A Sad Story. Info IV IT Project Management. How to Avoid Troubled Projects. Why IT-Projects Fail

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Info IV IT Prof. Dr. Peter Müller Software Component Technology Introduction A Sad Story Standish Group Research Study CHAOS 1995 Fully successful (on-time, on-budget, with all features as initially specified cancelled prior to completion 16% 31% 53% late, over-budget, or offered fewer features than originally specified The average unsuccessful project (yellow and red) - Lasts 222% longer than it was planned to last - Goes over budget by 189% (4% by more than 400%) - Offers 61% of originally specified features (yellow) 2 Introduction Why IT-s Fail Top 5 reasons measured by frequency of responses by IT executive management Failure profiles of yellow projects 1. Lack of User Input 12,80% 2. Incomplete 12,30% 3. Changing 11,80% 4. Lack of Executive Support 7,50% 5. Technology Incompetence 7% Failure profiles of red projects 1. Incomplete 2. Lack of User Involvement 3. Lack of Resources 4. Unrealistic Expectations 5. Lack of Executive Support 13,10% 12,40% 10,60% 9,90% 9% 3 Introduction How to Avoid Troubled s Apply proper engineering Characteristics of IT-projects s of IT-projects with their purpose, methods, and deliverables Apply proper project management Main processes of project management with their inputs, techniques, tools, and outputs Main areas of project management (scope, time, cost, quality, risk, etc.) Recognize the importance of non-technical aspects Some basic rules of successful project management 4 Lifecycle Lifecycle 5 What is a? Every project has a definite beginning and a definite end Definition: A project is a temporary endeavor undertaken to create a unique product or service The product or service is different in some distinguishing way from all similar products and services 6 In contrast: Operations are ongoing and repetitive 1

7 8 Examples for s and Operations What is an IT-? s - Developing a new software application - Implementing a new business procedure - Adding functionality to an IT system - Doing a Diplomarbeit Operations - Bugfixing of an existing software application - Selling train tickets - Running a car factory Definition: An IT-project is a project to create a product or service, of which the usage of information technology is the decisive characteristic Examples - The development of a software application is an ITproject (IT-based product) - The development of a car is not an IT-project, although information technology is involved substantially 9 10 From s to Operations Characteristics of s Ideas, studies start management (Development) duration end Operation management Operation (Production) Temporary endeavor Unique product or service Performed by people Constrained by limited resources - Budget, time, staff Planned, executed, and controlled Have their own organization Applications are neither projects nor operations, but products 11 12 Core Activities and Core Activities ultimately create the product of a project Definition of (PM): is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. organizes and leads the project work to meet project requirements 2

Typical Core Activities in IT-s 13 Typical Activities 14 Design of a graphical user interface Installation of a local area network Integration test of all system components Training of users on a new application Implementation of a set of Java classes Documentation of design decisions and code Communication with team, clients, management Effort estimations Planning activities and assigning resources Comparing actual performance to plan Risk analysis Negotiation with subcontractors Staff acquisition PM Knowledge Areas 15 16 PM activities fall into nine Knowledge Areas Integration Cost Scope Quality Human Resource Life Cycle Communications Risk Procurement The Triple Constraint Scope 17 The Triple Constraint Scope 18 Cost Cost objectives are equally important Actions in one project area usually affect other areas Tradeoffs among objectives must be managed Priorities are set by customers and management 3

19 20 More Competing Objectives Success Quality Scope Customer Satisfaction Risk Cost Definition: A project is successful if the specified results are delivered in the required quality and within the predetermined time and resource limits. Computer scientists tend to focus on scope and quality only - The development of a technically perfect application is not a success if the cost exceeds the price clients are willing to pay - Excellent project results often are worthless if they come too late (temporary market windows, external deadlines) 21 22 Ensure that various elements of the project are properly coordinated - Estimate cost of staffing alternatives - Determine effects of a scope change on schedule Make tradeoffs among competing objectives and alternatives Primarily task of project manager since he / she is responsible for seeing the overall big picture plan development - Integrates various planning outputs (time, cost, risk, etc.) - Produces a formal, consistent document to manage project execution plan execution - Produces actual work results Integrated change control - Determines that a change has occurred - Manages the changes as they occur - Results in corrective actions and project plan updates 23 24 s are Complex Life Cycle At project start, only broad information about characteristics of product are available Average size of IT projects is 500-2000 person days Different tasks have to be performed such as designing a GUI, testing a module, installing hardware, training users, or negotiating with customers How can we handle this complexity? 4

Decomposition According to Product 25 Subprojects 26 Subproject Subproject Subproject Subproject Decomposition usually follows structure of product Subprojects are easier to manage Subprojects enable one to use specialized staff Remaining and new problems - Only broad information about product characteristics - Managing the interfaces between subprojects - Integrating the results of the subprojects - Increased need for communication Subprojects are still complex Progressive Elaboration 27 s 28 Characteristics of a unique product or service must be progressively elaborated Precisely documented interfaces between phases: deliverables Continuing steadily by increments Worked out with care and detail During the project, characteristics are defined in more detail as the project team develops a better and more complete understanding of the product s are divided into project phases 29 30 Deliverables s Definition: Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a project Definition: A collection of logically related project activities, usually culminating in the completion of a major deliverable Examples - An object-oriented design, described by a UML diagram - A project schedule as MS file - A user guide for a new application - Software, delivered as compiled binary 5

s 31 Waterfall Model of 32 Definition: A collection of logically related project activities, usually culminating in the completion of a major deliverable Analysis Design Implementation Test Deployment 33 34 Properties of the From s to Operations Cost and Staffing Level Start End Ideas, Studies Analysis Design Implementation Test Deployment Operation (Production) Stakeholders influence on product characteristics and final cost is highest at project start and decreases progressively Cost of changes and error correction increases during the project life cycle start end phases are surrounded by related activities that are not part of the project Product Life Cycle 35 36 Business Business Need Customer Request Market Demand Technological Advance Legal Requirement Operation Product Life Cycle 6

Life Cycle Core and 37 Life Cycle Life Cycle 38 Core Grouped into phases Initiating Planning Controlling Executing Grouped into process groups Closing Life Cycle Example: 39 Life Cycle Process Groups 40 Schedule Development groups are not discrete one-time events They overlap and occur at varying levels of intensity within each phase of the project Schedule Updates Task List for Each Team Member Level of Activity Executing Planning Schedule Control Status Reports Plan Execution Initiating Controlling Closing Corrective Actions Start End Life Cycle Interaction between s 41 Life Cycle Core and 42 Design Implementation Initiating Planning Initiating Planning Core Controlling Executing Controlling Executing Closing Closing Input and output of the processes depend on the phase in which they are carried out But processes are not limited to one phase (overlaps) 7

Life Cycle Core and 43 Core BACKUP 8