CHAPTER 12 IT Project Management 12.1 © Prentice Hall 2002 PROJECT • TEMPORARY ENDEAVOR • TO CREATE PRODUCT OR SERVICE • TYPICALLY ONE-TIME • DIVIDED INTO TASKS • REQUIRES COORDINATION & CONTROL • DEFINITE BEGINNING & END * 12.2 © Prentice Hall 2002 PROJECT CHARACTERISTICS* • RISK & UNCERTAINTY HIGHEST AT START • ABILITY TO INFLUENCE RESULTS HIGHEST AT START • COST & STAFFING LOW AT START, HIGHER NEAR END, RAPIDLY DROP OFF AFTER *PMI, 1996 * 12.3 © Prentice Hall 2002 PROGRAM* • GROUP OF PROJECTS • MANAGED IN COORDINATED WAY • TO OBTAIN BENEFITS NOT AVAILABLE FROM MANAGING THEM SEPARATELY * *PMI, 1996 12.4 © Prentice Hall 2002 PROJECT INITIATION • PROJECT CHARTER: Describes objectives, scope, assumptions (results from feasibility analysis) • RANK ALTERNATIVES: May require estimates of costs & times, judgment • WORK WITH THE NUMBERS: Sensitivity analysis, deal with uncertainties (does outcome change with change in input?) * 12.5 © Prentice Hall 2002 PROJECT MANAGER CHARACTERISTICS* • LEADING: Communicating, problemsolving • NEGOTIATING: Ability to get things done within organizational setting • NON-TECHNICAL SKILLS * *PMI, 1996 12.6 © Prentice Hall 2002 NON-TECHNICAL SKILLSETS • COMMUNICATION: Listening, persuading • ORGANIZATIONAL: Planning, goal-setting, analyzing • TEAM-BUILDING: Empathy, motivation, esprit de corps • LEADERSHIP: Sets example, energetic, vision, delegates, positive • COPING: Flexibility, creativity, patience, persistence 12.7 * © Prentice Hall 2002 KEY BUSINESS ROLES • PROJECT SPONSOR: Executive participates in project proposal, argues for approval, has “ownership” of project, provides funds, oversees success, ensures benefits • USER CHAMPION: Has credibility in affected community, continually communicates project vision & benefits * 12.8 © Prentice Hall 2002 PROJECT PLANNING • SCHEDULING: Involves work breakdown analysis, time estimates, sequence of tasks • BUDGETING: Documents total costs, levels at which each is controlled. Bottom-up (cost and aggregate elements), top-down (sets total for project, assigns dollars to elements) * 12.9 © Prentice Hall 2002 PROJECT PLANNING • STAFFING: Identifies required skill mix, proficiency level, quantity, timeframe, provides incentives • PLANNING DOCUMENTS: – STATEMENT OF WORK: High-level description of what project will deliver & when – PROJECT PLAN: Details of tasks (e.g., PERT, Gantt chart) * 12.10 © Prentice Hall 2002 PROGRAM EVALUATION & REVIEW TECHNIQUE (PERT) 3.2 4 2.8 6 1.9 1.4 5.5 1 2 5 7 13.1 7.0 3 8 12.0 10.3 CIRCLES ARE ACTIVITIES ARROWS SHOW SEQUENCE VALUES ARE TIME UNITS (NOT TO SCALE) 12.11 © Prentice Hall 2002 GANTT CHART SCHEDULE ACTIVITY January February March April May June FEASIBILITY STUDY APPROVAL PROJECT PLAN PURCHASE INSTALL TEST ACCEPT 12.12 © Prentice Hall 2002 PROJECT EXECUTION & CONTROL • APPROVAL OF PLAN, SCHEDULE, BUDGET • ASSIGN RESPONSIBILITIES & AUTHORITIES • STATUS REPORTING • RISK MANAGEMENT • SOLVE PROBLEMS BEFORE THEY BECOME CRITICAL * 12.13 © Prentice Hall 2002 STATUS REPORTING • SCHEDULE: – SCHEDULED & ACTUAL, OR FORECAST COMPLETION DATES – EXPLANATIONS OF DEVIATION(S) • BUDGET: – – – – – 12.14 TOTAL PROJECT FUNDING EXPENDITURES TO DATE OF REPORT CURRENT ESTIMATE OF COST TO COMPLETE ANTICIPATED PROFIT/LOSS EXPLANATIONS OF DEVIATION(S) * © Prentice Hall 2002 IT-RELATED RISKS • ORGANIZATIONAL: Competitive, reputation, technical • PERSONNEL: Personnel and expertise, non-use & unintentional misuse • SYSTEMS PROJECT: Control design, project delay • EXTERNAL SECURITY: External fraud, theft, crime. Extraordinary event 12.15 * © Prentice Hall 2002 MONETARY VALUE RISK vs STAKE* RISK STAKE TIME *Frame, 1994 12.16 © Prentice Hall 2002 LEWIN/SCHEIN CHANGE MODEL* • UNFREEZING: Establish a felt need, create a safe atmosphere • MOVING: Provide necessary information, assimilate knowledge, develop skills • REFREEZING * *Lewin, 1947, Schein, 1987 12.17 © Prentice Hall 2002 CHANGE EFFORTS* 1. ESTABLISH SENSE OF URGENCY 2. FORM POWERFUL GUIDING COALITION 3. CREATE A VISION 4. COMMUNICATE VISION 5. EMPOWER OTHERS TO ACT ON VISION *Kotter, 1995 * 12.18 © Prentice Hall 2002 CHANGE EFFORTS* 6. PLAN FOR & CREATE SHORT-TERM WINS 7. CONSOLIDATE IMPROVEMENTS, PRODUCE MORE CHANGE 8. INSTITUTIONALIZE NEW APPROACHES * *Kotter, 1995 12.19 © Prentice Hall 2002 CHAPTER 12 IT Project Management 12.20 © Prentice Hall 2002