochangeorganizationalstructurewhenotherchangesareneeded3basicorganizationstructuresfunctionalprojectmatrixCopyright Course Technology 20Copyright Course Technology 200137Figure2-4.Functional,Project,andMatrixOrganizationalStructuresCopyright Course Technology 20Copyright Course Technology 200138Table 2-1.Organizational Structure Influences on ProjectsThe organizational structure influences the project managers authority,but remember to address the human resources,political,and symbolic frames,too.PMBOK Guide,2000,p.19Copyright Course Technology 20Copyright Course Technology 200139RecognizetheImportanceofProjectStakeholdersRecallthatprojectstakeholdersarethepeopleinvolvedinoraffectedbyprojectactivitiesProjectmanagersmusttaketimetoidentify,understand,andmanagerelationshipswithallprojectstakeholdersUsingthefourframesoforganizationscanhelpmeetstakeholderneedsandexpectationsSeniorexecutivesareveryimportantstakeholdersCopyright Course Technology 20Copyright Course Technology 200140Table2-2.WhatHelpsProjectsSucceed?AccordingtotheStandishGroupsreportCHAOS2001:ARecipeforSuccess,thefollowingitemshelpITprojectssucceed,inorderofimportance:Executive supportUserinvolvementExperienceprojectmanagerClearbusinessobjectivesMinimizedscopeStandardsoftwareinfrastructureFirmbasicrequirementsFormalmethodologyReliableestimatesCopyright Course Technology 20Copyright Course Technology 200141NeedforTopManagementCommitmentSeveralstudiescitetopmanagementcommitmentasoneofthekeyfactorsassociatedwithprojectsuccessTopmanagementcanhelpprojectmanagerssecureadequateresources,getapprovalforuniqueprojectneedsinatimelymanner,receivecooperationfrompeoplethroughouttheorganization,andlearnhowtobebetterleadersCopyright Course Technology 20Copyright Course Technology 200142NeedforOrganizationalCommitmenttoInformationTechnology(IT)IftheorganizationhasanegativeattitudetowardIT,itwillbedifficultforanITprojecttosucceedHavingaChiefInformationOfficer(CIO)atahighlevelintheorganizationhelpsITprojectsAssigningnon-ITpeopletoITprojectsalsoencouragemorecommitmentCopyright Course Technology 20Copyright Course Technology 200143NeedforOrganizationalStandardsStandardsandguidelineshelpprojectmanagersbemoreeffectiveSeniormanagementcanencouragetheuseofstandardformsandsoftwareforprojectmanagementthedevelopmentanduseofguidelinesforwritingprojectplansorprovidingstatusinformationthecreationofaprojectmanagementofficeorcenterofexcellenceCopyright Course Technology 20Copyright Course Technology 200144DefinescopeofprojectIdentifystakeholders,decision-makers,andescalationproceduresDevelopdetailedtasklist(workbreakdownstructures)EstimatetimerequirementsDevelopinitialprojectmanagementflowchartIdentifyrequiredresourcesandbudgetEvaluateprojectrequirementsIdentifyandevaluaterisksPreparecontingencyplanIdentifyinterdependenciesIdentifyandtrackcriticalmilestonesParticipateinprojectphasereviewSecureneededresourcesManagethechangecontrolprocessReportprojectstatusTable2-3.FifteenProjectManagementJobFunctions*Northwest Center for Emerging Technologies,Building a Foundation for Tomorrow:Skills Standards for Information Technology,Belleview,WA,1999Copyright Course Technology 20Copyright Course Technology 200145SuggestedSkillsforaProjectManagerCommunicationskills:listening,persuadingOrganizationalskills:planning,goal-setting,analyzingTeamBuildingskills:empathy,motivation,espritdecorpsLeadershipskills:setsexample,energetic,vision(bigpicture),delegates,positiveCopingskills:flexibility,creativity,patience,persistenceTechnologicalskills:experience,projectknowledgeCopyright Course Technology 20Copyright Course Technology 200146ProjectManagementProcessGroupsProjectmanagementcanbeviewedasanumberofinterlinkedprocessesTheprojectmanagementprocessgroupsincludeinitiatingprocessesplanningprocessesexecutingprocessescontrollingprocessesclosingprocessesCopyright Course Technology 20Copyright Course Technology 200147Figure2-5.OverlapofProcessGroupsinaPhase(PMBOKGuide,2000,p.31)Copyright Course Technology 20Copyright Course Technology 200148Table2-5.RelationshipsAmongProcessGroups,Activities,andKnowledgeAreasCopyright Course Technology 20Copyright Course Technology 200149Table2-5.RelationshipsAmongProcessGroups,Activities,andKnowledgeAreasCopyright Course Technology 20Copyright Course Technology 200150DevelopinganITProjectManagementMethodologyJustasprojectsareunique,soareapproachestoprojectmanagementManyorganizationsdeveloptheirownprojectmanagementmethodologies,especiallyforITprojectsBlueCrossBlueShieldofMichiganusedthePMBOKasaguideindevelopingtheirITprojectmanagementmethodologyCopyright Course Technology 20Copyright Course Technology 200151Figure2-6.ITPMMethodologySee figure in text.Note thatmany parts of this approachmap to the PMBOK,but some activities have beenchanged to meet the needsof the organization.Copyright Course Technology 20Copyright Course Technology 200152Chapter3:ProjectIntegrationManagementCopyright Course Technology 20Copyright Course Technology 200153TheKeytoOverallProjectSuccess:GoodProjectIntegrationManagementProjectmanagersmustcoordinatealloftheotherknowledgeareasthroughoutaprojectslifecycleManynewprojectmanagershavetroublelookingatthe“bigpicture”andwanttofocusontoomanydetails(Seeopeningcaseforarealexample)ProjectintegrationmanagementisnotthesamethingassoftwareintegrationCopyright Course Technology 20Copyright Course Technology 200154ProjectIntegrationManagementProcessesProjectPlanDevelopment:takingtheresultsofotherplanningprocessesandputtingthemintoaconsistent,coherentdocumenttheprojectplanProjectPlanExecution:carryingouttheprojectplanIntegratedChangeControl:coordinatingchangesacrosstheentireprojectCopyright Course Technology 20Copyright Course Technology 200155Figure3-1.ProjectIntegrationManagementOverviewNote:The PMBOK Guide includes similar charts for each knowledge area.Copyright Course Technology 20Copyright Course Technology 200156ProjectPlanDevelopmentAprojectplanisadocumentusedtocoordinateallprojectplanningdocumentsItsmainpurposeistoguide project executionProjectplansassisttheprojectmanagerinleadingtheprojectteamandassessingprojectstatusProjectperformanceshouldbemeasuredagainstabaselineprojectplanCopyright Course Technology 20Copyright Course Technology 200157AttributesofProjectPlansJustasprojectsareunique,soareprojectplansPlansshouldbedynamicPlansshouldbeflexiblePlansshouldbeupdatedaschangesoccurPlansshouldfirstandforemostguideprojectexecutionCopyright Course Technology 20Copyright Course Technology 200158CommonElementsofaProjectPlanIntroductionoroverviewoftheprojectDescriptionofhowtheprojectisorganizedManagementandtechnicalprocessesusedontheprojectWorktobedone,schedule,andbudgetinformationCopyright Course Technology 20Copyright Course Technology 200159Table3-1.SampleOutlineforaSoftwareProjectManagementPlan(SPMP)Copyright Course Technology 20Copyright Course Technology 200160StakeholderAnalysisAstakeholderanalysisdocumentsimportant(oftensensitive)informationaboutstakeholderssuchasstakeholdersnamesandorganizationsrolesontheprojectuniquefactsaboutstakeholderslevelofinfluenceandinterestintheprojectsuggestionsformanagingrelationshipsCopyright Course Technology 20Copyright Course Technology 200161Table3-2.SampleStakeholderAnalysisCopyright Course Technology 20Copyright Course Technology 200162ProjectPlanExecutionProjectplanexecutioninvolvesmanagingandperformingtheworkdescribedintheprojectplanThemajorityoftimeandmoneyisusuallyspentonexecutionTheapplicationareaortheprojectdirectlyaffectsprojectexecutionbecausetheproductsoftheprojectareproducedduringexecutionCopyright Course Technology 20Copyright Course Techn
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