Applying Project ManagementApplying Project ManagementPractices to Continuously Practices to Continuously Improve the Chance of IT Improve the Chance of IT

Project SuccessProject Success

Charlie C. Chen, Ph.D., PMPDept. of Computer Information Systems

Appalachian State University

Agenda

Major reasons of information technology (IT) project failure

Five biggest challenges for IT PM in 2006 Applying project management (PM) practices to

continuously improve the chance of IT project success Scope, Time, Cost, Quality, Human Resources,

Communications, Risk and Procurement PM vs. CMMI Conclusion Q&A

74% of IS projects cannot deliver 74% of IS projects cannot deliver the promised functionality on time the promised functionality on time and on budget. (Keil and Robey, and on budget. (Keil and Robey,

2001)2001)

More projects fail on time, on More projects fail on time, on budget, within scope, or with budget, within scope, or with

quality!quality!

Why Most IT Projects Failed? Poorly defined goals, lack of project plan, unrealistic deadlines and

budgets, and invisible product (the software being developed) and the project (the development process) (Jurison, 1999)

Ineffective communication among multiple interdependent parties (Smith and McKeen, 1992)

Poor user participation (Barki and Hartwick, 1989) Delayed risk and conflict resolutions (Robey, Farrow and Franz,

1989) Creeping requirements due to internal and external environmental

changes Requirements uncertainty (Davis, 1982)

Requirements instability and diversity (Zmud, 1980) Poor measures of project performance

Efficiency, effectiveness and timeliness (Henderson and Lee, 1992)

Software developers are lack Software developers are lack of knowledge of valuable PM of knowledge of valuable PM practices, and capability to practices, and capability to

implement them.implement them.

Source: Crawford, 2005Source: Crawford, 2005

PM as Five Interactive Process

Source: Modified from PMBOK 3rd Edition

Software Project Phases

Source: Jurison, 1999

Essential PM Skills of IT Project Teams

IT Knowledge,Standards & Regulations

Understanding the Project Environment

Interpersonal Skills

Non-IT Application Area Knowledge,

Standards & Regulations

RiskProcurem

ent

ScopeTime

General Management Knowledge &

Skills

Cost Quality

HRCommunicat

ion

PM

Source: Modified from PMBOK 3rd Edition

PM Body of Knowledge

Source: Modified from PMBOK 3rd Edition

Five biggest challenges for IT PM in 2006

1. Global Teams2. Moving Parts3. Development 4. Vendor Partners 5. Project Portfolios

Source: ComputerWorld (Brandel 2006)

Applying PM Skills to Solve IT Project Problems: Global Teams

Problems 24/7 is a scheduling problem Local nomenclature (including language differences) is a

communication problem High turnover rate (25-30%) is a human resource

problem Low knowledge transfer effectiveness is another

communication problem PM Solutions

Time management Communication management Human resource management

Applying PM Skills to Solve IT Project Problems: Moving Parts

Problems Multifaceted leads to creeping requirements Multiyear leads to scheduling, budgeting and

requirements uncertainty Large-scale projects lead to coordination and

communication difficulty PM Solutions

Scope management Time management Cost management Risk management Communication management

Applying PM Skills to Solve IT Project Problems: Development

Problems Agile development techniques (e.g. RAD) entice

projects with higher risks and poor quality Geographical distance creates delayed feedback Value compliance

PM Solutions Scope management Time management Quality management Communication management Risk management

Applying PM Skills to Solve IT Project Problems: Vendor Partners

Problems Outsourcing increases risks Responsibilities cannot be outsourced Outsourcing creates integration problems

PM Solutions Procurement management Integration management Risks management

Applying PM Skills to Solve IT Project Problems: Project Portfolios

Problems Estimate to please Subjective and immeasurable objectives Misalignment between strategic goals and project goals

PM Solutions Cost management Risk management Integration management Communication management

CMMI vs. PMCMMI vs. PM Objectives of PM

The application of knowledge, skills, tools and techniques to project activities to meet project requirements

Process perspective Initiation, planning,

execution, monitoring and control, closing

Knowledge areas Integration, scope, time,

cost, quality, HR, communications, risk, procurement management

Objectives of CMMI Establish controls of

software development processes, and to measure and track their effectiveness.

Continuous representation Select the order of

improvement to meet organizational objectives

Staged representation Provide a proven sequence

of improvements

Source: Crissis, Konrad, and Shrum (2003)

Commonalities between CMMI & PM

Integrated Project Management (ML 3) Integrated Supplier Management (ML 3) Integrated Team (ML 3) Project Monitoring and Control (ML 2) Project Planning (ML 2) Quantitative Project Management (ML 4) Risk Management (ML 3) Supplier Agreement Management (ML 4)

Source: Chrissis et al. 2003, p.86

Conclusion

IT projects are constantly susceptible to internal and external changes to business environment

PM practices can be viewed from process and knowledge perspectives

PM and CMMI have many commonalities. Applying PM skills, tools and techniques to

manage IT projects can enhance the chance of success On time, on budget, within scope, and with quality

References (1) Barki, H., and Hartwick, J. (1989). Rethinking the Concept of

User Involvement. MIS Quarterly, 13(1), 53-63. Brandel, M. (January 02, 2006). What's Next in 2006: Project

Management. Retrieved June 25, 2006, from http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=107305

Crawford, J. (2006). Practicing What We Preach: Understanding Inhibitors to the Faithful Use of Project Management Practices. Retrieved June 20, 2006, from http://ids.csom.umn.edu/isworld/facdir/eLibrary.cfm?LName=Crawford&FName=Crawford

Crissis, M. B., Konrad, M., and Shrum, S. (2003). CMMI: Guidelines for Process Integration and Product Improvement. Boston, MA: Pearson Education, Inc.

Davis, G. B. (1982). Strategies For Information Requirements Determination. IBM Systems Journal, 21(1), 3-30.

References (2) Henderson, J. C., and Lee, S. (1992). Managing I/S Design

Teams: A Control Theories Perspective. Management Science, 38(6), 757-777.

Jurison, J. (1999). Software Project Management. Communications of the Association for Information Systems, 2(17), 1-57.

Keil, M., and Robey, D. (2001). Blowing the Whistle on Troubled Software Project. Communications of the ACM, 44(4), 87-93.

Robey, D., Farrow, D. L., and Franz, C. R. (1989). Group Process and Conflict in System Development. Management Science, 35(10), 1172-1191.

Smith, H. A., and McKeen, J. D. (1992). Computerization and Management: A Study of Conflict and Change. Information & Management,, 22(1), 53-64.

Zmud, R. W. (1980). Management of Large Software Development Efforts. MIS Quarterly, 4(2), 45-55.

Thank you!Thank you!Charlie C. Chen, Ph.D., PMP

Dept. of Computer Information Systems

Appalachian State University