Project Management in Information Technology

Norbert Mika N. J. Mika Consulting Inc. norbert@njmconsulting.com

Agenda

Role of IT in Business Types of Projects IT should be engaged in Strategies for IT Project Management Tools to Assist in Project Management

Role of IT in Business

To provide the systems and technological infrastructure to support improvements in operational efficiency and responsiveness

IT Should be Engaged In

Process and Product Design

Production Systems

Analysis and Design Tools Knowledge Management Equipment controls Scheduling Simulators Data Communications Networks Database Systems Intranet, Intranet and Extranet, EDI Disaster Recovery Productivity tools Supply Chain Management Decision Support Systems

Infrastructure

Administration and Management

IT Focused Education

Challenges
Competition Resources

IT Department
Customer Demands Shifting Priorities

Production drivers (tactical vs. strategic)

Regulations

Some facts

IT projects have a terrible track record

A 1995 Standish Group study (CHAOS) found that only 16.2% of IT projects were successful and over 31% were canceled before completion, costing over $81 B in the U.S. alone

The need for IT projects keeps increasing

In 2000, there were 300,000 new IT projects In 2001, over 500,000 new IT projects were started In 2004, IT spending in the US increased an estimated 4.4% over 2003 (Forrester Research) In 2005, another 5.7% growth is estimated (Forrester Research)

More facts
Improvements by 2001 (compared to 1995)

Time overruns significantly decreased to 163% compared to 222% Cost overruns were down to 145% compared to 189% Required features and functions were up to 67% compared to 61% 78,000 U.S. projects were successful compared to 28,000 28% of IT projects succeeded compared to 16%

"The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.*
The Standish Group, "CHAOS 2001: A Recipe for Success" (2001)

What is Project Management?

A project is a temporary endeavor undertaken to accomplish a unique product or service Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements
Project Management Body of Knowledge (PMBOK Guide), 2004

Most in Demand IT Skills

Rank IT Skill/Job Average Annual Salary 1 SQL Database Analyst $80,664 2 Oracle Database Analyst $87,144 3 C/C++ Programmer $95,829 4 Visual Basic Programmer $76,903 5 E-commerce/Java Developer $89,163 6 Windows NT/2000 Expert $80,639 7 Windows/Java Developert $93,785 8 Security Architect $86,881 9 Project Manager $95,719 10 Network Engineer $82,906 Paul Ziv, The Top 10 IT Skills in Demand, Global Knowledge Webcast (www.globalknowledge.com) (11/20/2002).

Project Success Factors

In order of importance: 1. 2. 3. 4. 5. 6. 7. 8. 9. Executive support User involvement Experienced project manager Clear business objectives Minimized scope Standard software infrastructure Firm basic requirements Formal methodology Reliable estimates

Source: CHAOS 2001: A Recipe for Success, Standish Group

Strategies for IT Project Management

Hire (or develop someone) with great project management skills Adopt the Project Management Institutes PMBOK (Project Management Body of Knowledge) Adopt a methodology or framework for operations or systems development (ITIL/MOF, MSF, etc) or develop your own (State of Michigan, Department of Information Technology) Use technology to assist in managing projects Create a Project Management Office

Skills of a Project Manager

Communication skills: listening, persuading Organizational skills: planning, goal-setting, analyzing Team Building skills: empathy, motivation, esprit de corps Leadership skills: set examples, be energetic, have vision (big picture), delegate, be positive Coping skills: flexibility, creativity, patience, persistence Technological skills: experience, project knowledge

Project Management Body of Knowledge (PMBOK)

A compilation of proven practices used in the profession of project management Extends to the sum of knowledge of practitioners and academics that apply it Also acts as a common lexicon within the profession

PMBOK

Defines the Knowledge areas and Process Groups Maps the Knowledge areas into the Process Groups Identifies tools and techniques for each Knowledge area

PMBOK Project Management Framework

Source: Information Technology Project Management, Kathy Schwalbe

Process Groups in a Project

Source: Project Management Body of Knowledge (PMBOK Guide), 2000

IT Project Lifecycle (Microsoft)

MOF Team Model

MOF Process Model

MOF Process Model and Service Management Functions

MSF Team Model

MSF Process Model

MSF Process Model Iterations

Tools

Word processor and spreadsheet Communication software (email, virtual meeting, portal, etc.) PMBOK tools identified for each knowledge area Project management software (like MS Project)

Portal

A site giving you access to a set of commonly used services, often as a gateway to other sites and services. Includes:

Search capabilities News Document collaboration Email integration Personalization Alerts www.microsoft.com/office/sharepoint/prodinfo/demo.mspx

Microsoft SharePoint Portal Demo

PM Tools and Techniques by Knowledge Area

Integration Management

Stakeholder analysis Project Plans Project Mgmt Software Change Control Boards Configuration Management Project Review Meetings Work Authorization Systems Project Leadership Executive Sponsorship

PM Tools and Techniques by Knowledge Area

Scope Management

NPV, ROI Weighted Scoring Models Business Cases Project Charters Scope Statements WBS Statements of Work Requirements Analysis Scope Change Control

PM Tools and Techniques by Knowledge Area

Time Management

Gantt Charts Network Diagrams Critical Path Analysis Program Evaluation Review Technique Critical Chain Scheduling Crashing Fast Tracking Milestone Reviews

PM Tools and Techniques by Knowledge Area

Cost Management

Earned Value Management Project Portfolio Management Cost Estimates Cost Management Plan Financial Software

PM Tools and Techniques by Knowledge Area

Quality Management

Six Sigma Quality Control Charts Pareto Diagrams Fishbone Diagrams Quality Audits Statistical Models

PM Tools and Techniques by Knowledge Area

Human Resource Management

Motivation Techniques Empathic Listening Team Contracts Responsibility Assignment Matrices Resource Histograms Resource Loading Resource Leveling Team-building exercises

PM Tools and Techniques by Knowledge Area

Communication Management

Communication Management Plan Conflict Management Communications Media Selection Communications Infrastructure Status Reports Meetings Virtual Communications Templates Project Web Sites

PM Tools and Techniques by Knowledge Area

Procurement Management

Make-or-Buy Analysis Contracts RFPs and RFQs Source Selection Negotiating E-Procurement

PM Tools and Techniques by Knowledge Area

Risk Management

Risk Management Plan Probability/Impact Matrix Risk Ranking Monte Carlo Simulation Top-Ten Risk Item Tracking

Project Management Software

Small projects

TurboProject, Milestone Simplicity, Project Vision, Quick Gantt, Microsoft Project, Primavera SureTrak Microsoft Project and Primavera Microsoft Project Server, Primavera, Open Plan, Cobra, Enterprise PM, Micro Planner X-Pert

Larger Cross-functional Projects

Multi-Project management

Microsoft Demos: http://www.microsoft.com/office/project/prodinfo/demo.mspx

Project Management Office

Benefits

Project Support Project Management Methodology Training Home Base for Project Managers Internal Consulting and Mentoring Software Tools Portfolio Management

Project Management Office

Challenges

ROI is not quick Corporate culture could be resistant Difficult to develop metrics to track success Which model do you choose central project management or consulting?

References

Project Management Institute

IT Infrastructure Library (ITIL)

www.pmi.org

Microsoft Operations Framework

www.itil.co.uk

Microsoft Solutions Framework

www.microsoft.com/technet www.microsoft.com/technet

Selecting Project Management Software

Example of a complete Project Management Strategy

www.4pm.com/articles/selpmsw.html
http://michigan.gov/dit

Canadian Government - An Enhanced Framework for the Management of Information Technology Projects - Project Management Core Competencies

Various articles CIO Magazine

http://www.cio-dpi.gc.ca/emf-cag/corecompetencies/cc-cb00_e.asp www.cio.com

Information Technology Project Management

Kath Schwalbe, Thomson Course Technology ISBN 0-619-15984-7