Copyright Course Technology 1999 1 Chapter 3: Project Integration Management.

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Presentation transcript:

Copyright Course Technology Chapter 3: Project Integration Management

Copyright Course Technology The Key to Overall Project Success: Good Project Integration Management Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle Many new project managers have trouble looking at the “big picture” and want to focus on too many details

Copyright Course Technology Project Integration Management Processes Project Plan Development: taking the results of other planning processes and putting them into a consistent, coherent document—the project plan Project Plan Execution: carrying out the project plan Overall Change Control: coordinating changes across the entire project

Copyright Course Technology Figure 3-1. Framework for Project Integration Management

Copyright Course Technology Interface Management Interface management involves identifying and managing the points of interaction between various elements of the project Project managers must establish and maintain good communication and relationships across organizational interfaces Controlling interfaces: large projects

Copyright Course Technology Large projects The number of interfaces must be controlled for You must organize large projects into a collection of small projects going-on in parallel and largely autonomous For each major component in the WBS, create an autonomous small project and project team Tom Peters: The best teams sizes are groups of five people, roughly

Copyright Course Technology Project Plan Development A project plan is a document used to coordinate all project planning documents Its main purpose is to guide project execution Project plans assist the project manager in leading the project team and assessing project status

Copyright Course Technology Attributes of Project Plans Just as projects are unique, so are project plans Plans should be dynamic Plans should be flexible Plans should be updated as changes occur Plans should first and foremost guide project execution

Copyright Course Technology Common Elements of a Project Plan Introduction or overview of the project Description of how the project is organized Management and technical processes used on the project Work to be done, schedule, and budget information

Copyright Course Technology Table 3-1. Sample Outline for a Software Project Management Plan (SPMP)

Copyright Course Technology Stakeholder Analysis A stakeholder analysis documents important (often sensitive) information about stakeholders such as –stakeholders’ names and organizations –roles on the project –unique facts about stakeholders –level of influence and interest in the project –suggestions for managing relationships

Copyright Course Technology Table 3-2. Sample Stakeholder Analysis

Copyright Course Technology Project Plan Execution Project plan execution involves managing and performing the work described in the project plan The majority of time and money is usually spent on execution The application area of the project directly affects project execution because the products of the project are produced during execution

Copyright Course Technology What Went Wrong? Many people have a poor view of plans based on past experiences. Senior managers often require a plan, but then no one follows up on whether the plan was followed. For example, one project manager said he would meet with each project team leader within two months to review their plans. The project manager created a detailed schedule for these reviews. He cancelled the first meeting due to another business commitment. He rescheduled the next meeting for unexplained personal reasons. Two months later, the project manager had still not met with over half of the project team leaders. Why should project members feel obligated to follow their own plans when the project manager obviously did not follow his?

Copyright Course Technology Important Skills for Project Execution General management skills like leadership, communication, and political skills Product skills and knowledge (see example of “What Went Right?”) Use of specialized tools and techniques

Copyright Course Technology Tools and Techniques for Project Execution Work Authorization System: provides a method for ensuring that qualified people do work at the right time and in the proper sequence Status Review Meetings: regularly scheduled meetings used to exchange project information Project Management Software: special software to assist in managing projects

Copyright Course Technology Overall Change Control Overall change control involves identifying, evaluating, and managing changes throughout the project life cycle Three main objectives of change control: –Influence the factors that create changes to ensure they are beneficial –Determine that a change has occurred –Manage actual changes when and as they occur

Copyright Course Technology Figure 3-2. Overall Change Control Process

Copyright Course Technology Change Control on Information Technology Projects Former view: The project team should strive to do exactly what was planned on time and within budget Problem: Stakeholders rarely agreed up- front on the project scope, and time and cost estimates were inaccurate Modern view: Project management is a process of constant communication and negotiation Solution: Changes are often beneficial, and the project team should plan for them

Copyright Course Technology Change Control System A formal, documented process that describes when and how official project documents and work may be changed Describes who is authorized to make changes and how to make them Often includes a change control board (CCB), configuration management, and a process for communicating changes

Copyright Course Technology Change Control Boards (CCBs) A formal group of people responsible for approving or rejecting changes on a project Provides guidelines for preparing change requests, evaluates them, and manages the implementation of approved changes Includes stakeholders from the entire organization

Copyright Course Technology Making Timely Changes Some CCBs only meet occasionally, so it may take too long for changes to occur Some organizations have policies in place for time-sensitive changes –“48 hour policy” allowed project team members to make decisions, then they had 48 hours to reverse the decision pending senior management approval

Copyright Course Technology Configuration Management Ensures that the products and their descriptions are correct and complete Concentrates on the management of technology by identifying and controlling the functional and physical design characteristics of products Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements

Copyright Course Technology Table 3-3. Suggestions for Managing Overall Change Control  View project management as a process of constant communications and negotiations  Plan for change  Establish a formal change control system, including a Change Control Board (CCB)  Use good configuration management  Define procedures for making timely decisions on smaller changes  Use written and oral performance reports to help identify and manage change  Use project management and other software to help manage and communicate changes

Copyright Course Technology Need for Top Management Commitment Several studies cite top management commitment as one of the key factors associated with project success Top management can help project managers secure adequate resources, get approval for unique project needs in a timely manner, receive cooperation from people throughout the organization, and learn how to be better leaders

Copyright Course Technology Table 3-4. What Helps Projects Succeed? 1987 Pinto and Slevin  Clear project mission  Top management support  Good project schedule/plan  Good client consultation 1995 Standish Group  User involvement  Executive management support  Clear statement of requirements  Proper planning

Copyright Course Technology Need for Organizational Commitment to Information Technology (IT) If the organization has a negative attitude toward IT, it will be difficult for an IT project to succeed Having a Chief Information Officer (CIO) at a high level in the organization helps IT projects Assigning non-IT people to IT projects also encourages more commitment

Copyright Course Technology Need for Organizational Standards Standards and guidelines help project managers be more effective Senior management can encourage –the use of standard forms and software for project management –the development and use of guidelines for writing project plans or providing status information –the creation of a project management office or center of excellence

Copyright Course Technology Discussion Questions What are some of the crucial elements of successful project plan execution? Describe a well-executed project you are familiar with. Describe a disaster. What were some of the main differences between these projects? Discuss the importance of top management commitment and the development of standards for successful project management. Give examples of projects that failed due to a lack of top management commitment and a lack of organizational standards.

Copyright Course Technology Chapter 4: Project Scope Management

Copyright Course Technology Importance of Good Project Scope Management 1995 CHAOS study cited user involvement, a clear project mission, a clear statement of requirements, and proper planning as being important for project success The program manager of Keller Graduate School of Management cites proper project definition and scope as the main reasons projects fail

Copyright Course Technology What is Project Scope Management? Scope refers to all the work involved in creating the products of the project and the processes used to create them Project scope management includes the processes involved in defining and controlling what is or is not included in the project The project team and stakeholders must have the same understanding of what products will be produced as a result of a project and what processes will be used in producing them

Copyright Course Technology Project Scope Management Processes Initiation: beginning a project or continuing to the next phase Scope planning: developing documents to provide the basis for future project decisions Scope definition: subdividing the major project deliverables into smaller, more manageable components Scope verification: formalizing acceptance of the project scope Scope change control: controlling changes to project scope

Copyright Course Technology Project Initiation: Strategic Planning and Project Selection The first step in initiating projects is to look at the big picture or strategic plan of an organization Strategic planning involves determining long-term business objectives IT projects should support strategic and financial business objectives

Copyright Course Technology Table 4-1. Why Firms Invest in Information Technology

Copyright Course Technology Identifying Potential Projects Many organizations follow a planning process for selecting IT projects First develop an IT strategic plan based on the organization’s overall strategic plan Then perform a business area analysis Then define potential projects Then select IT projects and assign resources

Copyright Course Technology Figure 4-1. Information Technology Planning Process

Copyright Course Technology Methods for Selecting Projects There are usually more projects than available time and resources to implement them It is important to follow a logical process for selecting IT projects to work on Methods include focusing on broad needs, categorizing projects, financial methods, and weighted scoring models

Copyright Course Technology Focusing on Broad Organizational Needs It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value “It is better to measure gold roughly than to count pennies precisely” Three important criteria for projects: –There is a need for the project –There are funds available –There’s a strong will to make the project succeed

Copyright Course Technology Categorizing IT Projects One categorization is whether the project addresses – a problem –an opportunity –a directive Another categorization is how long it will take to do and when it is needed Another is the overall priority of the project

Copyright Course Technology Financial Analysis of Projects Financial considerations are often an important consideration in selecting projects Three primary methods for determining the projected financial value of projects: –Net present value (NPV) analysis –Return on investment (ROI) –Payback analysis

Copyright Course Technology Net Present Value Analysis Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time Projects with a positive NPV should be considered if financial value is a key criterion The higher the NPV, the better

Copyright Course Technology Figure 4-2. Net Present Value Example Excel file

Copyright Course Technology Return on Investment Return on investment (ROI) is income divided by investment ROI = (total discounted benefits - total discounted costs) / discounted costs The higher the ROI, the better Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects

Copyright Course Technology Payback Analysis Another important financial consideration is payback analysis The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project Payback occurs when the cumulative discounted benefits and costs are greater than zero Many organizations want IT projects to have a fairly short payback period

Copyright Course Technology Figure 4-3. NPV, ROI, and Payback Analysis for Project 1 Excel file

Copyright Course Technology Figure 4-4. NPV, ROI, and Payback Analysis for Project 2 Excel file

Copyright Course Technology Weighted Scoring Model A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria –First identify criteria important to the project selection process –Then assign weights (percentages) to each criterion so they add up to 100% –Then assign scores to each criterion for each project –Multiply the scores by the weights and get the total weighted scores The higher the weighted score, the better See “What Went Right?” on pg. 87 for a description of how a mortgage finance agency uses a weighted scoring model for IT projects

Copyright Course Technology Figure 4-5. Sample Weighted Scoring Model for Project Selection Excel file

Copyright Course Technology Project Charters After deciding what project to work on, it is important to formalize projects A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project

Copyright Course Technology Table 4-2. Sample Project Charter Project Title: Information Technology (IT) Upgrade Project Project Start Date: March 4, 1999Projected Finish Date: December 4, 1999 Project Manager: Kim Nguyen, , Project Objectives: Upgrade hardware and software for all employees (approximately 2,000) within 9 months based on new corporate standards. See attached sheet describing the new standards. Upgrades may affect servers and midrange computers as well as network hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000 for labor costs. Approach:  Update the IT inventory database to determine upgrade needs  Develop detailed cost estimate for project and report to CIO  Issue a request for quotes to obtain hardware and software Use internal staff as much as possible to do the planning, analysis, and installation

Copyright Course Technology Table 4-2. Sample Project Charter (continued) Roles and Responsibilities:

Copyright Course Technology Scope Planning and the Scope Statement A scope statement is a document used to develop and confirm a common understanding of the project scope. It should include –a project justification –a brief description of the project’s products –a summary of all project deliverables –a statement of what determines project success

Copyright Course Technology Scope Planning and the Work Breakdown Structure After completing scope planning, the next step is to further define the work by breaking it into manageable pieces Good scope definition –helps improve the accuracy of time, cost, and resource estimates –defines a baseline for performance measurement and project control –aids in communicating clear work responsibilities

Copyright Course Technology The Work Breakdown Structure A work breakdown structure (WBS) is an outcome-oriented analysis of the work involved in a project that defines the total scope of the project It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes

Copyright Course Technology Figure 4-6a. Sample Intranet WBS Organized by Product

Copyright Course Technology Figure 4-6b. Sample Intranet WBS Organized by Phase

Copyright Course Technology Table 4-3. Intranet WBS in Tabular Form 1.0 Concept 1.1 Evaluate current systems 1.2 Define Requirements Define user requirements Define content requirements Define system requirements Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team 2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support

Copyright Course Technology Figure 4-7. Intranet WBS and Gantt Chart in Project 98 WBSGantt Chart Project 98 file

Copyright Course Technology Approaches to Developing WBSs Using guidelines: Some organizations, like the U.S. Department of Defense, provide guidelines for preparing WBSs The analogy approach: It often helps to review WBSs of similar projects The top-down approach: Start with the largest items of the project and keep breaking them down The bottoms-up approach: Start with the detailed tasks and roll them up

Copyright Course Technology Basic Principles for Creating WBSs 1. A unit of work should appear at only one place in the WBS. 2. The work content of a WBS item is the sum of the WBS items below it. 3. A WBS item is the responsibility of only one individual, even though many people may be working on it. 4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical. 5. Project team members should be involved in developing the WBS to ensure consistency and buy-in. 6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item. 7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement. Cleland, David I. Project Management: Strategic Design and Implementation, 1994

Copyright Course Technology Scope Verification and Scope Change Control It is very difficult to create a good scope statement and WBS for a project It is even more difficult to verify project scope and minimize scope changes Many IT projects suffer from scope creep and poor scope verification –FoxMeyer Drug filed for bankruptcy after scope creep on a robotic warehouse –Engineers at Grumman called a system “Naziware” and refused to use it

Copyright Course Technology Table 4-4. Factors Causing IT Project Problems Johnson, Jim, "CHAOS: The Dollar Drain of IT Project Failures," Application Development Trends, January 1995,

Copyright Course Technology Suggestions for Improving User Input Insist that all projects have a sponsor from the user organization Have users on the project team Have regular meetings Deliver something to project users and sponsor on a regular basis Co-locate users with the developers

Copyright Course Technology Suggestions for Reducing Incomplete and Changing Requirements Develop and follow a requirements management process Employ techniques such as prototyping, use case modeling, and Joint Application Design to thoroughly understand user requirements Put all requirements in writing and keep them current Create a requirements management database Provide adequate testing Use a process for reviewing requested changes from a systems perspective Emphasize completion dates

Copyright Course Technology Discussion Questions Give examples of IT projects and why they were or were not selected for implementation. What type of project selection process did the organization use? Discuss the theory and practice behind using project charters, scope statements, and WBSs. Describe a project that suffered from scope creep. Could it have been avoided? How? Can scope creep be a good thing? When?

Copyright Course Technology