Information Technology Project Management Fourth Edition

By Jack T. Marchewka Northern Illinois University Power Point Slides by Gerald DeHondt Grand Valley State University

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An Overview of IT Project Management

Chapter 1

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Learning Objectives
Describe the dominant eras of information systems called the electronic data processing (EDP) era, the micro era, the network era, and the globalization era, and understand how managing IT projects has evolved during these eras. Understand the current state of IT project management and how successfully managing IT projects remains a challenge for most organizations. Explain the value-driven, socio-technical, project management, and knowledge management approaches that support ITPM. Define what a project is and describe its attributes. Define the discipline called project management. Describe the role and impact IT projects have on an organization. Identify the different roles and interests of project stakeholders. Describe Extreme project management. 1-3 Copyright 2012 John Wiley & Sons, Inc. Identify the Project Management Body of Knowledge

IT and Modern Day Project Management

1940s First Electronic Computer

1950s

1960s EDP Era

1970s PC Era

1980s

1990s Network Era

2000s

2010s

Globalization

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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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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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Modern Project Management

Often credited to the U.S. Navy as an outgrowth of the Polaris Missile Project in the 1950s. Focuses on reducing costs and product cycle time. Provides an important link between an organizations strategy and the deployment of that strategy.

Can have a direct impact on an organizations bottom line and competitiveness.

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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?

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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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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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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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Figure 1.1 - Summary of the Chaos Studies from 1994 to 2008

Sucessful Challenged Failed

2008

32% 35% 29% 34% 28% 26% 27% 16% 33% 53%

44% 46% 53% 51% 49% 46% 40%

24% 19% 18% 15% 23% 28%

2006

2004

2002

2000

1998

1996

1994

31%

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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

Rank 1 2 3 4 5 6 7 8 9 10

1994 User Involvement Executive Management Support Clear Statement of Requirements Proper Planning Realistic Expectations Smaller Project Milestones Competent Staff Ownership Clear Vision & Objectives Hard-working, focused team

2001 Executive Support User Involvement Experienced Project Manager Clear Business Objectives Minimized Scope Standard Software Infrastructure Firm Basic Requirements Formal Methodology Reliable Estimates Other

2006 User Involvement Executive Management Support Clear Business Objectives Optimizing Scope Agile Process Project Management Expertise Financial Management Skilled Resources Formal Methodology Standard Tools and Infrastructure

2008 User Involvement Executive Support Clear Business Objectives Emotional Maturity Optimizing Scope Agile Process Project Management Expertise Skilled Resources Execution Tools & Infrastructure

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Table 1.2: IT Project Success Criteria

Source: Source: http://www.drdobbs.com/architecture-and-design/202800777.

Criteria

Response 61.3% said it is more important to deliver a system when it is ready to be shipped than to deliver it on time.

Schedule

Scope

87.3% said that meeting the actual needs of stakeholders is more important than building the system to specification.
79.6% said that providing the best return on investment (ROI) is more important than delivering a system under budget.

Money

Quality

87.3% said that delivering high quality is more important than delivering on time and on budget.
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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Staff

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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 1 2 3 4 5 6 7 8 9 10
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Factors for Challenged Projects Lack of user input Incomplete requirements Changing requirements & specifications Lack of executive support Technology incompetence Lack of resources Unrealistic expectations Unclear objectives Unrealistic time frames New technology

Factors for Failed (Impaired) Projects Incomplete requirements Lack of user involvement Lack of resources Unrealistic expectations Lack of executive support Changing requirements & specifications Lack of planning Didnt need it any longer Lack of IT management Technology illiteracy

Copyright 2012 John Wiley & Sons, Inc.

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
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Figure 1.2 - When IT projects have gone wrong, what has been the reaction from the business managers and the Board of Directors? 1%

Don't know None

2%
9% 13% 19% 21% 43%

Looked for a scapegoat among IT staff

Sought compensation from IT vendors Reluctant to fund new IT projects Reduced IT budgets Tend to accept problems as the norm (i.e., a necessary evil) Continued to provide support to improve IT
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69%

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Improving the likelihood of success

A Value-Driven Approach

Plain & Simple: IT Projects must provide value to the organization Its not just about the technology or building a better mouse trap processes and infrastructure (Methodology) resources expectations competition efficiency and effectiveness
Copyright 2012& John Wiley & Sons, Inc. lessons learned, best practices shared knowledge

Socio-technical Approach

Project Management Approach

Knowledge Management Approach

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The PMBOK Guides 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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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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The Triple Constraint

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Figure 1.3

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Extreme Project Management (XPM)

A new approach & philosophy to project management that is becoming increasingly popular Characterizes many of todays 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

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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

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Project Management Body of Knowledge Areas

Figure 1.8
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