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Chapter 1:Introduction to Project Management

Information Technology Project Management,

Fourth Edition

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Information Technology Project Management, Fourth Edition 2

Learning Objectives

Understand the growing need for better project

management, especially for information

technology projects

E!plain what a project is, pro"ide e!amples of

information technology projects, list "arious

attributes of projects, and describe the triple

constraint of projects

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Information Technology Project Management, Fourth Edition #

Learning Objectives

$escribe project management and discuss %ey

elements of the project management framewor%,

including project sta%eholders, the project

management %nowledge areas, common tools andtechni&ues, and project success factors

Understand the role of the project manager by

describing what project managers do, what s%illsthey need, and what the career field is li%e for

information technology project managers

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Information Technology Project Management, Fourth Edition '

Learning Objectives

$escribe the project management profession,

including its history, the role of professional

organi(ations such as the Project Management

Institute, the importance of certification and ethics,and the growth of project management software

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Information Technology Project Management, Fourth Edition )

Introduction

Many organi(ations today ha"e a new or renewed

interest in project management

*omputer hardware, software, networ%s, and the use of

interdisciplinary and global wor% teams ha"e radicallychanged the wor% en"ironment

The U+ spends 2# trillion on projects e"ery year, or

one-&uarter its gross domestic product, and the worldas a whole spends nearly ./ trillion of its '/0 gross

product on projects of all %inds1

1PMI, The PMI Project Management Fact Book , +econd Edition, 2//.

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Information Technology Project Management, Fourth Edition

Project Management

Statistics 3orldwide IT spending continues to grow, and Forrester

4esearch predicts that U+ IT spending will grow by another

)0 percent in 2//), to reach 05) billion1

In 2//#, the a"erage senior project manager in the U+ earnedalmost 5/,/// per year, and the a"erage Project Management

6ffice 7PM68 $irector earned more than the a"erage *hief

Information 6fficer 7..9,## "s ./#,52)811

The Apprentice, the number-one U+ reality tele"ision show in2//', portrayed the important role of project managers

1:utler, +te"e, ;IT +pending,< Analyst Views, February 2//'

11PMI, Project Management Salary Survey, Third Edition, 2//#

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IT projects ha"e a terrible trac% record

= .55) +tandish >roup study 7*?=6+8 found that only

.2 percent of IT projects were successful in meetingscope, time, and cost goals

6"er #. percent of IT projects were canceled before

completion, costing o"er 9. billion in the U+ alone1

1The +tandish >roup, ;The *?=6+ 4eport< 7www.stanishgroup.com8 7.55)8 =nother

reference is @ohnson, @im, ;*?=6+A The $ollar $rain of IT Project Failures,< Application

!evelopment Trens 7@anuary .55)8

Motivation for StudyingInformation Technology IT!

Project Management

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"dvantages of #singFormal

Project Management :etter control of financial, physical, and human resources

Impro"ed customer relations

+horter de"elopment times

Bower costs ?igher &uality and increased reliability

?igher profit margins

Impro"ed producti"ity

:etter internal coordination

?igher wor%er morale 7less stress8

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$hat Is a Project%

= project is ;a temporary endea"or underta%en to

create a uni&ue product, ser"ice, or result<1

6perations is wor% done to sustain the business

= project ends when its objecti"es ha"e been

reached, or the project has been terminated

Projects can be large or small and ta%e a short or

long time to complete

1PMI, A "uie to the Project Management Boy o# $nowlege

%PMB&$' "uie( 72//'8, p )

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Project "ttributes

= projectA

?as a uni&ue purpose

Is temporary

Is de"eloped using progressi"e elaboration

4e&uires resources, often from "arious areas

+hould ha"e a primary customer or sponsor

The project sponsor usually pro"ides the direction andfunding for the project

In"ol"es uncertainty

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Project and Program

Managers Project managers wor% with project sponsors, project

teams, and other people in"ol"ed in projects to meet

project goals

ProgramA ;= group of related projects managed in acoordinated way to obtain benefits and control not

a"ailable from managing them indi"idually<1

Program managers o"ersee programs and often act as

bosses for project managers


%PMB&$' "uie( 72//'8, p .

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The Tri&le 'onstraint

E"ery project is constrained in different ways by itsA

Scope goalsA 3hat wor% will be doneC

Time goalsA ?ow long should it ta%e to completeC

Cost goalsA 3hat should it costC

It is the project managerDs duty to balance these

three often-competing goals

i h i l

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Figure ()(* The Tri&le'onstraint of Project

Management

+uccessful projectmanagement meansmeeting all threegoals 7scope, time,and cost8 and

satisfying the projectDs sponsor

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$hat is Project

Management% Project management is ;the application of

%nowledge, s%ills, tools and techni&ues to project

acti"ities to meet project re&uirements<1


%PMB&$' "uie( 72//'8, p 9

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Figure ()+* ProjectManagement Frameor-

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Project Sta-eholders

Stakeholders are the people in"ol"ed in or affected by project acti"ities

+ta%eholders includeA

Project sponsor Project manager

Project team

+upport staff

*ustomers Users

+uppliers

6pponents to the project

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.ine Project Management/noledge "reas

Gnowledge areas describe the %ey competencies that project managers must de"elop Four core %nowledge areas lead to specific project

objecti"es 7scope, time, cost, and &uality8 Four facilitating %nowledge areas are the means through

which the project objecti"es are achie"ed 7humanresources, communication, ris%, and procurement

management8 6ne %nowledge area 7project integration management8

affects and is affected by all of the other %nowledgeareas

=ll %nowledge areas are important

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Project ManagementTools and Techni0ues

Project management tools and techni&ues assist project

managers and their teams in "arious aspects of project

management +pecific tools and techni&ues includeA

Project charters, scope statements, and 3:+ 7scope8

>antt charts, networ% diagrams, critical path analyses,

critical chain scheduling 7time8

*ost estimates and earned "alue management 7cost8

+ee Table .-. for other e!amples

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Project PortfolioManagement

Many organi(ations support an emerging business

strategy of project portfolio managementA

6rgani(ations group and manage projects as a portfolioof in"estments that contribute to the entire enterpriseDs

success 7For more information, see *hapter 0, Project

*ost Management8

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Im&roved ProjectPerformance

The +tandish >roupDs *?=6+ studies showimpro"ements in IT projects in the past decade1

Measure 1994 Data 2002 Data esult

+uccessful projects .H #'H $oubledFailed projects #.H .)H ?al"ed

Money wasted onchallenged and

failed projects

,.'/ : outof ,2)/ :

,)) : out of,2)) :

More thanhal"ed

1The +tandish >roup, ;Batest +tandish >roup *?=6+ 4eport +hows Project +uccess 4ates

?a"e Impro"ed by )/H< 7March 2), 2//#8

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$hy the Im&rovements%

;The reasons for the increase in successful projects

"ary First, the a"erage cost of a project has been more

than cut in half :etter tools ha"e been created to

monitor and control progress and !etter skilledproject managers "ith !etter management

processes are being used The fact that there are

processes is significant in itself<1

1The +tandish >roup, ;*?=6+ 2//.A = 4ecipe for +uccess< 72//.8

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Project Success Factors1

. E!ecuti"e support

2 User in"ol"ement

# E!perienced project

manager

' *lear business objecti"es

) Minimi(ed scope

+tandard softwareinfrastructure

0 Firm basic re&uirements

9 Formal methodology

5 4eliable estimates

./ 6ther criteria, such as

small milestones, proper

planning, competent

staff, and ownership

1The +tandish >roup, ;E!treme *?=6+< 72//.8

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Information Technology Project Management, Fourth Edition 2#

The 2ole of the ProjectManager

@ob descriptions "ary, but most include responsibilities

such as planning, scheduling, coordinating, and

wor%ing with people to achie"e project goals

4emember that 50 percent of successful projects were

led by e!perienced project managers

T bl ( 3 Fift P j t

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Information Technology Project Management, Fourth Edition 2'

$efine scope of project

Identify sta%eholders, decision-

ma%ers, and escalation

procedures

$e"elop detailed tas% list 7wor%

brea%down structures8

Estimate time re&uirements

$e"elop initial project

management flow chart

Identify re&uired resources and

budget

E"aluate project re&uirements

Identify and e"aluate ris%s

Prepare contingency plan

Identify interdependencies

Identify and trac% criticalmilestones

Participate in project phase re"iew

+ecure needed resources

Manage the change control process

4eport project status

Table ()3* Fifteen ProjectManagement 4ob

Functions1

1orthwest *enter for Emerging Technologies, ;:uilding a Foundation for TomorrowA +%ills +tandards

for Information Technology,< :elle"iew, 3=, .555

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Information Technology Project Management, Fourth Edition 2)

Suggested S-ills forProject Managers

Project managers need a wide "ariety of s%ills

They shouldA

:e comfortable with change

Understand the organi(ations they wor% in and with

Bead teams to accomplish project goals

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Project managers need both ;hard< and ;soft< s%ills

#ard skills include product %nowledge and %nowinghow to use "arious project management tools and

techni&ues

Soft skills include being able to wor% with "arioustypes of people

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Communication skillsA Bistens, persuades

$rgani%ational skillsA Plans, sets goals, analy(es

Team&!uilding skillsA +hows empathy, moti"ates, promotes esprit de corps

'eadership skillsA +ets e!amples, pro"ides "ision

7big picture8, delegates, positi"e, energetic

Coping skillsA Fle!ible, creati"e, patient, persistent

Technolog( skillsA E!perience, project %nowledge

M di S h t 6 d

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Media Sna&shot 5 6oodProject Management S-ills

from The Apprentice Beadership and

professionalism are crucial

Gnow what your sponsor

e!pects from the project,and learn from your

mista%es

Trust your team and

delegate decisions Gnow the business

+tand up for yourself

:e a team player

+tay organi(ed and donDt be

o"erly emotional

3or% on projects and for

people you belie"e in

Thin% outside the bo!

There is some luc% in"ol"ed

in project management, and

you should always aim high

T bl ( 7 M t Si i8 t

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Table ()7* Most Signi8cant'haracteristics of E9ective and

Ine9ective Project Managers

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Information Technology Project Management, Fourth Edition #/

Im&ortance of Leadershi&S-ills

Effecti"e project managers pro"ide leadership by

e!ample

= leader focuses on long-term goals and big-pictureobjecti"es while inspiring people to reach those goals

= manager deals with the day-to-day details of meeting

specific goals

Project managers often ta%e on both leader and

manager roles

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Information Technology Project Management, Fourth Edition #.

Table ():* To& Ten MostIn);emand IT S-ills

ank )T Skill*+o! ,-erage ,nnual Salar(

. +JB $atabase =nalyst 9/,'

2 6racle $atabase =nalyst 90,.''

# *K*LL Programmer 5),925 ' isual :asic Programmer 0,5/#

) E-commerceK@a"a $e"eloper 95,.#

3indows TK2/// E!pert 9/,#5

0 3indowsK@a"a $e"elopert 5#,09)

9 +ecurity =rchitect 9,99. 5 Project Manager 5),0.5

./ etwor% Engineer 92,5/

Paul Ni", ;The Top ./ IT +%ills in $emand,< >lobal Gnowledge 3ebcast7www.glo)alknowlege.com8 7..K2/K2//28

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Information Technology Project Management, Fourth Edition #2

Figure ()3* To& InformationTechnology S-ills

*osgro"e, Borraine, ;@anuary 2//' IT +taffing Update,< *I& +esearch +eports 7February #, 2//'8

Information Technology 7IT8 +%ill

Percentage of

4espondents

Fi ( 7 S l 6 tt

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Information Technology Project Management, Fourth Edition ##

Figure ()7* Sam&le 6antt'hart

The 3:+ is shown on the left, and each tas%Ds start and finish dates

are shown on the right First used in .5.0, early >antt charts were

drawn by hand

3or% :rea%down +tructure 73:+8

Figure ( : Sam&le .etor-

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Information Technology Project Management, Fourth Edition #'

Figure ():* Sam&le .etor-

;iagram

Each bo! is a project tas% from the 3:+ =rrows show dependencies

between tas%s The bolded tas%s are on the critical path If any tas% on

the critical path ta%es longer to complete than planned, the whole

project will slip unless something is done etwor% diagrams were

first used in .5)9 on the a"y Polaris project before project

management software was a"ailable

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Information Technology Project Management, Fourth Edition #)

Project Management O9icePMO!

= PM6 is an organi(ational group responsible for coordinatingthe project management function throughout an organi(ation

Possible goals includeA *ollect, organi(e, and integrate project data for the entire

organi(ation $e"elop and maintain templates for project documents

$e"elop or coordinate training in "arious project management

topics

$e"elop and pro"ide a formal career path for project managers Pro"ide project management consulting ser"ices

Pro"ide a structure to house project managers while they are acting

in those roles or are between projects

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Information Technology Project Management, Fourth Edition #

Project ManagementSoftare

Enterprise PM software integrates information from

multiple projects to show the status of acti"e,

appro"ed, and future projects across an entire

organi(ation It also pro"ides lin%s to more detailed information on

each project

Many managers li%e to see status in color red, yellow,and green

Figure ( < Sam&le

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Figure ()<* Sam&leEnter&rise Project

Management Tool

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The Project Management

Profession Professional societies such as the Project

Management Institute 7PMI8 ha"e grown

significantly

There are specific interest groups in many areas,such as engineering, financial ser"ices, health care,

and IT

Project management research and certification programs continue to grow

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Project Management'erti8cation

PMI pro"ides certification as a Project Management

Professional 7PMP8

= PMP has documented sufficient project e!perience,

agreed to follow a code of ethics, and passed the PMPe!am

The number of people earning PMP certification is

increasing &uic%ly PMI and other organi(ations are offering new

certification programs 7see =ppendi! :8

gure ) ro n

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Information Technology Project Management, Fourth Edition '/

gure ) * ro nPMP 'erti8cation, (>>3)

+??3

1,000 1,900 2,800 4,400

6,415

10,086

18,184

27,052

40,343

52,443

76,550

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

# P M P

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Information Technology Project Management, Fourth Edition '.

Ethics in ProjectManagement

Ethics is an important part of all professions

Project managers often face ethical dilemmas

In order to earn PMP certification, applicants must

agree to the PMP code of professional conduct

+e"eral &uestions on the PMP e!am are related to

professional responsibility, including ethics

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Information Technology Project Management, Fourth Edition '2

Project ManagementSoftare

There are currently hundreds of different products toassist in performing project management

Three main categories of toolsA

'o"&end toolsA ?andle single or smaller projects wellOcost under 2// per user

Midrange toolsA ?andle multiple projects and usersOcost 2//-)// per userO Project 2//# most popular7includes an enterprise "ersion8

#igh&end toolsA =lso called enterprise projectmanagement softwareO often licensed on a per-user basisOPMi Enterprise 6nline 7www"csonlinecom8

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'ha&ter Summary

=s the number and comple!ity of projects continue to grow, it is becoming e"en more important to practice good project

management

= project has se"eral attributes, such as being uni&ue, temporary

and de"eloped incrementally = framewor% for project management includes project

sta%eholders, the nine %nowledge areas, tools and techni&ues,

and creating project portfolios to ensure enterprise success

+uccessful project managers must possess and de"elopmentmany s%ills and lead their teams by e!ample

The project management profession continues to mature as more

people become certified and more tools are created

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