Chapter 1 The Nature of Information Technology Projects

Chapter 1 The Nature of Information Technology Projects 1 -1

IT and Modern Day Project Management 1940 s First Electronic Computer 1950 s 1960 s EDP Era 1970 s PC Era 1980 s 1990 s 2000 s Network Era 2010 s Globalization 1 -2

Introduction � Information Technology (IT) projects are organizational investments that require Time Money Other resources such as People, Technology, Facilities, etc. � Organizations expect some type of value in return for this investment (ROI) � 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 1 -3

An ITPM (IT Project Management) 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 1 -4

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 & 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. 1 -5

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? 1 -6

Why Many Projects Fail: Project Failure can be grouped into four categories (examples) People – The stakeholders of a project with varied roles and interests in the project’s success or failure. Processes – This includes having a set of project management and product management processes. Technology – Only 3% of IT project failures can be attributed to technical challenges but this percentage can be increased if obsolete, unproven, or incompatible technologies are used. Organization – Organizational issues can lead to project failure. A lack of clear direction, improper strategy, rapidly changing business environment and/or customer needs can create a moving target for the product’s product or service. 1 -7

Why Many Projects Fail: Project Failure can be grouped into four categories (examples) 1 -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 overbudget, over schedule, & did not meet original specifications ▪ For mid-size companies, average cost overruns were 182%, while average schedule overruns were 202%! 1 -9

Has the Current State of IT Projects Changed Since 1994? �The Standish Group has continued to study IT projects over the years. �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! 1 -10

Table 1. 1 Summary of CHAOS Study Factor Rankings for Successful Projects Rank 1994 2001 2006 2008 1 User Involvement Executive Support User Involvement 2 Executive Management Support User Involvement Executive Management Support Executive Support 3 Clear Statement of Requirements Experienced Project Manager 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 9 Clear Vision & Objectives Reliable Estimates Formal Methodology Execution 10 Hard-working, focused team Other Standard Tools and Infrastructure Tools & Infrastructure 1 -11 Sources: Adapted from the Standish Group. CHAOS ; (West Yarmouth, MA: 1995, 2010) & http: //www. infoq. com/articles/Interview-Johnson-Standish-CHAOS

Table 1. 2: IT Project Success 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. Source: http: //www. drdobbs. com/architecture-and-design/202800777. 1 -12

Table 1. 3: Summary of Factor Rankings for Challenged and Failed (Impaired) Projects 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 Source: Adapted from the Standish Group. CHAOS (West Yarmouth, MA: 1995) 1 -13

Figure 1. 2 When IT projects have gone wrong, what has been the reaction from the business managers & the Board of Directors? Don't know 1% None Looked for a scapegoat among IT staff Sought compensation from IT vendors Reluctant to fund new IT projects 2% 9% 13% 19% Reduced IT budgets 21% Tend to accept problems as the norm (i. e. , a necessary evil) Continued to provide support to improve IT 43% 1 -14 69%

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 1 -15 lessons learned, best practices & shared knowledge

The Context of Project Management – Project Attributes � Time Frame � Purpose (to provide value!) � Ownership � Resources (the triple constraint) � Roles Project Manager Project Sponsor SME (Subject Matter Expert - domain & technical) � Risk & Assumptions � Interdependent Tasks Progressive elaboration – steps & increments � Planned Organizational Change � Operate in Environments Larger than the Project Itself 1 -16

The Triple Constraint Figure 1. 3 1 -17

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 1 -18

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 understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct 1 -19

Project Management Body of Knowledge Areas Figure 1. 8 1 -20

The PMBOK® Guide’s Definitions for … • A project is a temporary endeavor undertaken to create a unique product, service, or result. • A project manager is the person assigned by the performing organization to achieve the project objectives. 1 -21

What is Project Management? � Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. � Project Portfolio – a collection of diverse projects managed collectively to align with the organization’s strategy and overall plan to achieve competitive advantage. � Program – a collection of projects within a project portfolio whose activities are coordinated so that the benefits of the program are great than the sum of the benefits of the individual projects. 22