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CHAPTER 12 IT PROJECT MANAGEMENT
IT PROJECT MANAGEMENT IT Project management requires knowledge of system development methodologies: SDLC Prototyping RAD Purchasing life cycle © Pearson Prentice-Hall Chapter Page 421
IT PROJECT MANAGEMENT Project Management Institute (PMI)International society of project workers Certified thousands of professionals since 1984 PM competencies certified by PMI include eight areas: © Pearson Prentice-Hall Chapter Figure Eight Project Management Competencies Page 421
IT PROJECT MANAGEMENT Most projects share common characteristics:Risk and uncertainty highest at project start Ability of stakeholders to influence project greatest at project start Cost and staffing levels lower at project start and higher toward end (PMI, 1996) © Pearson Prentice-Hall Chapter 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 © Pearson Prentice-Hall Chapter 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 individually (PMI, 1996) © Pearson Prentice-Hall Chapter Page 422
IT PORTFOLIO MANAGEMENTIT Portfolio – set of IT project initiatives currently in progress, as well as requests for IT projects that have not yet been funded © Pearson Prentice-Hall Chapter Page 422
IT PORTFOLIO MANAGEMENTProject 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) © Pearson Prentice-Hall Chapter Page 422
PROJECT INITIATION Project charter Scope statementFeasibility analyses Economic Operational Technical © Pearson Prentice-Hall Chapter Page 424
PROJECT INITIATION Economic feasibilityFormal cost-benefit analysis usually conducted ROI calculated when benefits can be easily measured Alternatives to ROI: © Pearson Prentice-Hall Chapter Figure Alternatives to ROI for Justifying Investments Page 424
PROJECT INITIATION Project manager can be:Project Manager Characteristics Project manager can be: IS manager Business manager Both © Pearson Prentice-Hall Chapter Page 424
PROJECT INITIATION Project Manager Characteristics Page 425© Pearson Prentice-Hall Chapter Figure Nontechnical Skills for Superior Project Management 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 © Pearson Prentice-Hall Chapter Page 425
PROJECT INITIATION Has high credibility as organizational spokespersonProject 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 © Pearson Prentice-Hall Chapter Page 425
PROJECT PLANNING Three major components: Schedule BudgetStaff (project team) © Pearson Prentice-Hall Chapter Page 426
PROJECT PLANNING Work breakdown analysis: SchedulingIdentifies 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 © Pearson Prentice-Hall Chapter Page 426
PROJECT PLANNING SchedulingTimeboxing – 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 © Pearson Prentice-Hall Chapter Page 426
PROJECT PLANNING Two traditional approaches to estimating costs:Budgeting Two traditional approaches to estimating costs: Bottom-up Cost elements are estimated for lowest level of work tasks and then aggregated to give total project cost estimate Top-down (parametric cost estimating) Provides cost estimates for major budget categories based on historical experience © Pearson Prentice-Hall Chapter Page 427
PROJECT PLANNING Inexperienced estimators may: BudgetingBe too optimistic about what is needed to do the job Tend to leave out components Not use a consistent methodology, and have difficulty recreating their rationales © Pearson Prentice-Hall Chapter Page 427
PROJECT PLANNING Project staffing involves: StaffingIdentifying IT specialist skill mix needed Selecting personnel who collectively have necessary skills and assigning them to work Preparing personnel for specific team member work Providing incentives to achieve project goals © Pearson Prentice-Hall Chapter Page 427
Counterproductive CharacteristicsPROJECT PLANNING Staffing Counterproductive Characteristics (Based on productivity study by Hughes Aircraft Company in Roman, 1986) © Pearson Prentice-Hall Chapter Figure Counterproductive Characteristics of Project Team Environments Page 429
PROJECT PLANNING Planning Documents Two typical planning documents:Statement of Work (SOW) 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 © Pearson Prentice-Hall Chapter Page 429
PROJECT PLANNING Planning Documents Two typical planning charts:PERT (or CPM) Gantt © Pearson Prentice-Hall Chapter Page 429
PROJECT PLANNING PERT (or CPM) Planning DocumentsGraphically 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 © Pearson Prentice-Hall Chapter Page 429
PROJECT PLANNING Planning Documents Page 430(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, Prentice Hall, 2001) © Pearson Prentice-Hall Chapter Figure PERT Chart Example Page 430
PROJECT PLANNING Gantt Planning DocumentsGraphically 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 © Pearson Prentice-Hall Chapter Page 429
Page 431 Figure 12.7 Gantt Chart Example(Reprinted from Valacich, George, and Hoffer, Essentials of Systems Analysis & Design, 1st Edition, Copyright © Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ) © Pearson Prentice-Hall Chapter Figure Gantt Chart Example Page 431
PROJECT EXECUTION AND CONTROLProject plan needs to be refined and reassessed throughout life of project Software project management tools commonly used to help initiate and monitor project tasks Communication among project team members critical for task coordination and integration Communication throughout project to all stakeholders is key to project success © Pearson Prentice-Hall Chapter Page 430
PROJECT EXECUTION AND CONTROLRoutine Project Status Reporting (Roman, 1986) © Pearson Prentice-Hall Chapter Figure Status Reporting Page 431
PROJECT EXECUTION AND CONTROLManaging Project Risks PM Goal: Manage risk of failing to achieve project objectives Causes of Risk: Human error Project scope changes Unanticipated technology changes Internal politics © Pearson Prentice-Hall Chapter Page 432
PROJECT EXECUTION AND CONTROLManaging Project Risks (Bashein, Markus, and Finley, 1997) © Pearson Prentice-Hall Chapter Figure Ten IT-Related Risks and Potential Consequences Page 432
Managing Project Risks(Adapted from Hamilton, 2000) © Pearson Prentice-Hall Chapter Figure Risk Controllability and Impact Grid Page 434
Managing Project Risks(Adapted from Frame, 1994) © Pearson Prentice-Hall Chapter Figure Risk Exposure: Risk versus Stake Page 434
PROJECT EXECUTION AND CONTROLManaging Business Change 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 © Pearson Prentice-Hall Chapter Page 433
PROJECT EXECUTION AND CONTROLManaging Business Change Lewin/Schein Change Model © Pearson Prentice-Hall Chapter Figure Three Stages of Lewin/Schein Change Model Page 433
PROJECT CLOSING IT project deliverables completedFormal user acceptance obtained or failed project terminated 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? © Pearson Prentice-Hall Chapter Page 436
SPECIAL ISSUE: MANAGING COMPLEX IT PROJECTSThree 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) © Pearson Prentice-Hall Chapter Page 437
SPECIAL ISSUE: MANAGING COMPLEX IT PROJECTS(Adapted from Poria, 2004) © Pearson Prentice-Hall Chapter Figure Complexity Increases with Offsite and Offshore Resources (1 of 2) Page 437
Page 437 Figure 12.15 Complexity Increases with(Adapted from Poria, 2004) © Pearson Prentice-Hall Chapter Figure Complexity Increases with Offsite and Offshore Resources (2 of 2) Page 437
SPECIAL ISSUE: POST-MERGER IT INTEGRATION PROJECTSWhat 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 © Pearson Prentice-Hall Chapter Page 438
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