The value of a project-oriented approach to IT and how we do it in IBM Including personal reflections by Daniel Moul August 2004 South Pacific Computer Society at the University of the South Pacific

The problem Standish Group “CHAOS Chronicle” looked at American IT projects (1995) Only 16% completed on time, on budget and with promised scope 31% cancelled before completion More than half nearly double the original cost More likely to fail … The larger the project The longer the project The larger the company

Some types of failure We built the wrong thing It isn’t good enough We spent too much money It took too much time

What’s the hardest part? NOT money NOT the technology NOT technically skilled staff

The hard parts are … Defining and agreeing on the goals Estimating Defining and implementing team processes Change control Tracking progress and making adjustments to the plan as necessary Communicating The customer (!)

The solution? Involves many dimensions, including … Customer executive support / sponsorship Clear objectives tied to the organization’s strategy & goals Users participating in requirements definition, testing, acceptance etc., etc. Good project management is not the complete answer greatly increases the chance of success

Project management basics My sources PM Body of Knowledge (PMBOK) www.pmi.org IBM’s Integrated Product Development process (IPD) Personal experience

What is a project? What are operations? a temporary endeavor undertaken to create a unique product or service doing something new an on-going endeavor keeping things the same Characteristics in common: performed by people constrained by limited time, money, and other resources planned, executed, and controlled

Project management is … an organized way a team of people achieve a collective goal to make or do something new in a specified period of time Seeing a vision of the future and leading a team to create that future

Project Dynamics Uncertainty highest at beginning Risk declines, but so does ability to adjust The “meter is running”

Projects usually have phases – example IBM IPD N T R A Concept Plan Develop Qualify Launch Life- cycle Starts with ideas (concept) Finishes by removing product from use (end of lifecyle) Each phase results in deliverables IBM’s Integrated Product Development methodology employs projects to deliver products

Project must pass checkpoint to move to next phase Concept DCP Plan DCP Availability DCP End-of-Life DCP C O N T R A Develop Qualify Launch Life- cycle Concept Plan Clear criteria for moving to next phase Intentionally make the decision to continue (or not!)

Also works for contracting Design Contract Build & Deliver Contract Operations Contract C O N T R A Develop Qualify Launch Life- cycle Concept Plan

Project building blocks Projects consist of phases each phase ends with one or more deliverables Phases consist of activities Activities have estimated duration estimated cost estimated resource requirements logical relationships with each other

Activities generate outputs Inputs Tools & Techniques Outputs Transforming inputs to outputs … familiar to Computer Science students

All project have constraints Finite resources require trade-offs among … Scope Time Cost Quality Risk

PM focus areas requiring active management Scope – specifications Time – tasks & schedule Cost – budget & profit Quality – meeting specifications, satisfying customer Risk – addressing the unknown Human Resource – right people with right skills at right time Communications – who, what, when, how Procurement – subcontracting Integrated management activities

Each focus area includes many PM activities Scope … Initiation Scope planning Scope definition Scope verification Scope change control Time … Activity definition Activity sequencing Activity duration estimating Schedule development Schedule change control

Common pattern: five groups of processes Initiating Planning Controlling Executing Closing

Groups of processes happen in each phase … Initiating Planning Controlling Executing Closing Plan Phase …. Initiating Planning Controlling Executing Closing Develop Phase … and these processes are used in all the PM focus areas ….

All dimensions occurring and interacting all the time Initiating Planning Controlling Executing Closing Phase X Requires integrated project plan … Development Execution Change control Scope Time Cost Risk Quality Human Resource Communications Procurement Scope Cost Quality

Example – Building the schedule … and other activities Determine the resources required people/skills, equipment, other inputs plan for positive and negative risks add time or money to the plan consider … what could go wrong its probability, importance, and impact mitigations you can take if the risk occurs determine the budget Activity definition Break work into small pieces Activity sequencing Identify the dependencies among tasks Activity duration estimating Estimate time required for each task Schedule development Create project schedule what work can be done in parallel? what is the critical path? consider resource leveling Schedule change control How will changes be decided & included?

Example – new bridge at USP What scope? What cost, duration, quality? What risks are acceptable? What people, machines, and equipment? What sub-contractors? Who are the stakeholders, and what information does each need?

Activities and schedule with Gantt chart Visual representation of activities, time, and interrelationships Phases Activities Logical Relationships between activities Time

Other concepts Stakeholders Iterations progressive elaboration planning, executing, controlling the project change control establish baseline follow agreed process for defining, estimating, and approving change then create new baseline

Questions & Discussion

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