Managing IT Projects: an introduction · Managing IT Projects: an introduction Jean-Louis Binot 1...
Transcript of Managing IT Projects: an introduction · Managing IT Projects: an introduction Jean-Louis Binot 1...
Managing IT Projects: an introduction
Jean-Louis Binot
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Agenda
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Challenges of IT Projects 3
IT Project Life Cycle 4
IT Applications and IT Projects 2
Why Project Management ? 1
Role of the Project Manager 5
Agile Methodologies 6
Why Project Management ?
In a company, IT supports the business through IT applications and IT services
q Implementation of a new IT application, or rolling out of IT services, is done through IT projects
q IT projects are difficult to execute, and require a specific discipline to succeed: Project Management
q Project management is a management activity, which can involve large teams and budget. The role of project manager may be a suitable career path for IT engineers
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Agenda
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Challenges of IT Projects 3
IT Project Life Cycle 4
IT Applications and IT Projects 2
Why Project Management ? 1
Role of the Project Manager 5
Agile Methodologies 6
An IT Application
q Is a computer software designed to help the user to perform specific tasks (Wikipedia)
q Automates business processes in order to produce business benefits, in four possible categories: n Increase sales and hence revenues
n Reduce costs and hence increase profits
n Increase quality of product / service & customer satisfaction
n Ensure compliance to regulations
q Needs to store, retrieve, and process data in order to achieve that automation n and thus typically involves some form of database
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Example 1: a car configurator
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Product DB Customer DB
Car configuration Quote
Test drive request
Test drive appointment
Benefits: increase sales
Main challenges of a web application ?
Challenges - Project size (>5M€; many concurrent users) - Data accuracy - Performance and availability - Graphical interface (3D, accuracy) - Multi country / language (30 countries) - Maintenance (25 people)
Example 2: technical document mgt
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Engineering Data (3 languages)
European Data (>20 languages)
Technical doc
Local updates
Challenges - Project size (>10M€; huge # of users) - Interactive graphical diagrams - Automated search & link with repairer tools - Automated translation in many languages - Performance and availability - Data accuracy
Technical data text & images
Automatic Translation
Any repairer in Europe
Benefits: increase quality & European compliance
Example 3: Vehicle order mgt (simplified)
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Sales person
Benefits: reduce costs & increase customer satisfaction
Challenges - Project size (300 M€, 30 countries) - Performance: < 2 secs in Europe - Interface with ERP system - Accurate ETA - Complexity of algorithms - Data accuracy, availability - Customisation
Customer
Factory
New built
From stock
Production planning
Factory Stocks
Car sale + ETA
Order
Customer Sales person Customer
Logistic routes
Hub Distributor Vendor
ERP system orders, car status over Europe, car allocation to order
route optimization, ETA calculation…
IT applications support the business
All important IT application issues will have business impacts
q Application availability matters (must “keep the lights on”) n Challenge both for application teams and for operational management
q Application performance matters n Delays have business impact
q Respecting deadlines matters n Many deadlines are “business critical”: they can’t be moved without impact
q Data accuracy matters n Impact of data errors goes from inconvenience to critical liability
q Application reliability matters n Bugs have business consequences
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Agenda
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Challenges of IT Projects 3
IT Project Life Cycle 4
IT Applications and IT Projects 2
Why Project Management ? 1
Role of the Project Manager 5
Agile Methodologies 6
Is there a missing level ?
IT added value in the enterprise : a maturity model
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Transactional IT acts as “order taker” fulfilling requirements specified by business IT only focuses on technology and operational efficiency
Incompetent IT is not even able to execute on business requests
Partner IT interacts with business to understand and specify business requirements IT may recommend alternate solutions
Consultative IT understands both business and technology issues IT is proactive in recommending solutions for competitive advantage
Strategic leader IT is viewed as a strategic leader within the enterprise IT is a partner in the planning and execution of the business strategy
The added value of IT depends on its capacity to support the business
The difficulty of delivering IT projects
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How many projects realy succeed ? The Standish group (IT project management research and consulting firm) delivers each year a “Chaos report” surveying project success rate The first report (1995) was a landmark:
q 16% success q 31% failure q 51% challenged
More recent Standish data (2012)
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Slight improvement in project success rate, but still many failures
39%
18%
43%
0%
20%
40%
60%
2004 2006 2008 2010 2012
Project results
Successful Failed Challenged
Better results with agile methodologies for small projects
Why so many project failures ?
q Technical / architectural mistakes
q Requirement issues
q Difficulty of integrating / managing all aspects
q Lack of organization maturity or discipline
q Difficulty of managing consensus between stakeholders
q Competition for scarce budget and resources
q Management pressures
q Psychology and politics q …
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Consequences on application life cycle
q Because IT projects are difficult and costly, application renewal is slow. Applications tend to exist for a long time (e.g. 2 y project, 15/20 y maintenance !)
q The highest cost comes from maintenance, hence the importance of quality
q In most cases, after a few years, the original developers are no longer around
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A typical application lifecycle, with defect rate evolution
Agenda
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Challenges of IT Projects 3
IT Project Life Cycle 4
IT Applications and IT Projects 2
Why Project Management ? 1
Role of the Project Manager 5
Agile Methodologies 6
What is a project ?
q A project is a temporary endeavor undertaken to create a unique product or service (PMI) n Temporary: it has a definite start and a definitive end
n Unique: it is not repetitive (not production nor maintenance)
q A project has three main dimensions
n Time (respect of deadline / schedule)
n Cost (respect of budget, which can be “fixed price”)
n Quality (of the delivered product / outcome)
q A project involves many additional domains, such as n Scope, human resources, communication, risks, procurement,
integration
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The project life cycle (a typical view)
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IDENTIFY
& QUALIFY
CONTRACT PROPOSE Go/No Go Go /No Go
N N
Y Y
PROJECT DEFINITION PHASE PROJECT DELIVERY CYCLE
Project selec?on -‐ which projects include in yearly plan (porKolio)? -‐ for IT provider: which bids to work on ?
q Opportunity profile
q Business case
q Risk analysis
PROJECT EXECUTE
PROJECT CLOSE
Project defini?on
q Updated business case
q Technical solu?on
q High level plan
q Project costs es?mate
q Updated risk analysis
Selec?on of supplier & contrac?ng
q Milestones
q Specific clauses
q Subcontracts
q Updated risks
q Updated financials
q Follow-‐up cycle
q Schedule / plan
q Es?mates
q Quality
q Staffing
q Skills & coaching
q Scope mgt
q Customer mgt
q Risks & counter
q Financials
q Closing internal, client, subs
q Organiza?onal learning
PROJECT INITIATE
q Project organiza?on
q Project governance internal, client, subs
q Handover from opportunity phase
q Project Baselines scope, schedule, cost
q Staffing
Project Definition Phase
q Project Opportunity n Is the project motivated by business needs / strategy ?
n Are there enough business benefits generated by its outcome ?
q Feasibility n Have we identified the high level technical solution, schedule, costs,
and risks ?
n Are these acceptable / manageable ?
q ROI n Is the Return On Investment acceptable given business needs?
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Business Background
High Level System Changes
Benefits
Costs
Schedule
Business Process Improvement
A Project Justification Sheet (example)
The project life cycle (a typical view)
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IDENTIFY
& QUALIFY
CONTRACT PROPOSE Go/No Go Go /No Go
N N
Y Y
PROJECT DEFINITION PHASE PROJECT DELIVERY CYCLE
Project selec?on -‐ which projects include in yearly plan (porKolio)? -‐ for IT provider: which bids to work on ?
q Opportunity profile
q Business case
q Risk analysis
PROJECT EXECUTE
PROJECT CLOSE
Project defini?on
q Updated business case
q Technical solu?on
q High level plan
q Project costs es?mate
q Updated risk analysis
Selec?on of supplier & contrac?ng
q Milestones
q Specific clauses
q Subcontracts
q Updated risks
q Updated financials
q Follow-‐up cycle
q Schedule / plan
q Es?mates
q Quality
q Staffing
q Skills & coaching
q Scope mgt
q Customer mgt
q Risks & counter
q Financials
q Closing internal, client, subs
q Organiza?onal learning
PROJECT INITIATE
q Project organiza?on
q Project governance internal, client, subs
q Handover from opportunity phase
q Project Baselines scope, schedule, cost
q Staffing
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Project Delivery Cycle
Project proposal
Project initialization
Project execution
Delivery control
Project closing
Project office
OrganizationalLearning cycle
Project review cycle
Start in orderly fashion - Avoid cost leakage - Avoid costly mistakes Approval based on
accurate estimates
Improve efficiency (estimates, reuse, KPIs…)
Consistent approach to reduce mistakes and increase efficiency (standards, templates, coaching)
Deliver on time, on budget, with quality
How to structure an IT project ?
Several types of IT projects q Application development q Application Rollout / Service rollout q ERP (Enterprise Resource Planning) q Consulting q …
For application development, at least two approaches q Classical approach (planning & control) q Agile methodologies
Let us start with the classical approach …
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How to structure an IT project ? ./.
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Which % of project efforts is typically used by coding ?
Requirements Functional analysis Architecture
Development Unit testing (coding)
Functional, integration, performance, stress, regression testing
Customer Acceptance
Warranty
Internal gateway
Internal gateway
Customer gateway
20% 35% 25/30% 5/10% 10%
To be added: Project mgt 15%; contingency >= 10% linked to risks; quality 2-3 %
Init meeting
Case of an IT application development project
Efforts
q Coding is only 1/3 of a project activity q There are challenges at every stage q A good project has gateways (go / no go points)
IT project structure: requirement and analysis phase Old joke, still true q Customer may have only a high level view of
his needs and be unclear q He is often not IT/process literate q But he has to accept system and pay bill
Challenges for IT project q Elucidate requirements (first in NL) q Detect incompleteness, inconsistency, risks q Formalize functional requirements and data q Obtain sign-off in reasonable time frame
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Examples of Requirement failures
Too little requirement formalization n Customer wanted to migrate automatically a web system and database to new
technology; was sure to have required it n Service provider was convinced automatic migration was unfeasible; was sure to have
agreed manual solution n Documents existed but no clear evidence of agreement n Customer refused to accept systems; several months delay and
1 M€ over-costs needed to agree and implement compromise
Too much requirement formalization n Major global credit card company wanted to implement global settlement system
including functions of its European partner n 30 European people sent to USA to work 2 years on requirements n Business lost faith after 2 years of “paper”and cancelled project at huge cost
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IT project structure: coding phase
q Competing constraints n Highest cost comes from maintenance, and applications are long-lived;
typically original developers are no longer around => need for software quality
n To be competitive, the project must meet deadline and cost targets => need for speed and efficiency
q Typical industry requirements for the coding activity n Reuse (libraries of routines, frameworks)
Coding must be teamwork n Quality (correctness if possible, but also testing) n Standards (documentation, naming conventions…) allowing maintenance
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IT project structure: testing phase
q Testing should be documented (test plans, test results) q Unit tests are typically a developer’s responsibility q Other tests are ideally done by other people q Acceptance test criteria should be agreed before you start coding
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The classical “V” of testing
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Agenda
Challenges of IT Projects 3
IT Project Life Cycle 4
IT Applications and IT Projects 2
Why Project Management ? 1
Role of the Project Manager 5
Agile Methodologies 6
Role of the Project Manager
q Project : The mission of Project Manager is to deliver the result of the project n On time n Within budget n With quality
q Manager: The Project Manager is not a content expert nor an administrator. His job is to manage the project n Planning n Assigning tasks, delegating n Monitoring and controlling n Assessing risks, making decisions, anticipating n Leading and motivating a team n Communicating and negotiating
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Project Management standards
q Standards provide methods, templates… to assist the project manager in properly managing a project
q Several important international standards exist, a.w. n PMI: Project Management Institute
(publishes the PMBOK: Project Management Book of Knowledge)
n Prince 2 (PRojects IN Controlled Environments) initially developed for the British government, now recognized as an international standard
q They also provide certification of project managers
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Main project management deliverables in the delivery cycle
Project proposal
Project initialization
Project execution
Delivery control
Project closing
Project office
OrganizationalLearning cycle
Project review cycle
Start in orderly fashion - Avoid cost leakage - Avoid costly mistakes Approval based on
accurate estimates
Improve efficiency (estimates, reuse, KPIs…)
Consistent approach to reduce mistakes and increase efficiency (standards, templates, coaching)
Deliver on time, on budget, with quality
Typical PM activities & deliverables
Activities q Clarify and manage project objectives (scope, deadline, budget, assumptions, etc.)
q Define project organization
q Break down the project into tasks, assign them, monitor performance, detect deviations and take counter-measures
q Manage project costs against budget, make forecast of cost evolution, detect deviations and take counter-measures
Deliverables q Project charter / statement
q Project organization
q Project plan (initial plan = baseline)
q Project costs (initial plan = baseline)
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Project charter – typical agenda
The project charter summarizes initial mission of the Project Manager and is his first important deliverable
q Objectives of the project
q Targeted benefits
q Stakeholders (key people having stake in / decision on the results)
q Scope assumptions: in scope, out of scope
q Main deliverables with their milestones
q Communication plan (including reviews, steering committee)
q Project budget
q High level risk management plan (risks & counter-actions)
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Project Organisation – typical roles
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Project Manager
Business Modeling
Team Lead
Business Analysts
Architect Lead
Architects
Functional Team Lead / Testing lead
Functional Analysts / Testers
Development Team Lead
Developers
Deployment Manager
Project Officer Quality Manager
Project planning : key points
q You can’t plan precisely without requirements n Your plan needs to be refined after requirements phase.
q Planning requires to estimate efforts (cfr “Estimating” later)
q Selection of the planning tool is usually not the key point n Your plan should tell a) where you had planned to be, b) where you are, c) what is the deviation (to
take counter-action)
n You can plan in PowerPoint, Excel, with a scheduling tool…
q To measure deviations, two views need to be maintained n The initial plan or baseline, which cannot be changed by the project manager himself. Often
limited to high level milestones
n The actual status with as much details of tasks as appropriate
q No plan, no resources
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Assessment (10 interview sessions @ 0.5 mds; assessment 5 mds) 10 mds
Action plan (3 mds draft, 1md review, 1md finalization) 5 mds
Total 15 mds
21/02 20/03 31/03
Kick-off Assessment review Action plan review with Executive Committee
Planning
Efforts (consultant)
Assessment Action plan definition Implementation
13/03 assessment
draft
27/03 action plan
draft
Activities and deliverables 1. Assessment of existing status Deliverable: status report (Powerpoint)
2. Definition of improvement plan Deliverable: action plan (Powerpoint)
A simple plan (consulting project)
Example of a more complex schedule
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Estimating: key points
q You can’t estimate precisely without requirements q Your estimates need to be refined after requirements phase.
q You need to break down project into tasks, and count efforts n Size (granularity) of the tasks must be small enough for accurate planning, but not too
small (e.g. a few man-days)
q Estimating helps you to define the initial size of the project
q Estimating will also help to track progress AND cost n Cost tracking should tell a) how much budget you have, b) how much you will spend, c) what is the
difference (to take counter-action)
q To answer that question the Pr Manager needs two views n The initial budget or baseline, which cannot be changed by the project manager himself.
n The actual Estimate (of cost) At Completion (EAC): that is the current estimate of what the total cost will be
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Example of estimating method (partial)
Actor Type Description Quantity Weight Factor Subtotal Simple Defined API 3 1 3 Average Interactive or protocol-driven interface 2 2 4 Complex Graphical user interface 1 3 3 Total Actor Points 10
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q Use Case Points (Schneider & Winters, 2001) n Based on Universal Modeling (UML) approach;
distinguishes actors, use cases
n Use Case Points = Total * corrective factors (technology, experience) n Efforts= Use Case Points * Effort Rate (e.g. 20 mh / point)
Use Case Type Description Quantity Weight Factor Subtotal Simple Up to 3 transactions 3 5 15 Average 4 to 7 transactions 2 10 20 Complex More than 7 transactions 1 15 15 Total Use Cases 50
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Main project management deliverables in the delivery cycle
Project proposal
Project initialization
Project execution
Delivery control
Project closing
Project office
OrganizationalLearning cycle
Project review cycle
Start in orderly fashion - Avoid cost leakage - Avoid costly mistakes Approval based on
accurate estimates
Improve efficiency (estimates, reuse, KPIs…)
Consistent approach to reduce mistakes and increase efficiency (standards, templates, coaching)
Deliver on time, on budget, with quality
At each cycle (at least monthly):
review status and risks
Reassess planning and estimates
Typical PM activities and deliverables
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Activities q Assign tasks, monitor project plan and performances, detect deviations and take counter-measures
q Manage project costs against budget, make forecast of cost evolution, detect deviations and take counter-measures
q Periodically report on project status (in project review)
q Identify risks and issues and take counter-measures
q Implement and follow-up needed actions
Deliverables q Project plan (actual status)
q Project costs (actual status)
q Project status report
q Risks & issues status register
q Tracking of decisions and actions (action list, minutes of meetings …)
Cost Control and Financial indicators
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BAC
Budget
Initial Budget
CR
Actuals
ACWP (recognized
revenue)
ETC
EAC
ACWP/EAC = %
completion Earned
Value = BAC *
% completion
Budget
Variance
Cost
Variance
Billing
Billed
WIP
At each review, the Pr Mgr needs to re-evaluate the Estimate to Complete (ETC) based on plan and status. This is not simply budget minus costs.
Main Financial Indicators
q BAC Budget At Completion
q BCWS Budgeted Cost of Work Scheduled
q ACWP Actual Cost of Work Performed
q ETC Estimate To Complete
q EAC Estimate At Completion
q BCWP Budgeted Cost of Work Performed - Earned Value
q BV Budget Variance
q SV Schedule Variance
q CV Cost Variance
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Reviewing estimates – basic example
BAC (budget)
Actuals (22/3)
ETC (Estimate to complete)
EAC (Estimate at completion)
BV (budget variance)
Assessment 10 13 5 18 8
Action Plan 5 0 6 6 1
Total 15 13 11 24 9 (60%)
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21/02 20/03 31/03
Planning Baseline and status Assessment Action plan definition Implementation
13/03 assessment
draft
27/03 action plan
draft
Budget baseline and status
Schedule variance: 7 days (assessment completion estimate: 22/03 + 5 = 27/03) Budget variance: 9 person-days Earned value (pd rate 1000 euro): (13/18)*15= 722 euro
Actual status 22/3
What does it take to be a good project manager ?
According to survey by ESI International of project managers following their training q Inspires a Shared Vision q Good Communicator q Integrity q Enthusiasm q Empathy q Competence q Ability to Delegate Tasks q Cool Under Pressure q Team-Building Skills q Problem Solving Skills
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I would add:
- Anticipation
- Strength of character
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Agenda
Challenges of IT Projects 3
IT Project Management 4
IT Applications and IT Projects 2
Why Project Management ? 1
Role of the Project Manager 5
Agile Methodologies 6
Agile Methodologies
q Manifesto for Agile Software Development in 2001: promote n Individuals and interactions over processes and tools
n Working software over comprehensive documentation
n Customer collaboration over contract negotiation
n Responding to change over following a plan
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Agile Development
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• Many small iterations
• Time-boxed approach
• Each iteration delivers a working product
• Each iteration involves a team working intensively through full cycle
• Team composition is cross-functional and self-organising
• Face to face communication and user involvement privileged
Agile versus classical
Adaptative q Adjust quickly to changing realities q Difficulty to describe future tasks q Difficulty to describe content of future release q Involve users and decide scope changes as they go
Predictive q Difficulty to change direction. May requires project redefinition q Structured plan q Agreed scope q May require a change control board
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Choice of method must be influence by culture of the enterprise
Conclusion
q Project Management is a management role n not a leading content / expert one
n not an administrative one
q As such it is well suited for IT engineers
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THANK YOU
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