copyright course technology 1999 1 chapter 3: project integration management
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Copyright Course Technology 1999
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The Key to Overall Project Success: Good Project Integration Management
Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle
Many new project managers have trouble looking at the “big picture” and want to focus on too many details
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Project Integration Management ProcessesProject Plan Development: taking the
results of other planning processes and putting them into a consistent, coherent document—the project plan
Project Plan Execution: carrying out the project plan
Overall Change Control: coordinating changes across the entire project
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Interface ManagementInterface management involves
identifying and managing the points of interaction between various elements of the project
Project managers must establish and maintain good communication and relationships across organizational interfaces
Controlling interfaces: large projects
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Large projectsThe number of interfaces must be
controlled forYou must organize large projects into a
collection of small projects going-on in parallel and largely autonomous
For each major component in the WBS, create an autonomous small project and project team
Tom Peters: The best teams sizes are groups of five people, roughly
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Project Plan DevelopmentA project plan is a document used to
coordinate all project planning documents
Its main purpose is to guide project execution
Project plans assist the project manager in leading the project team and assessing project status
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Attributes of Project PlansJust as projects are unique, so are
project plansPlans should be dynamicPlans should be flexiblePlans should be updated as changes
occurPlans should first and foremost guide
project execution
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Common Elements of a Project PlanIntroduction or overview of the projectDescription of how the project is
organizedManagement and technical processes
used on the projectWork to be done, schedule, and budget
information
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Table 3-1. Sample Outline for a Software Project Management Plan (SPMP)
Project Management Plan SectionsIntroduction Project
OrganizationManagerialProcess
TechnicalProcess
WorkPackages,Schedule, andBudget
SectionTopics
Projectoverview;projectdeliverables;evolution ofthe SPMP;referencematerials;definitions andacronyms
Process model;organizationalstructure;organizationalboundaries andinterfaces;projectresponsibilities
Managementobjectives andpriorities;assumptions,dependencies,andconstraints;riskmanagement;monitoringandcontrollingmechanisms;and staffingplan
Methods, tools,andtechniques;softwaredocumentation;and projectsupportfunctions
Workpackages;Dependencies;resourcerequirements;budget andresourceallocation;and schedule
IEEE Std 10581-1987
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Stakeholder AnalysisA stakeholder analysis documents
important (often sensitive) information about stakeholders such as– stakeholders’ names and organizations– roles on the project– unique facts about stakeholders– level of influence and interest in the
project– suggestions for managing relationships
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Table 3-2. Sample Stakeholder AnalysisKey Stakeholders
Ahmed Susan Erik Mark DavidOrganization Internal
seniormanagement
Project team Project team Hardwarevendor
Projectmanager forotherinternalproject
Role onproject
Sponsor ofproject andone of thecompany'sfounders
DNAsequencingexpert
Leadprogrammer
Suppliessomeinstrumenthardware
Competingfor companyresources
Unique facts Demanding,likes details,businessfocus,StanfordMBA
Very smart,Ph.D. inbiology,easy to workwith, has atoddler
BestprogrammerI know,weird senseof humor
Start-upcompany, heknows wecan makehim rich ifthis works
Nice guy,one of oldestpeople atcompany,has 3 kids incollege
Level ofinterest
Very high Very high High Very high Low tomedium
Level ofinfluence
Very high;can call theshots
Subjectmatterexpert;critical tosuccess
High; hardto replace
Low; othervendorsavailable
Low tomedium
Suggestionson managingrelationship
Keepinformed, lethim leadconversations ,do as hesays andquickly
Make sureshe reviewsspecifications and leadstesting; cando somework fromhome
Keep himhappy so hestays;emphasizestockoptions;likesMexicanfood
Give himenough leadtime todeliverhardware
He knowshis projecttakes a backseat to thisone, but Ican learnfrom him
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Project Plan ExecutionProject plan execution involves
managing and performing the work described in the project plan
The majority of time and money is usually spent on execution
The application area of the project directly affects project execution because the products of the project are produced during execution
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What Went Wrong?Many people have a poor view of plans based on past
experiences. Senior managers often require a plan, but then no one follows up on whether the plan was followed.
For example, one project manager said he would meet with each project team leader within two months to review their plans. The project manager created a detailed schedule for these reviews. He cancelled the first meeting due to another business commitment. He rescheduled the next meeting for unexplained personal reasons. Two months later, the project manager had still not met with over half of the project team leaders.
Why should project members feel obligated to follow their own plans when the project manager obviously did not follow his?
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Important Skills for Project ExecutionGeneral management skills like
leadership, communication, and political skills
Product skills and knowledge (see example of “What Went Right?”)
Use of specialized tools and techniques
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Tools and Techniques for Project ExecutionWork Authorization System: provides a
method for ensuring that qualified people do work at the right time and in the proper sequence
Status Review Meetings: regularly scheduled meetings used to exchange project information
Project Management Software: special software to assist in managing projects
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Overall Change ControlOverall change control involves identifying,
evaluating, and managing changes throughout the project life cycle
Three main objectives of change control:– Influence the factors that create changes
to ensure they are beneficial– Determine that a change has occurred– Manage actual changes when and as they
occur
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Change Control on Information Technology ProjectsFormer view: The project team should strive
to do exactly what was planned on time and within budget
Problem: Stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate
Modern view: Project management is a process of constant communication and negotiation
Solution: Changes are often beneficial, and the project team should plan for them
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Change Control SystemA formal, documented process that
describes when and how official project documents and work may be changed
Describes who is authorized to make changes and how to make them
Often includes a change control board (CCB), configuration management, and a process for communicating changes
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Change Control Boards (CCBs)A formal group of people responsible
for approving or rejecting changes on a project
Provides guidelines for preparing change requests, evaluates them, and manages the implementation of approved changes
Includes stakeholders from the entire organization
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Making Timely ChangesSome CCBs only meet occasionally, so
it may take too long for changes to occur
Some organizations have policies in place for time-sensitive changes– “48 hour policy” allowed project team
members to make decisions, then they had 48 hours to reverse the decision pending senior management approval
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Configuration ManagementEnsures that the products and their
descriptions are correct and completeConcentrates on the management of
technology by identifying and controlling the functional and physical design characteristics of products
Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements
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Table 3-3. Suggestions for Managing Overall Change Control
View project management as a process of constant communications and negotiations
Plan for change Establish a formal change control system,
including a Change Control Board (CCB) Use good configuration management Define procedures for making timely decisions
on smaller changes Use written and oral performance reports to
help identify and manage change Use project management and other software to
help manage and communicate changes
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Need for Top Management CommitmentSeveral studies cite top management
commitment as one of the key factors associated with project success
Top management can help project managers secure adequate resources, get approval for unique project needs in a timely manner, receive cooperation from people throughout the organization, and learn how to be better leaders
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Table 3-4. What Helps Projects Succeed?
1987 Pinto and Slevin Clear project mission Top management
support Good project
schedule/plan Good client
consultation
1995 Standish Group User involvement Executive
management support Clear statement of
requirements Proper planning
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Need for Organizational Commitment to Information Technology (IT)If the organization has a negative
attitude toward IT, it will be difficult for an IT project to succeed
Having a Chief Information Officer (CIO) at a high level in the organization helps IT projects
Assigning non-IT people to IT projects also encourages more commitment
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Need for Organizational StandardsStandards and guidelines help project
managers be more effectiveSenior management can encourage
– the use of standard forms and software for project management
– the development and use of guidelines for writing project plans or providing status information
– the creation of a project management office or center of excellence
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Discussion QuestionsWhat are some of the crucial elements of
successful project plan execution? Describe a well-executed project you are familiar with. Describe a disaster. What were some of the main differences between these projects?
Discuss the importance of top management commitment and the development of standards for successful project management. Give examples of projects that failed due to a lack of top management commitment and a lack of organizational standards.
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Importance of Good Project Scope Management1995 CHAOS study cited user
involvement, a clear project mission, a clear statement of requirements, and proper planning as being important for project success
The program manager of Keller Graduate School of Management cites proper project definition and scope as the main reasons projects fail
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What is Project Scope Management?Scope refers to all the work involved in
creating the products of the project and the processes used to create them
Project scope management includes the processes involved in defining and controlling what is or is not included in the project
The project team and stakeholders must have the same understanding of what products will be produced as a result of a project and what processes will be used in producing them
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Project Scope Management Processes
Initiation: beginning a project or continuing to the next phase
Scope planning: developing documents to provide the basis for future project decisions
Scope definition: subdividing the major project deliverables into smaller, more manageable components
Scope verification: formalizing acceptance of the project scope
Scope change control: controlling changes to project scope
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Project Initiation: Strategic Planning and Project SelectionThe first step in initiating projects is to
look at the big picture or strategic plan of an organization
Strategic planning involves determining long-term business objectives
IT projects should support strategic and financial business objectives
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Table 4-1. Why Firms Invest in Information Technology
Reason for Investing in IT Projects Rank Based on Overall Value of ProjectsSupports explicit business objectives 1Has good Internal Rate of Return (IRR) 2Supports implicit business objectives 3Has good Net Present Value (NPV) 4Has reasonable payback period 5Used in response to competitive systems 6Supports management decision making 7Meets budgetary constraints 8High probability of achieving benefits 9Good accounting rate of return 10High probability of completing project 11Meets technical/system requirements 12Supports legal/government requirement 13Good profitability index 14Introduces new technology 15
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Identifying Potential ProjectsMany organizations follow a planning
process for selecting IT projectsFirst develop an IT strategic plan
based on the organization’s overall strategic plan
Then perform a business area analysisThen define potential projectsThen select IT projects and assign
resources
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Methods for Selecting ProjectsThere are usually more projects than
available time and resources to implement them
It is important to follow a logical process for selecting IT projects to work on
Methods include focusing on broad needs, categorizing projects, financial methods, and weighted scoring models
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Focusing on Broad Organizational NeedsIt is often difficult to provide strong
justification for many IT projects, but everyone agrees they have a high value
“It is better to measure gold roughly than to count pennies precisely”
Three important criteria for projects:– There is a need for the project– There are funds available– There’s a strong will to make the project
succeed
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Categorizing IT ProjectsOne categorization is whether the
project addresses– a problem– an opportunity– a directive
Another categorization is how long it will take to do and when it is needed
Another is the overall priority of the project
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Financial Analysis of Projects
Financial considerations are often an important consideration in selecting projects
Three primary methods for determining the projected financial value of projects:– Net present value (NPV) analysis– Return on investment (ROI)– Payback analysis
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Net Present Value AnalysisNet present value (NPV) analysis is a
method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
Projects with a positive NPV should be considered if financial value is a key criterion
The higher the NPV, the better
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Return on InvestmentReturn on investment (ROI) is income
divided by investment ROI = (total discounted benefits - total
discounted costs) / discounted costs
The higher the ROI, the betterMany organizations have a required
rate of return or minimum acceptable rate of return on investment for projects
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Payback AnalysisAnother important financial consideration is
payback analysisThe payback period is the amount of time it
will take to recoup, in the form of net cash inflows, the net dollars invested in a project
Payback occurs when the cumulative discounted benefits and costs are greater than zero
Many organizations want IT projects to have a fairly short payback period
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Figure 4-3. NPV, ROI, and Payback Analysis for Project 1
Excel file
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Figure 4-4. NPV, ROI, and Payback Analysis for Project 2
Excel file
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Weighted Scoring ModelA weighted scoring model is a tool that provides a
systematic process for selecting projects based on many criteria– First identify criteria important to the project selection process
– Then assign weights (percentages) to each criterion so they add up to 100%
– Then assign scores to each criterion for each project
– Multiply the scores by the weights and get the total weighted scores
The higher the weighted score, the betterSee “What Went Right?” on pg. 87 for a description of
how a mortgage finance agency uses a weighted scoring model for IT projects
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Figure 4-5. Sample Weighted Scoring Model for Project Selection
Excel file
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Project ChartersAfter deciding what project to work on, it
is important to formalize projectsA project charter is a document that
formally recognizes the existence of a project and provides direction on the project’s objectives and management
Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project
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Table 4-2. Sample Project Charter Project Title: Information Technology (IT) Upgrade Project Project Start Date: March 4, 1999 Projected Finish Date:
December 4, 1999 Project Manager: Kim Nguyen, 691-2784, knguyen@abc.com Project Objectives: Upgrade hardware and software for all employees
(approximately 2,000) within 9 months based on new corporate standards. See attached sheet describing the new standards. Upgrades may affect servers and midrange computers as well as network hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000 for labor costs.
Approach: Update the IT inventory database to determine upgrade needs Develop detailed cost estimate for project and report to CIO Issue a request for quotes to obtain hardware and software
Use internal staff as much as possible to do the planning, analysis, and installation
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Table 4-2. Sample Project Charter (continued)
Name Role ResponsibilityWalter Schmidt, CEO Project Sponsor Monitor projectMike Zwack CIO Monitor project, provide
staffKim Nguyen Project Manager Plan and execute projectJeff Johnson Director of IT Operations Mentor KimNancy Reynolds VP, Human Resources Provide staff, issue memo
to all employees aboutproject
Steve McCann Director of Purchasing Assist in purchasinghardware and software
Sign-off: (Signatures of all above stakeholders)
Comments: (Handwritten comments from above stakeholders, if applicable)This project must be done within ten months at the absolute latest. Mike Zwack, CIOWe are assuming that adequate staff will be available and committed to supporting thisproject. Some work must be done after hours to avoid work disruptions, and overtimewill be provided. Jeff Johnson and Kim Nguyen, Information Technology Department
Roles and Responsibilities:
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Scope Planning and the Scope StatementA scope statement is a document used
to develop and confirm a common understanding of the project scope. It should include– a project justification– a brief description of the project’s
products– a summary of all project deliverables– a statement of what determines project
success
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Scope Planning and the Work Breakdown StructureAfter completing scope planning, the
next step is to further define the work by breaking it into manageable pieces
Good scope definition– helps improve the accuracy of time, cost,
and resource estimates– defines a baseline for performance
measurement and project control– aids in communicating clear work
responsibilities
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The Work Breakdown StructureA work breakdown structure (WBS) is
an outcome-oriented analysis of the work involved in a project that defines the total scope of the project
It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes
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Table 4-3. Intranet WBS in Tabular Form1.0 Concept
1.1 Evaluate current systems1.2 Define Requirements
1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements
1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief web development team
2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support
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Figure 4-7. Intranet WBS and Gantt Chart in Project 98WBS Gantt Chart
Project 98 file
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Approaches to Developing WBSsUsing guidelines: Some organizations,
like the U.S. Department of Defense, provide guidelines for preparing WBSs
The analogy approach: It often helps to review WBSs of similar projects
The top-down approach: Start with the largest items of the project and keep breaking them down
The bottoms-up approach: Start with the detailed tasks and roll them up
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Basic Principles for Creating WBSs1. A unit of work should appear at only one place in the WBS.
2. The work content of a WBS item is the sum of the WBS items below it.
3. A WBS item is the responsibility of only one individual, even though many people may be working on it.
4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical.
5. Project team members should be involved in developing the WBS to ensure consistency and buy-in.
6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item.
7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.
Cleland, David I. Project Management: Strategic Design and Implementation, 1994
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Scope Verification and Scope Change ControlIt is very difficult to create a good scope
statement and WBS for a projectIt is even more difficult to verify project
scope and minimize scope changesMany IT projects suffer from scope creep
and poor scope verification– FoxMeyer Drug filed for bankruptcy after
scope creep on a robotic warehouse– Engineers at Grumman called a system
“Naziware” and refused to use it
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Table 4-4. Factors Causing IT Project Problems
Factor RankLack of user input 1
Incomplete requirements and specifications 2Changing requirements and specifications 3Lack of executive support 4Technology incompetence 5Lack of resources 6Unrealistic expectations 7Unclear objectives 8Unrealistic time frames 9New Technology 10
Johnson, Jim, "CHAOS: The Dollar Drain of IT Project Failures," Application Development Trends, January 1995, www.stadishgroup.com/chaos.html
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Suggestions for Improving User InputInsist that all projects have a sponsor
from the user organizationHave users on the project teamHave regular meetingsDeliver something to project users and
sponsor on a regular basisCo-locate users with the developers
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Suggestions for Reducing Incomplete and Changing RequirementsDevelop and follow a requirements management
processEmploy techniques such as prototyping, use case
modeling, and Joint Application Design to thoroughly understand user requirements
Put all requirements in writing and keep them current
Create a requirements management databaseProvide adequate testingUse a process for reviewing requested changes
from a systems perspectiveEmphasize completion dates
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Discussion QuestionsGive examples of IT projects and why they
were or were not selected for implementation. What type of project selection process did the organization use?
Discuss the theory and practice behind using project charters, scope statements, and WBSs.
Describe a project that suffered from scope creep. Could it have been avoided? How? Can scope creep be a good thing? When?
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