MANAGING INFORMATION TECHNOLOGY FIFTH EDITION CHAPTER 12 IT

MANAGING INFORMATION TECHNOLOGY FIFTH EDITION CHAPTER 12 IT PROJECT MANAGEMENT E. Wainright Martin Carol V. Brown Daniel W. De. Hayes Jeffrey A. Hoffer William C. Perkins

IT PROJECT MANAGEMENT n IT Project management requires knowledge of system development methodologies: SDLC Prototyping RAD Purchasing life cycle © 2005 Pearson Prentice-Hall Chapter 12 - 2 2 Page 421

IT PROJECT MANAGEMENT n Project Management Institute (PMI) International society of project workers Certified thousands of professionals since 1984 PM competencies certified by PMI include eight areas: © 2005 Pearson Prentice-Hall Chapter 12 - 3 Figure 12. 1 Eight Project Management Competencies 3 Page 421

IT PROJECT MANAGEMENT n Most projects share common characteristics: 1. Risk and uncertainty highest at project start 2. Ability of stakeholders to influence project greatest at project start 3. Cost and staffing levels lower at project start and higher toward end (PMI, 1996) © 2005 Pearson Prentice-Hall Chapter 12 - 4 4 Page 421

IT PROJECT MANAGEMENT Project: • • • Temporary endeavor to create unique product or service Typically is a one-time initiative Can be divided into multiple tasks Requires coordination and control Has a definite beginning and end © 2005 Pearson Prentice-Hall Chapter 12 - 5 5 Page 422

IT PROJECT MANAGEMENT Project: • • • Temporary endeavor to create unique product or service Typically is a one-time initiative Can be divided into multiple tasks Requires coordination and control Has a definite beginning and end Program – a group of projects managed in a coordinated way to obtain benefits not available from managing them (PMI, 1996) individually © 2005 Pearson Prentice-Hall Chapter 12 - 6 6 Page 422

IT PORTFOLIO MANAGEMENT IT Portfolio – set of IT project initiatives currently in progress, as well as requests for IT projects that have not yet been funded © 2005 Pearson Prentice-Hall Chapter 12 - 7 7 Page 422

IT PORTFOLIO MANAGEMENT n Project categories to help with prioritization: Absolute must A mandate due to security, legal, regulatory, or end-of-life-cycle IT issues Highly Desired/Business-Critical Includes short-term projects with good financial returns Wanted Valuable, but with longer time periods for ROI (more than 12 months) Nice to Have Projects with good returns, but with lower potential business value (Denis, et al. , 2004) © 2005 Pearson Prentice-Hall Chapter 12 - 8 8 Page 422

PROJECT INITIATION n Project charter n Scope statement n Feasibility analyses Economic Operational Technical © 2005 Pearson Prentice-Hall Chapter 12 - 9 9 Page 424

PROJECT INITIATION n Economic feasibility Formal cost-benefit analysis usually conducted ROI calculated when benefits can be easily measured Alternatives to ROI: © 2005 Pearson Prentice-Hall Chapter 12 - 10 Figure 12. 3 Alternatives to ROI for Justifying Investments 10 Page 424

PROJECT INITIATION Project Manager Characteristics n Project manager can be: IS manager Business manager Both © 2005 Pearson Prentice-Hall Chapter 12 - 11 11 Page 424

PROJECT INITIATION Project Manager Characteristics © 2005 Pearson Prentice-Hall Chapter 12 - 12 Figure 12. 4 Nontechnical Skills for Superior Project Management 12 Page 425

PROJECT INITIATION Project Sponsor and Champion Roles Sponsor: • Participates in the development of the initial project proposal and the feasibility studies • May personally argue for project approval • Is usually the business manager who financially “owns” the project © 2005 Pearson Prentice-Hall Chapter 12 - 13 13 Page 425

PROJECT INITIATION Project Sponsor and Champion Roles Champion – a business manager who: • Has high credibility as organizational spokesperson among user community • Is successful communicator of vision and benefits throughout the project © 2005 Pearson Prentice-Hall Chapter 12 - 14 14 Page 425

PROJECT PLANNING n Three major components: Schedule Budget Staff (project team) © 2005 Pearson Prentice-Hall Chapter 12 - 15 15 Page 426

PROJECT PLANNING Scheduling n Work breakdown analysis: Identifies phases and task sequence to meet project goals Estimates time of completion for each task Results in a project master schedule that identifies date and deliverable milestones © 2005 Pearson Prentice-Hall Chapter 12 - 16 16 Page 426

PROJECT PLANNING Scheduling Timeboxing – organizational practice in which a system module is to be delivered to user within a set time limit, such as 6 months Work breakdown – a basic management technique that systematically subdivides blocks of work down to the level of detail at which the project will be controlled © 2005 Pearson Prentice-Hall Chapter 12 - 17 17 Page 426

PROJECT PLANNING Budgeting Two traditional approaches to estimating costs: n Bottom-up Cost elements are estimated for lowest level of work tasks and then aggregated to give total project cost estimate n Top-down (parametric cost estimating) Provides cost estimates for major budget categories based on historical experience © 2005 Pearson Prentice-Hall Chapter 12 - 18 18 Page 427

PROJECT PLANNING Budgeting n Inexperienced estimators may: 1. Be too optimistic about what is needed to do the job 2. Tend to leave out components 3. Not use a consistent methodology, and have difficulty recreating their rationales © 2005 Pearson Prentice-Hall Chapter 12 - 19 19 Page 427

PROJECT PLANNING Staffing Project staffing involves: 1. Identifying IT specialist skill mix needed 2. Selecting personnel who collectively have necessary skills and assigning them to work 3. Preparing personnel for specific team member work 4. Providing incentives to achieve project goals © 2005 Pearson Prentice-Hall Chapter 12 - 20 20 Page 427

PROJECT PLANNING Staffing Counterproductive Characteristics (Based on productivity study by Hughes Aircraft Company in Roman, 1986) © 2005 Pearson Prentice-Hall Chapter 12 - 21 Figure 12. 5 Counterproductive Characteristics 21 of Project Team Environments Page 429

PROJECT PLANNING Planning Documents Two typical planning documents: n Statement of Work (SOW) n For the customer High-level document that describes what project delivers and when Contract between project manager and executive sponsor Project Plan Used by project manager to guide, monitor, and control execution of project Reviewed by managers or committees that oversee project © 2005 Pearson Prentice-Hall Chapter 12 - 22 22 Page 429

PROJECT PLANNING Planning Documents Two typical planning charts: n PERT (or CPM) n Gantt © 2005 Pearson Prentice-Hall Chapter 12 - 23 23 Page 429

PROJECT PLANNING Planning Documents n PERT (or CPM) Graphically models sequence of project tasks and interrelationships using a flowchart diagram Depicts a critical path – sequence of activities that will take longest time to complete Helps managers estimate effects of task slippage If used, less likely to have cost and schedule overruns © 2005 Pearson Prentice-Hall Chapter 12 - 24 24 Page 429

PROJECT PLANNING Planning Documents (Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, Prentice Hall, 2001) © 2005 Pearson Prentice-Hall Chapter 12 - 25 Figure 12. 6 PERT Chart Example 25 Page 430

PROJECT PLANNING Planning Documents n Gantt Graphically depicts estimated times (and later actual times) for each project task against a horizontal time scale Tasks presented in logical order along with bar graph showing estimated time duration for each task on a calendar Useful for displaying a project schedule and tracking progress of a set of tasks against project plan © 2005 Pearson Prentice-Hall Chapter 12 - 26 26 Page 429

(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, 1 st Edition, Copyright © 2001. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ) © 2005 Pearson Prentice-Hall Chapter 12 - 27 Figure 12. 7 Gantt Chart Example 27 Page 431

PROJECT EXECUTION AND CONTROL n Project plan needs to be refined and reassessed throughout life of project n Software project management tools commonly used to help initiate and monitor project tasks n Communication among project team members critical for task coordination and integration n Communication throughout project to all stakeholders is key to project success © 2005 Pearson Prentice-Hall Chapter 12 - 28 28 Page 430

PROJECT EXECUTION AND CONTROL Routine Project Status Reporting (Roman, 1986) © 2005 Pearson Prentice-Hall Chapter 12 - 29 Figure 12. 8 Status Reporting 29 Page 431

PROJECT EXECUTION AND CONTROL Managing Project Risks n PM Goal: Manage risk of failing to achieve project objectives n Causes of Risk: Human error Project scope changes Unanticipated technology changes Internal politics © 2005 Pearson Prentice-Hall Chapter 12 - 30 30 Page 432

PROJECT EXECUTION AND CONTROL Managing Project Risks (Bashein, Markus, and Finley, 1997) © 2005 Pearson Prentice-Hall Chapter 12 - 31 Figure 12. 9 Ten IT-Related Risks and Potential Consequences 31 Page 432

Managing Project Risks (Adapted from Hamilton, 2000) © 2005 Pearson Prentice-Hall Chapter 12 - 32 Figure 12. 11 Risk Controllability and Impact Grid 32 Page 434

Managing Project Risks (Adapted from Frame, 1994) © 2005 Pearson Prentice-Hall Chapter 12 - 33 Figure 12. 12 Risk Exposure: Risk versus Stake 33 Page 434

PROJECT EXECUTION AND CONTROL Managing Business Change n Change management: Ability to successfully introduce change to individuals and organizational units Key to project success Often involves change to power structures that must be recognized Can be facilitated by using change models, such as Lewin/Schein change model © 2005 Pearson Prentice-Hall Chapter 12 - 34 34 Page 433

PROJECT EXECUTION AND CONTROL Managing Business Change Lewin/Schein Change Model © 2005 Pearson Prentice-Hall Chapter 12 - 35 Figure 12. 14 Three Stages of 35 Lewin/Schein Change Model Page 433

PROJECT CLOSING n IT project deliverables completed n Formal user acceptance obtained or failed project terminated n Common questions for team members: What went right on this project? What went wrong on this project? What would you do differently on the next project, based on your experience with this project? © 2005 Pearson Prentice-Hall Chapter 12 - 36 36 Page 436

SPECIAL ISSUE: MANAGING COMPLEX IT PROJECTS n Three factors critical to success of large, complex IT projects: The business vision an integral part of project A testing approach used at program level (not just individual application level) Used a phased-release approach (rather than single rollout strategy) © 2005 Pearson Prentice-Hall Chapter 12 - 37 37 Page 437

SPECIAL ISSUE: MANAGING COMPLEX IT PROJECTS (Adapted from Poria, 2004) © 2005 Pearson Prentice-Hall Chapter 12 - 38 Figure 12. 15 Complexity Increases with Offsite and Offshore Resources (1 of 2) 38 Page 437

(Adapted from Poria, 2004) © 2005 Pearson Prentice-Hall Chapter 12 - 39 Figure 12. 15 Complexity Increases with Offsite and Offshore Resources (2 of 2) 39 Page 437

SPECIAL ISSUE: POST-MERGER IT INTEGRATION PROJECTS n What makes for a successful merger? Well-honed IT project management skills, and a program management structure Retaining IT talent needed for post merger IT integration efforts Quickly offering attractive retention contracts to key personnel © 2005 Pearson Prentice-Hall Chapter 12 - 40 40 Page 438