A project is a temporary endeavor undertaken to create a unique product, service, or result.
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1 Improving the likelihood of Success in projects: A Value-Driven Approach o Plain & Simple: IT Projects must provide value to the organization Socio-technical Approach o It s not just about the technology or building a better mouse trap Project Management Approach o processes and infrastructure (Methodology) o resources o expectations o competition o efficiency and effectiveness Knowledge Management Approach o lessons learned, best practices & shared knowledge 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. Managing a project includes: Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for quality, scope, time, and cost Adapting the specifications, plans, and approaches to the different concerns and expectations of the various stakeholders Project Attributes: Time Frame Purpose (to provide value!) Ownership Resources (the triple constraint) Roles o Project Manager o Project Sponsor o SME (domain & technical) Risk & Assumptions Interdependent Tasks o progressive elaboration steps & increments Planned Organizational Change Operate in Environments Larger than the Project Itself Project Life Cycle (PLC) - A collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build, and deliver the product of the project i.e., the information system Projects are divided into phases to increase manageability and reduce risk Phase exits, stage gates, or kill points are decision points at the end of each phase to evaluate performance or to correct problems or cancel the project Fast tracking is the overlapping of phases to reduce the project s schedule SDLC:
2 Waterfall: SDLC in Practice Structured Approach to Systems Development Waterfall Method Iterative Development Rapid Applications Development (RAD) Prototyping Spiral Development Extreme Programming Extreme PM A new approach & philosophy to project management that is becoming increasingly popular Characterizes many of today s projects that exemplify speed, uncertainty, changing requirements, and high risks Traditional project management often takes an orderly approach while, XPM embraces the fact that projects are often chaotic and unpredictable XPM focuses on flexibility, adaptability, and innovation Traditional and new approaches together can provide us with a better understanding of how to improve the likelihood of project success PMBOK / Project Management Body of Knowledge The Guide to the Project Management Body of Knowledge (PMBOK Guide) documents 9 project management knowledge areas The PMBOK Guide is published and maintained by the Project Management Institute (PMI) PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education & experience requirements and agree to a professional code of conduct Business Case ITPM: Methodology o A strategic-level plan for managing and controlling the project o Game plan for implementing project and product lifecycles o Recommends phases, deliverables, processes, tools, and knowledge areas for supporting an IT project o Must be flexible and include best practices learned from experiences over time. Can be o Traditional (e.g., Waterfall) o Agile (e.g., XPM, SRUM) IT Project Methodology: Phase 1: Conceptualize and Initialize Phase 2: Develop the Project Charter and Detailed Project Plan defined in terms of project s: o scope o schedule o budget o quality objectives Phase 3: Execute and Control the Project using approach such as the SDLC. Phase 4: Close Project Phase 5: Evaluate Project Success o Post mortem by project manager and team of entire project o Evaluation of team members by project manager o Outside evaluation of project, project leader, and team members o Evaluate project s organizational value
3 ITPM Foundation: Tools - e.g. Microsoft Project, Computer Aided Software Engineering (CASE) Infrastructure o Organizational Infrastructure o Project Infrastructure Project Environment Roles and Responsibilities of team members Processes and Controls o Technical Infrastructure Project Management Knowledge Areas Business Case Definition of Business Case: an analysis of the organizational value, feasibility, costs, benefits, and risks of the project plan. Attributes of a Good Business Case Details all possible impacts, costs, and benefits Clearly compares alternatives Objectively includes all pertinent information Systematic in terms of summarizing findings Process for Developing Business Case: Select Core Team o Advantages: Credibility Alignment with organizational goals Access to the real costs Ownership Agreement Bridge building Define MOV o The project s goal o Measure of success o Must be measurable o Provides value to the organization o Must be agreed upon o Must be verifiable at the end of the project o Guides the project throughout its life cycle o Should align with the organization s strategy and goals Identify Alternatives o Base Case Alternative o Possible Alternative Strategies Change existing process without investing in IT Adopt/Adapt systems from other organizational areas Reengineer Existing System Purchase off-the-shelf Applications package Custom Build New Solution Define Feasibility & Risk o Feasibility Economic feasibility Technical feasibility Organizational feasibility Other feasibilities o Risk focus on Identification Assessment Response Define TCO o Costs: Direct or Up-front costs Ongoing Costs Indirect Costs Define TBO o Increasing high-value work o Improving accuracy and efficiency o Improving decision-making o Improving customer service Analyze Alternatives Propose & Support Recommendation Organizational Vision & Mission Supports Process for Defining MOV: Identify Desired area of impact Identify the desired value of IT Project Develop an appropriate metric Set a time frame Verify & get agreement from stakeholders Summarize in a clear consise statement / table Business Case Template Drives Organizational Strategy Supports Drives Project s Organizational Measurable Value (MOV)
4 Project Selection & Approval The IT Project Selection Process The Project Selection Decision IT project must map to organization goals IT project must provide verifiable MOV Selection should be based on diverse measures such as o tangible and intangible costs and benefits o various levels throughout the organization Balanced Scorecard Approach Why Scorecard fails? Nonfinancial variables incorrectly identified as primary drivers Metrics not properly defined Goals for improvements negotiated not based on requirements No systematic way to map high-level goals Reliance on trial and error as a methodology No quantitative linkage between nonfinanacial and expected financial results IT Governance Focuses on the processes that coordinate and control an organization s resources, actions, and decisions to help prevent people from making bad investments, acting unethically, or doing something illegal For many organizations, IT governance started with project management, but today it also includes change management, application life-cycle management, asset and resource management (i.e., IT investment/project approval), portfolio management, and security management o Many organizations rely on a committee of business and IT leaders to determine how the IT budget will be spent Communicate priorities and progress clearly o The priorities defined by the top IT and business managers must be communicated clearly to the rest of the organization to ensure that everyone is aware of and understands how the governance process works Monitor projects regularly o An organization needs to track each project s progress on a regular basis to protect the value of its investment Project Management Office Can be a critical component for supporting IT governance Its role is to provide support and collect project-related data while providing tools and methodologies. Information collected about projects across the organization provides a means to study the organization s portfolio of IT projects. o Historical information can be used as an audit trail to conform to regulatory requirements o Also can be used as a basis for estimating and conducting reality checks for projects. A PMO can become center of excellence for project management. Benefits of PMO: Points out minefields in project processes, such as time and cost estimation Enforces priorities and/or controls that keep the project on track Coordinates cross-functional projects that may stumble as a result of organizational politics that often arise when intraorganizational boundaries are crossed Provides a standardized way for all projects to be planned, managed, and reported Can show the real value of projects by comparing projected costs and benefits with actual results Can coordinate more and larger projects than the organization could handle in the past Allows IT to support its requests for additional staff or resources Best Practices: Identify strategic value o Organizations are often faced with a stack of potential IT projects, so it is important to compare them in terms of their business value as well as their costs and potential risks Top business managers should set IT priorities
5 Project Charter PMBOK = Process A set of interrelated actions and activities that are performed to achieve a pre-specified set of products, results, or services Project Integration Process: Develop Project Charter Develop Preliminary Scope Statement Develop Project Management Plan Direct & Manage Project Execution Monitor and Control Project Work Integrate Change Control Close Project Project Charter Together with the baseline project plan, provides a tactical plan for carrying out the project Serves as an agreement or contract between the project sponsor and team Provides a framework for project governance Project Management Process : Initiating o Signals the beginning of the project or a phase Planning o Supports planning of the entire project and each individual phase Executing o Focuses on integrating people and resources to carry out the planned activities of the project plan or phase Monitoring & Controlling o Allows for managing and measuring progress towards the project s MOV and scope, schedule, budget, and quality objectives. o Also allows the project manager and team to measure and keep an eye on project variances between actual and planned results so that appropriate corrective actions can be taken when necessary. Closing o Provides a set of processes for formally accepting the project s product, service, or end result so that the project or phase can be brought to an orderly end Project Integration: Integration, in the context of managing a project, is making choices about where to concentrate resources and effort on any given day, anticipating potential issues, dealing with these issues before they become critical, and coordinating work for the overall project good. The integration effort also involves making trade-offs among competing objectives and alternatives. (77) Project Integration Management includes: Project Plan Development Project Plan Execution Overall Change Control The Project Charter. Documents the project s MOV Defines the project infrastructure Summarizes the details of the project plan Defines roles & responsibilities Shows explicit commitment to the project Sets out project control mechanisms Project Planning Framework: Schedule & Budget The Baseline Plan Kick off meeting: Officially starts the work on the project Brings closure to the planning phase Communicates to all what the project is about Energizes stakeholders Engenders positive attitudes
6 The Project Team PMBOK Area on Human Resource Management / HRM: Human Resources Planning o Creating a staff management plan that identifies project roles, responsibilities, and reporting relationships Acquiring Project Team o Putting together a project team with the right mix of skills and experiences Developing Project Team o The technical, organizational, and interpersonal skills of team members may need to be augmented through training o Also includes creating the team environment Managing the Project Team o The challenge of managing local and/or geographically dispersed project team members Formal Organization Structure Reveals : Formal groupings & specializations Clarifying and Potraying the lines of o Authority o Responsibilities o Reporting Relationships o Communication o Decision-Making 3 Common structure: Functional o Traditional Organizational Form o Structure based on organizing resources to perform specialized tasks or activities to achieve organization goal o Advantages Increased Flexibility SME & Resource can be assigned as needed Breadth & Depth of Knowledge & Experience Less Duplication o Disadvantages Determining Authority & Responsibility Poor Response Time Poor Integration Matrix o Combination of the vertical functional structure and the horizontal project structure o Ability to integrate areas and resources throughout an organization o Unity of command is violated since each project team member will have more than one boss o Advantages High Level of Integration Improved Communication Increased Project Focus o Disadvantages Potential for conflict Unity of Command can be violated Poor Response Time o Can create hybrid organizations: Balanced matrix The project manager focuses on defining all of the activities of the project, while the functional managers determine how those activities will be carried out. Functional matrix Project manager focuses on coordinating the project activities, while the functional managers are responsible for completing those activities that are related to their particular area. Project matrix Project manager has most of the authority and responsibility for defining and completing the project activities, while the functional managers provide guidance and resources, as needed Project-based o Pure project Organization o Support multiple projects at one time and integrate project management tools and techniques throughout the organization. o Advantages Clear Authority & Responsibility Improved Communication High Level of Integration o Disadvantages Project Isolation Duplication of Effort Projectitis o Projectitis sometimes occurs when the project manager and project team develop a strong attachment to the project and to each other. As a result, these individuals
7 may have a difficult time letting go, and the project begins to take on a life of its own with no real end in sight Informal Organization Bypasses formal lines of communication & authority Power is determined by how well one is connected in the informal network i.e., the grapevine Can be more complex than the formal organization because relationships are established from positive and negative relationships over time Stakeholders Individuals, groups, or even organizations that have a stake or claim in the project s (successful or unsuccessful) outcome Stakeholder Analysis Process: o Develop a list of stakeholders who have an interest in the successful or unsuccessful outcome of the project o Identify the stakeholder s interest in the project +1 for positive interest 0 for neutral -1 for negative interest o Determine the degree of influence each stakeholder has on a scale of 0 (no influence) to 10 (can terminate the project), can also be 0 to 5. o Define a role for each stakeholder e.g., champion, consultant, decision maker, ally, rival, foe, etc. o Identify an objective for each stakeholder e.g., provide resources, guidance, expertise, acceptance, approval, etc. o Identify a strategy for each stakeholder e.g., build, maintain, improve, re-establish the relationship Project Team The Roles of the Project Manager Managerial role o Selecting & Staffing the Project Leadership role Project team members should be chosen according to: Technology Skills Business/organization Skills Interpersonal Skills Project Manager: Acts To: o Clarify purpose & goals o Build commitment & self confidence o Strengthen team s collective skills o Remove external obstacles o Create opportunities for others Creates the Project Environment o Work space o Team culture and values o Project administration o Ethical Conduct Attributes of a successful project manager Ability to communicate with people Ability to deal with people Ability to create and sustain relationships Ability to organize Team types according to performance : Work Groups o A single leader is in control, makes most of the decisions, delegates to subordinates, and monitors the progress of the assigned tasks. o Members interact to share information, best practices, or ideas o No shared performance goals (individual performance) o No joint work-products o No mutual accountability o Viable in many situations o E.g., study group Teams o Bring complementary skills & experience o Jointly defined clear goals & approaches improve communication o Improve decision-making o Have more fun o Divided to: Pseudo Teams Weakest of all groups Not focused on collective performance (& not trying to achieve it) No interest in shaping a common purpose Confusion & dysfunctional behaviours Potential Teams Significant performance potential Requires more clarity about purpose, goals, work-products, and common approach Real Teams A small number of people with complimentary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable High Performance Teams Meet all the conditions of a real team PLUS:
8 o Members are deeply committed o Perform above all reasonable expectations Project Team Charter: Vital signs for evaluation: 6 Project Team Basics Themes & Identity Enthusiasm & Energy Level Event-Driven Histories Personal Commitment Earned Membership Learning Cycle Scope Management Plan Traditional Teams: Accept background information at face-value Approach projects in logical, linear fashion Provide run-of-the-mill solutions Solutions remain within the original frame or how the problem was originally presented to them Radical Teams: Do not accept issues & tasks at their face value The way the problem is defined may very well be the problem Unquestioned assumptions are surfaced & challenged Only by digging below the surface can we get to the root so that a meaningful solution can emerge Assessing Team Learning from: Depth Speed Impact Project Environment A place to call home Technology Office supplies Culture o What is expected from each team member? o What role will each team member play? o How will conflicts be resolved? Scope Management Process: Scope Planning o The development of a scope management plan that defines the project s scope and how it will be verified and controlled throughout the project o Documents how the team will define and develop the project s scope and WBS, as well as processes for verifying and controlling the project and product deliverables. o Result : Scope Management Plan Scope Definition o A detailed scope statement that defines what work will and will not be part of the project and will serve as a basis for all future project decisions o Builds upon the preliminary project scope statement to define all the project and product deliverables, including the processes and criteria for acceptance. o Result : Detailed Project Scope Create Work Breakdown Structure (More detail in Chapter 6) o The decomposition or dividing of the major project deliverables (i.e., scope) into smaller and more manageable components o A project planning tool that that decomposes or subdivides and organizes the project s scope into a deliverableorientated hierarchy. o Result : WBS Scope Verification o Confirmation and formal acceptance that the project s scope is accurate, complete, and supports the project s MOV o A formalized acceptance from the appropriate stakeholders that the defined project scope is complete o Result : Scope Verification Checklist Scope Control
9 o Ensuring that controls are in place to manage proposed scope changes once the project s scope is set. Must be communicated to all project stakeholders. o A defined process for managing changes to project and product scope and the impact of those changes to the project s schedule and budget. o Result : Scope Change Control Process Scope Planning Initiating process to begin defining and documenting the project work (i.e., deliverables) needed to achieve the project s MOV Extra work that will not help the project achieve it s MOV will only needlessly increase the project s schedule and budget This process begins at a high level and will become more detailed as the project progresses and more information becomes available Attempts to answer the question: What is and what is not to be delivered by this project? Makes the project sponsor s needs and expectations explicit Tools: o Scope Boundary o Scope Statement Project Scope Definition The scope boundary and scope statement provide a useful first step The project s scope must now be defined in more detail in terms of specific deliverables that provide a basis for developing the project s work breakdown structure (WBS) Tools: o Deliverable Definition Table o Deliverable Structure Chart o Context Level Data Flow Diagram o Use Case Diagram Scope Project-Oriented Deliverables o Support the project management and IT development processes defined in the Information Technology Project Methodology (ITPM). o Tools Deliverable Definition Table (DDT) Deliverable Structure Chart (DSC) Product-Oriented Deliverables o Specific features and functionality of the application system o First cut of requirements definition o Tools Context Dataflow Diagram (DFD) Use Case Diagram (UCD) Project Scope Verification MOV o Has the project s MOV been clearly defined and agreed upon? Deliverables o Are the deliverables tangible and verifiable? o Do they support the project s MOV? Quality Standards Milestones o Significant events that mark the acceptance of a deliverable Review and Acceptance Formal Signoff Scope Change Control Concerned with managing changes to the project s scope and to ensure that these changes are beneficial when they occur Scope, Schedule, Budget Mitigates: o Scope Grope o Scope Creep o Scope Leap Tools/Procedures: o Scope Change Request Form o Scope Change Request Log Benefit of Scope Control: Keeps the project manager in control of the project. o Authorized changes to the project s scope are reflected in changes to the project s schedule and budget. Allows the project team to stay focused and on track o Work Breakdown Structure They do not have to perform unnecessary work. PMBOK Project Time Management includes: Activity definition o Identifying what activities must be completed to produce the project scope deliverables Activity sequencing o Determining whether activities can be completed sequentially or in parallel and any dependencies that may exist among them Activity resource estimation o Identifying the type of resources (people, technology, facilities, etc.) and the quantity of resources needed to carry out project activities Activity duration estimation o Estimating the time to complete each activity Schedule development o Based on the availability of resources, the activities, their sequence, and time
10 estimates, a schedule for the entire budget can be developed Schedule control o Ensuring that proper processes and procedures are in place in order to control changes to the project schedule The WBS represents a logical decomposition of the work to be performed and focuses on how the product, service, or result is naturally subdivided. It is an outline of what work is to be performed Deliverables Tangible, verifiable work products Reports, presentations, prototypes, etc. Milestones Significant events or achievements Acceptance of deliverables or phase completion Cruxes (proof of concepts) Quality control Keeps team focused A work package is developed for each of the phases and deliverables defined in the Deliverable Structure Chart (DSC) WBS: Should be deliverable-oriented Should support the project s MOV Have enough detail to support planning and control Should involve those who will be doing the work Should include learning cycles and past lessons learned Estimation Questions: What to estimate? Where do you start? How do you estimate? Estimation Techniques ( Traditional ) : Guesstimating o Estimation by guessing or just picking numbers out of the air is not the best way to derive a project s schedule and budget. Unfortunately, many inexperienced project managers tend to guesstimate, or guess at the estimates, because it is quick and easy. Delphi Technique o Involves multiple, anonymous experts o Each expert makes an estimate o Estimates compared If close, can be averaged If not, do another iteration until consensus is reached Time Boxing o A box of time is allocated for a specific activity, task, or deliverable o Can focus a team if used effectively o Can demoralize a team if not used effectively Top-Down o Top & middle managers determine overall project schedule &/or cost o Lower level managers are expected to breakdown schedule/budget estimates into specific activities (WBS) Bottom-Up o Schedules & budgets are constructed from WBS o Starts with people who will be doing the work o Schedules & budgets are the aggregate of detailed activities & costs Analogous Estimates (Past experiences) o Similar to Top-Down approach o Use information from previous, similar projects as a basis for estimation Parametric Modeling (Statistical) o Use project characteristics (parameters) in a mathematical model to estimate o Example: $50/ LOC based on: Programming language Level of expertise Size & complexity Estimating Techniques ( Software Engineering ): Lines of Code (LOC) Function Points o Allan Albrecht, IBM 1979 o Synthetic metric o Function points are metrics that focus on the functionality and complexity of an application system or a particular module. o Independent of the Technology
11 o IFPUG standards ( o 5 Primary Elements Inputs Outputs Inquiries Logical Files Interfaces COCOMO o COnstructive COst MOdel o Developed by Barry Boehm, o Has been extended to COCOMO II o MOII/cocomo_main.html o COCOMO Models ( Effort ): Organic Routine Person Months = 2.4 * KDSI^1.05 Semi-Detached Middle Person Months = 3.0 * KDSI^1.12 Embedded Challenging Person Months = 3.6 * KDSI^1.20 (KDSI = thousands of delivered source instructions, i.e. LOC) o COCOMO Models ( Duration ): Organic Duration = 2.5 * Effort^0.38 Semi-Detached Duration = 2.5 * Effort^0.35 Embedded Duration = 2.5 * Effort^0.32 o People Required = Effort / Duration Heuristics o When scheduling a software task: 1/3 Planning 1/6 Coding 1/4 Component test and early system test 1/4 System test, all components in hand Brook s Law: Adding manpower to a late software project makes it later. o Added intercommunication What cause inaccurate estimates? Scope changes Overlooked tasks Poor developer-user communication Poor understanding of project goals Insufficient analysis No (or poor) methodology Changes in team Red tape Lack of project control Not identifying or understanding impact of risks Factors to Consider when estimating: Rate at which requirements may change Experience & capabilities of project team Process or methods used in development Specific activities to be performed Programming languages or development tools to be used Probable number of bugs or defects & removal methods Environment or ergonomics of work space Geographic separation of team across locations Schedule pressure placed on the team How to improve estimates? Experience! o Lessons learned o Best Practices Revision Monitor Focus on deliverables Control Adding People: Increases the total effort necessary The work & disruption of repartitioning o Training new people
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