1. Chapter 1
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2. IT and Modern Day Project Management
1940s
First
Electronic
Computer
1950s
1960s
EDP
Era
1970s
1980s
PC
Era
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1990s
2000s
Network
Era
2010s
Globalization
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3. 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 andcombines traditional Project Management with
Software Engineering/Management Information Systems
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4. 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

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5. 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.

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6. 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?

Copyright 2012 John Wiley & Sons, Inc.
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7. 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

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8. 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%!
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9. 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!
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10. Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008
Sucessful
Challenged
32%
2008
44%
35%
2006
1998
27%
1994
16%
15%
49%
26%
1996
18%
51%
28%
2000
19%
53%
34%
2002
24%
46%
29%
2004
Failed
23%
46%
33%
53%
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28%
40%
31%
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11. Table 1.1 Summary of CHAOS Study Factor Rankings for Successful Projects
Sources: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) & http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
2008
Rank
1994
2001
2006
1
User Involvement
Executive Support
User Involvement
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User Involvement
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12. 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.
Scope
87.3% said that meeting the actual needs of stakeholders is more important than
building the system to specification.
Money
79.6% 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.
Staff
75.8% said that having a mentally and physically healthy workplace is more important
than delivering on time and on budget.
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13. Table 1.3: Summary of Factor Rankings for Challenged and Failed (Impaired) Projects
Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995)
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
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14. 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
Copyright 2012 John Wiley & Sons, Inc.
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15. Figure 1.2 - When IT projects have gone wrong, what has
been the reaction from the business managers and the
Board of Directors?
Don't know
None
Looked for a scapegoat among IT…
Sought compensation from IT…
1%
2%
9%
13%
Reluctant to fund new IT projects
Reduced IT budgets
Tend to accept problems as the…
Continued to provide support to…
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19%
21%
43%
69%
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16. Improving the likelihood of success




A Value-Driven Approach
 Plain & Simple: IT Projects must provide value to the organization
Socio-technical Approach
 It’s not just about the technology or building a better mouse trap
Project Management Approach
 processes and infrastructure (Methodology)
 resources
 expectations
 competition
 efficiency and effectiveness
Knowledge Management Approach
 lessons learned, best practices & shared knowledge
Copyright 2012 John Wiley & Sons, Inc.
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17. 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.
 A project manager is the person assigned by the
performing organization to achieve the project objectives.

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18. The Context of Project Management – Project
Attributes









Time Frame
Purpose (to provide value!)
Ownership
Resources (the triple constraint)
Roles
 Project Manager
 Project Sponsor
 SME (domain & technical)
Risk & Assumptions
Interdependent Tasks
 progressive elaboration – steps & increments
Planned Organizational Change
Operate in Environments Larger than the Project Itself
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19. The Triple Constraint
Figure 1.3
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20. Extreme Project Management (XPM)





A new approach & philosophy to project management that is becoming
increasingly popular
Characterizes many of today’s projects that exemplify
speed, uncertainty, changing requirements, and high risks
Traditional project management often takes an orderly approach while, XPM
embraces the fact that projects are often chaotic and unpredictable
XPM focuses on flexibility, adaptability, and innovation
Traditional and new approaches together can provide us with a better
understanding of how to improve the likelihood of project success
Copyright 2012 John Wiley & Sons, Inc.
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21. 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
Copyright 2012 John Wiley & Sons, Inc.
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22. Project Management Body of Knowledge Areas
Figure 1.8
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23. Project Life Cycle

Evaluate Project
 Lessons learned to determine those things to do the
same and those things to change
 Evaluate team member performance
 May be audited by an outside third party

24. Systems Development Life Cycle (SDLC)
Planning
 Identifying and responding to a problem or opportunity
 Incorporates the project management and system development
processes and activities
 Ensures that the
goal, scope, budget, schedule, technology, and system
development processes, methods, and tools are in place
 Analysis
 A closer look at the problem or opportunity
 Documents the specific needs and requirements for the new
system


25. Systems Development Life Cycle (SDLC)
Design
 The project team uses the requirements and “to be” logical
models to design the architecture to support the new
information system
 This includes designing the network, hardware
configuration, databases, user interface, and application
programs
 Implementation
 The development or construction of the system, testing, and
installation
 Training, support, and documentation must also be in place.
 Maintenance and Support
 The system is updated to respond to bugs, new features, or to
adjust to a changing business environment.


26. Systems Development Life Cycle
Planning
Maintenance &
Support
Implementation
Analysis
Design

27. An IT Project Methodology
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28. Phases
Phase 1: Conceptualize and Initialize
 Phase 2: Develop the Project Charter and Detailed Project
Plan defined in terms of project’s:
 scope
 schedule
 budget
 quality objectives

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29. Phases continued
Phase 3: Execute and Control the Project using
approach such as the SDLC.
 Phase 4: Close Project
 Phase 5: Evaluate Project Success

 Post mortem by project manager and team of entire project
 Evaluation of team members by project manager
 Outside evaluation of project, project leader, and team members
 Evaluate project’s organizational value
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Copyright 2012 John Wiley & Sons, Inc.

30. IT Project Management Foundation

Project Management
Processes

Project Objectives
 Initiating processes
 Planning processes
 Executing processes
 Controlling processes
 Closing processes
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31. IT Project Management Foundation
Tools - e.g. Microsoft Project ®, Computer Aided Software
Engineering (CASE)
 Infrastructure

 Organizational Infrastructure
 Project Infrastructure
○ Project Environment
○ Roles and Responsibilities of team members
○ Processes and Controls
 Technical Infrastructure

Project Management Knowledge Areas

32. Nonnumeric Selection Methods
 The “Sacred Cow”- a pet project advocated by a senior
executive of the firm.
 The operating/competitive necessity
 Comparative benefits
Copyright 2011 John Wiley & Sons, Inc.
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33. The Q-Sort Method
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34. Numeric Selection Methods
 Financial assessment methods
• payback period
• discounted cash flow
• future opportunity analysis
 Scoring methods
• unweighted 0-1 factor method
• weighted factor scoring method
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35. Payback Period
Initial
Annual
Fixed
Investment
Net Cash Inflows
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36. The Life Cycle of Projects

All organisms have a life cycle (i.e., they are
born, grow, wane, and die) … and so do projects
 Some projects follow an S-shaped curve … they start
slowly, develop momentum, and then finish slowly
 Other project follow a J-shaped curve … they start slowly
, proceed slowly, and then finish rapidly
Copyright 2011 John Wiley & Sons, Inc.
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37. The Project Life Cycle
Figure 1-3
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38. Time Distribution of Project Effort
Figure 1-4
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39. Another Possible Project Life Cycle
Figure 1-5
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40. 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.

Copyright 2012 John Wiley & Sons, Inc.
1-40

41. 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?

Copyright 2012 John Wiley & Sons, Inc.
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42. Uncertainties Encountered in Project Management.






Time required to complete a project
Availability and cost of key resources
Timing of solutions to technological problems
Macroeconomic variables
The whims of clients
Actions taken by competitors
Copyright 2011 John Wiley & Sons, Inc.
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43. Can Uncertainty be Eliminated?

No … uncertainty cannot be eliminated.
However, if managed properly, it can be
minimized
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44. Risk Analysis

Estimate probabilities or distributions associated with key
parameters
 Construct a mathematical model of the situation and run a
simulation ... given various scenarios
 Analyze distribution of outcomes generated by model
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45. Risk Analysis with Crystal Ball
 Assumption Cells
 Distribution Gallery
 Forecast Cells
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46. Steps in the Project Portfolio
Process


Establish a project council
Identify project categories and criteria
 Collect project data
 Assess resource availability
 Reduce the project and criteria set
 Prioritize the projects within categories
 Select the projects to be funded and those to be held in
reserve
 Implement the process
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47. Categories of Projects
Derivative projects … those that are only incrementally
different from existing offerings
 Platform projects … major departures from existing offerings
… the next generation
 Breakthrough projects … involving a newer technology …
possibly a “disruptive” technology
 R&D projects … “blue sky” or visionary endeavors

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