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  • Learning Objectives

    Understand the growing need for better project management, especially for information technology (IT) projects
    Explain what a project is, provide examples of IT projects, list various attributes of projects, and describe the triple constraint of project management
    Describe project management and discuss key elements of the project management framework, including project stakeholders, the project management knowledge areas, common tools and techniques, and project success
    Discuss the relationship between project, program, and portfolio management and the contributions each makes to enterprise success
    Understand the role of project managers by describing what they do, what skills they need, and career opportunities for IT project managers
    Describe the project management profession, including its history, the role of professional organisations like the Project Management Institute (PMI), the importance of certification and ethics, and the advancement of project management software

    Introduction

    Many organizations today have a new or renewed interest in project management
    Worldwide IT spending was $3.8 trillion in 2014, a 3.2 percent increase from 2013 spending
    The Project Management Institute estimates demand for 15.7 million project management jobs from 2010 to 2020, with 6.2 million of those jobs in the United States

    Project Management Statistics

    In 2013 (the most recent year of PMI’s salary survey), the average salary in U.S. dollars for someone in the project management profession was $108,000 per year in the United States; $134,658 in Australia, (the highest-paid country); and $24,201 in Egypt (the lowest-paid country)

    The top skills employers look for in new college graduates are all related to project management: team-work, decision-making, problem-solving, and verbal communications.
    Organisations waste $109 million for every $1 billion spent on projects, according to PMI’s Pulse of the Profession® report

    Motivation for Studying Information Technology (IT) Project Management

    IT Projects have a terrible track record, as described in the What Went Wrong?

    A 1995 Standish Group study (CHAOS) found that only 16.2% of IT projects were successful in meeting scope, time, and cost goals; over 31% of IT projects were canceled before completion

    A PricewaterhouseCoopers study found that overall half of all projects fail and only 2.5% of corporations consistently meet their targets for scope, time, and cost goals for all types of project.

    💡 The Standish Group Report
  • Sampling of Software Problems

    The sickening £12 billion NHS fiasco (17-4-2007)
    http://www.telegraph.co.uk/comment/personal-view/3639250/The-sickening-12-billion-NHS-fiasco.html

    The FBI's Upgrade That Wasn't $170 Million Bought an Unusable Computer System Washington Post Staff Writers, Friday, August 18, 2006
    http://www.washingtonpost.com/wp-dyn/content/article/2006/08/17/AR2006081701485_pf.html

    Someone is denied a new credit card because her Mother’s credit history is merged with her own

    $125 million is squandered on a hotel reservation system, in which proper project management should have revealed that this project was hopelessly out-of-control

    Software development projects frequently produce systems that are not used because users deem them unusable

    Advantages of Using Formal Project Management

    Better control of financial, physical, and human resources
    Improved customer relations
    Shorter development times
    Lower costs
    Higher quality and increased reliability
    Higher profit margins
    Improved productivity
    Better internal coordination
    Higher worker morale

    What Is a Project?

    A project is “a temporary effort undertaken to create a unique product, service, or result” (PMBOK® Guide, Fifth Edition, 2013) Project management body of knowledge (PMBOK)

    Operations is work done to tolerate the business

    Projects end when their objectives have been either reached or the project has been terminated

    Projects can be large or small

    and take a short or long time to complete.

    Examples of IT Projects

    A team of students creates a smartphone application and sells it online
    A company develops a driverless car
    A government group develops a system to track child immunisations
    A global bank acquires other financial institutions and needs to merge systems and procedures
    The NHS project
    Biometric fingerprint system for airports
    Computerised baggage handling system at Denver and Heathrow airports
  • Top Strategic Technologies for 2012 (Gartner)

    Computing everywhere
    The Internet of things
    3D printing

    Media Snapshot: Unproductive Apps

    Gartner predicted that by 2014, there would be more than 70 billion mobile application downloads every year, but it was almost double

    Facebook is by far the most downloaded app, and the most popular category of all apps continues to be games

    The challenge is to develop useful apps and get workers to focus on them instead of the many distracting options available

    Project Attributes

    A project
    has a unique purpose
    is temporary
    is developed using progressive elaboration
    requires resources, often from various areas
    should have a primary customer or sponsor
    The project sponsor usually provides the direction and funding for the project
    involves uncertainty

    Project and Program Managers

    Project managers work with project sponsors, project team, and other people involved in a project to meet project goals

    Program: group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually (PMBOK® Guide, Fifth Edition, 2013)

    Program managers oversee programs; often act as bosses for project managers

    What is Project Management?

    Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide, Fourth Edition, 2013)

    Project managers strive to meet the triple constraint (project scope, time, and cost goals) and also facilitate the entire process to meet the needs and expectations of project stakeholders
  • Project Stakeholders

    Stakeholders are the people involved in or affected by project activities

    Stakeholders include
    the project sponsor
    the project manager
    the project team
    support staff
    customers
    users
    suppliers
    opponents to the project

    10 Project Management Knowledge Areas

    Knowledge areas describe the key competencies that project managers must develop

    Project managers must have knowledge and skills in all 10 knowledge areas (project integration, scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management)

    This text includes an entire chapter on each knowledge area

    Project Management Tools and Techniques

    Project management tools and techniques assist project managers and their teams in various aspects of project management

    Some specific ones include
    Project charter, scope statement, and WBS (scope)
    Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time)
    Cost estimates and earned value management (cost)

    Super Tools

    “Super tools” are those tools that have high use and high potential for improving project success, such as:
    Software for task scheduling (such as project management software)
    Scope statements
    Requirements analyses
    Lessons-learned reports

    Tools already extensively used that have been found to improve project importance include:
    Progress reports
    Kick-off meetings
    Gantt charts
    Change requests
  • What Went Right? Improved Project Performance

    The Standish Group’s CHAOS studies show improvements in IT projects in the past decade:
    The number of successful IT projects has more than doubled, from 16 percent in 1994 to 39 percent in 2012
    The number of failed projects decreased from 31 percent in 1994 to 18 percent in 2012
    Success rates were much higher for small projects than large ones – 76 percent versus 10 percent

    The Project Lifecycle – Phases

    Define
    Plan
    Action
    Review

    Change

    Guinness PLC
    “Strategy will involve change and change is something that is here to stay.
    Managers throughout the business and at all levels have got to recognize the management of change as a core skill.
    So opportunities as managers of projects (change) will become a key building block of experience in most people’s careers”.
    Tony Greener Chairman, Guinness PLC Diageo

    Planning

    “People don’t like to plan - Planning is unnatural - It is much more fun just to do.
    And the nice thing about just doing is that failure comes as a complete surprise.
    Whereas if you have planned, the failure is preceded by a long period of despair and worry”
    Sir John Harvey Jones CEO, ICI

    Key Features of a Project

    Non-routine tasks are involved

    Planning is required and work is carried out in several phases
    Use progressive elaboration

    Specific objectives are to be met or a specified product is to be created

    Project has pre-determined time span
    A project is temporary

    Work is carried out for someone other than yourself
    Primary customer or sponsor

    The available resources are constrained
    Work includes several specialisms

    Project is large/complex

    Uncertainty is involved
    This can be the reason project management is so challenging an effective project manager is crucial to the success of a project
  • Projects v Processes

    One off task Varies Little day by day
    Specific deliverables Measured by quantity produced
    Time restrictions On-going work
    Many tasks Tasks fit within functional boundaries
    Multifunction teams Interfaces between functional departments well defined

    What is a successful project?

    One that delivers expected results

    These traditionally include
    Budget
    Schedule
    Scope

    ‘Big three’ – A success

    The benefits must outweigh the costs e.g. the increase in sales more than covers the cost

    Project Success

    There are several ways to define project success:
    The project met scope, time, and cost goals
    The project satisfied the customer/sponsor
    The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy

    What Helps Projects Succeed?

    1. Executive support
    2. User involvement
    3. Clear business objectives
    4. Emotional maturity
    5. Optimizing scope
    6. Agile process
    7. Project management expertise
    8. Skilled resources
    9. Execution
    10. Tools and infrastructure

    *The Standish Group, “CHAOS Manifesto 2013: Think Big, Act Small” (2013).
  • Top Three Reasons Why Federal Technology Project Succeed

    Adequate funding
    Staff expertise
    Engagement from all stakeholders

    What the Winners Do…

    Recent research findings show that companies that excel in project delivery capability:
    Use an integrated project management toolbox (use standard/advanced PM tools, lots of templates)
    Grow project leaders, emphasizing business and soft skills
    Develop a streamlined project delivery process
    Measure project health using metrics, like customer satisfaction or return on investment

    Program and Project Portfolio Management

    A program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually” (PMBOK® Guide, Fifth Edition, 2013)

    A program manager provides leadership and direction for the project managers heading the projects within the program

    Examples of common programs in the IT field include infrastructure, applications development, and user support

    Project Portfolio Management

    As part of project portfolio management, organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise’s success

    Portfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective

    Best Practice

    A best practice is “an optimal way recognized by industry to achieve a stated goal or objective”*

    Robert Butrick suggests that organizations need to follow basic principles of project management, including these two mentioned earlier in this chapter:
    Make sure your projects are driven by your strategy. Be able to demonstrate how each project you undertake fits your business strategy, and screen out unwanted projects as soon as possible
    Engage your stakeholders. Ignoring stakeholders often leads to project failure. Be sure to engage stakeholders at all stages of a project, and encourage teamwork and commitment at all times

    *Project Management Institute, Organizational Project Management Maturity Model (OPM3) Knowledge Foundation (2003), p. 13.

    The Role of the Project Manager

    Job descriptions vary, but most include responsibilities like planning, scheduling, coordinating, and working with people to achieve project goals

    Remember that 97% of successful projects were led by experienced project managers, who can often help influence success factors

    Suggested Skills for Project Managers

    The Project Management Body of Knowledge
    Application area knowledge, standards, and regulations
    Project environment knowledge
    General management knowledge and skills
    Soft skills or human relations skills
  • Ten Most Important Skills and Competencies for Project Managers

    1. People skills
    2. Leadership
    3. Listening
    4. Integrity, ethical behavior, consistent
    5. Strong at building trust
    6. Verbal communication
    7. Strong at building teams
    8. Conflict resolution, conflict management
    9. Critical thinking, problem solving
    10. Understands, balances priorities

    Different Skills Needed in Different Situations

    Large projects: Leadership, relevant prior experience, planning, people skills, verbal communication, and team-building skills were most important

    High uncertainty projects: Risk management, expectation management, leadership, people skills, and planning skills were most important

    Very novel projects: Leadership, people skills, having vision and goals, self confidence, expectations management, and listening skills were most important

    Importance of Leadership Skills

    Effective project managers provide leadership by example

    A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals

    A manager deals with the day-to-day details of meeting specific goals

    Project managers often take on the role of both leader and manager

    Careers for IT Project Managers

    In a 2014 survey, IT executives listed the “ten hottest skills” they planned to hire for in 2015

    Project management was second only to programming and application development

    Even if you choose to stay in a technical role, you still need project management knowledge and skills to help your team and organisation

    Ten Hottest IT Skills

    Skill Percentage of Respondents
    Programming and application development 48
    Project management 35
    Help desk/technical support 30
    Security/compliance governance 28
    Web development 28
    Database administration 26
    Business intelligence/analytics 24
    Mobile application and device management 24
    Networking 22
    Big data 20
    Source: Mary K. Pratt, "10 Hottest IT Skills for 2015," Computerworld, November 18, 2014.
  • The Project Management Profession

    The profession of project management is growing at a very rapid pace

    It is helpful to understand the history of the field, the role of professional societies like the Project Management Institute, and the growth in project management software

    History of Project Management

    Some people argue that building the Egyptian pyramids was a project, as was building the Great Wall of China

    Most people consider the Manhattan Project to be the first project to use “modern” project management

    This three-year, $2 billion (in 1946 dollars) project had a separate project manager and a technical manager

    📷 Sample Gantt Chart
    📷 Sample Network Diagram

    Project Management Offices

    In the 100s, many companies began creating PMOs to help them handle the increasing number and complexity of projects

    A Project Management Office (PMO) is an organisational group responsible for coordinating the project management function throughout an organisation

    Global Issues

    Several global dynamics are forcing organisations to rethink their practices:
    Talent development for project and program managers is a top concern
    Good project portfolio management is crucial in tight economic conditions
    Basic project management techniques are core competencies
    Organisations want to use more agile approaches to project management
    Benefits realisation of projects is a key metric

    The Project Management Institute

    The Project Management Institute (PMI) is an international professional society for project managers founded in 1969

    PMI has continued to attract and retain members, reporting more than 449,000 members worldwide by late 2014

    There are communities of practices in many areas, like information systems, financial services, and health care

    Project management research and certification programs continue to grow

    Students can join PMI at a reduced fee and earn the Certified Associate in Project Management (CAPM) certification(see www.pmi.org for details)

    Project Management Certification

    PMI provides certification as a Project Management Professional (PMP)

    A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam

    The number of people earning PMP certification is increasing quickly

    Ethics in Project Management

    Ethics, loosely defined, is a set of principles that guide our decision making based on personal values of what is “right” and “wrong”

    Project managers often face ethical dilemmas

    In order to earn PMP certification, applicants must agree to PMI’s Code of Ethics and Professional Conduct

    Several questions on the PMP exam are related to professional responsibility, including ethics
    X

    Sample Network Diagram Created with Project 2013

    Sample Gantt Chart Created with Project 2013
    X

    Sample Network Diagram Created with Project 2013

    Sample Network Diagram Created with Project 2013
  • Project Management Software

    There are hundreds of different products to assist in performing project management

    Three main categories of tools:
    Low-end tools: Handle single or smaller projects well, cost under $200 per user
    Midrange tools: Handle multiple projects and users, cost $200-$1,000 per user, Project 2013 most popular
    High-end tools: Also called enterprise project management software, often licensed on a per-user basis

    Several free or open-source tools are also available

    Chapter Summary

    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 program is a group of related projects managed in a coordinated way

    Project portfolio management involves organising and managing projects and programs as a portfolio of investments

    Project managers play a key role in helping projects and organizations succeed

    The project management profession continues to grow and mature

    Discussion questions

    1. Why is the topic of project management getting more attention lately?

    2. What do you think about the CHAOS study’s definition of a successful project? Do you think there are better definitions of success besides meeting scope, time, and cost goals?

    3. Can recent college graduates expect to be project managers right away? What is a typical career path for a project manager?
  • Quick Quiz

    1. What three knowledge areas comprise the triple constraint of project management?
    Reveal Answer
    ANSWER: Scope, time, and cost

    2. Name two tools and techniques that are unique to project management.
    Reveal Answer
    ANSWER: Project charter, WBS, Gantt chart, network diagram, critical path analysis, cost estimates, earned value management, or any item listed in Chapter 1.

    3. Modern project management began with what project?
    Reveal Answer
    ANSWER: The Manhattan Project

    4. What is the popular designation for people certified as project managers by the Project Management Institute?
    Reveal Answer
    ANSWER: PMP (Project Management Professional)

    5. What project management certifications can students earn without work experience?
    Reveal Answer
    ANSWER: Certified Associate in Project Management (CAPM) from PMI.

  • Key Terms

    best practice  An optimal way recognised by industry to achieve a stated goal or objective

    enterprise project management software  Software that integrates information from multiple projects to show the status of active, approved, and future projects across an entire organisation; also called portfolio project management software

    portfolio project management software  Software that integrates information from multiple projects to show the status of active, approved, and future projects across an entire organisation; also called enterprise project management software

    project management knowledge areas  Project integration management, scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management

    Project Management Office (PMO)  An organisational group responsible for coordinating the project management functions throughout an organisation

    Project Management Professional (PMP)  Certification provided by PMI that requires documenting project experience and education, agreeing to follow the PMI code of ethics, and passing a comprehensive exam

    leader  A person who focuses on long-term goals and big-picture objectives while inspiring people to reach those goals

    project  A temporary endeavor undertaken to create a unique product, service, or result

    project management  The application of knowledge, skills, tools, and techniques to project activities to meet project requirements

    project manager  The person responsible for working with the project sponsor, the project team, and the other people involved to meet project goals

    ethics  A set of principles that guides decision making based on personal values of what is considered right and wrong

    critical path  The longest path through a network diagram that determines the earliest completion of a project

    Gantt chart  A standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in calendar form

    project sponsor  The person who provides the direction and funding for a project

    stakeholders  People involved in or affected by project activities

    triple constraint  Balancing scope, time, and cost goals