[ppt]information technology project management –...
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Information Technology Project Management
By Jack T. MarchewkaNorthern Illinois University
Copyright 2009 John Wiley & Sons, Inc. all rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.
The Nature of Information Technology Projects
Chapter 1
1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s
First ElectronicComputer
EDPEra
PCEra
NetworkEra
Globalization
IT and Modern Day Project Management
3
IT and Modern Day Project Management EDP era began early 1960S
Purchase of centralized mainframe by large organizations
IT projects focused on automating key organizational functions – accounting, inventory, production scheduling Improve efficiency and reduce costs of manual and clerical
tasks Structured approach used for managing these projects as the
requirements were stable and well understood Created information silos
DP manager reported to head of accounting or financial manager
4
IT and Modern Day Project Management Micro era began early 1980s
Proliferation (sometimes uncontrolled) of PCs challenged centralized control that was in place
Led to user-developed, decentralized, independent systems that replicated data throughout the organization and vied for IT support
Role of CIO is created to ensure that IT is used strategically Reported to CEO to show importance of the CIO position and
critical role to be played by IT PCs needed to coexist and integrate with mainframes IT projects now crossed functional lines and
requirements were changing at a faster pace Software development methodologies introduced to manage
the less stable requirements and shorten the development life cycle
5
IT and Modern Day Project Management Network era began mid 1990s due to the
advances and growth of the ARPANET /Internet. Projects focused on the challenge of creating an IT
infrastructure to support many partners, strategic alliances, vendors and customers.
Network architecture has to be scalable to support thousands of networked computers in a timely and efficient manner
Digital convergence of data, voice, graphics and video allowed for new and innovative ways to deliver new products and services to customers
Micro era projects focused on creating an internal network within the organization, network era focused on extending the network externally Support a dynamic business strategy and new organizational
structures IT project members need to understand the technology, but
more importantly, the organization and its competitive environment
Benefits and risks much higher than the previous two eras
6
IT and Modern Day Project Management Globalization era – we’re in the beginning stages
now Thomas Friedman “The World is Flat”
The combination of technology and lowering of political barriers has flattened the world so that it is now possible for people and organizations to work with almost anyone in any place at any time
The global competitive playing field has become level for everyone See his talk at MIT http://mitworld.mit.edu/video/266
Projects today are more dynamic, geographically dispersed, and ethnically or culturally diverse as ever before IT personnel require a solid set of technical, non-technical
and project management skills based on past experience but adapted to this new environment
7
Introduction Information Technology (IT) projects are
organizational investments that require Time Money And other resources such as people, technology,
facilities, etc. Organizations expect some type of value in return
for this investment IT Project Management is a relatively new
discipline that attempts to make IT projects more successful and combines traditional Project Management with Software Engineering/Management Information Systems
8
An ITPM Approach Organizational resources are limited, so
organizations must choose among competing interests to fund specific projects
This decision should be based on the value a competing project will provide to an organization
9
Which Situation is Worse? Successfully building and implementing a
system that provides little or no value to the organization?
Or… Failing to implement an information system
that could have provided value to the organization, but was underdeveloped or poorly managed?
10
Modern Project Management Often credited to the U.S. Navy as an
outgrowth of the Polaris Missile Project in the 1950’s.
Focuses on reducing costs and product cycle time.
Provides an important link between an organization’s strategy and the deployment of that strategy. Can have a direct impact on an organization’s
bottom line and competitiveness.
11
Why Do IT Projects Fail? Larger projects have the lowest success rate
and appear to be more risky than medium and smaller projects Technology, business models, and markets change
too rapidly so projects that take more than a year can be obsolete before they are completed
The CHAOS studies also provides some insight as to the factors that influence project success
12
The Software Crisis The CHAOS study published in 1995 by The
Standish Group found that although the U.S spent over $250 billion on IT projects, approximately… 31% were cancelled before completion 53% were completed but over budget, over
schedule, & did not meet original specifications For mid-size companies, average cost overruns were
182%, while average schedule overruns were 202%! Disagreement with the CHAOS report
The Rise and Fall of the Chaos report Figures http://www.cs.vu.nl/~x/chaos/chaos.pdf
Projects failure rate – the conventional wisdom is wrong! http://quantmleap.com/blog/2009/11/projects-failure-rate-%E2%80%93-the-conventional-wisdom-is-wrong/
The “Chaos Report” Myth Busters http://www.guerrillaprojectmanagement.com/the-chaos-report-myth-busters
New IT project failure metrics: is Standish wrong? http://www.zdnet.com/blog/projectfailures/new-it-project-failure-metrics-is-standish-wrong/513
13
Has the Current State of IT Projects Changed Since 1994? The Standish Group has continued to study IT
projects over the years. In general, IT Projects are showing higher
success rates due to Better project management tools & processes Smaller projects Improved communication among stakeholders More skillful IT project managers
But there is still ample opportunity for improvement!
14
Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008
1994
1996
1998
2000
2002
2004
2006
2008
16%
27%
26%
28%
34%
29%
35%
32%
53%
33%
46%
49%
51%
53%
46%
44%
31%
40%
28%
23%
15%
18%
19%
24%
Sucessful Challenged Failed
15
Rank 1994 2001 2006 2008
1 User Involvement Executive Support User Involvement User Involvement
2 Executive Management Support User Involvement Executive Management
Support Executive Support
3 Clear Statement of Requirements
Experienced Project Manager
Clear Business Objectives
Clear Business Objectives
4 Proper Planning Clear Business Objectives Optimizing Scope Emotional Maturity
5 Realistic Expectations Minimized Scope Agile Process Optimizing Scope
6 Smaller Project Milestones
Standard Software Infrastructure
Project Management Expertise Agile Process
7 Competent Staff Firm Basic Requirements Financial Management Project Management
Expertise
8 Ownership Formal Methodology Skilled Resources Skilled Resources
9 Clear Vision & Objectives Reliable Estimates Formal Methodology Execution
10 Hard-working, focused team Other Standard Tools and
Infrastructure Tools & Infrastructure
Table 1.1 Summary of CHAOS Study Factor Rankings for Successful ProjectsSources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
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IT Project Performance
Over the Past 3 Years
MuchWorse Worse Same Better
MuchBetter
Ability to meet project
schedules0.0% 12.3% 40.4% 41.2% 6.1%
Ability to meet project
budgets1.8% 10.5% 44.7% 37.7% 5.3%
Ability to complete
project scope or system
requirements2.6% 7.0% 41.2% 41.2% 7.9%
Customer satisfaction
over the past 3 years
(Customers can be
internal – e.g., HR
department or external –
e.g., a particular
client)
Overall satisfaction
of the customer
1.8% 13.2% 34.2% 39.5% 11.4%
Perceived value of the
delivered product to
the customer0.0% 9.6% 39.5% 38.6% 12.3%
Potential for future work
with the customer
0.9% 3.5% 42.1% 38.6% 14.9%
Table 1.2: Project Performance and Internal/External Customer Satisfaction. Source: Marchewka, J.T. (2008). n = 114.
17
Table 1.2: IT Project Success Criteria Source: Source: http://www.drdobbs.com/architecture-and-design/202800777.
Criteria Response
Schedule
61.3% said it is more important to deliver a system when it is ready to be shipped than to deliver it on time.
Scope87.3% said that meeting the actual needs of stakeholders is more important than building the system to specification.
Money79.6% said that providing the best return on investment (ROI) is more important than delivering a system under budget.
Quality 87.3% said that delivering high quality is more important than delivering on time and on budget.
Staff75.8% said that having a mentally and physically healthy workplace is more important than delivering on time and on budget.
18
Rank Factors for Challenged Projects Factors for Failed (Impaired) Projects
1 Lack of user input Incomplete requirements
2 Incomplete requirements Lack of user involvement
3 Changing requirements & specifications Lack of resources
4 Lack of executive support Unrealistic expectations
5 Technology incompetence Lack of executive support
6 Lack of resources Changing requirements & specifications
7 Unrealistic expectations Lack of planning
8 Unclear objectives Didn’t need it any longer
9 Unrealistic time frames Lack of IT management
10 New technology Technology illiteracy
Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) ProjectsSource: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)
19
Tata Consultancy Services 2007 Report Included 800 senior IT managers from
the UK, US, France, Germany, India, Japan, & Singapore: 62% of the IT projects failed to meet
their schedules 49% experienced budget overruns 47% experienced higher-than expected
maintenance costs 41% failed to deliver the expected
business value and ROI
20
Continued to provide support to improve IT
Tend to accept problems as the norm (i.e., a necessary evil)
Reduced IT budgets
Reluctant to fund new IT projects
Sought compensation from IT vendors
Looked for a scapegoat among IT staff
None
Don't know
69%
43%
21%
19%
13%
9%
2%
1%
Figure 1.2 - When IT projects have gone wrong, what has been the reaction from the business managers
and the Board of Directors?
21
Improving the likelihood of success A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the organization not just completed on time and within budget
Socio-technical Approach It’s not just about the technology or building a
better mouse trap. Must bring value to the organization. Clients/stakeholders must take an active, participatory role
22
Improving the likelihood of success Project Management Approach
Success depends not just on the team but more on the methodology (the set of processes and infrastructure) in place Step-by-step activities, processes, tools, quality standards,
controls and deliverables Knowledge Management Approach
Systematic process for acquiring, creating, synthesizing, sharing and using information, insights, and experiences to transform ideas into business value lessons learned best practices
23
Improving the likelihood of success Why project management should support IT
projects PM enables a company to make the best use of
limited resources. Projects can drain or divert resources away from other projects and areas of the organization so investing them wisely is critical.
To best meet client’s expectations, PM provides the means to deliver quality products and services in a professional manner (status reports, communications).
Facing competition from outside vendors, good PM practices can enable internal IT departments to remain competitive in acquiring new business and talent.
Enables an organization to be more efficient (do the right thing) and effective (do the thing right). PM enables shorter development time, lower costs and
higher quality PM must be supported and accepted at all levels of the
organization.
24
The PMBOK® Guide’s Definitions for Project and Project Management
A project is a temporary endeavor undertaken to create a unique product, service, or result.
Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Managing a project includes: Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for quality, scope, time, and
cost Adapting the specifications, plans, and approaches to the
different concerns and expectations of the various stakeholders A project manager is the person assigned by the
performing organization to achieve the project objectives.
25
The Context of Project Management – Project Attributes
Time Frame (definite start and end) Purpose (project needs a specific and measurable goal in
order to provide value) Ownership (sponsor) Resources (the triple constraint) Roles (different skill sets needed on a project)
Project Manager Project Sponsor Subject Matter Expert (domain & technical)
Risk & Assumptions (internal and external risks) Interdependent Tasks
progressive elaboration – steps & increments Planned Organizational Change Operate in Environments Larger than the Project Itself
Company culture, environment, politics, etc.26
The Triple Constraint
Figure 1.3 27
The Project Life Cycle and IT Development Project Life Cycle (PLC)
A collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build, and deliver the product of the project – i.e., the information system
A deliverable is a tangible and verifiable product of work
Projects are divided into phases to increase manageability and reduce risk Phase exits, stage gates, or kill points are decision
points at the end of each phase to evaluate performance or to correct problems or cancel the project
Fast tracking is the overlapping of phases to reduce the project’s schedule Can be risky!
28
The Project Life Cycle Define Project Goal
Focus on providing business value to the organization
Gives the project team a clear focus and drives the other phases of the project
Plan Project What is to be done, why is it being done, how will
it be done, who is going to do it, how long will it take, how much will it cost, what can go wrong and what can be done about it, how will we know if the project is successful given the time, money and resources invested?
Deliverable is the initial or baseline project plan Execute Project Plan
Put the plan in action – build whatever product has been decided based on plan specifications
A continuous monitoring of the actual vs baseline is needed 29
The Project Life Cycle Close Project
A formal closure of the project ensures that all work is completed as planned and agreed to by the team and sponsor
Final report and presentation to the client Evaluate Project
Evaluating whether a project met its goals (providing business value) is best done after implementation when it is in production
Lessons learned – document experiences and best practices for future projects What went right and what went wrong
Evaluate the project manager and team members
30
Generic Project Life Cycle
Figure 1.4 31
The Project Management Body of Knowledge (PMBOK®) The Guide to the Project Management Body of Knowledge
(PMBOK® Guide) documents 9 project management knowledge areas
The PMBOK® Guide is published and maintained by the Project Management Institute (PMI) http://www.pmi.org
PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification
PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct
32
Project Management Body of Knowledge Areas
Figure 1.833
Project Management Body of Knowledge Areas
34
Knowledge areas describe the key competencies that project managers must develop 4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality) 4 facilitating knowledge areas are the means
through which the project objectives are achieved (human resources, communication, risk, and procurement management
1 knowledge area (project integration management) affects and is affected by all of the other knowledge areas
All knowledge areas are important!
Project Management Body of Knowledge Areas
35