J. R. Burns, Texas Tech University Lecture 2 – 8/28/2013 n Review—with recitation What is a project? Can you draw the PMI Lifecycle? PMI Lifecycle n How do IT Projects Differ from Ordinary Projects? n Project tools n PMI n PMI Knowledge Areas n PMI Processes n History

J. R. Burns, Texas Tech University What is a project? n A specific objective must be completed within certain specifications n Has a definite starting date and end date n Has funding limitations n Consumes resources (money, people, time, equipment) n Made up of activities (tasks) n Accomplished in teams

J. R. Burns, Texas Tech University PMI’s Definition of Project Management? Project management is “a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end.” (PMI*, Project Management Body of Knowledge (PMBOK Guide), 2008, pg. 5) *The Project Management Institute (PMI) is an international professional society. Their web site is

J. R. Burns, Texas Tech University n The overall information and communications technology market grew by 6 percent to almost $3 trillion in 2010 n In the U.S. the size of the IT workforce topped 4 million workers in 2008, and the unemployment rate for IT professionals is half the rate for the overall labor market n In 2011 the total compensation for the average senior project manager in U.S. dollars was $105,000 per year in the United States and $160,409 in the Switzerland. n The number of people earning their Project Management Professional (PMP) certification continues to increase. 44 percent of employers listed project management as a skill they looked for in new college grads, behind only communication and technical skills Project Management Statistics Information Technology Project Management, Seventh Edition 4

J. R. Burns, Texas Tech University n IT Projects have a terrible track record  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. The number of successful IT projects has more than doubled, from 16 percent in 1994 to 37 percent in 2010  The number of failed projects decreased from 31 percent in 1994 to 21 percent in 2010 n 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. Motivation for Studying Information Technology (IT) Project Management Information Technology Project Management, Seventh Edition 5

J. R. Burns, Texas Tech University Table 1-4. Nine Hottest Skills* Information Technology Project Management, Seventh Edition 6 Skill Percentage of Respondents Programming and application development 60% Project management 44% Help desk/technical support 35% Networking 35% Business intelligence 23% Data center 18% Web % Security 17% Telecommunications 9% *Source: Rick Saia, “9 Hot IT Skills for 2012,” Computerworld, September 26, 2011.

J. R. Burns, Texas Tech University n In a 2011 survey, IT executives listed the “nine hottest skills” they planned to hire for in 2012 n Project management was second only to programming and application development Careers for IT Project Managers Information Technology Project Management, Seventh Edition 7

J. R. Burns, Texas Tech University Sequential Work Activity 1 1 ) Work 1

J. R. Burns, Texas Tech University Concurrent Teamwork Activity 1time Concurrent (Team) Work 1 Activity 2time Concurrent (Team) Work 1 Activity 3time Concurrent (Team) Work 1 Activity 4time Concurrent (Team) Work 1

J. R. Burns, Texas Tech University Sooo What Is a Project, exactly?? n A project is a temporary endeavor undertaken to accomplish a unique purpose As defined by the Project Management Institute n Attributes of projects Unique purpose Temporary Require resources, often from various areas Should have a primary sponsor and/or customer Involves risk and uncertainty Has stakeholders

J. R. Burns, Texas Tech University The Project LifeCycle STAGE 1: Conceptualizing -and-Defining STAGE 2: Planning-and- Budgeting STAGE 3: Executing STAGE 5: Terminating- and-Closing STAGE 4: Monitoring-and-Controlling

J. R. Burns, Texas Tech University 1–12 Project Life Cycle FIGURE 1.1

J. R. Burns, Texas Tech University 1–13 Comparison of Routine Work with Projects TABLE 1.1 Routine, Repetitive Work Taking class notes Daily entering sales receipts into the accounting ledger Responding to a supply-chain request Practicing scales on the piano Routine manufacture of an Apple iPod Attaching tags on a manufactured product Projects Writing a term paper Setting up a sales kiosk for a professional accounting meeting Developing a supply-chain information system Writing a new piano piece Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs

J. R. Burns, Texas Tech University How do IT Projects differ from ordinary projects? n Ordinary projects might be projects in construction, aerospace, defense, space, government, etc. n Each IT Project is unique and thus involves more risk n The technology is continually changing n Construction projects have much more definitive requirements, much less risk n There is less visibility

J. R. Burns, Texas Tech University How do IT Projects differ from ordinary projects, continued? n There is a tendency to spend too much time on concept definition and analysis in IT projects n There tends to be less organizational maturity in IT projects n Maturity is a big issue here Watts Humphrey

J. R. Burns, Texas Tech University How are IT Projects similar to ordinary projects? n They have all the common basic attributes of projects—starting point, stopping point, duration, finite, temporary, creating a deliverable or product, utilizing resources, accomplished in teams, consisting of steps (tasks), accruing cost, etc. n All projects involve risk, accrue expenditures, involve procurement, human resources, etc.

J. R. Burns, Texas Tech University Who does project work? n Accountants—each customer is a ‘project’ n Engineers, Lawyers n Scientists, Administrators n Contractors—electrical, plumbing, AC n For these people project management is not a title but a critical job requirement

J. R. Burns, Texas Tech University The Project LifeCycle STAGE 1: Conceptualizing -and-Defining STAGE 2: Planning-and- Budgeting STAGE 3: Executing STAGE 5: Closing and Terminating STAGE 4: Monitoring-and-Controlling

J. R. Burns, Texas Tech University Project management involves n Conceptualizing and Defining Definition of work requirements--WORK BREAKDOWN STRUCTURE--WBS n Planning and Budgeting Determination of quantity and quality of work Determination of what resources are needed when n Executing Actual execution of the project tasks take place here Tracking progress Comparing actual to predicted outcomes Analyzing impact/Making adjustments n Closing and Terminating What went right? What went wrong? What can be learned? n Monitoring and Controlling

J. R. Burns, Texas Tech University Successful Project management requires completion of the project n on time n within budget n with the desired performance/technology level n with good customer satisfaction/relations n while using the assigned resources effectively n What is the probability of pulling this off for IT projects????

J. R. Burns, Texas Tech University Further elements of success include n with acceptance by the customer/user n without disturbing the main work flow of the organization n without changing the corporate culture {unless that is the objective of the project}

J. R. Burns, Texas Tech University Why do bad things happen to good projects??? n Ill-defined requirements Poorly conceived project deliverable No shared vision of what the project is to accomplish n Poor planning No schedule No budget No concern for quality/risk/procurement n Resources don’t materialize when they are needed n Subcontractors don’t deliver on time n Requirements change n Technology changes

J. R. Burns, Texas Tech University Metzger’s List of Software Development Problems n Ill-defined contract n Poor planning n Unstable problem definition n Poor planning n Inexperienced management n Poor planning, training n Political pressures n Poor planning n Ineffective change control n Poor planning n Unrealistic deadlines n Poor planning

J. R. Burns, Texas Tech University When is project management necessary? n when jobs are complex n when there are dynamic environmental considerations n when constraints on time and budget are tight n when there are several activities to be integrated n when there are functional boundaries to be crossed

J. R. Burns, Texas Tech University Project management encompasses many disciplines n Operations management n Operations research n Psychology n Sociology n Organization theory n Organizational behavior n Systems thinking and management

J. R. Burns, Texas Tech University Project Management Tools and Techniques n Project management tools and techniques assist project managers and their teams in various aspects of project management n Some specific ones include Project Charter and WBS (scope) Gantt charts, PERT charts, Critical Path Method (CPM), network charts, resource charts, etc. Cost estimates and Earned Value Analysis (cost) MS Project, BaseCamp, Visio, others –Follow me (Jim Burns) on Pinterest

J. R. Burns, Texas Tech University GANTT CHART

J. R. Burns, Texas Tech University Figure 1-4. Sample Gantt Chart* *This template file comes with MS Project Gantt Chart

J. R. Burns, Texas Tech University WORK BREAKDOWN 1

J. R. Burns, Texas Tech University WORK BREAKDOWN 2

J. R. Burns, Texas Tech University NETWORK CHART 1

J. R. Burns, Texas Tech University Figure 1-5. Sample Network Chart Each box is a project task from the WBS. Arrows show dependencies between tasks. The tasks in red are on the critical path. If any tasks on the critical path take longer than planned, the whole project will slip unless something is done.

J. R. Burns, Texas Tech University n IT Projects have a poor track record A 1995 Standish Group study found that only 16.2% of IT projects were successful Over 31% of IT projects were canceled before completion, costing over $81 B in the U.S. alone n A ComputerWorld article listed “project manager” as the #1 position IT managers say they need most for contract help Often, this leads to distributed PM n Projects create ¼ of the US and world GDP Motivation for Studying Information Technology (IT) Project Management

J. R. Burns, Texas Tech University The Triple Constraint n Every project is constrained in different ways by its Scope goals Time goals Cost goals n It is the project manager’s duty to balance these three often competing goals

J. R. Burns, Texas Tech University Project Stakeholders n Stakeholders are the people involved in or affected by project activities n Stakeholders include the project sponsor and project team –The project sponsor is the person who funds the project support staff customers users upper management line management suppliers opponents to the project

J. R. Burns, Texas Tech University Ten Project Management Knowledge Areas n Knowledge areas describe the key competencies that project managers must develop Four core knowledge areas lead to specific project objectives (scope, time, cost, and quality) Five facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management One knowledge area (project integration management) affects and is affected by all of the other knowledge areas

J. R. Burns, Texas Tech University PM Knowledge Areas Core Knowledge Areas Facilitating Knowledge Areas Project Stakeholder Management

J. R. Burns, Texas Tech University Project Management Framework – PMI – 3 RD Edition T T

J. R. Burns, Texas Tech University Figure 1-2 Project Management Framework—PMI 4 th Edition Information Technology Project Management, Seventh Edition 39

J. R. Burns, Texas Tech University Advantages of Project Management n Bosses, customers, and other stakeholders do not like surprises n Good project management (PM) provides assurance and reduces risk n PM provides the tools and environment to plan, monitor, track, and manage schedules, resources, costs, and quality n PM provides a history or metrics base for future planning as well as good documentation n Project members learn and grow by working in a cross-functional team environment Source: Knutson, Joan, PM Network, December 1997, p. 13

J. R. Burns, Texas Tech University How Project Management (PM) Relates to Other Disciplines n Much of the knowledge needed to manage projects is unique to PM n However, project managers must also have knowledge and experience in general management the application area of the project n Project managers must focus on meeting specific project objectives

J. R. Burns, Texas Tech University Figure 1-3. Project Management and Other Disciplines

J. R. Burns, Texas Tech University History of Project Management n Modern project management began with the Manhattan Project, which the U.S. military led to develop the atomic bomb n In 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shops n In 1958, the Navy developed PERT charts n In the 1970s, the military began using project management software, as did the construction industry n By the 1990s, virtually every industry was using some form of project management

J. R. Burns, Texas Tech University The Project Management Profession n A 2006 Fortune article called project management the “number one career choice” n Other authors, like Tom Peters and Thomas Stewart, stress that projects are what add value to organizations n Professional societies like the Project Management Institute have grown tremendously

J. R. Burns, Texas Tech University Figure 1-9 Growth in PMP Certification, Information Technology Project Management, Seventh Edition 45

J. R. Burns, Texas Tech University Project Management Certification n PMI provides certification as a Project Management Professional (PMP) n A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam n The number of people earning PMP certification is increasing quickly

J. R. Burns, Texas Tech University Code of Ethics n PMI developed a project management code of ethics that all PMPs must agree to abide by n Conducting work in an ethical manner helps the profession earn confidence n Ethics are on the web at m m

J. R. Burns, Texas Tech University CAPM (Certified Associate in Project Management) n Requires passing an exam prepared by PMI only.

J. R. Burns, Texas Tech University Discussion Questions n Give three examples of activities that are projects and three examples of activities that are not projects n How is project management different from general management? n Why do you think so many information technology projects are unsuccessful?

J. R. Burns, Texas Tech University A Favorite Web Site n