1 Chapter 1: Introduction to Project Management It s not enough to be busy. The question is: What are you busy about? Henry Thoreau
2 Learning Objectives Understanding the growing need for better project management, especially for IT projects. Explain what a project is, provide examples of IT projects, list various attributes of projects, and describe the triple constraint of projects. Describe project management and discuss key elements of the project management framework, including project stakeholders, the project management knowledge areas, common tools and techniques, and project success factors.
3 Learning Objectives (Cont.) Discuss the relationship between project, program, and portfolio management and the contributions they each make to enterprise success. Understand the role of the project manager by describing what project managers do, what skills they need, and what the career field is like for IT project managers. Describe the project management profession, including its history, the importance of ethics, and the advancement of project management software.
4 Introduction Many organizations today have a new or renewed interest in project management. Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment. The U.S. spends $2.3 trillion on projects every year, or one-quarter its gross domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds.
5 Project Management Statistics Worldwide IT spending totaled more than $1.8 trillion in 2006, a 6 percent increase from 2005, and spending is projected to grow 8 percent in 2007 and 4 percent in In 2006, the total compensation for the average senior project manager was $99,183 per year in the United States, $94,646 in Australia, and $106,374 in the United Kingdom. The number of people earning their Project Management Professional (PMP) certification increased by more than 70 percent from 2005 to 2006, with more than 200,000 PMPs worldwide by the end of August, 2007.
6 Activity: Personal Project Management Issues Identify what you consider to be the three most significant issues related to IT Project Management that you personally face today in your workplace
7 Motivation for Studying IT Project Management IT projects have a terrible track record. A 2003 Standish Group study (CHAOS) found that only 16.2 percent of IT projects were successful in meeting scope, time, and cost goals. Over 31 percent of IT projects were canceled before completion, costing over $81 billion in the U.S. alone.
8 Advantages of Using Formal Project Management Better control of financial, physical, and human resources. Improved customer relations. Shorter development times. Lower costs. Higher quality and increased reliability. Higher profit margins. Improved productivity. Better internal coordination. Higher worker morale (less stress).
9 What is a Project? A project is a temporary endeavor undertaken to create a unique product, service, or result. PMBOK Attributes of projects Unique purpose Non-routine tasks are involved Temporary Planning is required Specific objectives are to be met or a specified project is to be created The project has a pre-determined time span
10 What is a Project? (Cont.) More attributes Work is carried out for someone other than yourself Work require resources, often from various areas or involve several specializes Work is carried out in several phases The resources that are available for use on the project are constrained Should have a primary sponsor and/or customer Project can be large or small and take a short or long time to complete Involve uncertainty
11 Activity: Spot the Project Read the following list and place a checkmark next to the items that are IT Projects. First-line support of mail-merge product. A help desk or technical worker replaces laptops for a small department. A small software development team adds a new feature to an internal software application. The University campus upgrades its technology infrastructure to provide wireless Internet access across the whole campus.
12 Activity: Spot the Project (Cont.) A cross-functional task force in a company decides what VoIP system to purchase and how it will be implemented. Update company hardware specification and software license information. Implement a new financial software package and integrate it with existing systems. Creation of a new Web page to support marketing. Maintenance of the company reference databases. A company develops a new system to increase sales force productivity and customer relationship management.
13 Activity: Spot the Project (Cont.) The automobile industry develops a Website to streamline procurement. Business application training for new employee. A television network develops a system to allow viewers to vote for contestants and provide other feedback on programs. A large group of volunteers from organizations throughout the world develop standards for a new communication technology. Note: IT projects refers to projects involving hardware, software, and networks.
14 Project and Program Managers Project managers work with project sponsors, project teams, and other people involved in projects to meet project goals. Program: A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Program managers oversee programs and often act as bosses for project managers.
15 Reasons for a Project Every IT project that you do is for a business reason. In order for a project to make sense in a commercial context, the business must ultimately gain benefit from the delivery. Projects should have a place within the strategic plans of the organization: The corporate business strategy The corporate IT strategy Projects without clear context can be difficult to complete successfully.
16 Activity: The Business Need Reasons for IT project Opportunities Problems
17 The Triple Constraint of Project Management Every project is constrained in different ways by its: Scope: What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project? How will the scope be verified? Time: How long should it take to complete the project? What is the project s schedule? How will the team track actual schedule performance? Who can approve changes to the schedule?
18 The Triple Constraint of Project Management Every project is constrained in different ways by its: Cost: What should it cost to complete the project? What is the project s budget? How will costs be tracked? Who can authorize changes to the budget? It is the project manager s duty to balance these three often competing goals.
19 The Triple Constraint of Project Management Successful project management means meeting all three goals (scope, time, and cost) and satisfying the project s sponsor!
20 What is Management? Management may involve: Planning - deciding what is to be done Organizing - making arrangement Staffing - selecting the right people Directing - giving instructions Monitoring - checking on progress Controlling - taking action to remedy hold-ups Innovating - coming up with new solutions Representing - liaising with users
21 Problems with IT Projects Manager s point of view problems: Poor estimates and plans Lack of quality standards and measures Lack of guidance about making organizational decisions Lack of techniques to make progress visible Poor role definition who does what? Incorrect success criteria
22 Problems with IT Projects (Cont.) Members of team point of view problems: Inadequate specification of work Management ignorance of IT Lack of knowledge of application area Lack of standards Lack of up-to-date documentation Preceding activities not completed on time including late delivery of equipment Lack of communication between users and technicians Lack of communication leading to duplication of work
23 Problems with IT Projects (Cont.) Members of team point of view problems: (Cont.) Lack of commitment especially when a project is tied to one person who then moves Narrow scope of technical expertise Changing statutory requirements Changing software environment Deadline pressure Lack of quality control Remote management Lack of training
24 What is Project Management? Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. (PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), 2004, p. 8)
25 Traditional Project Processes Feasibility study Is it worth doing? Planning How do we do it? Project Execution Do it!
26 Activities Covered by Project Management Feasibility study - decide if project is worth doing Identifies what the project is Description of current situation Problem description Proposed development Business and financial aspects Technical aspects Organizational aspects
27 Activities Covered by Project Management (Cont.) Feasibility study (Cont.) Estimated costs Development costs Setup Costs Operational costs Envisaged benefits Recommendations Planning - how you are going do it? Project execution - do it
28 Project Management Framework
29 Identify the Project Stakeholders Stakeholders are the people involved in or affected by project activities. Key questions: Who are the people who make up the business? What roles do they play in the organization and in the context of the project? What do these people want from the project? Who is the team that will deliver this project? Start by identifying the groups that are the project stakeholders.
30 Identify the Project Stakeholders (Cont.) Project Owners Management and buyers Engineers and end users Business departments managers Business departments staff Marketing and sales Finance Production and manufacturing
31 Identify the Project Stakeholders (Cont.) Project Participants (Full-time and part-time) Project manager Project team Support staff Quality team/configuration team/maintenance team MIS help desk/network operations Contractors and third parties Suppliers
32 Nine Project Management Knowledge Areas Knowledge areas describe the key competencies that project managers must develop. Four core knowledge areas lead to specific project objectives (scope, time, cost, and quality). Four facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management). One knowledge area (project integration management) affects and is affected by all of the other knowledge areas. All knowledge areas are important!
33 Project Management Tools and Techniques Project management tools and techniques assist project managers and their teams in various aspects of project management. Specific tools and techniques include: Project Charters, scope statements, and WBS (scope). Gantt charts, network diagrams, critical path analysis, (time). Cost estimates and earned value management (cost).
34 Super Tools Super tools are those tools that have high use and high potential for improving project success, such as: Software for task scheduling (such as project management software) Scope statements Requirements analyses Lessons-learned reports Tools already extensively used that have been found to improve project importance include: Progress reports Kick-off meetings Gantt charts Change requests
35 Why the Project Performance has been Improved? The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself. * *The Standish Group, CHAOS 2003: A Recipe for Success (2003).
36 Project Success There are several ways to define project success The project met scope, time, and cost goals. The project satisfied the customer/sponsor. The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy.
37 Project Success Factors 1. Executive support 2. User involvement 3. Experienced project manager 4. Clear business objectives 5. Minimized scope 6. Standard software infrastructure 7. Firm basic requirements 8. Formal methodology 9. Reliable estimates 10. Other criteria, such as small milestones, proper planning, and competent staff
38 Project Portfolio Management As part of project portfolio management, organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise s success. Portfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective.
39 Project Management Compared to Project Portfolio Management
40 The Role of Project Manager Job descriptions vary, but most include responsibilities such as planning, scheduling, coordinating, and working with people to achieve project goals. Remember that 97 percent of successful projects were led by experienced project managers, who can often help influence success factors.
41 Suggested Skills for Project Managers Project managers need a wide variety of skills. They should: Be comfortable with change. Understand the organizations they work in and with. Lead teams to accomplish project goals.
42 Suggested Skills for Project Managers (Cont.) The Project Management Body of Knowledge Application area knowledge, standards, and regulations Project environment knowledge General management knowledge and skills Soft skills or human relations skills
43 Ten Most Important Skills and Competencies for Project Managers 1. People skills 2. Leadership 3. Listening 4. Integrity, ethical behavior, consistent 5. Strong at building trust 6. Verbal communication 7. Strong at building teams 8. Conflict resolution, conflict management 9. Critical thinking, problem solving 10. Understands, balances priorities
44 Different Skills Needed in Different Situations Large projects: leadership, relevant prior experience, planning, people skills, verbal communication, and team-building skills are most important. High uncertainty projects: risk management, expectation management, leadership, people skills, and planning skills are most important. Very novel projects: leadership, people skills, having vision and goals, self-confidence, expectations management, and listening skills are most important.
45 Importance of Leadership Skills Effective project managers provide leadership by example. A leader focuses on long-term goals and bigpicture objectives while inspiring people to reach those goals. A manager deals with the day-to-day details of meeting specific goals. Project managers often take on the role of both leader and manager.
46 History of Project Management Some people argue that building the Egyptian pyramids was a project, as was building the Great Wall of China Most people consider the Manhattan Project to be the first project to use modern project management This three-year, $2 billion (in 1946 dollars) project had a separate project manager and a technical manager
47 Sample Gantt Chart Work Breakdown Structure (WBS) The WBS is shown on the left, and each task s start and finish dates are shown on the right. First used in 1917, early Gantt charts were drawn by hand.
48 Sample Network Diagram Each box is a project task from the WBS. Arrows show dependencies between tasks. The bolded tasks are on the critical path. If any task on the critical path takes longer to complete than planned, the whole project will slip unless something is done. Network diagrams were first used in 1958 on the Navy Polaris project before project management software was available.
49 Sample Enterprise Project Management Tool In recent years, organizations have been taking advantage of software to help manage their projects throughout the enterprise.
50 Ethics in Project Management Ethics is an important part of all professions. Project managers often face ethical dilemmas.
51 You Can Apply Project Management to Many Areas Project management applies to work as well as personal projects. Project management applies to many different disciplines (IT, construction, finance, sports, event planning, etc.). Project management skills can help in everyday life.
52 Summary As the number and complexity of projects continue to grow, it is becoming even more important to practice good project management. A project is a temporary endeavor undertaken to create a unique product, service, or result. A framework for project management includes project stakeholders, the nine knowledge areas, tools and techniques, and creating project portfolios to ensure enterprise success. Successful project managers must possess and development many skills and lead their teams by example.
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