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Chapter 1

Nature of Projects
Jake Stewart, PMP, CSM, PhD
Fall 2015

Topics Covered

Introduction
Project Definitions
Why is Project Management so Important?
Team Exercise: Why Projects Fail?
Project Management Processes
Project Management Knowledge Areas
Stakeholders

Introduction

Jake Stewart

BS Computer Science, Harding University (84)


MBA (MIS), University of Houston (96)
PhD (IT), Capella University (2010)
Project Management Institute (PMI)

Certified Scrum Master (CSM) (2009) Scrum Alliance


Over 21 Years Experience in the IT industry

PMP (Project Management Professional)


PMO CAQ (Project Management Office Certificate of Added
Qualification)
Presenter at 2003, 2004, 2006, 2008, 2010, 2011, 2012, 2014 NA
Congress

Texas Instruments, Compaq, HP


Most of it either Managing Projects or Project Managers

Associate Professor in COBA

What is a Project?

Definition: Project
A temporary endeavor undertaken to create a
unique product, service, or result.
PMBOK Guide

Temporary: Projects are marked by a definite


beginning and end
Unique: The service or product is different in some
distinguishing way from other products or services

Related Definitions
Operation
An ongoing and repetitive effort
PMBOK Guide

Program

A group of projects managed in a coordinated way to


obtain benefits not available from managing them
individually
PMBOK Guide

Portfolio

A manageable component of a project


Often contracted to an external enterprise or to
another functional unit in the performing organization
PMBOK Guide

Project Management
the Application of knowledge, skills, tools and
techniques to project activities to meet project
requirements

Progressive Elaboration
details of a project become clearer as more
information becomes available

Copyright 2015 John Wiley & Sons, Inc.

Triple Constraints

Time

Cost
Quality

Scope

Why Do Projects Fail?


Individually: review projects in your past that
did not succeed
What were the reasons for failure?
Group: Discuss and summarize your groups
top five reasons for project failure

Project Success Statistics

Project Success Statistics


Project Success Rates
28%
Successful: on-time, on-budget as originally
specified

49%

Challenged: completed and operational,


but over-budget, over schedule, and/or with
reduced functionality
Failed: cancelled before completion

Successful
Failed
Challenged

23%
Source: Standish Group 2001

Progress, but still Proof Why


Project Management is so Important
Cross Industry average for IT Projects

Why Many Projects Fail: Project Failure


can be grouped into four categories
Examples

Copyright 2015 John Wiley & Sons, Inc.

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Improving the likelihood of success


A Value-Driven Approach
Plain & Simple: IT Projects must provide value to the organization

Socio-technical Approach
Its 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 2015 John Wiley & Sons, Inc.

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Polaris

Project Management and Information


Technology

1940s
First
Electronic
Computer

1950s

1960s
EDP
Era

1970s
PC
Era

1980s

1990s
Network
Era

Copyright 2015 John Wiley & Sons, Inc.

2000s

2010s

Globalization

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Project Management Jobs


Project management skills are in demand.
In a global survey conducted by the Economist
Intelligence Unit, the majority of executives
explicitly identified project management as the
single most important skill for their current
and future success.
A recent U.S. News and World Report study
revealed that project management is one of the
top three skills employers are looking for.

PMI Industry Growth Forecasst


Between 2010 and 2020, 15.7 million
new project management roles will be
created globally across seven projectintensive industries. Along with job growth,
there will be a significant increase in the
economic footprint of the profession; the
project management profession is slated
to grow by USD$6.61 trillion.

What the Losers Do

Project Management 101


If you dont know where you
are going, you are liable to
wind up someplace else.
- Yogi Berra

Project Processes
Organized into five process groups:

Initiating:

Planning:

coordinating all resources to carry out project plan

Controlling:

defining/refining objectives and determining courses of action


to meet objectives

Executing:

authorizing the project or phase

monitoring and measuring progress to make sure project


objectives are being met

Closing:

formalizing the acceptance of the project

Process Group Links Within a Phase


Initiating

Planning

Processes

Processes

Controlling

Executing

Processes

Processes

Closing
Processes

PMBOKGuide,2000Edition,Figure31.

Interaction Between Phases


Design Phase

Initiating
Processes

Implementation Phase

Planning
Processes

Controlling
Processes

Executing
Processes

Closing
Processes

Initiating
Processes

Planning
Processes

Controlling
Processes

Executing
Processes

Closing
Processes

PMBOKGuide,2000Edition,Figure33

Project Management Knowledge


Areas
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Project Integration Management


Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communication Management
Project Risk Management
Project Procurement Management
Project Stakeholder Management

Stakeholder?
Persons and organizations such as
customers, sponsors, performing organization
and the public that are actively in the project,
or whose interests may be

positively or negatively affected


by execution or completion of the
project. They may also exert influence
over the project and its deliverables.
PMBOK Guide

Stakeholders
Customer
Defines the project deliverables (requirements)
and provides funding; often represents or is the
end-item user

Project Sponsor
Person in management who approves and
supports the project

Project Team
All the individuals that perform the required
project tasks

Stakeholders
Project Manager
Responsible for the successful
accomplishment of the project

Functional Managers
Providers of the labor force required to
perform the projects tasks

Team Exercise
Select a project you are all familiar with
and use a brainstorming method to
identify the stakeholders for the project
Identify the unique needs of each
stakeholder

Summary

Project Definitions
Triple Constraints
Why Projects Fail
The Importance of Project Management
Project Management Processes
Project Management Knowledge Areas
Stakeholders

Questions?

Homework
Think about a project in the Bible.
What made it a project?
Who was the project manager?

Tom Peters?

Future of Business
I believe that in the future, all
work will be project work.
Tom Peters

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