A Critical review of project management success factors in large SA ICT companies E.J. Volschenk Research report presented in partial fulfilment of the requirements for the degree of Master of Business Administration at the University of Stellenbosch Supervisor: Martin Butler Degree of Confidentiality: A March 2010 ii DECLARATION Hereby I, Ernest Johannes Volschenk, declare that this research report is my own original work and that all sources have been accurately reported and acknowledged, and that this document has not previously in its entirety or in part been submitted at any university in order to obtain an academic qualification. E.J. Volschenk 1 February 2010 Copyright ©2010 Stellenbosch University All rights reserved iii ACKNOWLEDGEMENTS I would like to express my gratitude to the following persons: First and foremost to my Heavenly Father, who calls those things which are not as though they were. My wife, Estea, for always supporting and believing in me. My supervisor, Martin Butler, for the patience, time and encouragement. iv ABSTRACT Despite the growth and adoption of project management expertise and techniques, the increase in organisational project-maturity and the emergence of the Web, project success remains a challenge. A key factor leading to the continued failure in IT projects is the lack of identification and appreciation for the key factors that influence the success of project management success. Therefore the researcher embarked on this study to determine the top five critical success factors of project management in the South African ICT environment. The researcher also determined during which phases of the project life cycle these critical success factors occur. In order to determine these objectives, qualitative research was conducted that included a study of literature, available material, views from experts as well as a content analysis from sample interviews. South African ICT companies do not directly focus on any critical success factors, but indirectly they do focus on certain areas that will increase the probability of project management success. The research identified the top five critical success factors as a comprehensive project management plan, well defined scope, skilled and experienced project managers, user / customer involvement and top management support. The research also identified that the focusing on the project planning and project execution and monitoring phases of the project life cycle are the most crucial for project management success. In addition the research identified that project managers who have a strong technical background understand the complexities of the product better and do tend to manage the deferent component of the projects more effectively. v OPSOMMING Ten spyte van die groei en toename in projekbestuurkundigheid en -tegnieke, die toename in organisatoriese projek volwassenheid en die uitbreiding van die Web, bly projeksukses ‘n uitdaging. Om die rede het de navorser die studie onderneem om die vyf top kritiese suksesfaktore van projekbestuur in die Suid-Afrikaanse ICT omgewing te bepaal. Om hierdie doelwit te bepaal is kwalitatiewe navorsing onderneem wat ‘n literatuurstudie, beskikbare materiaal, opinies van kundiges sowel as inhoudsanalise van onderhoude gevoer insluit. Suid-Afrikaanse ICT maatskappye fokus nie direk op enige kritiese suksesfaktore nie, maar indirek fokus hulle wel op sekere areas wat die waarskynlikheid van projekbestuur sukses sal laat toeneem. Die navorsing identifiseer die vyf kritiese suksesfaktore as ‘n samevattende projekbestuursplan, goed gedefinieerde omvang, kundige en ervare projekbestuurders, gebruiker/kliënt betrokkenheid en topbestuur ondersteuning. Die navorsing het ook identifiseer dat die fokus op projekbestuursbeplanning, en projekuitvoering en monitering fases van die projeklewensiklus die mees kritiese is vir projeksukses. Die navorsing het ook identifiseer dat projekbestuurders wat ‘n sterk tegniese agtergrond het die ingewikkeldheid van die eindproduk beter verstaan asook die verskillende komponente van die projek meer effektief bestuur. vi TABLE OF CONTENTS Page DECLARATION .............................................................................................................. ii ACKNOWLEDGEMENTS ............................................................................................. iii ABSTRACT ................................................................................................................... iv OPSOMMING ................................................................................................................. v LIST OF TABLES ........................................................................................................ ixx LIST OF FIGURES ......................................................................................................... x LIST OF APPENDICES .................................................................................................. xi CHAPTER 1 ORIENTATION .......................................................................................... 1 1.1 INTRODUCTION AND BACKGROUND ............................................................ 1 1.2 DEFINITION OF THE RESEARCH PROBLEM ................................................. 3 1.2.1 Research question ............................................................................................ 3 1.2.2 Delimitation of the study area ............................................................................ 3 1.3 RESEARCH OBJECTIVE.................................................................................. 4 1.4 DEFINITION OF CONCEPTS AND TERMS ..................................................... 4 1.4.1 Project management ......................................................................................... 4 1.4.2 Critical success factors ...................................................................................... 5 1.4.3 ICT..................................................................................................................... 5 1.4.4 ICT projects ....................................................................................................... 6 1.4.5 Project management success and project success ........................................... 6 1.4.6 Success criteria for project success .................................................................. 7 1.4.7 Project management methodology .................................................................... 9 1.4.8 Project stakeholders .......................................................................................... 9 1.5 RESEARCH DESIGN AND METHODOLOGY ................................................ 10 1.6 ASSUMPTIONS .............................................................................................. 13 CHAPTER 2 SURVEY OF RELATED LITERATURE .................................................. 14 2.1. INTRODUCTION ............................................................................................. 14 2.2. LITERATURE LISTED CSF ............................................................................ 14 2.2.1 Top management support ............................................................................... 18 2.2.2 Skilled and experienced project manager........................................................ 19 2.2.3 User/customer involvement ............................................................................. 20 vii 2.2.4 Clear goals and achievable deliverables ......................................................... 21 2.2.5 Comprehensive project management plan ...................................................... 22 2.2.6 Break project down in smaller milestones ....................................................... 23 2.2.7 Good architecture ............................................................................................ 24 2.2.8 Make sure the resources are available to the project ...................................... 24 2.2.9 Well defined scope .......................................................................................... 25 2.2.10 Competent team .............................................................................................. 26 2.2.11 Project control ................................................................................................. 27 2.2.12 Communicate early and often.......................................................................... 33 2.3 CSF GROUPED IN PROJECT LIFE CYCLE PHASES ................................... 34 2.3.1 Project initiation ............................................................................................... 34 2.3.2 Project planning ............................................................................................... 34 2.3.3 Project execution and monitoring .................................................................... 35 2.3.4 Project closure ................................................................................................. 35 2.4 CONCLUSION ................................................................................................ 36 CHAPTER 3 RESEARCH DESIGN AND METHODOLOGY ........................................ 37 3.1 INTRODUCTION ............................................................................................. 37 3.2 RESEARCH DESIGN ...................................................................................... 37 3.3 GATHERING OF DATA................................................................................... 37 3.4 SAMPLING ...................................................................................................... 38 3.5 INTERVIEWS WITH PROJECT MANAGERS ................................................. 38 3.5.1 Interview 1: Marius Beylefeld, Head Project Manager of Dimension Data....... 38 3.5.2 Interview 2: Kevin Treweek, Project Manager of Dimension Data ................... 38 3.5.3 Interview 3: Johan Stolz, Head of Project Manager Office of GijimaAst .......... 39 3.5.4 Interview 4: Vanessa Du Toit, Project Manager of GijimaAst .......................... 39 3.5.5 Interview 5: Christo Welgemoed, Project Manager of Business Connexion .... 39 3.5.6 Interview 6: William Pretorius, Project Manager of Business Connexion......... 39 3.5.7 Interview process ............................................................................................ 39 3.5.8 Discussion guide ............................................................................................. 40 3.6 DATA ANALYSIS ............................................................................................ 42 3.7 CONCLUSION ................................................................................................ 44 CHAPTER 4 RESEARCH RESULTS ........................................................................... 45 4.1 INTRODUCTION ............................................................................................. 45 viii 4.2 CONTENT ANALYSIS FROM INTERVIEWS .................................................. 45 4.2.1 Interview 1: Marius Beylefeld, Head Project Manager of Dimension Data....... 45 4.2.2 Interview 2: Kevin Treweek, Project Manager of Dimension Data ................... 49 4.2.3 Interview 3: Johan Stolz, Head of Project Manager Office of GijimaAst .......... 52 4.2.4 Interview 4: Vanessa Du Toit, Project Manager of GijimaAst .......................... 54 4.2.5 Interview 5: Christo Welgemoed, Head of Project Management Office of Business Connexion ......................................................................... 57 4.2.6 Interview 6: William Pretorius, Project Manager of Business Connexion......... 60 4.3 RESEARCH RESULTS ................................................................................... 63 4.3.1 CSFs identified in the sample interviews ......................................................... 63 4.3.2 CSFs not identified in the sample interviews ................................................... 71 4.3.3 Calculation of the top five CSFs ...................................................................... 72 4.4 CONCLUSION ................................................................................................ 73 CHAPTER 5 SUMMARY, RECOMMENDATIONS AND CONCLUSION ..................... 74 5.1 INTRODUCTION ............................................................................................. 74 5.2 CONCLUSIONS FROM INTERVIEWS AND THE LITERATURE STUDY ...... 74 5.2.1 The CSFs of project management in SA ICT companies ................................ 74 5.2.2 Grouping of CSFs in project life phases .......................................................... 79 5.3 RECOMMENDATIONS FOR FURTHER RESEARCH .................................... 79 5.4 CONCLUSION ................................................................................................ 80 LIST OF SOURCES ..................................................................................................... 81 APPENDICES .............................................................................................................. 88 ix LIST OF TABLES Page Table 1.1: List of companies profiles on JSE Technology sector................................. 12 Table 2.1: Project success factors identified from literature reviewed ......................... 17 Table 2.2: CSF grouped in project methodology phases ............................................. 35 Table 4.1: Top five CSFs from interview with Beylefeld ............................................... 47 Table 4.2: Top five CSFs from interview with Treweek ................................................ 50 Table 4.3: Top five CSFs from interview with Stolz ..................................................... 53 Table 4.4: Top five CSFs from interview with Du Toit .................................................. 55 Table 4.5: Top five CSFs from interview with Welgemoed .......................................... 58 Table 4.6: Top five CSFs from interview with Pretorius ............................................... 61 Table 4.7: Interview summary...................................................................................... 72 Table 4.8: Research result calculation ......................................................................... 73 Table 5.1: CSF grouped in project life cycle ................................................................ 79 x LIST OF FIGURES Page Figure 1.1: Standish Group’s 1994 – 2009 "Chaos Report" ............................................ 2 Figure 1.2: Success Criteria for IT Projects .................................................................... 9 Figure 3.1: Coding from text ......................................................................................... 43 Figure 3.2: Coding from text ......................................................................................... 43 xi LIST OF APPENDICES Page Appendix A: Discussion Guide ......................................................................................... 89 Appendix B: Interview 1: Marius Beylefeld, Head Project Management Office of Dimension Data .......................................................................................... 92 Appendix C: Interview 2: Kevin Treweek, Project Manager of Dimension Data ............... 98 Appendix D: Interview 3: Johan Stoltz, Head Project Management Office of GijimaAst .............................................................................................. 104 Appendix E: Interview 4: Vanessa Du Toit, Project Manager of GijimaAst .............................................................................................. 110 Appendix F: Interview 5: Christo Welgemoed, Head of Project Management Office of Business Connexion ................................................................... 115 Appendix G: Interview 6: William Pretorius, Project Manager of Business Connexion ................................................................................. 120 xii LIST OF ACRONYMS ICT : Information and Communication Technology IT : Information technology CSF : Critical Success Factors PMBOK : Project Management Body of Knowledge UC : Unified Communication 1 CHAPTER 1 ORIENTATION 1.1 INTRODUCTION AND BACKGROUND In today’s knowledge economy the success rate of Information and Communication Technology (ICT) related projects is surprisingly low. According to Middleton (2006), only 36% of ICT projects could be considered successful. Of 36 projects examined, 36% were considered successful, and 34% were unknown (an even split between too early and unable to tell). The remaining 31% were considered unsuccessful. In a study done by the Standish Group, from 1994 to 2009, it is evident that the success rate of IT projects has been steadily improving (Figure 1.1). The Standish Group’s original 1994 Chaos Report found that of the 365 IT managers surveyed, 31% of information technology (IT) projects were impaired (cancelled before completion or not used), 53% were challenged (late, over budget or failed to deliver the expected benefits) and only 16% of IT projects succeeded (came in on time, on budget, and had what it ought to have). By 1998 the successful project rate improved to 26%, the failed and challenged rate decrease to 28% and 46% respectively. The 2006 Chaos Report showed an even further improvement of 36%. Only 19% of projects failed and 46% were challenged (Standish Group: 2006). A challenged or even a failed project is not necessarily a total loss. Challenged projects can still be judged a success by companies at the end of the day if the results are worth the extra expense or time (Johnson, 2006). Johnson (2006) cited the following three reasons for the improvement: 1. Better project management 2. Iterative development 3. The emerging Web infrastructure Johnson (2006) stated that, “There is better project management expertise and technique,” and that “Managers have a better understanding of the dynamics of a project.” Iterative development, Johnson reported, makes it easier for people to get what they want. “Part of the education process [for iterative development] is that people are better able to articulate what they want out of a project.” Finally, Johnson added that the emergence of the Web 2 “plays a fairly significant role. The idea that you can get things out quickly and people can learn it, touch it and give feedback creates a more dynamic experience.” The results of the 2009 Standish Group report revealed a marked decrease to 32% in project success rate and challenged and failed rate to 44% and 24% respectively. Crear (2009) reported, "These numbers represent a downtick in the success rates from the previous study, as well as a significant increase in the number of failures" and Crear also added, "They are the lowest point in the last five study periods. This year's results represent the highest failure rate in over a decade". Although the success rate decreased in 2009, the trend over the past 25 years (Figure 1.1) still shows an improvement in the project success. Figure 1.1: Standish Group’s 1994 – 2009 "Chaos Report" Source: www.standishgroup.com In another survey done by Accenture in 2006, only 29% of IT Projects are considered successful. The average cost overrun is 56% and the typical delay is 84%. According to Avellanet (2006), after decades spent learning and implementing project management methodologies, measurements and control, the success rate of IT projects is no better than when a single computer took up an entire room. 3 Almost every individual project stakeholder (internal and external) will have a different view of what project management success is. For the project sponsor, successful project management is when the project does not go over budget (resulting in more money on the bottom line). For the operational manager it is important that the project stays within the planned timeframe (will free up resources more quickly) while the client would want the project to stay within the approved scope (all features and functionality). According to Brandon (2006: 17), a key factor leading to the continued failure in IT projects is the lack of identification and appreciation for all the major components of project management success. This research report will provide a critical evaluation of the different factors that will lead to successful ICT project management. A comprehensive model of critical success factors for ICT project management permits the development of better management plans, processes, and metrics, particularly for risk, quality, and performance control (Brandon, 2006: 17). 1.2 DEFINITION OF THE RESEARCH PROBLEM 1.2.1 Research question In the project management context there are key factors that influence the success of project management. These key factors will be identified and discussed on a review of the literature. By means of personal interviews these critical success factors (CSFs) will be tested against the South African ICT environment. From the above discussion the research question for this research report is as follows: What are the Project Management Critical Success Factors of large SA ICT companies? 1.2.2 Delimitation of the study area In order to do a proper study of the CSF in large SA ICT companies, the research population must consist of companies with common attributes. This is a big challenge in the IT context, particularly because the definition of ICT companies is so broad. A detailed survey was done on all the listed IT related companies on Johannesburg Security Exchange (Table 1.1). The criteria that were used were the following: Geographical footprint Business model Provision of complete ICT services 4 National and international representation Similar national company size and structure Dedicated project office Three companies that were found to have all these attributes in common, were: GijimaAst Dimension Data Business Connexions This study will therefore be done only on these three companies. The project management success factors listed in this report are not a comprehensive list of all the success factors of ICT projects management. The factors used for this study were found by the author in literature and through his own experience to be of the utmost importance for successful project management. 1.3 RESEARCH OBJECTIVE The objective of this study is to determine the top five project management CSFs in the South African Information and Communications Technology environment. This could help to limit the risk of not finishing within the time frame, and to ensure desired quality with optimal use of resources within the allocated budget of the project. The secondary objective of this study is to determine during which phases of the project life cycle these CSFs occur. 1.4 DEFINITION OF CONCEPTS AND TERMS 1.4.1 Project management Project management (PM) is the discipline that deals with the management of projects. In the Guide to Project Management Body of Knowledge (PMBOK®, 2004), PM is defined as the application of knowledge, skills, tools and techniques to project activities to meet project requirements. The PMBOK® GUIDE goes on to specify that managing a project includes: 1. Identifying requirements 2. Establishing clear and achievable objectives 5 3. Balancing the competing demands for quality, scope, time and cost 4. Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders 1.4.2 Critical success factors Critical success factors are those things that must be done or handled properly for a project to be successful. Rockart (1979) stated that “CSFs are the critical management activities, quite distinct from a set of detailed requirements or specifications that define an acceptable deliverable for a project. CSF is defined by Bullen and Rockhart (1981) as ‘‘the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department, or organisation. CSF’s are the few key areas where things must go right for the business to flourish and for the managers’ goal to be attained”. CSFs are activities that must be successful and are necessary to achieve an organisation's broad goals, but CSFs are not necessarily sufficient to ensure success of any single project effort associated with these broad goals.” The benefit of identifying and handling the CSFs properly could have the following results: Ensure that the project is well-focussed. Avoid wasting effort and resources. Keep the project on track towards common aims and goals. Help to finish the project in budget, on time and within scope. CSFs are activities critical to overall success, but are by no means an exhaustive list. They are merely the things that must be stressed for the project to have a high probability of being successful. 1.4.3 ICT The term information technology has evolved to encompass many aspects of computing and technology. IT as defined by the Information Technology Association of America (ITAA) is "the study, design, development, implementation, support and management of computer-based information systems, particularly software applications and computer hardware”. The information technology umbrella is very large, covering many fields. The term IT has recently been broadened to ICT to explicitly include the field of electronic communication. Electronic communication includes any communication that makes use of electronics to transfer the communication. The term ICT includes unified communication 6 (UC). UC refers to a trend in business to simplify and integrate all forms of communication; phone, e-mail, chat, voicemail, presence services and fax. 1.4.4 ICT projects An ICT project is any project that falls under the broad umbrella of information technology and communication. It is characterised as mostly short-term efforts to create a unique product, service or environment, ranging from removing old servers, developing a custom e-commerce site, creating new desktop images, merging databases to commissioning a complete unified communication system. Project delivery makes ICT organisations credible. When the project office manages to deliver a project successfully the result is not only a successful project, but it also impacts the financial results of a company and contributes in the strategic leadership of the company. 1.4.5 Project management success and project success The terms project management success and project success get used arbitrarily. It is however important that differences between the two terms are clarified. De Wit (1988: 166) defines that a project success depends on achievement of the overall objectives of the project and project management success entails the traditional measure of performance against cost, time and quality. According to Baccaini (1999), "Project success tends to be measured by the big three: Cost, Time, and Requirements being met because these are easy and timely to measure.” For a project to be successful, these three constraints (often called the Triple Constraints of Project Management) must be in equilibrium. If any constraint is out of balance, the project has a high probability of not being successful. However, according to Brandon (2006), the success of a project in the past was defined too narrowly as simply meeting time and cost constraints for a given scope of work. He states that for an IT project to be completely successful, the basic definition of success needs to be extended. This extension is particular with regard to product quality, stakeholder satisfaction, security, organisational human capital, and long-term factors such as maintainability and adaptability. With this extended definition of success, management techniques and tools can be extended or otherwise modified to be more effective (Brandon, 2006). 7 Putkszta (2006) claims that a project which is over budget and has scaled-down functionality, can represent the best outcome, if the project also delivers business value. Although Brandon (2006) and Putkszta (2006) advised that the measure of project management success should move away from the triangle of cost, time and quality, it not only introduces additional complexities, but also adds subjective measures to management of the project. Smyrk (1996) developed a two-layered management model to help manage projects more successfully. Layer one is the Control Layer or above the line and layer two is the Work Layer, or below the line. The model provides the distinction between the management of the project, for example activities such as monitoring the work plan, managing risks, changes, issues, staff, scope, reporting, quality, and the management of the work of the project required to produce the project outputs. According to Smyck (1996), successful management of the control layers leads to successful project management and successful management of the work layer leads to a successful project. According to Cook (2002), delivering project success is necessarily more difficult than delivering project management success. Cook (2002) stated the main reason is project success inevitably involves second order control (both goals and methods liable to change) whereas project management success involves only first order control (hold goals constant, and change practices to meet pre-determined goals). 1.4.6 Success criteria for project success Success criteria can be defined as what must be done for the project to be acceptable to the client, stakeholders and end-users who will be affected by the project. Lim and Mohamed (1999) drew a clear distinction between success criteria and success factors. The success criteria are a principle or standard by which anything is or can be judged (those which define a project as successful) and success factors are any circumstance, fact, or influence which contributes to a result (those which need to be done correctly to ensure that a project is successful). Willard (2006) stated, “Clearly, the old adage of on time, on budget, and (even) conformance to requirements are not, of themselves, satisfactory success criteria”, mainly 8 because this does not deal with the issues facing the project manager under many current business conditions. Gottschalk (2004) developed a success criteria model for IT projects (Figure 1.2). The model consisted of the following five success criteria: Project performance – This is the traditional evaluation criteria for project success which consists of time, cost and quality. According to De Wit (1988), project management success entails the traditional measure of performance against cost, time and quality. Project outcome – This measurement is concerned with evaluating the information system itself. The important dimensions include the system maintainability, reliability, validity and information quality use. System implementation – This criterion is concerned with successfully introducing, installing, training, using and modifying the new information system. The important dimensions include the actual use and user acceptance. Benefits for the client organisation – The important dimensions include improved efficiency and effectiveness, increased profits, achieving strategic goals and organisational learning. Benefits for the stakeholders – The important dimensions include satisfied users, social and environmental impact and personal development. Project performance and project outcome are success criteria internal to the project. System implementation and client benefits are success criteria internal to the organisation. Stakeholders’ benefits are success criteria external to the organisation. 9 Figure 1.2 Success Criteria for IT Projects Source: Gottschalk (2004) 1.4.7 Project management methodology According to Kerzner (2003), project management methodology is a set of inter-related phases, activities and tasks that define the project process from the start through to completion. According to the Guide to Project Management Body of Knowledge (PMBOK®, 2004), projects move through four phases in the project management lifecycle: Initiating Planning Executing and monitoring Controlling Each phase contains processes that move the project from idea to implementation (Westland: 2003). 1.4.8 Project stakeholders Each stakeholder has an essential contribution to make to the project. Contribution made by different people to the project is the principal criteria for identifying stakeholders. For a project to be successful all the stakeholder expectations need to be met. The five primary project stakeholders are as follow: 10 Project manager - the head of the project. This person defines, plans, controls, and leads the project. Project team – they are the team members who produce the outputs (deliverables) for the project by contributing their skills and effort to perform tasks. Functional management – they provide company policy and resources, particularly people who are involved in the project. Sponsor – this person has the formal authority and is ultimately responsible for the project. The sponsor oversees the project and acts as a liaison between the upper management team and the project leader. Customer - the person or group whose needs and requirements drive the project. They receive the final output(s) that the project produces; provide product requirements and are responsible for the funding. This research report will focus on the first four, namely the project manager, project team, functional manager and the sponsor. Project success is very much dependent on the customer view, but it is not practical and out of scope of this research report. 1.5 RESEARCH DESIGN AND METHODOLOGY The objective of this research report is to identify a set of CSFs for successful project management in large SA ICT companies. In the project management context there are key factors that influence the success of project management. These key factors will be identified and discussed on a review of the literature. Once a list of project management CSFs has been reviewed, a questionnaire will be used to test these CSFs against the South African ICT environment. The Information Technology Section on the Johannesburg Stock Exchange (JSE) Securities Exchange South Africa consists of four sectors: Technology-Software & Computer Services Technology-Technology Hardware & Equipment Telecommunications-Fixed Line Telecommunications Telecommunications-Mobile Telecommunications On 14 April 2009 all the listed companies in the IT section of the JSE were compared according to the following criteria: 11 Footprint Geographical area Number of employees Core business (IT services provided), as stated on official website and official company documentation If company has a dedicated project office Company size and structure A summary of the comparison between the companies is shown in Table 1.1. The companies’ footprint was quantified according to the following two attributes: The amount of offices o Small - less than 5 o Medium - between 5 and 9 o Large - more than 10 Their coverage area - national or international For the purpose of this study and in the South African context, the size of a company was quantified as large if it consists of all of the following characteristics: More than 3000 employees More than 10 offices Offices in all the major cities in SA International coverage area 12 Table 1.1: List of companies’ profiles on JSE Technology sector Company profile Footprint Number of employees Adapt IT Holdings Ltd Small National 121 Business Connexion Group Ltd Large National Bytes Technology Group Ltd International Compu-Clearing Outsourcing Ltd Medium National 74 ConvergeNet Holdings Ltd Medium National Datacentrix Holdings Ltd Medium National Datatec Ltd Medium International 3765 Dimension Data Holdings plc Large International EOH Holdings Ltd Core business as stated on website Official website Professional Services www.adaptit.co.za 4657 Complete ICT Services www.bcx.co.za 990 Specialist IT Solutions www.btgroup.co.za Outsourcing www.compu-clear.co.za 230 Specialist IT Solutions www.vesta.co.za 670 IT infrastructure & Business Solutions www.datacentrix.co.za Professional Services www.datatec.co.za 10600 Complete ICT Services www.dimensiondata.com National 1004 Business Consulting & Applications www.eoh.co.za Faritec Holdings Ltd Small National 574 Specialist IT Solutions www.faritec.co.za GIJIMA AST GROUP Ltd Small International, Large National 3290 Complete ICT Services www.gijima.com Paracon Holdings Ltd Small National 128 Business Solutions www.paracon.co.za SecureData Holdings Ltd Medium National 215 IT Security www.securedata.co.za Spescom Ltd Small National 289 DataVoice Service www.spescom.co.za Square One Solutions Group Ltd Small National 140 Business Solutions www.squareonegroup.co.za UCS Group Ltd Small National 2590 Software Retail Solution www.ucs.co.za Mustek Ltd (MST) Large National 1310 Computer Hardware distributor www.mustek.co.za Pinnacle Technology Holdings Ltd (PNC) Medium National NA Supplier of IT products www.pinnacle.co.za 13 Telkom SA Ltd (TKG) Large International 24075 Fixed line telecommunications www.telkom.co.za Allied Technologies Ltd (ALT) Medium International 2720 Telecommunication services www.altech.co.za Blue Label Telecoms Ltd (BLU) Small International NA Prepaid cellular services www.bluelabeltelecoms.com MTN Group Ltd (MTN) Large International 1500 GSM cellular services www.mtn.com Source: http:www.standardbank.co.za The following three large listed ICT companies were found to have common attributes: GIJIMA AST GROUP Ltd Dimension Data Holdings plc Business Connexion Group Ltd This research report focuses on determining the CSFs in the SA context and therefore the research population will consist of the South African division of these three ICT companies, namely: GijimaAst Dimension Data ZA Business Connexions Qualitative research will be used in the form of structured personal interviews. The interviews will be done with the project office head and at least with the senior project manager of each of the three selected companies. 1.6 ASSUMPTIONS This study is based on the assumptions that the ICT companies that form part of the research report have a similar understanding of the following: Project success Project management success Project success Success criteria Project management methodologies 14 CHAPTER 2 SURVEY OF RELATED LITERATURE 2.1. INTRODUCTION According to Brandon (2006: 17), a key factor leading to the continued failure in IT projects is the lack of identification and appreciation for all the major components of project management success. In this chapter related literature will be reviewed in order to identify and list critical success factors to be used to test in the SA ICT environment. A comprehensive model of critical success factors for ICT project management permits the development of better management plans, processes, and metrics, particularly for risk, quality, and performance control (Brandon, 2006: 17). 2.2. LITERATURE LISTED CSF According to Phillips (2007), there are a variety of reasons why the project management success rate is so low. Firstly IT projects are just plain harder. Besides the usual projectmanagement challenges, such as deadlines, budget constraints and too few people to devote to the project, IT projects also face unique technology challenges, ranging from desktop to server hardware and software, network or database issues, to security risks, interoperability issues, and the changes manufacturers make to their hardware and software configurations. Phillips (2007) also ads that IT projects fail at the beginning and not the end, mainly due to a lack of sufficient planning. It is very important that an IT organisation considers the resources it needs to devote to a project, the skills required and the people who need to be involved and realistically consider the time it will take to create, test and implement the project deliverables. According to Phillips, in the third place, IT projects fail because they are rushed. Many companies speed through development efforts and systems implementations in order to be first to market new IT-based products, services and capabilities that lead to improper planning. 15 Finally Phillips (2007) adds that the scope of IT projects is too unwieldy. A project with a large scope can usually be better executed by breaking it down into a series of smaller, more manageable projects. A study done by Torp, Austeng and Mengesha (2004) found that if the critical success factors are identified early enough in a project, it is a vital start for ensuring successful project completions. These major factors have a considerable influence on the project performance and if they are dealt with during planning it will enhance the successful completion of the project. Pinto and Kharbanda (1996) further stated that identifying CSFs will help project teams to minimise fire fighting, intuitive and ad hoc approach in managing uncertainties and changes encountered during project implementation. According to Rozenes, Vitner and Spragett (2006), the following factors affect the success of a project: Project control systems. Project mission and goals should be well defined. Top management support within resources and budget is essential. A detailed project planning that covers all aspects of the project. Client consultation and acceptance during the project life cycle. Competent project team members that support project aims and objectives. Technical abilities of the project team and project organisation. Project team should have troubleshooting capabilities. Success criteria should be agreed upon with the stakeholders before onset of project. A collaborative working relationship should be maintained between the project owner and project manager. The project manager should have the flexibility to deal with uncertainty. The project owner should take an interest in the project performance. Verzuh (2006) stated that the five factors for successful project are the following: 1. All the stakeholders of the project (the team, customer and management) must be in agreement about the goals of the project. 2. There must be a good project plan that demonstrates what is possible, shows an overall path and clear responsibilities. The project plan should also contain all the 16 details for estimating the people, money, time, equipment, and materials necessary to get the job done. The plan must be used to measure the progress during the project and will act as an early warning system. 3. Communication among everyone involved must be constant and effective. Clear communication will coordinate action, recognise and solve problems, and react to changes more effectively. 4. All the stakeholders’ expectations must be managed by means of a controlling the scope of the project. This will ensure that everyone involved understands exactly what can be accomplished within a given time frame and budget. A systematic method for establishing realistic goals for deliverables, cost, schedule, and quality, as well as techniques for keeping the goals consistent throughout the project must be followed. 5. The project must be supported by upper management. In order for project to keep moving, the upper management must be guided to take timely decisions regarding the supply of resources, making policy decisions and removing of organisational obstacles. Allan (2008) stated that the most common reasons for low success rate are the following: Business unclear on project objectives Weak project governance structures Poor project management skills Excessive scope creep Requirements not properly defined Stakeholders left isolated from project processes Poor risk management Labour requirements well underestimated The Standish Group surveyed 365 IT executive managers for their opinions about why projects succeed. They found that the three main reasons why IT projects do succeed are user involvement, executive management support, and a clear statement of requirements. According to them, there are other success criteria, but with these three elements in place, the chances of success are much greater (Johnson, 1999). 17 Table 2.1 represents a concise list of some of the most common project success factors, identified from the literature scrutinised, that are specific to project management in IT companies. Table 2.1 does not provide an exhaustive list of all project success factors identified during the literature review, mainly because the purpose of this report is to find the critical success factors that influence project management success in ICT companies. The purpose of the list was to develop a single reference in which the most common CSFs are listed against the authors who reviewed them. Table 2.1: Project success factors identified from literature reviewed Project success factor Top management support Skilled and experienced project manager User / customer involvement Clear goals and achievable deliverables Comprehensive project management plan Break project down in smaller milestones Author Verzuh, 2006 Standish Group, 2009 Allan, 2008 Verzuh, 2006 Chow and Cao, 2007 Rozenes, Vitner & Spragett, 2006 Thom, 2009 Morreale, 2009 Allan, 2008 Rozenes, Vitner & Spragett, 2006 Vjekoslav, 2009 Ireland, 2002 Standish Group, 2009 Verzuh, 2006 Allan, 2008 Bentley and Rafferty, 1992 Turner, 2004 Rozenes, Vitner & Spragett, 2006 Phillips, 2007 Vjekoslav, 2009 Verzuh, 2006 Rozenes, Vitner & Spragett, 2006 Avellanet , 2006 Avots, 1969 Duncan, 1993 Gorsha,1983 Munns and Bjeirmi,1996 Good architecture Chow & Cao, 2007 Make sure the resources are available to the project Phillips, 2007 Engwall & Jerbant, 2003 Well defined scope Turbit, 2005 Rozenes, Vitner & Spragett, 2006 18 Competent team Proficient scope control Press, 2005 Sa Couto, 2006 Rozenes, Vitner & Spragett, 2006 Schaffer, 2009 Haugheys, 2001 Allan, 2008 Verzuh, 2006 Cook, 2002 Accurate cost management Valerdi, 2008 Rozenes, Vitner & Spragett, 2006 Effective risk management Allan, 2008 Rozenes, Vitner & Spragett, 2006 Good quality control Choi, 2008 Effective change management Marchewka, 2007 Brandon, 2006 Communicate early and often Press, 2005 Verzuh, 2006 Feiner and Howard, 1992 Beavers, 1997 2.2.1 Top management support Identifying sponsors and stakeholders is one of the first steps of any project and the importance is often overlooked. According to Verzuh (2006), the project must be supported by upper management to be successful, because it is their role to make policy decisions and to remove organisational obstacles. The sponsors and stakeholders of the project are the ones who will judge the success and shape the project. It is most important to understand their expectations of the project and to understand what issues are most important to them. Determine early on which of your stakeholders are most important in terms of both organisational and political terms and get their support. The Standish Group International already reported in 1999 the importance of choosing the right executive sponsor. They depicted that the executive sponsor provides the vision for the project and often also provides the funding and some of the major resources to the project. According to Chow and Cao (2007), strong executive support is one of the most important critical success factors. When choosing a sponsor, it is crucial that the executive has a vested interest in a successful outcome. According to the CHAOS University, an executive sponsor should have the following attributes: 19 A visionary - The executive sponsor should have a global view of the project, how it supports corporate goals and benefits the organisation. A project champion - In the course of project bureaucratic hurdles, resistance from department managers, and getting cooperation from people with their own set of priorities have to be conquered. When all diplomacy fails the senior management’s support will have a positive impact on the project. A Fall Guy – the executive should claim total ownership of the project, this includes blame if the project fails. A strong decisive leader – the executive sponsor should be able to make tough decisions. Not be project, function manager or technical officer – the executive sponsor should not get involved in the management aspects and details of the project. This could lead the executive sponsor losing the vision of the project. 2.2.2 Skilled and experienced project manager Thom (2009) stated “A project manager is usually responsible for the success or the failure of the project. A successful project manager is one who can envision the entire project from start to finish, and have the ability to comprehend this vision.” Overall, the project manager is responsible for the delivery of the assigned project on schedule, within budget and meeting the expectations of the client. Morreale (2009) added that successful project management is a combination of approximately 20% hard skills and 80% soft skills. The hard skills relate to the actual processes, procedures, tools and techniques including planning, organising, monitoring and controlling, while the soft skills relate to the project manager’s attitudes and behaviours comprising good negotiation skills, energy, selfmotivation, passion and a commitment to excellence and success. In order to keep up with the ever changing business and IT environment, project managers need to not only make their management practices more flexible, but also need to make decisive decisions quickly. Avots (1969), Duncan (1993) and Gorsha (1983) claimed that project management is an important part in project success. Avots (1969) argued that failure could be avoided by paying careful attention to the project management factors which caused failure. According to Munns and Bjeirmi (1996), these factors would suggest that successful project management requires the following: Planning with a commitment to complete the project. 20 Careful appointment of a skilled project manager. Spending time to define the project adequately. Correctly planning the activities in the project. Ensuring correct and adequate information flows. Changing activities to accommodate frequent changes on dynamic. Accommodating employees' personal goals with performance and rewards. Making a fresh start when mistakes in implementation have been identified. According to Thom (2009), in order to successfully manage a project, a project manager needs to handle the following tasks: Integration Management - This is developing and managing the direction of the project. Scope Management - This includes planning, defining and managing the scope of the project. Time and Cost Management - This covers developing a schedule, allocating resources and managing funds for the project. Quality Management - This involves taking care of the quality of the process in question such that it meets or even exceeds various quality parameters set earlier. Human Resource Management - A manager needs to take care of his team, encourage and motivate them and make sure the team moves in the right direction. Communication Management - The manager needs to prepare a communication plan and make sure that there is a healthy communication, both horizontally and vertically. Risk Management - Various risks involved in a project should be identified and a mitigation and contingency plan needs to be developed to ensure that the project is not derailed at any point. Procurement Management - Various materials needed during the project need to be procured and managed with the vendors and suppliers for successful completion of the project. 2.2.3 User/customer involvement Vjekoslav (2009) stated,” IT projects are difficult, but not because there is something inherently difficult in developing or implementing the project. What is difficult is that customers don’t understand the process, and sometimes don’t seem to care.” Vjekoslav 21 (2009) further stated that it is not the customer’s business to understand how projects work and customers are experts in their industry and typically not in project management. Vjekoslav (2009) also added that customers, who don’t understand how projects work, often report their projects as having failed. According to Vjekoslav (2009), “project success is a strange animal. It’s mostly in the hands of the customer, but if you don’t explain to them how exactly they can (and should) influence the success, they might not know. It’s you who should teach them how.” Ireland (2002) stated that "Project Startup Workshops is the gateway to Project Success." The users are the people who use the systems everyday and know them the best. They know exactly how the systems should function and perform. They should be involved from the planning phases of the project, by means of workshops, right through to the project closure phases. 2.2.4 Clear goals and achievable deliverables Verzuh (2006) stated that the number one factor for project success is that all the stakeholders must be in agreement about the goals of the project. Neal (1995) and Reiss (1994) added the importance of having clear objectives, including deliverables, and scope in project management is sometimes overlooked. Randolph (1994) added, “Scope and objectives are the guiding principles that direct the efforts of the project team”, and “they will determine a project's success or failure” (Ward, 1995). According to Verzuh (2006), it is common for people to hype up the benefits and scope of their projects to secure more funding and improve their profile. Verzuh (2006) says it is important to be honest with the sponsors and stakeholders about the reality of the project. Work with the sponsors to set realistic project milestones and specific project phases. Make sure the deliverables are set in stone, so they don't constantly change, expand, or shift over time (Verzuh, 2006). This is especially important for IT projects, because of the complexity of the project, goals can move and cause large overruns on budget, time and costs. According to Bentley and Rafferty (1992), if the objectives are clearly defined and all the project stakeholders have a common understanding and agree on them, the project will become goal and results-oriented, rather than activity-based. Having a few key objectives 22 focuses the team on the target and creates commitment and agreement about the project goals (Randolph & Posner, 1994). According to Richardson (1995), the result is that the progress of a project can be monitored effectively. Ultimately, its success will be measured more easily because the objectives are clearly stated at the outset of the project. 2.2.5 Comprehensive project management plan According to Schaffer (2009), “Setting up the project plan can take some time, but it will pay dividends many times over the course of the initiative.” Phillips (2007) stated that IT projects fail at the beginning and not the end, mainly due to a lack of sufficient planning. According to Vjekoslav (2009), it is essential to write a good project management plan to prevent project failure. Vjekoslav (2009) also added that a sure way to ensure success is to workshop the project management plan with the customer and always communicate any changes to the customer. According to Vjekoslav (2009), a good plan provides the following benefits: Clearly documented project milestones and deliverables. Allows accurate cost forecasting. Allows a valid and realistic time-scale. Detailed resources requirements planning. Can act as an early warning system. Keeps every project member focussed and informed. The project management plan as defined by the PMI, describes how the project work will be performed. It is the primary source of information for how the project will be planned, executed, monitored, controlled and closed. The development of the project plan is an iterative process. The content varies, based on the project scope and complexity of the project. According to the PMI, the project management plan should include the following: The completion date of each milestone or major activity and the owner of each. The project management processes selected by the project management team. The level of implementation of each selected process. The descriptions of the tools and techniques to be used for accomplishing those processes. How the selected processes will be used to manage the specific project. How work will be executed to accomplish the project objectives. 23 How changes will be monitored and controlled. How configuration management will be performed. How integrity of the performance measurement baselines will be determined and used. The need and techniques for communicating among stakeholders. The selected project life cycle and, for multi-phase projects, the associated project phases. Key management reviews for content, extent, and timing to facilitate addressing open issues and pending decisions. The PMI also added that a project plan is not a one-time deliverable that remains static throughout the project; it should be amended during the entire project life time. According to Clark (1999), in order to ensure that a project is completed successfully, the project plan should be updated regularly. Clark (1999) however advises that a project plan should not be too detailed as every time some aspect of the project changes, the plans will need to be updated to reflect that changes, even though the outcomes or objectives may be unaffected. “Keeping the plans simple, with the right level of detail, can encourage a project to be reviewed regularly and easily” (Clark, 1999). This makes the project management plan a useful communication tool and an effective monitoring device for the project. 2.2.6 Break project down in smaller milestones According to Phillips (2007), if the scope of IT projects is too unwieldy, it can be difficult to manage. Phillips (2007) advised to break down a project with large scopes into a series of smaller more manageable projects which will result in better execution and control. Lewis (1996) and Bates (1994) also added that breaking large projects down into subprojects or work packages is regarded as one of the most important tasks in new or development projects. According to Lewis (1996), it has the following advantages: It ensures greater ownership by all those owning a portion of the project. It spreads the responsibilities and accountability across a greater number of people. It eases the project management in the following ways: o Delegates responsibilities to the project team. 24 o Enables monitoring against the objectives. o Enhances the communicating progress. o It identifies problems upfront. o Makes modifications to the project easier (changes may affect only one work package rather than the whole project). According to Avellanet (2006), breaking down project into smaller milestones will have the following five benefits: 1. Requirements are simplified – The requirements will be easier to understand, have clearer connections between them and should be easier to complete. 2. A crystal clear focus – A clearer focus is easier achieved when working on smaller, simpler phases. 3. A succession of success – A succession of success can be built by rapidly delivering smaller project phases, because people can see what that they are getting for their money, time and effort. 4. Simpler to manage – Smaller phases are not only simpler to manage, but it is also easier to perform quality checks, fixes, tweaks or debugs. 5. 2.2.7 Easily paused – Phased projects are easier to pause, if business conditions change. Good architecture Pursuing a simple design is fundamental for project success (Chow & Cao, 2007). Complex IT projects often exceed budget due to the fact that the system architecture is not carefully designed to meet the specific demands of the project. This happens, in particular, in large, complex projects running over a long period and engaging a large number of engineers and developers. The overall architecture depicts how the system should be structured, from hardware and software to networking and interfaces. A detailed architecture also specifies fundamental data structures and resource management, by providing important guidance for upcoming design decisions during the system development stage. 2.2.8 Make sure the resources are available to the project According to Phillips (2007), IT projects fail at the beginning and not the end, mainly due to a lack of sufficient planning. It is very important that an IT organisation considers the resources it needs to devote to a project, the skills required and the people who need to be 25 involved and realistically consider the time it will take to create, test and implement the project deliverables. Many IT projects are handed to technical resources who already have full time responsibilities. This causes them not to focus on the project. One needs to make sure that the resources that are allocated to the project are available for the full duration of the project (Phillips, 2007). 2.2.9 Well defined scope According to Turbit (2005), defining the scope is a neglected area in most projects. Turbit (2005) stated that defining the scope is important because getting it wrong will result in everything else to be wrong. According to the PMBOK® Guide, project scope definition is a detailed scope statement that defines what work will and will not be part of the project and will serve as a basis for all future project decisions. According to Marchewka (2007), project scope is the foundation on which the schedule, budget and resource plans are built and getting it wrong could have a serious impact on the success of the project. LaPlante (1995) added that without a well defined scope, the project objectives can become fuzzy and people may start to lose sight of what they are trying to achieve. The scope needs to be defined at the start of the project and this will ensure that the project stays within its intended boundaries and does not expand to include more than originally planned (Orr & McKenzie, 1992). A well defined scope means also that there is less likelihood of a vital part of the project being missed. It is not only important to agree on what is out of scope, but also what is in scope as stakeholders will often have different ideas regarding what is supposed to be in the project and what is not. According to Turbit (2005), scope changes that usually cause problems are those where the perception of what was in and out of scope was different between various parties. In order to accurately determine the amount of work which needs to be performed, it must be decided up front what is in or out of scope. Once the scope has been defined the stakeholders need to review and agree to it. A shared understanding can be achieved through workshops with all the all stakeholders. Turbit (2005) stated, “Unless you get the scope right, the project will never be under control and scope creep will likely cause the project to be considered a failure.” 26 2.2.10 Competent team Press (2005) stated, "Successful IT projects are built by people, for people,”. He added, "It's all about teamwork”, the team delivering the solution needs to work well together and also work in sync with the client's team receiving the solution. Press (2005) also said the people aspect and the "soft" side of project management tend to be swept aside in favour of an all-important technology focus. All too often IT focuses predominantly on technology and how best to implement it and forgets that in order to get the most out of any project, the team needs to follow processes that focus on the people directly involved, the implementers and the users. IT projects, no matter how small or extensive, whether ongoing or as once-off implementations, have people at their core and without a successful team at the helm, they're on a sure road to failure. The project manager should select team members who complement each other. The project manager should then teach them to work together until they have a great team of great people. According to Wayne Press (2005), 80% of management is having the right people. Press (2005) stated “Getting this right can make your job a lot easier” and he gave following guidelines when selecting a project team: Members should have excellent technical skills and experience. Members should have good interpersonal skills. Members should be able to work well together, and require minimum supervision. Members should be able to self manage. The project manager should give them clear goals, the tools to do their job, and then get out of their way. Sa Couto (2006) stated for effective project management the project management team should understand and use knowledge and skill from the following five areas of expertise: 1. The Project Management Body of Knowledge 2. Application area knowledge, standards and regulations 3. Understanding the project environment 4. General management knowledge and skill 5. Interpersonal skills Successful projects are achieved by successful teams working together to achieve a common goal. 27 2.2.11 Project control The Association of Project Management (APM) takes a broad view of what is meant by the word control (APM, 2000). The control cycle includes planning, measuring, monitoring, and taking corrective action. Projects, typically use a control system, which monitors the difference or gap between the planning variables and the actual results. Project control systems indicate the direction of change in preliminary planning variables compared with actual performance (Rozenes, Vitner & Spragett, 2006). According to Globerson and Zwikael (2002), the successful performance of a project depends on appropriate planning. The PMBOK® Guide defines the use of 21 processes that relate to planning, out of the 39 processes required for proper project management (Globerson & Zwikael, 2002). Execution of the project according to the predefined project plan can be achieved through a control methodology. The design of a project control system is an important part of the project management effort (Shtub, Bard, & Globerson, 2005). Furthermore, “it is widely recognised that planning and monitoring plays a major role as the cause of project failures. Despite the continuous evolution in the project management field, it appears evident that the traditional approaches still show a lack of appropriate methodologies for project control” (De Falco & Macchiaroli, 1998). Many articles have supported the importance of control in the achievement of the project aims and objectives. Project performance can be improved if more attention is given to the issue of control (Avison, Baskerville & Myers, 2001). Rozenes, Vitner and Spragett (2006) and Marchewka (2007) identified the following control tools are important for success: Scope control Cost management Risk management Quality control Change management 28 2.2.11.1 Proficient scope control According to the PMBOK® Guide, one such control tool is project scope management, which defines the procedures whereby the project content may be altered (PMI, 2004). PMBOK® defines scope control as a defined process for managing changes to project and product scope and the impact of those changes to the project’s schedule and budget. This system includes various managerial tools designed to control changes. According to Meredith and Mantel (2003), changes result mainly from the stakeholders’ desires, technology developments, increased knowledge base, and changes in project processes. Due to the complexity of IT projects it is not always easy to define the exact scope of the project. If the scope of a project is not properly defined, documented and controlled, scope creep can occur. Scope creep refers to uncontrolled changes in a project's scope. Schaffer (2009) stated that scope creep arises because of an assumption that everyone was in agreement, when in reality they were not. Typically scope increase consists of either new products or new features of already approved product design, without corresponding increases in resources, schedule, or budget (Schaffer, 2009). As a result, the project team risks drifting away from its original purpose and scope into unplanned additions. As the scope of a project increases more tasks have to be completed within the same original budget and schedule designed for a smaller set of tasks. Thus scope creep can result in a project team overrunning its original budget and schedule (Schaffer, 2009). Haugheys (2001) added that scope creep is one of the most common reasons projects run over budget and deliver late. Haugheys (2001) added that customers will forget the extra work, effort, time and money that were put into the project and that they will insist the original deliverable be met within the original budget and time frames. If the budget and schedule are increased along with the scope, the change is usually considered an acceptable addition to the project. According to Cook (2002),changes to the scope of a project should only be allowed through a mature scope change control process. This will allow for scope change to be done in a planned manner and minimises the risk for time and budget overruns. 2.2.11.2 Accurate cost management PMI defines cost as "the monetary value or price of a project activity." According to Valerdi (2008), for a project to be successful, it must deliver on all aspects of a project which 29 include both the client’s specifications and the allotted budget. It is a great challenge to successfully deliver on one of these aspects and it is often the case that only the client’s specifications are met (Valerdi, 2009). According to Marchewka (2007), project budget is determined by the project schedule, the cost of resources assigned to each of the activities and additional indirect costs. In addition, a PMBOK® area called project cost management focuses on the processes, procedures, and techniques to develop and manage the project budget. According to PMBOK®, project cost management includes the following: Cost estimates – An estimate can be developed, based upon the project activities, the time estimates and resource requirements. Cost budgeting – An overall cost estimate for the entire project can be done once the time and cost of each activity has been estimated. After the estimates have been approved it becomes the project budget. Cost control – Ensuring that proper processes and procedures are in place to control changes to the project budget. One of the first critical steps in costs management is to make appropriate estimates (Valerdi, 2009). According to Valerdi (2008), organisations need to systematically estimate the cost or effort of their systems engineers. Valerdi (2008) added that organisations fail in their estimations due to disturbed development, unfamiliarity with the product and low process maturity. 2.2.11.3 Effective risk management According to PMBOK® Guide, risk monitoring and control is an ongoing process that consists of keeping track of identified risks, monitoring residual risks and identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk to facilitate project success. Miller and Lessard (2001) proposed that managing and controlling risk reduces the probability of project failure. Jones (1994) stated that, “it is unfortunate that many project do not follow a formal risk management approach.” It is often fatal to the success of the project when unexpected risks, which have not been assessed or planned for, arise (Jones, 1994). These risks then have to be dealt with on an emergency basis, rather than in a prepared and measured manner. According to Miller and Lessard (2001), early in the preparation and planning stage, it is crucial that potential risks are identified, categorised and evaluated. The risks must be categorised 30 systematically in order to identify the risks and to provide a foundation for awareness, understanding and action. Related risks and potential actions must then be documented in the risk management plan and discussed at all the key stages as the project progresses (Rozenes, Vitner & Spragett, 2006). Jones (1994) suggested that effective and successful project risk management requires the following: Commitment by all stakeholders – to be successful, project risk management by all project stakeholders is essential, but in particular the sponsor or client, senior management, project management and project team. Stakeholders’ responsibility – It is important that each risk has an owner that will take responsibility for monitoring, taking action and reporting to the project. Different risks for different types of projects – Jones (1994) found that patterns of risk for each type of project are different, the implication is that each project has its own unique risk considerations. The PMBOK® Guide outlined the following processes for risk management: Risk management planning – Determining how to approach and plan the project risk management activities. Risk identification – Deciding which risk can impact the project. Qualitative risk analysis – Focusing on a qualitative analysis concerning the impact and likelihood of the risks that were identified. Quantitative risk analysis – using a quantitative approach for developing a probability model for understanding and responding to the risks identified. Risk response planning – Developing procedures and techniques to reduce the treats of risks, while enhancing the likelihood of opportunities. Risk monitoring and control – Providing an early warning system to monitor identified risks and any new risks. 2.2.11.4 Good quality management Verzuh (2006) and Rozenes, Vitner and Spragett (2006) identified quality management as an important factor for project success. All the concepts and philosophies of quality are integrated into the discipline or knowledge area called project quality management (PQM). According to PMBOK® Guide, “PQM processes include all of the activities of the 31 performing organisation that determine quality policies, objective and responsibilities so that the project will satisfy the needs for which it was undertaken.” PMBOK® defined the major quality management processes as the following: Quality planning – Determining which quality standards are important to the project and deciding how these standards will be met. Quality assurance – Evaluating overall project performance regularly to ensure that the project team is meeting the specified quality standards. Quality control – Monitoring the activities and results of the project to ensure that the project complies with the quality standards. Choi (2008) quoted the business philosopher and innovator, Philip B. Crosby’s, definition of quality as, “the conformance to requirements." Choi (2008) stated, “It is therefore important to control the quality of each deliverable. Constantly review quality to ensure that the quality of the solution meets the customer's needs.” According to Choi (2008), one can ensure value by focusing on the quality at the following three levels: 1. Technical level - trace requirements, design checking and testing throughout the project to reduce errors. 2. Project level - work to prevent error, then find and eliminate the errors that slipped through. Do as much testing as early as possible. Allow time for rework and retesting to ensure errors have been eliminated without letting new ones to creep in. 3. Business level - includes customers in testing and remember that the goal is to meet the customer requirement first and then only to added value. Substandard levels of quality can be viewed as waste, errors or the failure to meet the project sponsor’s or client’s needs, expectations, or system requirements (Kloppenborg & Petrick, 2002). According to Rozenes, Vitner and Spragett (2006), rework due to sub standard levels of quality is expensive and time consuming. On the other hand, if too much focus is placed on the quality of certain deliverables, quality on those deliverables will be overachieved. This could have negative consequences on availability project resources to the rest of the project and will have a negative impact on other project objectives (Rozenes, Vitner & Spragett, 2006). 32 2.2.11.5 Effective change management According to Marchewka (2007), organisations cannot afford to mismanage change initiatives. Marchewka (2007) added that while it is important for the development of the project to be managed well, it is also important to ensure that the project’s product is transferred successfully and accepted by the organisation with minimal adverse impact. According to Marchewka (2007), acceptance by the users is especially important and special care needs to be taken to ensure that the organisation is prepared properly before the system is implemented. The area of IT project management that helps smooth the transition and implementation of the new IT solution is called change management. The Gartner group defines change management as, “the transformation of the organisation so it is aligned with the execution of a chosen corporate business strategy. It is the management of the human element in a large-scale change project.” The key to any organisational change is to plan for and manage the change and associated transition effectively (Marchewka, 2007). In order to address the human side of change effectively, a change management plan is required. According to Bridges (1991), the mere existence of a change management plan can send the message through the organisation that management cares about the people, listens to their needs and takes their issues seriously. According to Kerzner (2003), a change manager must facilitate assessments, create a change management strategy and develop change management plans. Kerzner (2003) added that a change manager is not the only one involved in managing change, the following groups are also involved: Project team Senior leaders Managers and supervisors Employees Brandon (2006) stated that the primary tasks of the change management team are the following: Assess change readiness of the organisation. 33 Prepare change management plans. Communicate the business reasons for change. Communicate impact of change. Build a coalition of leaders to drive the change. 2.2.12 Communicate early and often Communication, trust, flexibility and buy-in are critical factors for project success. Press (2005) stated "Getting the basics right is important, and proving this focus to the client from the start is fundamental. Communication is the foundation on which the entire working relationship is built, and this has to happen from day one." According to Feiner and Howard (1992), successful communication needs to be focused rather than broad-brush and timing is of crucial importance. Beavers (1997) added when used effectively, it can reduce non-productive effort, avoid duplication and help eliminate mistakes. Lanfer, Kusek, and Cohenca-Zall (1997) also added that it can help to manage uncertainty, may lead to problems being identified sooner or may generate ideas that lead to better solutions. Gannon (1994) furthermore added that it will encourage team-work, increase motivation and ensure the involvement of all key players. Good communication is the effective exchange of information between the parties involved. Good lines of communication need to be incorporated into the project plan. Good communication involves good listening and responding appropriately, and this builds trust. Trust between stakeholders is vital and eliminates negativity and encourages transparency during the duration of the project. Press (2005) stated, "To build trust you need honesty, reinforced by repeated delivery of success and the guarantee of good business value." Press (2005) also added, "Buy-in from the users is one of the cornerstones of project success. Mutual commitment can only be achieved if the users feel they're involved with and benefiting from the project. Introducing new systems can often make users feel their job security is threatened, resulting in negativity and resentment. Without buy-in the project will be a failure. Even though the technology may be in place as planned, successful delivery is reliant on the proper usage of the solution." Ongoing communication, trust, flexibility and buy-in are fundamental for both parties to achieve success and build a strong relationship on which further business can be built. 34 The following guidelines could be used to create an effective communications plan (Press, 2005): Make sure everyone knows what they need to know to make decisions and get work done. Analyse status information to create status reports. Be prompt and decisive. Use feedback at all four levels. Teach workers to stay in lane and on schedule. Communicate and ensure delivery of milestones. Communicate and manage project risk. Communicate and manage project change. Watch out for continuing problems that indicate a serious planning error, such as lack of attention to one of the nine areas or a poor architectural decision. Keep the stakeholders and sponsors informed regularly of your progress. Communicate timeline and expectations to the business units and departments the project will affect. 2.3 CSF GROUPED IN PROJECT LIFE CYCLE PHASES This research report will group the CSFs identified in the literature study (Table 2.1) into the four phases of the project life as defined in the Guide to Project Management Body of Knowledge (PMBOK®, 2004). The four phases are the following: 1. Project initiating 2. Project planning 3. Project executing and monitoring 4. Project controlling 2.3.1 Project initiation Project initiation is the first phase in the project life cycle and mainly contains starting up the project. Initiating a project involves defining its purpose and scope, the justification for initiating it and the solution to be implemented. It also involves the recruitment of a suitably skilled project team, setting up a Project Office and performing an end of phase review. 2.3.2 Project planning The project planning phase is a very detailed process which involves creating a suite of planning documents to help guide the team throughout the project delivery. 35 2.3.3 Project execution and monitoring The project execution and monitoring phase is the stage in which the deliverables are physically built and presented to the customer for acceptance. While each deliverable is being constructed, a suite of management processes are undertaken to monitor and control the deliverables being output by the project. These processes include managing time, cost, quality, change, risks, issues, suppliers, customers and communication. 2.3.4 Project closure The final phase is project closure and consists of releasing the final deliverables to the customer, handing over project documentation to the business, terminating supplier contracts, releasing project resources and communicating project closure to all stakeholders. The last step is to undertake a post implementation review in order to identify the level of project success and note any lessons learned for future projects. Table 2.2: CSF grouped in project methodology phases Project success factor Top management support Skilled and experienced project manager User / customer involvement Clear goals and achievable deliverables Comprehensive project management plan Break project down in smaller milestones Good architecture Make sure the resources are available to the project Well defined scope Competent team Proficient scope control Accurate cost management Effective risk management Good quality control Effective change management Communicate early and often Project initiation Project planning Project execution and monitoring Project closure 36 2.4 CONCLUSION In this chapter related literature was reviewed to identify and list critical success factors of project management in the ICT environment. In the literature 16 CSFs were identified and these CSFs will be tested against the SA ICT environment. 37 CHAPTER 3 RESEARCH DESIGN AND METHODOLOGY 3.1 INTRODUCTION In the previous chapter related literature was reviewed and as this study is based on the critical success factors of project management in South Africa ICT companies, it was imperative to gather current project managers’ points of views regarding key elements addressed in the literature review. In this chapter the researcher will explain how the research for the study was conducted overall. The researcher will also explain how the sampling and discussion guide will be used to gather information. The research design is of a qualitative nature as available textual data is combined with primary data (the outcomes of interviews). The analysis of the data was done by means of context analysis. RESEARCH DESIGN 3.2 The research included the conducting of interviews with the head of the project management office as well as senior project managers of the three ICT companies selected in Chapter 1. As a result mainly qualitative methods were used to determine the CSFs of project management in the South African ICT companies. The mode of observation was semi-structured interviews combined with the use of information from current documents. The data analysis will be qualitative. The strength of this research method is that the researcher is able to gain a rich understanding of the research problem and context (Henning, 2005: 36-37). GATHERING OF DATA 3.3 The researcher conducted one-on-one interviews with six project management experts of the respected ICT companies. Furthermore both secondary and primary data will be investigated. The following methods were used: Theoretical study of various textbooks, the Internet, articles and other literature related to applicable concepts. Sampling – Interviews with key project managers from successful South African ICT companies. 38 3.4 Content analysis of these interviews. SAMPLING In order to gather more information relating to the research problem, the researcher will draw a sample from the ICT industry. As a result current views relating to CSF of project management success will be obtained. This type of sampling is also widely referred to as purposive sampling where typical areas or people are included in a sample. According to Henning (2005: 71), the purposive sampling procedure includes elements of theoretical sampling, which looks for people who can help to build a substantive theory further. 3.5 INTERVIEWS WITH PROJECT MANAGERS The researcher selected six applicable project managers from the three selected ICT companies who were experienced and knowledgeable in the project management field. The discussion below outlines the different interviewees, the ICT companies which interviewees work for, as well as the reasons why the company and the individual were selected. 3.5.1 Interview 1: Marius Beylefeld, Head Project Manager of Dimension Data Marius Beylefeld has 12 years of experience in the IT industry. He started his project management career at Sanlam, where he worked as a project manager for five years. He next moved to BSW data where he worked for four years as a project manager on mainly software development type projects. He next moved to Dimension Data as a line manager in the networks department. He managed the network, server and security engineers. In this position he gained a lot of experience in especially technical solutions. For the last four years he has been managing the Western Cape Project Office and Professional services business unit. 3.5.2 Interview 2: Kevin Treweek, Project Manager of Dimension Data Kevin Treweek has more than 20 years experience in the IT industry. Treweek started his career in field engineering and worked his way up to Sales Vice President of the Western Region USA Nortel Carrier Sales. Treweek has more than five years experience in project management work for Dimension Data in South Africa. 39 3.5.3 Interview 3: Johan Stolz, Head of Project Manager Office of GijimaAst Johan Stolz has have been working in the IT industry for the last 20 years. Stolz’s experience ranges from account management, product management and also service delivery management. Stolz has been working for the past 10 years as a project manager. 3.5.4 Interview 4: Vanessa Du Toit, Project Manager of GijimaAst Vanessa Du Toit has been working in the IT industry for the past seven years. Du Toit started her career as a service desk administrator and next moved to the project office as a project office administrator. Du Toit has been involved in the project office for the past six years of which the last three years have been as a project manager. 3.5.5 Interview 5: Christo Welgemoed, Project Manager of Business Connexion Christo Welgemoed has 25 years experience in IT, ranging from technical to management. Welgemoed started his career as a systems engineer and moved over to service manager later before moving to project management. Welgemoed has been doing project management for the last 15 years, ranging from project manager to project office manager. Welgemoed has done the theoretical training and entry exams for Prince 2. 3.5.6 Interview 6: William Pretorius, Project Manager of Business Connexion William Pretorius has 22 years experience in the IT industry of which the past nine years have been in project management. Pretorius successfully completed the Prince 2 certification. 3.5.7 Interview process After identifying the interviewees and the researcher was satisfied that each individual would add value to the study, they were contacted telephonically and a 60 minute one-onone interview was scheduled. The objective of the interview was explained to the interviewees as being part of a research report on the CSFs of project management in order to complete an MBA degree. The researcher also explained that interviews will be recorded. The individuals were also made aware of the fact that the interview would be semi-structured and that a discussion guide relating to the topic of the study would be brought along and that they would be asked questions according to the discussion guide. 40 3.5.8 Discussion guide A list of questions relating to the study topic was conducted before the physical interviews. The discussion guide included questions that were based on the topics and areas covered in the literature review. The discussion guide was designed by keeping the literature as well as the research problem in mind and was constructed in such a way that it logically steered the thinking of the interviewees to a place where they would be able to answer questions relating to positioning in a more holistic way. The detailed discussion guide with questions is attached as Appendix A. The researcher constructed the discussion guide according to the following rationale and sections: 1. Background of the interviewee The purpose of this section was to put the interviewee at ease and also to serve as an introduction and background of the interviewee to the researcher. Although research regarding the spokespeople was conducted before the sample was selected, these questions also affirmed the applicability of the person to the population. 2. Organisation’s definition of project management and project success factor These questions were included in the discussion guide to lead the interviewee to look at the differences and similarities between project management and project success factors. These questions were also developed to measure the interviewee's and organisation’s perception of these project management and project success factors. Additionally the interviewer used this section to get an understanding of the organisation’s measurement of these two success factors. In this section it was also asked which project management methodology was used in the organisation. 3. Importance of CSFs in the organisation In the interview the interviewer wanted to get an understanding of how important CSFs are to the organisation and if the organisation uses CSFs in their project management. 41 4. Classify and review the CSFs in the organisation This section of the discussion guide focused on the main aim of this research report which is to identify and review the CSFs of project management in ICT organisations. The interviewee was firstly asked to quantify the importance of each CSF identified in the literature review and secondly to identify and rank the five most important CSFs in their respected organisations. After the top five CSFs had been identified, specific areas of the discussion guide were used to review these areas. 5. Closing In closing an open question was asked where the interviewees were given an opportunity to express themselves freely regarding additional CSFs in project management in the ICT environment. Henning (2005: 72) referred to a discussion guide constructed by Kathy Charmaz who divided her discussion guide into the following sections: Initial open-ended questions Intermediate questions Ending questions The above same approach was followed in the construction of the discussion guide. Pre-testing the discussion guide implies that the researcher only finalises the questions in the discussion guide after it has been tested, i.e. pre-testing will indicate whether the questions of the discussion guide are clear to respondent(s). Whenever pre-testing indicates that questions or terminology are unclear to the respondent(s), the researcher should adapt by adjusting the questions before finalising the discussion guide (Herbst, 2008). The researcher did find some unclear definitions and overlapping questions when pretesting the discussion guide. An example of a question that was adjusted is the following: How does your organisation classify success? This question was replaced by the following clearer and more direct questions: 42 How does your organisation define and measure project success and how does your organisation define and measure project management success? The result was a more honest and open response in which the respondents elaborated on their organisation’s factors without thinking that they are giving away their competitive advantage and intellectual property. 3.6 DATA ANALYSIS All the interviews were electronically recorded and transcribed by the researcher himself. Throughout the theoretical analysis and during the verbal interviews and the typing of the interviews, a number of conclusions and recommendations were summarised on blank pieces of paper. This included drawing a mind map of the model as well as dotting down conclusions. The final analysis of the gathered data was done through content analysis techniques. According to Henning (2005: 102), qualitative content analysis can involve any kind of analysis where communication content (interviews, speech and written text) is categorised and classified. As a result of the categorisation of the discussion guide to certain themes relating to the primary research objective, each interview was coded. These codes can be seen as a label for a unit of meaning (Henning, 2005: 104). Correlations were then drawn between the codes and categories of meaning to summarise concepts within the sample as a whole to derive at the conclusions. Codes, categories of meaning and the conclusions were identified while keeping the primary research objective in mind. The above-mentioned content analysis process was derived from the figures formulated by Henning (2005: 104) as illustrated in Figure 4.1 and Figure 4.2. 43 Transcribed text of single interview. Read set of data to form impression of context Segment units of meaning – in one or more sentences or phrases. Use a marker to show the end of a unit. of single utterances. Label a unit of meaning in more than a single word. Write this label in the margin with an arrow pointing to the text. Look for possible groupings of the codes. Make a list of all the codes and the read the whole text again to see whether the codes make sense and whether there is some coherence. Also make sure that codes can be related to the research question. Figure 3.1: Coding from text Source: Henning 2005: 104 Codes, e.g.: Frustration about chores Commitment to family Lack of planning work on weekends No real leisure time Too many appointments Stress about unfinished tasks Possible category: Limited management of weekend activities leads to stress Possible category: Conflict between perceived commitment and lack of leisure time Figure 3.2: From codes to categories in qualitative content analysis Source: Henning, 2005: 106 44 The result is summarised in the conclusions and recommendations. All the conclusions and results from the content analysis are included in the research results (Chapter 4). 3.7 CONCLUSION In this chapter the researcher explained how the research will be conducted. The researcher also expanded how the sampling was done and how the discussion guide will be used to gather information. It was furthermore explained how content analysis will be used for analysing the data. 45 CHAPTER 4 RESEARCH RESULTS 4.1 INTRODUCTION In this chapter all the data will be analysed. Content analysis will be used, as discussed in previous chapter, to analyse the gathered data. Once all the data have been analysed the top five CSFs identified during the interviews will be calculated. 4.2 CONTENT ANALYSIS FROM INTERVIEWS After transcribing all interviews the researcher read through all interviews to once again get an overall impression of the data gathered. Each of the interviews was then studied and analysed by assigning codes (units of meaning) and categories of meaning to it. 4.2.1 Interview 1: Marius Beylefeld, Head Project Manager of Dimension Data 4.2.1.1 Background of interviewee Marius Beylefeld has more than 12 years experience in the IT industry. Marius Beylefeld started his project management career at Sanlam, where he worked as a project manager for five years. Next he moved to BSW data where he worked for four years as a project manager, working mainly with software development projects. Next he moved to Dimension Data as a line manager in the networks department, where he mostly managed the network, server and security engineers. In this position he gained valuable experience in especially technical solutions. For the last four years he has been managing the Western Cape Project Office and Professional services business. Marius Beylefeld completed a numerous project management methodology courses, including Prince, System Corp. and Mid P. He also recently completed his Project Management Professionals (PMP) certified. Before his project management career he studied Human Resource management at the Free State University. Marius also completed the Management Development Programme (MDP) at the University of Stellenbosch. 46 4.2.1.2 Organisation’s definition of project success DD do project management to make money, to be profitable. DD primarily uses budget and time to measure project success. Under this fall other items such as implementing the solution according to the project management plan, according to process, etc. DD uses time and budget as the measurement for successful projects; because if anything else slips it will influence these two. For instance if a project runs over time DD loses money in the form of opportunity costs due to project managers and engineers that are tied up for longer than scheduled and this means they can’t be assigned to other projects. 4.2.1.3 Organisation’s definition of project management success DD measures project management success by means of the KPIs of each project manager and engineer. For instance, under the KPIs for project managers they get measured according to how they do resource planning as this influences how the line manager should in turn do resource capability planning. Project management success also gets measured according to how much of the process specified in Primer has been followed throughout the project. The idea with the KPIs is to install certain behaviour in the project managers from which project management success will result. Some of the KPIs of the senior project managers are mentoring and couching of junior or other project managers who have not done project management in a specific line of business before. 4.2.1.4 Project management methodology Dimension Data uses an in-house developed methodology called Primer. It is used internationally throughout Dimension Data. Primer is based on the nine primary knowledge areas of PMBOK. Primer is developed especially for the Dimension Data business environment. 4.2.1.5 Importance of CSFs in the organisation Dimension Data does not specifically focus on CSFs directly, but indirectly there are certain areas of project management that, if focussed on, will increase the probability of project management being successful. 4.2.1.6 Classify and review the CSFs in the organisation Due to the time constraints of the interviews and the availability of the interviewees, only the top five CSFs were listed, ranked and further investigated. Table 4.1 describes the top five CSFs from the interview with Beylefeld (The full interview is attached as Appendix B). 47 Table 4.1: Top five CSFs from interview with Beylefeld CRITICAL SUCCESS FACTORS 1. Top management support KEY POINTS Strategically top management support is critically important Organisation has a project management mindset Top management supports all projects The project must be in line with the business strategy Top management uses their authority to influence a project when needed Top management needs to lead by setting the example by supporting the project office The whole origination needs to have a project management mentality and it is only possible with top management support Comprehensive project management plan 2. Skilled and experienced project managers It is of critical importance that the PM is skilled and experienced The PM is the single person that has a view on all of the activities of all the project resources The PM is responsible to control and monitor each activity The PM is also responsible to control all the other items such as cost, risk and the communications of the project A project manager must be able to envision the entire project from start to finish, and have the ability to comprehend this vision PM needs to keep the sponsors updated and informed DD have begin in house training on Primer PMs are motivated and advised to do Project Management Professionals (PMP) certification Senior project manager are responsible to do knowledge transfer to junior project manager DD does resource management together with all other business units It is not always possible to schedule certain project managers for certain type of project Most of the time DD selects project managers on availability of PM with specific skill set If no one is available with that specific skill set, a capable PM is selected and mentor assigned to assist PM PM is responsible for the all the control and management functions on a project PMs are also involved during the presales stage of the proposal, because the project manager must help to determine whether the deliverance of the project is possible 48 3. Comprehensive project management plan A comprehensive management plan is extremely important A comprehensive project management plan includes the following CSFs: clear goals and achievable deliverables, break project down in smaller milestones, well defined scope, proficient scope control, accurate cost management, effective risk management, good quality control, effective change management and communicate early and often DD does not focus on any of these areas specifically, DD focuses on the PMP as a whole The PMP consists of project definition and the governance of it The governance of the project includes all the various control and management areas Projects are classified according to their size and complexities Projects fall into one of two categories, transactional and full blown projects The project management concepts are the same, but everything is not documented Transactional projects are small projects that typically involve the installation of only a few devices. The only items included in the PMP are the financials and the delivery specifications Full blown projects include all the elements of the PMP The PMP is used as a control tool DD has a share point system that is updated regularly and any project stakeholder has access to the project’s portal DD does this in order to get a unified view on the project 4. Competent team With a competent team risks are lower and project management is more successful The project manager works with the line of business manager to agree on which level of skill is needed to do the work as determined in the work breakdown structure The line of business manager is responsible to do resource planning according to the projected utilisation of the project team members 4.2.1.7 Closing For successful project management it is not necessary for a project manager to have a strong technical background, but it definitely helps the project manager to understand the different components of a project better. It also definitely helps in delivering ICT projects successfully. In projects where the role of the project manager is purely to manage the project management process and the documentation that goes with this, for instance construction type projects, it is not necessary to have a strong technical background. On 49 the other hand, it is dangerous for a project manager to have too much technical skill, especially technical configuration know-how, because they then stand the risk to get technically to involved. 4.2.2 Interview 2: Kevin Treweek, Project Manager of Dimension Data 4.2.2.1 Background of interviewee Kevin Treweek has more than 20 years experience of the IT. He started his career in field engineering and moved through the ranks to Sales Vice President of the Western Region USA Nortel Carrier Sales. For the past five years he has been working as a project manager for Dimension Data in South Africa. 4.2.2.2 Organisation’s definition of project success A project is successful if it meets the customers’ requirement. A lot of the projects are driven on cost savings to the customer and customers typically classify a project as successful if they can see those cost savings. 4.2.2.3 Organisation’s definition of project management success Dimension Data uses the typical criteria of in time, on budget and within cost to measure if the project management of the project was successful. In addition, Dimension Data also measures successful project management by the final delivered product. If all the required deliverables were met, project management is deemed as successful. 4.2.2.4 Project management methodology Dimension Data uses Primer as their project management methodology. Primer is an inhouse developed methodology and it is based on like PMBOK. 4.2.2.5 Importance of CSF in the organisation Dimension Data do not directly manage projects on CSFs, but we do focus on some areas more than others. 4.2.2.6 Classify and review the CSFs in the organisation Due to the time constraints of the interviews and the availability of the interviewees, only the top five CSFs were listed, ranked and further investigated. Table 4.2 describes the top five CSFs from the interview with Treweek (The full interview is attached as Appendix C). 50 Table 4.2: Top five CSFs from interview with Treweek CRITICAL SUCCESS FACTORS 1. Resources KEY POINTS It is extremely important for the success of the project It is important because if the resources are not available the project falls behind its schedule It is always a challenge to secure resources to the project Resources not dedicated to only the project Resources are shared by operations Operational tasks get priority over project tasks Engineers do not get the proper time to prepare for the project work This leads to mistakes and costly rework It is business as usual for the project resources and they need to keep their SLAs to their clients 2. User / customer involvement Customers frequently involved; they are involved on a daily, weekly and monthly basis The customers are ultimately the sponsor for the project A customers needs to be involved from the beginning to the end The more the customers are involved, the more they understand the solution and the easier they understand when there are issues on the project Relationships are built The goalpost will move during the project and it is imperative that the customers are involved during the whole process In-house training programme for Primer Done most of our training through Universities and self study We also focus on shadowing and other on the job training 3. Skilled and experienced project manager We use project managers that are familiar with the environment and client We use project managers that have done a project of that kind or at least someone who has some experience in that field Without an experienced and skilled project manager the project will never be successful A project manager is responsible for the delivery of the assigned project on schedule, within budget and meeting the expectations of the client The amount of detail included in the documents depends on the type of project and it depends on the solution ultimately For complex project I include more detail I do not use a project management plan as a control tool 51 I found it too cumbersome and I do not have the time to spend on for instance chant charts I will do it only if the customer requests it I work from action logs and dash board People generally do not read and that they prefer to receive only updates Not all stakeholders always sign off the PMP before the project, but it depends on the size of the project 4. Communicate early and often Communication is critical for project management success If the project manager communicates effectively and on a regularly basis, the stakeholders are far more relaxed The stakeholders build up trust in the project manager Most of the project communication is done by email If people put things in writing they generally mean it and tend to stick to it This is also done for record purposes Due to the fact that the customers are involved and updated as often as possible, it is not always necessary to have weekly update sessions The update sessions are truly just update sessions and not lengthy sessions in which everything is discussed in detail The project manager is responsible for communication 5. Define Scope It is exceptionally important to define the scope of the project before it actually starts Without a well defined scope the project simply does not have boundaries and it is very difficult to get closure Project scope is the foundation on which the schedule, budget and resource plans are built Getting it wrong could have a serious impact on the success of the project As much detail as possible is included in scope definition During scoping sessions as much detail as possible is gathered It is not always easy and possible to get everything out of all the stakeholders 4.2.2.7 Closing A project manager needs to have a very good technical know-how in order to understand the complexities of the solution he delivers. In some industries it might be true that project managers do not need a technical background, but definitely not the IT industry. If the project manager understands the solution he will be able to manage the different 52 components more effectively. Project managers that come through the ranks before becoming a project manager are more successful, especially in delivering more complex solutions. 4.2.3 4.2.3.1 Interview 3: Johan Stolz, Head of Project Manager Office of GijimaAst Background of interviewee Johan Stolz has been working in the IT industry for the last 20 years. His experience ranges from an account manager to product manager and also a service delivery manager. He has been working as a project manager for the past 10 years. 4.2.3.2 Organisation’s definition of project success A project is successful if the quality of the end product is acceptable to the client. During the scoping process at the start of the project a comprehensive scope of work is agreed on by all the stakeholders. This scope is altered with the proper scope changing process during the project. If the project is delivered according to the updated scope of work it is considered as a successful project. 4.2.3.3 Organisation’s definition of project management success GijimaAst do not directly measure project management success, but I would say if all the milestones are achieved within the agreed quality, project management was successful. 4.2.3.4 Project management methodology GijimaAst uses PMBOK as their project management methodology. 4.2.3.5 Importance of CSFs in the organisation GijimaAst do not directly concentrate on certain CSFs, but indirectly there are certain factors or areas of project management in our projects that we concentrate more on. The focus also shifts slightly for specific type of projects. 4.2.3.6 Classify and review the CSFs in the organisation Due to the time constraints of the interviews and the availability of the interviewees, only the top five CSFs were listed, ranked and further investigated. Table 4.3 describes the top five CSFs from the interview with Stolz (The full interview is attached as Appendix D). 53 Table 4.3: Top five CSFs from interview with Stolz CRITICAL SUCCESS FACTORS 1. Well defined scope KEY POINTS Always include as much detail as possible in the scope definition Workshop scope with all stakeholders to get their inputs Depends on type of project, but mostly focus on features and functionality in scope definition Draw up functional document from workshops Scope definition includes project inclusions and exclusions Stakeholders sign off scope definition Scope determines the boundaries of the project 2. Comprehensive project management plan The amount of documentation done depends on the type of project and size of the project Use project management process as planning and scoping tool Go through project management process for each project, but do not necessary document everything The more detail you add in the project management plan, the easier it is to execute the project successfully Use project management plan as a control tool, especially for larger projects Easier to keep track of the progress of each activity if you use the project management tool as a control tool Not all stakeholders sign off the project management plan, this could lead to scope creep Company does not always follow the proper project management methodology and processes Company does not see the value in spending the time on planning In general the company’s project management plans do not have enough depth and detail 3. Communicate early and often Weekly update sessions with all the stakeholders involved on the project The project manager is responsible for all the communication All the stakeholders channel all communication through the project manager Communication is extremely important for project management success The project sponsor must be kept up to date with the high level progress of the project Issues should be escalated to the project sponsor quickly 54 4. Effective risk management Everybody involved in the project is responsible for identifying risks The project manager is responsible for controlling the risk The project manager works in conjunction with the steering committee assess the risk and draw up action plans in order to mitigate the risks The project manager often relies on the project resources’ expertise to identify risks and help control the risks It is important to identify risks early and escalate them in order to get action and resolution quickly 5. User / customer involvement Users/Customers are involved throughout the project The more you involve the customer the better the customer understands the solution and the easier it is to get sign off This way the customer understands exactly what is included and more importantly, excluded from the project scope Involve the customer as much I can during testing Involving the customers helps to resolve issues quicker and more efficiently and leads to the project being more profitable According to me, GijimaAst do to put enough emphasis on user involvement during the project They only involve the customers in the beginning scoping sessions 4.2.3.7 Closing In other industries it is not always necessary for the project manager to understand the technical aspects, but in the IT industry it is necessary. In other industries the project manager simply follows the project management methodology. 4.2.4 Interview 4: Vanessa Du Toit, Project Manager of GijimaAst 4.2.4.1 Background of interviewee Vanessa Du Toit has been working in the IT industry for the past seven years. She started her career as a service desk administrator and next moved to the project office as a project office administrator. She has been involved in the project office for the past six years of which the last three years has been a project manager. 4.2.4.2 Organisation’s definition of project success A project can be regarded as successful if it falls within time; cost; resources are managed effectively and efficiently; communication is managed effectively; risks are identified and mitigated. However the relationship with the stakeholders of the project is of utmost 55 importance. A project can meet all the above criteria but be seen as a failure to the stakeholders. Developing a respectful relationship with the client and ensuring that their best interest is taken to heart can also affect the success of a project. 4.2.4.3 Organisation’s definition of project management success GijimaAst’s project manager success is defined and measure in their KPIs. 4.2.4.4 Project management methodology GijimaAst uses PMBOK as their project management methodology. 4.2.4.5 Importance of CSFs in the organisation GijimaAst do not directly concentrate on certain CSFs. 4.2.4.6 Classify and review the CSFs in the organisation Due to the time constraints of the interviews and the availability of the interviewees, only the top five CSFs were listed, ranked and further investigated. Table 4.4 describes the top five CSFs from the interview with Du Toit (The full interview is attached as Appendix E). Table 4.4: Top five CSFs from interview with Du Toit CRITICAL SUCCESS FACTORS 1. User / customer involvement KEY POINTS It is of utmost importance for project management success that the customer is as much as possible part of the project This will help to manage the issues during the project and will help to have successful project management Users/Customers are involved mostly during the scoping sessions This helps the customer to understand exactly what the project entails The customer also agrees to what is included and excluded from the project scope The users are also involved during the testing phases 2. Top management support Top management must always support the project Top management support is of critical importance for successful project management They help to make the project selection for the organisation They also give high level guidance and support to the project Top management are also part of the project steering committee 56 Top management use their authority to influence a project The rest of the project team show more commitment when they know that top management is monitoring their actions The project team are also more responsive when issues are escalated to them 3. Competent team With competent team members the risks to the project are generally lower Competent team members know how to handle difficult issues and situations before they get to be real problems Most projects share resources with operations Engineers must be able to manage time properly Engineers must escalate issues before they become problems The project manager will indicate what type and how many resources are needed for each activity Each business unit’s line manager will then allocate resources from their available resources that have the right skill set 4. Clear goals and achievable deliverables Clear goals and achievable deliverables are important, because if the deliverables are not clear it opens the door for grey areas It is very difficult to deliver a project successfully if you are not sure if it is even going to work Not all stakeholders always agree on the goals of the project It is difficult to get everybody’s agreement, but with most projects when the project sponsor agrees, the project will continue Great care is taken to ensure that all the project deliverables are achieved during the presales or proof of concept phases Issues that arise during the project need to be addressed quickly before they impact the project 5. Communicate early and often Without good communication to the customer, he will get the impression that the project team do not have enough focus and urgency It is especially important to communicate effectively when working on issues GijimaAst are always clear and transparent during our projects and this is done by communication to everybody throughout the project GijimaAst generally have weekly update sessions with the client, but it depends on the size, phase and complexity of the project The project manager has daily update sessions with each project resource in order to accurately monitor each activity All communication is channelled through the project manager Project manager is responsible to communicate to everybody 57 4.2.4.7 Closing A strong technical background helps to understand the deliverables of the project. It is not necessary that the project manager must have a technical background. 4.2.5 Interview 5: Christo Welgemoed, Head of Project Management Office of Business Connexion 4.2.5.1 Background of interviewee Christo Welgemoed has more than 25 years of experience in the IT industry; ranging from technical to management. He started as a systems engineer, moved over to service manager later before moving to project management. He has worked as a project manager for the past 15 years and his responsibility has ranged from project manager to project office management. He has done the theoretical training and entry exams for Prince 2. 4.2.5.2 Organisation’s definition of project success A project can be regarded as successful if it falls within time; cost; resources are managed effectively and efficiently; communication is managed effectively; risks are identified and mitigated. However the relationship with the stakeholders of the project is of utmost importance. A project can meet all the above criteria but be seen as a failure to the stakeholders. Developing a respectful relationship with the client and ensuring that their best interest is taken to heart can also affect the success of a project. 4.2.5.3 Organisation’s definition of project management success BCX measures project success according to budget, time and within scope. 4.2.5.4 Project management methodology BCX works according to the Prince 2 methodologies. 4.2.5.5 Importance of CSFs in the organisation BCX does a business case before the project and the factor identified in the business case gets priority and is monitored throughout the project. 4.2.5.6 Classify and review the CSFs in the organisation Due to the time constraints of the interviews and the availability of the interviewees, only the top five CSFs were listed, ranked and further investigated. Table 4.5 describes the top 58 five CSFs from the interview with Welgemoed (The full interview is attached as Appendix F). Table 4.5: Top five CSFs from interview with Welgemoed CRITICAL SUCCESS FACTORS 1. Well defined scope KEY POINTS Project scope of work and high level design gets done during the presales stage of the sales cycle Further work will then be done to develop the project charter for the project BCX puts a lot of emphasis on defining and developing the project scope Scope sets the boundaries of the project and without this it impossible to deliver a successful project The Prince 2 methodology includes a lot of documentation BCX have very detailed documentation 2. Comprehensive project management plan The project management plan is very important A lot work goes into developing a comprehensive plan Due to the Prince 2 methodology a lot of documentation involved The project plan starts developing in the sales phase together with the sales and presales team The amount of detail included depends on three criteria; the financial size of the project, how much departments / outside companies are involved and how many resources are needed for the project All the project management plans include risk management, change management, communication management and financial management During project start up the project gets registered and loaded on a central database The database gets used as a control tool to monitor and analyse each project activity All the project stakeholders have access to the database The database gets updated on a weekly basis All the stakeholders do not always sign off on the project plan With some projects it is not always easy to get all the stakeholders buy in and approval on all items and issues during the project Stakeholders sometimes choose to respond to only items that they want to In some cases it is necessary to get the sponsors involved to resolve issues 59 3. Break project down in smaller milestones Project gets broken down into smaller projects It is especially important to break down big complex projects into smaller sub projects It is important because this way you minimise the risk, because it easier to control and manage smaller projects There are fewer things that can go wrong Prince 2 defines your finale deliverable as a product The product is broken down into smaller milestones By focussing on each smaller sub project it is easier to achieve a successful end product BCX do identify ownership of each of the smaller sub projects 4. Effective risk management Effective risk management is very important If risks are not properly managed it will have a negative impact on the project, it could cause costly delays and could ultimately cause the project to be unsuccessful BCX identify the risk, determine the impact, determine the probability that this might take place and from this the impact factor is determined The impact factor is calculated on a scale of 0 to 20 Any impact factors of 7 and less are classified as low and are managed by the project manager Anything between 8 and 12 is medium impact Anything more than 12 is classified as a high impact and is managed together with a project board on a daily basis The project manager is responsible for controlling the risks 5. Competent team Competent team members lower the risks to the project Competent team is ultimately responsible for the success of the project The project does share resources with operations Resources do sometimes get pulled from the projects in order to resolve high priority operational tasks This is always communicated properly and is managed thoroughly by both the project manager and the line of business manager The project manager works with the resource manager to plan the amount of resources that will be needed for the project Next the respective line managers are responsible to identify and assign the correct resources to the project 60 4.2.5.7 Closing It is necessary for complex projects to have a project manager who have a strong technical background. It helps to understand and identify the risk associated to the project more accurately. 4.2.6 Interview 6: William Pretorius, Project Manager of Business Connexion 4.2.6.1 Background of interviewee William Pretorius has 22 years experience in the IT industry of which the past nine years have been in project management. 4.2.6.2 Organisation’s definition of project success A project is successful if the product is delivered within the customer’s requirements and within time and budget. The functionality of the end product is very important and BCX will even make a loss in order to deliver the correct functionality. 4.2.6.3 Organisation’s definition of project management success BCX measures project management success by means of KPIs. Each one of the resources on the project has their own KPIs that are specific for their function against which they get measured. 4.2.6.4 Project management methodology BCX works according to the Prince 2 methodologies. 4.2.6.5 Importance of CSFs in the organisation BCX does not directly focus on critical success factors when managing a project. 4.2.6.6 Classify and review the CSFs in the organisation Due to the time constraints of the interviews and the availability of the interviewees, only the top five CSFs were listed, ranked and further investigated. Table 4.6 describes the top five CSFs from the interview with Pretorius (The full interview is attached as Appendix G). 61 Table 4.6: Top five CSFs from interview with Pretorius CRITICAL SUCCESS FACTORS KEY POINTS 1. Skilled and experienced project manager A skilled and experienced project manager is one of most important CSFs The project manager is the only person that has a view over all of the activities The project manager is responsible for controlling and monitoring each activity BCX project managers do project management courses at the University of Stellenbosch All project managers are encouraged to do the Prince 2 certification BCX encourages self development The project manager is selected for a project based on their skill and experience level The project manager is also chosen based on customer preference If no one is available with the right skill level someone is chosen who is available with the nearest skill and experienced levels A coach is also assigned to give guidance and advice The project manager is responsible for managing scope, risk, communication and financials The project manager is responsible for all the management and control functions associated with the project 2. Clear goals and achievable deliverables Clear goals and achievable deliverables are very important for project management success Otherwise the project manager will never know how to plan each activity and the project management success will not be successful No, not all the stakeholders agree on all the goals of the project It is not always viable to get all the stakeholders agreement During presales all the functionality is researched before it is proposed All the uncertainty is tested during a proof of concept It still happens that some of the deliverables are not always achievable 3. Comprehensive project management plan The project management plan is especially important for successful project management If all the components of a project management plan are done thoroughly it usually means that the proper planning has been done for the project With smaller projects the project management plan is used as a 62 planning tool With smaller projects all the documentation is not always included The amount of details included in the documentation depends on the following: Size of the budget The number of resources involved from BCX The number of outside companies involved The project management plan always includes: o risk management o change management o communication management o financial management The project plan gets used as a control tool BCX have a central database that gets updated on a weekly basis The central database is used as a control tool for the project All the stakeholders have a view to the database and can monitor the project status All the stakeholders do not always sign off on the project plan I personally try and get as many stakeholders to sign off the scope of the project 4. Well defined scope Without a well defined scope the projects do not have boundaries and it is difficult to close get closure A project without a well defined scope often has scope creep and ends up running over time and budget The project office is involved from the beginning of the proposal During the presales the scope for the project is already done The scope as well as all the inclusions and exclusions of the project are documented 5. Good quality control Quality control is important, because the project must adhere to the functional specifications as defined in the project plan Over achieving is not financially viable for the company Under achieving means that the project is not delivering according to what was agreed upon BCX focuses on delivering the exact quality that was defined in the scope and functional specification The engineers on the project are responsible to ensure that the quality is adhered to BCX also use systems engineers, who are responsible for the project as a whole The systems engineers ensure and verify the quality of each 63 deliverable and end product The quality of the project is controlled with systems assessment tests which are documented and signed off by the systems engineer and the customer 4.2.6.7 Closing In the IT industry it is necessary for the project managers to have good technical knowledge in order to successfully manage complicated projects. Project managers with good technical knowledge better understand the different components and the risk associated with each activity. If a very detailed architectural plan is done it is not always necessary for the project manager to be that technical. 4.3 RESEARCH RESULTS The following conclusions are applicable to the literature study as well as relative CSFs in successful project management in SA ICT companies and were derived from the content analysis depicted in Tables 4.1, 4.2, 4.3, 4.4, 4.5 and 4.6. From the 16 CSFs identified in the literature study, the top five CSFs were ranked by each interviewee and analysed by the researcher by means of guided discussions. In the sample interviews 12 CSFs were identified and are discussed in section 4.3.1. The four CSFs that were not identified by the interviewees are discussed in section 4.3.2. For easy reference the conclusions were divided and summarised into sections and are to be viewed in context relative to the top five CSFs of each interviewee. 4.3.1 CSFs identified in the sample interviews The 12 CSFs identified by the interviewees are discussed below. 4.3.1.1 Top management support The following is an amalgamation from the interviews conducted: Top management support is of critical importance for successful project management. Strategically top management support is essential. Organisation should have a project management mindset. Top management should support all projects. The project should be in line with the business strategy. Top management use their authority to influence a project when needed. 64 Top management should lead by setting the example by supporting the project office. The whole origination should have a project management mentality and it is only possible with top management support. Top management help making project selection for the organisation. Top management also give high level guidance and support to the project. Top management are also part of the project steering committee. The rest of the project team show more commitment when they know that top management is monitoring their actions. The project team are also more responsive when issues are escalated to them. 4.3.1.2 Skilled and experienced project managers The following is an amalgamation from the interviews conducted: It is of essential for project management support that the project manager (PM) is skilled and experienced. A PM must be able to envision the entire project from start to finish, and have the ability to comprehend this vision. The PM is the single person that has a view of all of the activities of all the project resources. The PM is responsible to control and monitor each activity. The PM is also responsible to control all the other items such as cost, risk and the communications of the project. PM needs to keep the sponsors updated and informed. In organisations PMs are motivated to do training and certification. Most organisations recommendation Project Management Professionals (PMP) certification. Senior project managers are responsible to do knowledge transfer to junior project manager. Companies do resource management in conjunction with their other business units. 65 It is not always possible to schedule certain project managers for certain types of project. Most of the time companies select project managers on availability of PM with specific skill set. If no one is available with that specific skill set, a capable PM is selected and mentor assigned to assist PM. The project manager is also chosen on customer preference. PM is responsible for the all the control and management functions on a project. PMs are also involved during the presales stage of the proposal, because the project manager must help to determine whether the deliverance of the project is possible. 4.3.1.3 Comprehensive project management plan The following is an amalgamation from the interviews conducted: A comprehensive management plan is exceptionally important for project management success. A comprehensive project management plan includes the following CSFs: clear goals and achievable deliverables, break project down into smaller milestones, well defined scope, proficient scope control, accurate cost management, effective risk management, good quality control, effective change management and communicate early and often. Most companies do not focus on any of these areas specifically, they focus on the PMP as a whole. The PMP consists of project definition and the governance thereof. The governance of the project includes all the various control and management areas. Projects are classified according to their size and complexities. Most companies use two to three categories of classification; transactional and full blown projects. 66 For each, the project management concepts are the same, but everything is not documented. Transactional projects are small projects that involve typically the installation of only a few devices, the only items included in the PMP are the financials and the delivery specifications. Full blown projects include all the elements of the PMP. The PMP is used as a control tool. Companies have a share point system that is updated regularly and any project stakeholder has access to the project’s portal. Companies do this in order to get a unified view on the project. 4.3.1.4 Competent team The following is an amalgamation from the interviews conducted: With a competent team risks are lower and project management is more successful. The project manager works in conjunction with the line of business manager to determine the skill level needed for the work as determined in the work breakdown structure. The line of business manager is responsible to do resource planning according to the projected utilisation of the project team members. With competent team members the risks to the project are generally lower. Competent team members know how to handle difficult issues and situations before they get to be real problems. Most projects share resources with operations. Engineers must be able to manage time properly. Engineers must escalate issues before they become problems. 4.3.1.5 Resources availability The following is an amalgamation from the interviews conducted: 67 The availability of project resources is extremely important for the success of the project. It is important because if the resources are not available the project falls behind its schedule. In all companies it is a challenge to secure resources to the project. Resources are not dedicated to only one project at a specific time and are shared by operations. In most companies operational tasks get priority over project tasks. Due to workload, engineers generally do not get the proper time to prepare for the project work. This leads to mistakes and costly rework. It is business as usual for the project resources and they need to keep their SLAs to their clients. 4.3.1.6 User / customer involvement The following is an amalgamation from the interviews conducted: Customers are frequently involved in the project, they generally are involved on a daily, weekly and monthly basis. The customers are ultimately the sponsor for the project. A customer should be involved from the beginning to the end. The more the customers are involved, the more they understand the solution and the easier they understand when there are issues on the project. By involving customers on a more frequent basis, better and stronger relationships are built. The goalpost will move during the project and it is impeccable that the customers are involved during the whole process in order to communicate this to them. It is not always easy and possible to get everything out of all the stakeholders. 68 4.3.1.7 Communicate early and often The following is an amalgamation from the interviews conducted: Communication is critical for project management success. If the project manager communicates effectively and on a regularly basis, the stakeholders are far more relaxed. The stakeholders build up trust in the project manager. Most of the project communication is done by email. If people put things in writing they generally mean it and tend to stick to it. This is also done for record purposes. Due to the fact that the customers are involved and updated as often as possible, it is not always necessary to have weekly update sessions. The update sessions are truly just update sessions and not lengthy sessions in which everything is discussed in detail. The project manager is responsible for all communication. All communication is channelled through the project manager. 4.3.1.8 Well define scope The following is an amalgamation from the interviews conducted: It is exceptionally important to define the scope of the project before it actually starts. Without a well defined scope the project simply does not have boundaries and it is very difficult to get closure. Project scope is the foundation on which the schedule, budget and resource plans are built. Getting it wrong could have a serious impact on the success of the project. As much detail as possible is included in scope definition. During scoping sessions as much detail as possible is gathered. Scope definition includes project inclusions and exclusions. 69 Most organisations use the scope definition workshops to draw up functional documents. Scope will probably change during the life of the project, but if the change is planned and managed, scope creep can be avoided. 4.3.1.9 Effective risk management The following is an amalgamation from the interviews conducted: Everybody involved in the project is responsible for identifying risks. The project manager is responsible for controlling the risk. The project manager works in conjunction with the steering committee to assess risk and draw up action plans to mitigate the risks. The project manager often relies on the project resource expertise to identify risks and help control the risks. It is important to identify risks early and escalate them in order to get action and resolution quickly. Most companies rely heavily on the steering committee in their risk management process. Issues that arise during the project need to be addressed quickly before they impact the project. If risks are not properly managed it will have a negative impact on the project, it could cause costly delays and could ultimately cause the project to be unsuccessful. Companies identify the risk, determine the impact, determine the probability that this might take place and from this the impact factor is determined. The impact factor is quantified in order to determine how the risk should be managed. 4.3.1.10 Clear goals and achievable deliverables The following is an amalgamation from the interviews conducted: 70 Clear goals and achievable deliverables are important, because if the deliverables are not clear it opens the door for grey areas. It is very difficult to deliver a project successfully if you are not sure if it is even going to work. Not all stakeholders always agree on the goals of the project. It is difficult to get everybody’s agreement, but with most projects when the project sponsor agrees, the project will continue. Great care is taken to ensure that all the project deliverables are achieved during the presales or proof of concept phases. 4.3.1.11 Break project down in smaller milestones The following is an amalgamation from the interviews conducted: Project does get broken down in smaller projects. It is especially important to break big complex projects down into smaller sub projects. It is important because this way you minimise the risk, because it is easier to control and manage smaller projects. Prince 2 defines the finale deliverable as a product. The product is broken down in smaller milestones. By focussing on each smaller sub project it is easier to achieve a successful end product. Companies do identify ownership of each of the smaller sub projects. 4.3.1.12 Good quality control The following is an amalgamation from the interviews conducted: Quality control is important, because the project must adhere to the functional specifications as defined in the project plan. Over achieving is not financially viable for the company. Under achieving means that the project is not delivering according to what was agreed upon. 71 Companies focus on delivering the exact quality that was defined in the scope and functional specification. The engineers on the project are responsible to ensure that the quality is adhered to. Companies should also uses systems engineers, who are responsible for the project as a whole. The systems engineers ensure and verify the quality of each deliverable and end product. The quality of the project is controlled with systems assessment tests which are documented and signed off by the systems engineer and the customer. 4.3.2 CSFs not identified in the sample interviews In addition to the 12 CSFs identified and discussed in the sample interviews, the literature review also identified good architecture, proficient scope control, accurate cost management and good quality control. The literature study (paragraph 2.2.11) Rozenes, Vitner and Spragett (2006) and Marchewka (2007) identified scope, cost, risk, quality and change management as project control tools that are important for successful project management. A comprehensive management plan encompasses all of the above which indicates that when focusing on the project management plan as a whole it also covers proficient scope control, accurate cost management and good quality control. It is the opinion of the researcher that good architecture forms part of the presales technical phase and should not be seen in context of project management and is not a key factor that influences the success of project management. In Table 4.7 each interviewee’s top five CSFs are summarised: 72 Table 4.7: Interview summary Researchee Marius Beylefeld 1st CSF Top management support 2nd CSF Skilled and experienced project manger Kevin Treweek Resources availability User / customer involvement Johan Stolz Well defined scope Vanessa Du Toit User / customer involvement Comprehensive project management plan Top management support Christo Welgemoed Well defined Comprehensive scope project management plan Skilled and Clear goals and experienced achievable project deliverables manager William Pretorius 4.3.3 3de CSF Comprehensive project management plan Skilled and experienced project manager Communicate early and often 4th CSF Competent team 5th CSF Not applicable Communicate early and often Effective risk management Well define scope Competent team Clear goals and achievable deliverables Effective risk management Communicate early and often Well defined scope Good quality control Break project down into smaller milestones Comprehensive project management plan User / customer involvement Competent team Calculation of the top five CSFs The method used to calculate the top five CSFs of project management in the SA ICT companies was an adapted weighted multi-criteria decision analysis. First the 16 CSFs identified in the literature and the research results of each interviewee were listed in a matrix (Table 4.8). Next the results from each sample interview were given a weight out of five, five being the highest weight. Next the sum of each CSF was calculated. According to the analysis, the top five CSFs are as follows: 1. Comprehensive project management plan 2. Well defined scope 3. Skilled and experienced project manger 4. User / customer involvement 5. Top management support 73 Table 4.8: Research result calculation Top management support Skilled and experienced project manger User / customer involvement Clear goals and achievable deliverables Comprehensive project management plan Break project down into smaller milestones Good architecture Resources are availability Well defined scope Competent team Proficient scope control Accurate cost management Effective risk management Good quality control Effective change management Communicate early and often 4.4 Marius Beylefeld 5 Kevin Treweek 4 3 4 Johan Stolz Vanessa Du Toit 4 Christo Welgemoed 5 1 5 4 4 4 6 3 14 3 5 5 5 2 3 2 5 1 2 2 3 1 13 6 4 1 2 12 10 3 1 Total 9 2 3 William Pretorius 1 6 CONCLUSION In this chapter the researcher extracted applicable information from the conclusions derived from the interviews. The 16 CSFs that were identified in the literature study were tested and ranked by a representative sample of project managers of SA ICT companies. Next the CSFs found in the interviews were quantified in order to determine the top five CSFs of project management of SA ICT companies. The researcher found that the conclusions derived from the interviews support the literature study. 74 CHAPTER 5 SUMMARY, RECOMMENDATIONS AND CONCLUSION 5.1 INTRODUCTION In the project management context there are key factors that influence the success of project management. These key factors were identified and discussed on a review of the literature. By means of personal interviews these CSFs were tested against a representative sample of project managers of SA ICT companies. The research question for this research report is the following: What are the Project Management Critical Success Factors of large SA ICT companies? The objective of this study was to determine the top five project management CSFs in the South African ICT environment. This could help to limit the risk of not finishing within the time frame, and to ensure desired quality with optimal use of resources within the allocated budget of the project. The secondary objective of this study was to determine during which stages of the project methodology these CSFs occur. This could ultimately contribute to a higher project management and project success. 5.2 CONCLUSIONS FROM INTERVIEWS AND THE LITERATURE STUDY The conclusion of this research report is sub divided into the two research objectives. The first objective is to review the top five CSFs in SA ICT environment. The second objective is to identify which phases of project methodology are most crucial for project management success. 5.2.1 The CSFs of project management in SA ICT companies The researcher found that the literature study and the interviews, which consisted of theories and views from a number of SA ICT representative project managers, supported each other in several ways. 75 The project methodologies of three reviewed ICT companies are PMBOK, Prince 2 or a methodology adopted for their unique business environment. The three reviewed ICT companies define and measure project success in similar manners. A project is classified as successful when the product is delivered within the customer’s requirements and within time and budget. The functionality of the end product is very import and great emphasis is placed on delivering an end product with the correct specifications and functionality. Project management success is defined and measured by means of the KPIs of the project managers. South African ICT companies do not directly focus on any CSF, but indirectly they do focus on certain areas that will increase the probability of project management success. The research identified the following top five CSFs: 1. Comprehensive project management plan 2. Well defined scope 3. Skilled and experienced project manger 4. User / customer involvement 5. Top management support The results from the research of each CSF are reviewed below. Comprehensive project management plan The literature review (paragraph 2.2.1.5), as well as the feedback from the sample interviews (paragraph 4.3.3), defined that the project management plan consists of a project definition and the governance of the project. According to the PMI, the governance of the project includes all the various control and management areas. The literature study (paragraph 2.2.1.5) and the feedback from the sample interviews (paragraph 4.3.3) both stated that a comprehensive project management plan includes clear goals and achievable deliverables, breaking projects down into smaller milestones, a well defined scope, proficient scope control, accurate cost management, effective risk management, good quality control, effective change management and good communication. The focus is not on any particular area, but rather on the project management plan in its entirety. The literature study (paragraph 2.2.1.5) and the feedback from the sample interviews (paragraph 4.3.3) both support that the amount of documented detail in the project 76 management plan is determined by the category of project. The project category is classified according to the financial size, the number of internal and external resources and the risks associated with the project. The project management concepts and methodology are the same for the all the different project categories. According to the interviewees, the probability of a successful project increases when more detail is added to the project management plan. The project management plan is used as a control tool. It is used for tracking and monitoring each activity. This is especially important when managing large and complex projects. A central database is used for tracking and monitoring project progress. All the project stakeholders have a view to the project dashboards through a database portal. According to the interviewees, the project management plan acts as an early warning system when it is used as a control tool. Well defined scope The research conducted in the literature (2.2.1.9) and the sample interviews (paragraph 4.3.8) proved that it is exceptionally important to define and sign off project scope before the project actually starts. Project scope is the foundation on which the schedule, budget and resource plans are built. Both the literature review (paragraph 2.2.1.9) and the sample interviews (paragraph 4.3.8) stated that getting it wrong could have a serious impact on the success of the project. Without a well defined scope the project simply does not have boundaries and it is very difficult to get project closure. According to the interviewees, projects without a well defined scope often have scope creep and end up running over time and budget. Research conducted in the literature (paragraph 2.2.1.9) and the interviews (paragraph 4.3.8) illustrated that when the scope definition was done during presales it is more accurate, especially from a budgeting perspective. Companies include as much detail as possible in scope definition and the scope as well as all the inclusions and exclusions of the project must be documented. Scope workshops must be done with all stakeholders in order to get their inputs. The end result will be a functional document that the engineer can use as a baseline. It is not always easy and possible to get all the requirements out of all the stakeholders, but the key stakeholders and the sponsor must agree and sign off the project scope definition. Project scope is most likely to change during the life of the project, but if the change is planned and managed, scope creep can be avoided. According to the research, if changes 77 to the scope of a project go through a mature scope change control process, it will allow for scope change to be done in a planned manner and will minimise the risk for time and budget overruns. Skilled and experienced project manger The research conducted in the literature (paragraph 2.2.1.2) and the sample interviews (paragraph 4.3.2) both identified a skilled and experienced project manager as imperative to the successful implementation of a project. A project manager must be able to envision the entire project from start to finish, and have the ability to comprehend this vision. A project manager is responsible for the delivery of the assigned project on schedule, within budget and meeting the expectations of the client. The project manager is ultimately the one person that controls and monitors all the individual activities and tasks. The project manager is responsible for integration, scope, time and cost, quality, human resource, communication and risk management. Project managers are encouraged to ensure self development, but they also get sponsored to do official certification. Senior project managers are responsible for knowledge transfer and for mentoring their junior colleagues. Project resource management is done in conjunction with other business units. Project managers are selected according to skill and experience levels. If no project manager is available for the specific project, the next best available skilled and experienced project manager is selected. A mentor, with the right skill set, is then assigned to give guidance and support. Clients prefer and sometimes insist on project managers that are familiar with the environment and customer base. The sample interviews identified that there is a strong focus on involving project mangers earlier in the sales cycle. Project managers are getting involved during the presales stage of the proposal in order to assist in determining the deliverables and costing of each activity. User/customer involvement The literature research (paragraph 2.2.1.3) and the sample interviews (paragraph 4.1.3) both stated that it is of utmost importance for project management success that the customer is part of the project and project processes as much as possible. Customers 78 should be involved from the planning phases of the project, by means of workshops right through to the project closure phases. Customers need to know exactly how the systems should function and perform. This will help with problem management and it will also help the customer to understand exactly what the project entails. The customer also needs to agree to the inclusions and exclusions from the project scope. The researcher identified that the more customers are involved during a project the better the customer understands the solution and the easier it is to get sign off. The customers are ultimately the sponsor of the project and need to be treated that way. Top management support The perceptions of the interviewees coincided with that of the available literature (for more details see paragraph 2.2.1.1 of the literature study and paragraph 4.3.1 of the research results from the interviews). Both depicted that strategically top management support is of critical importance for successful project management and that the project must be in line with the business strategy, otherwise there is no benefit to the company. According to the research, when top management is very sales orientated the project office will suffer. The whole origination needs to have a project management mentality and it is only possible with top management support. Top management needs to lead by setting the example. The role and responsibility of the top management include making policy decisions, removing organisational obstacles, doing project selection and also giving high level guidance and support to the project. Top management uses their authority to influence the project. The top management, the project sponsors, the project manager and some other senior key stakeholders form part of the project steering committee. The primary purpose of the project steering committee is to provide overall guidance and direction to the project. The steering committee also need use their authority and influence to quickly and effectively help resolve certain type of problems. Open ended question In closing, an open question was asked where the interviewees were given an opportunity to express themselves freely regarding the necessity for ICT project managers to have a strong technical background for successful management of ICT projects. 79 The overwhelming response, five of the six project managers interviewed, was that it is necessary. In other industries it is not always necessary for the project manager to understand the technical aspects, but in the IT industry it is necessary. In other industries project managers simply follow the project management methodology, but due to the complexities of ICT projects, project managers need to have a very good technical knowhow in order to understand the complexities of the solution. The project managers that understand the solution, do manage the different components more effectively. 5.2.2 Grouping of CSFs in project life phases Top management support and skilled and experienced project managers span over all four phases of the project life cycle. User / customer support spans over the first three phases and comprehensive project management plan and well defined scope span over the project planning and project execution and monitoring phases. This indicates that the project planning and project execution and monitoring are the most crucial for project management success (Table 5.1). Table 5.1: CSF grouped in project life cycle Project success factor Project initiation Project planning Project execution and monitoring Project closure Top management support Skilled and experienced project manager User/customer involvement Comprehensive project management plan Well defined scope 5.3 RECOMMENDATIONS FOR FURTHER RESEARCH This research focused on identifying the CSFs in SA ICT companies. The researcher suggests that further research can be conducted in methods which will result in an increase in the project management success for ICT projects by focussing on the identified CSFs in this study. 80 5.4 CONCLUSION In the project management context there are certain key factors that influence successful project management. These key factors were identified and discussed during a review of the literature. The key factors found in the literature review were tested against the South African ICT environment by means of personal interviews. Identifying the critical success factors was done in order to limit the risks of not finishing within the time frame of the project, and to help ensure that the desired quality with optimal use of resources within the allocated budget of the project was achieved. The aim of the study was ultimately to identify the CSFs in order to increase the project management success. The objective of this study was to determine the top five project management CSFs in the South African ICT environment. The secondary objective was to determine during which phases of the project life cycle these CSFs occur. South African ICT companies do not directly focus on any CSF, but indirectly they do focus on certain areas that will increase the probability of project management success. The research identified the top five CSFs as a comprehensive project management plan, well defined scope, skilled and experienced project managers, user / customer involvement and top management support. 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What project management methodology does your organisation follow? 6. Does your organisation concentrate on critical success factors when managing projects? 7. What are these critical success factors (use questions below as guidelines)? During the literature review the following 16 CSFs were identified (not in order of importance): 1. Top management support 1. Do top management support all your projects? 2. Do they use their authority to influence your projects? 3. How do they influence your projects? 4. How important is top management support for project management success in your organisation and why is it important? 2. Skilled and experienced project manager 1. What training does your project managers do? 2. How do you select your project managers for certain projects? 3. What roles and responsibilities do PMs have, for instance do they manage scope, risks, communication, etc? 4. How important is a skilled and experience project manager for project management success in your organisation and why is it important? 3. User / customer involvement 1. How much is the user / customer involved during the different stage of the project? 2. How important is user/customer involvement for project management success in your organisation and why is it important? 4. Clear goals and achievable deliverables 1. Do all the project stakeholders always agree on the goals of the project? 90 2. Is all the project deliverables always achievable? 3. How important is clear goals and achievable deliverables for project management success in your organisation and why is it important? 5. Comprehensive project management plan 1. How much detail do you include in your project management plan? 2. Do you use the project management plan as a control tools? 3. Do all the stakeholders sign off the project management plan before the project starts? 4. How important is a project management plan for project management success in your organisation why is it important? 6. Break project down in smaller milestones 1. Do you break the project down in very small sub projects? 2. Do you identify ownership of the sub projects? 3. How important is breaking the project down in smaller milestones for project management success in your organisation and why is it important? 7. Good architecture 1. How important is good architecture for project management success in your organisation and why is it important? 8. Make sure the resources are available to the project 1. How difficult is it to secure resources for projects? 2. Do resources often get pulled of projects? 3. How important is to make sure the resources are available to the project for project management success in your organisation and why is it important? 9. Well defined scope 1. How much detail do you include in your scope definition? 2. How important is it to define scope for project management success in your organisation and why is it important? 10. Competent team 1. How is the project team selected? 2. How important is a competent team for project management success in your organisation and why is it important? 91 11. Proficient scope control 1. What method does your organisation use to manage the scope of the project? 2. How important is proficient scope control for project management success in your organisation and why is it important? 12. Accurate cost management 1. What methods does your organisation use to control the costs of the project? 2. Who is responsible for controlling the costs? 3. How important is accurate cost management for project management success in your organisation and why is it important? 13. Effective risk management 1. What is your organisation’s project risk management methodology? 2. Who is responsible for controlling the risks? 3. How important is effective risk management for project management success in your organisation and why is it important? 14. Good quality control 1. Does your organisation focus on delivering quality as defined in the scope or do you deliver more than what was agreed upon? 2. Who is responsible for controlling the quality of the deliverables? 3. How important is quality control project management success in your organisation and why is it important? 15. Effective change management 1. What is your organisation’s project change management methodology? 2. How important is change management for project management success in your organisation and why is it important 16. Communicate early and often 1. What is your organisation’s project communication methodology? 2. Who is responsible for communication during the project? 3. How important is communication for project management success in your organisation and why is it important? 8. What is the order of importance of these CSF in your organisation? 92 APPENDIX B INTERVIEW 1: MARIUS BEYLEFELD, HEAD OF PROJECT OFFICE, DIMENSION DATA Researcher: Please give a short synopsis of your working background, positions held and main experience. MB: I have 12 Year experience in IT industry. Started my project management career at Sanlam, where I worked for as a project manager for 5 year. I next move to BSW data where I worked for 4 years as a project manager working mainly with software development. Next I moved to Dimension Data as a line manager in the networks department. I mostly managed the network, server and security engineers. In this position I gained a lot of experience in especially technical solutions. For the last four years I have been managing the Western Cape Project Office and Professional services business. I did a few project management methodology courses, including Prince, System Corp. and Mid P. I also recently completed my Project Management Professionals (PMP) certified. Before my project management career I studied Human Resource management at the Free State University. I completed the Management Development Program (MDP) at the University of Stellenbosch. Researcher: Please state your current position and the core function of this position? MB: I’m head of the Project Office of Dimension Data, as well as the Professional Services business. Researcher: How does your organisation define and measure project success? MB: DD do project management to make money, to be profitable. DD primarily uses budget and time to measure project success. Under this fall other items as implementing the solution according to the project management plan, according to process, etc. DD uses time and budget as the measurement for successful projects; because if anything else slips it will influence these two. For instance if a project runs over time DD loses money in the form of opportunity costs due to project managers and engineers that are tied up for longer than scheduled and this means they can’t be assigned to other projects. 93 Researcher: How does your organisation define and measure project management success? MB: DD measures project management success by means of the KPIs of each project manager and engineer. For instance under the KPIs for project managers they get measured according to how they do resource planning as this influence how the line manager should on their turn do resource capability planning. Project management success also gets measured according to how much of the process specified in Primer have been follow throughout the project. The idée with the KPIs are to install certain behaviour in the project managers in with project management success with result from. Part of the KPIs of the senior project managers are mentoring and couching of junior or other project manager who have not done project management in a specific line of business before. Researcher: What project management methodology does your organisation follow? MB: Dimension Data uses an in house developed methodology called Primer. It is used internationally throughout Dimension Data. Primer is based on the 9 primary knowledge areas of PMBOK. Primer is developed especially for the Dimension Data business environment. Researcher: Does your organisation concentrate on critical success factors when managing projects? MB: Dimension Data do not specifically focus on CSF directly, but indirectly there are certain areas of project management that if focussed on will increase the probability of project management being successful. Researcher: Please list and rank the top 5 CSF in your organisation from the following list? 1. Top management support 2. Skilled and experienced project manager 3. User / customer involvement 4. Clear goals and achievable deliverables 5. Comprehensive project management plan 6. Break project down in smaller milestones 94 7. Good architecture 8. Make sure the resources are available to the project 9. Well defined scope 10. Competent team 11. Proficient scope control 12. Accurate cost management 13. Effective risk management 14. Good quality control 15. Effective change management 16. Communicate early and often MB: Order of importance 1. Top management support 2. Skilled and experienced project manger 3. Comprehensive project management plan 4. Competent team Researcher: Do top management support all your projects? MB: Absolutely, we will not go ahead with a project if top management do not support the project. The project must be in line with the business strategy, otherwise it will be dropped. There is no benefit to the company if the project is not in line with the company’s strategy. If top management is very sales orientated the project office is going to suffer. Researcher: Do top management use their authority to influence your projects? MB: Top management do use their authority to influence a project when it is needed. Top management needs to lead by setting the example by supporting the project office. The whole origination needs to have a project management mentality and only with top management support this is possible. Researcher: How do they influence your projects? MB: Top management uses their authority to influence projects. It is the project manager’s responsibility to escalate any issues to top management and they need to react. Top management can react in various ways but first and at most importance they motivate and show support to the project team and organisation. 95 Researcher: How important is top management support for project management success in your organisation and why? MB: Strategically top management support is critical important. If the business wants to make a decision top management will contact me and ask this is in order with the project office and I say that it is fine they will go with the suggestion and support the project office. DD have a project management mindset, it is not what I think it should be but we are getting there. Researcher: What training does your project managers do? MB: We have just begun to do in house training on Primer. The entire senior manager team also had the opportunity to do the Project Management Professionals (PMP) certification. Many of them recently successfully completed the PMP. We also do a lot of shadowing in the project office. Whenever there are a certain type of project that a senior project manager is involved in it is his responsibility to do on the job practical training to more junior or less experienced project managers. It is part of their KPI, so they actually get measure according to it. Researcher: How do you select your project managers for certain projects? MB: We do resource management as all the other business units in DD do. Due the fact that the duration of most of the large projects are for an extended period, it is not always possible to schedule certain project managers for certain type of project. Most of the time we select project manager on who is available that have knowledge of such a type of project. If there are nobody available with that type of skill, someone is selected that will be able to manage the project and a mentor is assigned to him. Researcher: What roles and responsibilities do PMs have, for instance do they manage scope, risks, change, communication, etc? MB: A project manager must be able to envision the entire project from start to finish, and have the ability to comprehend this vision. The project manager is responsible for the all the control and management functions on a project. This includes risk, scope, financial and communication management. The project managers are also involved during the presales stage of the proposal. We are focusing on this more, because the project manager must help to determine with the deliverance of the project is possible. 96 Researcher: How important is a skilled and experience project manager for project management success in your organisation and why? MB: It is of critical importance that that the project manager is skilled and experienced. The project manager is the single person that has a view on all of the activities of all the project resources. The project manager is responsible to control and monitor each activity. He is also responsible to control all the other items as cost, risk and the communications of the project. He needs to keep the sponsors updated and informed. Researcher: How much detail do you include in your project management plan? MB: In DD the project management plan is the definition of the project and the governance of it. The governance of the project includes all the various control and management aspects of the project. Projects are classified according to their size and complexities and fall into one of two categories: 1. Transactional projects – this is a small project that involves typically the installation of only a few devices, the only items included in the PMP are financials and delivery specifications. The project management concepts are the same, but everything is not documented. 2. Full blown projects, this includes all the elements of the project management plan Researcher: Do you use the project management plan as a control tools? MB: DD absolutely uses the PMP as a control tool. DD has a share point system that is updated regularly. Any project stakeholder can go to the database and use it to monitor the progress of each activity. Researcher: Do all the stakeholders sign off the project management plan before the project starts? MB: Yes all stakeholders’ sign off the project management plan before the projects start. We do this in order to get a unified view on the project. Researcher: How important is the project management plan for project management success in your organisation and why? MB: A comprehensive management plan is extremely important. A comprehensive project management plan includes the following CSFs: clear goals and achievable deliverables, 97 break project down in smaller milestones, well defined scope, proficient scope control, accurate cost management, effective risk management, good quality control, effective change management and communicate early and often. At DD we do not focus on any of these areas specifically, we focus on the PMP which include all the areas. Researcher: How is the project team selected? MB: The project manager work together with the line of business manager to agree on which level of skill in needed to do the work as determined in the work breakdown structure. The line of business manager is responsible to do resource planning according to the projected utilisation of the project team members. Researcher: How important is a competent team for project management success in your organisation and why? MB: With a competent team risks are lower and project management are more successful. Researcher: Do you think that a strong IT technical background contributes to a successful ICT project manager? MB: In my case it definitely helps understand the project better, especially when it comes to bigger more complex projects. I definitely think that a technical background helps in delivering ICT projects successfully. This might be the case in projects where role of the project manager is purely just to manage the project management process and the documentation that goes along with this, for instance construction type projects. It is on the other hand dangerous for a project manager to have too much technical skill, especially technical configuration know-how, he then stand the risk to get technically to involved. 98 APPENDIX C INTERVIEW 2: KEVIN TREWEEK, PROJECT MANAGER, DIMENSION DATA Researcher: Please give a short synopsis of your working background, positions held and main experience. KT: 20 plus years in IT from Field Engineering to Sales Vice President of the Western Region USA Nortel Carrier Sales. 0ver 5 years experience in PM work in South Africa Researcher: Please state your current position and the core function of this position? KT: Project Manager for mostly one of our clients, Sanlam projects. Researcher: How does your organisation define and measure project success? KT: A project is successful if it met the customers’ requirement. A lot of the projects are driven on cost savings to the customer and customers typically classify a project as successful if they can see those cost savings. Researcher: How does your organisation define and measure project management success? KT: We use the typical criteria of in time, on budget and within cost to measure if the project management of the project was successful. Additionally we also measure successful project management by the final delivered product; was all required deliverables met. Researcher: What project management methodology does your organisation follow? KT: We use Primer, but ultimately most methodologies, like PMBOK and Prince2 have a lot of similarities. Researcher: Does your organisation concentrate on critical success factors when managing projects? KT: Not directly, but we do focus on some areas more than others. 99 Researcher: Please list and rank the top 5 CSF in your organisation from the following list? 1. Top management support 2. Skilled and experienced project manager 3. User / customer involvement 4. Clear goals and achievable deliverables 5. Comprehensive project management plan 6. Break project down in smaller milestones 7. Good architecture 8. Make sure the resources are available to the project 9. Well defined scope 10. Competent team 11. Proficient scope control 12. Accurate cost management 13. Effective risk management 14. Good quality control 15. Effective change management 16. Communicate early and often KT: Order of importance 1. Resources 2. User / customer involvement 3. Skilled and experienced project manager 4. Communicate early and often 5. Define Scope Researcher: How difficult is it to secure resources for projects? KT: It is always a challenge to secure resources to the project, because resources are not dedicated to only the project. A project usually gets resources that are shared by operations and operational tasks gets priority over project tasks. It is only the really big projects that get dedicated resources and that also not for the whole duration of the project. This does not only cause headaches and frustration to just the project manager it also cause the engineers to stress. They do not get the proper time to prepare for the project work and this leads to mistakes and costly rework. The cost incurred for the rework 100 is not just the wasted engineering hours, but mostly for the disruptions and delays caused to business. Researcher: Do resources often get pulled of projects? KT: The resources often get pulled from the project, because the resources are shared by operations and operational work gets priority over project tasks. It is business as usual for the project resources and they need to keep their SLAs to their clients, but at the same time the project manager must stick to the project deadlines and are placed under pressure if tasks take longer than planned to complete. Researcher: How important is to make sure the resources are available to the project for project management success in your organisation and why? KT: It is extremely important for the success of the project. It is business as usual for the project resources and they need to keep their SLAs to their clients, but at the same time the project manager must stick to the project deadlines and are placed under pressure if tasks take longer than planned to complete. It is important because if the resources are not available the project fails behind its schedule. Researcher: How much is the user / customer involved during the different stages of the project? KT: They are frequently involved. They are involved in a daily, weekly and monthly basis. I include them as much as possible during the whole life of the project. The customers are ultimately the sponsor for the project and without their involvement and buying it the project will simply not be possible. A customer needs to be involved from the beginning to the end. Researcher: How important is user/customer involvement for project management success in your organisation and why? KT: The more the customer are involved, the more they understand the solution and the easier they understand when there are issues on the project. Relationships are built that makes the project manager’s job easier. It is also easier to escalate issues to them. Generally the customers are also more understanding. The goalpost will move during the project and it is impeccable that the customer are involved during the whole process otherwise the project will simply not be successful. 101 Researcher: What training does your project managers do? KT: We are starting an in house training program for Primer, but up to date we have done most of our training through Universities and self study. We also focus on shadowing and other on the job training. This is not always possible, but as far a time and availability permits this. Researcher: How do you select your project managers for certain projects? KT: We try and use project managers that are familiar with the environment and client. We also try aim to use project managers that have done a project of that kind or at least someone who have some experience in that field. Researcher: What roles and responsibilities do PMs have, for instance do they manage scope, risks, communication, etc? KT: A project manager is responsible for the delivery of the assigned project on schedule, within budget and meeting the expectations of the client. The PM is responsible for managing scope, risks, communication and all other project roles. Researcher: How important is a skilled and experience project manager for project management success in your organisation and why? KT: Without an experienced and skilled project manager the project will never be successful. A project manager is ultimately the one person that controls and monitors all the individual activities and tasks on a project. Researcher: How much detail do you include in your project management plan? KT: The amount of detail included in the documents depend on the type of project, it depend on the solution ultimately. I evaluate this on a case by case basis. For complex project I include more detail. For instance on projects that the risk to the business is high, we will include detail risk analysis plans, with will encompass detailed roll back plans. Researcher: Do you use the project management plan as a control tools? KT: No I do not use a project management plan as a control tool, because I found it cumbersome and I do not have the time to spend on for instance chant charts. I will do it only if the customer requests it. I work from action logs and dash board, that are typically in excel format, because I can work it. I have found that people general do not read and 102 that they prefer to receive only updates, which understand and to which they can react. I used to do detail project management plan for every project, but this lead to me being burnout and I found out the hard way that this actually not always necessary. Researcher: Do all the stakeholders sign off the project management plan before the project starts? KT: Not all stakeholders always sign off the PMP before the project. I do get sign off from the stakeholders that I have control over. It also depends on the size and complexity of the project. Researcher: How important is the project management plan for project management success in your organisation and why? KT: The PMP is important for the project management success, but for me it is more important to us the process as a planning tool, than to end up with a bunch of document that nobody read. Researcher: What is your organisation’s project communication methodology? KT: We do most of our communication by email; I have found that if people put things in writing they generally mean it and tend to stick to it. This is also done for record purposes. Due to the fact that I keep the client involved and updated as much as possible, I found that it is not that necessary to have weekly update sessions, but I still do it, but just to bring everybody on the same page. The update sessions are truly just update sessions and not lengthy sessions in which everything is discussed in detail. Researcher: Who is responsible for communication during the project? KT: The project manager is responsible for communication. Researcher: How important is communication for project management success in your organisation and why? KT: Communication is critical for project management success. I have found that if the project manager communicates effectively and on a regularly basis, the stakeholders are far more relaxed. The stakeholders build up trust in the project manager. 103 Researcher: How much detail do you include in your scope definition? KT: I include as much detail as possible. I have scoping sessions in which I try and get as much detail as possible. It is not always easy and possible to get everything out of all the stakeholders. Researcher: How important is it to define scope for project management success in your organisation and why? KT: It is exceptionally important to define the scope of the project before it actually starts. Project scope is the foundation on which the schedule, budget and resource plans are built. Getting it wrong could have a serious impact on the success of the project. Without a well defined scope the project simply do not have boundaries. Researcher: Do you think that a strong IT technical background contributes to a successful ICT project manager? KT: This may be true for some industries, but definitely not the IT industry. Project managers need to have a very good technical know-how in order to understand the complexities of the solution he delivers. If the project manager understands the solution he will be able to manage the deferent component more effectively. In my experience the project managers that come through the ranks before becoming a project manager are more successful project manager, especially in delivering more complex solutions. 104 APPENDIX D INTERVIEW 3: JOHAN STOLTZ, HEAD OF PROJECT OFFICE, GIJIMAAST Researcher: Please give a short synopsis of your working background, positions held and main experience. JS: I have been working in the IT industry for the last 20 years experienced. My experience range from a account manager, product manager and also a service delivery manager. I have been working for the past 10 years as a project manager. Researcher: Please state your current position and the core function of this position? JS: Project manager and head of project managing office Researcher: How does your organisation define and measure project success? JS: A project is successful if the quality of the end product is acceptable to the client. During the scoping process at the start of the project a comprehensive scope of work is agreed on by the al the stakeholders. This scope is altered with the proper scope changing process during the project. If the project is delivered according to the updated scope of work it is as a successful project. Researcher: How does your organisation define and measure project management success? JS: GijimaAst do not directly measure project management success, but I would say if all the milestones are achieved within the agreed quality, project management was successful. Researcher: What project management methodology does your organisation follow? JS: PMBOK 105 Researcher: Does your organisation concentrate on critical success factors when managing projects? JS: GijimaAst do not directly concentrate on certain CSF, but indirectly there are certain factors or areas of project management on our projects that we concentrate more on. The focus also shifts slightly for specific type of projects. Researcher: Please list and rank the top 5 CSF in your organisation from the following list? 1. Top management support 2. Skilled and experienced project manager 3. User / customer involvement 4. Clear goals and achievable deliverables 5. Comprehensive project management plan 6. Break project down in smaller milestones 7. Good architecture 8. Make sure the resources are available to the project 9. Well defined scope 10. Competent team 11. Proficient scope control 12. Accurate cost management 13. Effective risk management 14. Good quality control 15. Effective change management 16. Communicate early and often JS: Order of importance 1. Well defined scope 2. Comprehensive project management plan 3. Communicate early and often 4. Effective risk management 5. User / customer involvement Researcher: How much detail do you include in your scope definition? 106 JS: I always include as much detail as possible in the scope definition of any project. After determining the deliverables I get all stakeholders involved to further identify any items that need to be added. It depends on the type of projects, but mostly features and functionality are two items I focus on most. By the time the project gets to the project office the technical solution has already been specified and has already passed through the presales and architecture stages. The presales and architecture team must put to getter the functional specification document. The functional specification document is used to workshop the scope definition with the client and user in order to determine the scope of the project. The scope is documented as well as all the inclusions and exclusions of the project. Before work on the project starts the scope definitions must be signed off by al the stakeholders of the project. Researcher: How important is it to define scope for project management success in your organisation and why? JS: Scope determines the boundaries of the project. In my experience if the scope is not well defined the project drags on and eats into the profitability of the project. Users start play with the newly installed equipment and found new features and if the scope is not well defined, they demand that these features be implemented as part of the project. Due to the complexities and uncertainties of IT solutions it is not always possible to determine all the features before hand and it might be necessary to change the scope to accommodate these features. In order to avoid scope creep it is impeccable that proper change control possesses are in place. Researcher: How much detail do you include in your project management plan? JS: The amount of documentation done depends on the type of project. For smaller projects I normally do not document everything, otherwise you end up spending more time updating the project management plan, than executing each event. For each project I go through the whole project management process, in order to properly plan each activity and all the resources needed to complete each activity. I believe that the more detail you add, the easier it is to execute the project successfully. I always start with the work break down structure, followed by the projected time spend and resources needed on completing each activity which determine the responsibility matrix. 107 Researcher: Do you use the project management plan as a control tools? JS: I use the project management plan as a control tool, especially for the larger projects. For the larger projects with a lot of tasks running in parallel, it is not always easy to keep track of the progress of each activity, if you do not use the project management plan as a control tool. Researcher: Do all the stakeholders sign off the project management plan before the project starts? JS: All the stakeholders do not always sign off the project management plan before the project starts. The result is that the scope is not always signed of and this leads to scope creep. Researcher: How important is the project management plan for project management success in your organisation and why? JS: GijimaAst do not always follow the proper project management methodology and processes. They do not see the value in spending the necessary time on planning and as a result their project management plans have little detail. They tend to concentrate more on the execution phases. Researcher: What is your organisation’s project communication methodology? JS: We have weekly update sessions with all the stakeholders involved on the project. Researcher: Who is responsible for communication during the project? JS: The Project Manager is responsible for all the communication. All the stakeholders channel al communication through the project manager. Researcher: How important is communication for project management success in your organisation and why? JS: Communication is extremely importance for project management success. Without good communication time and resources are wasted. It is also important that the project sponsor be kept up to date with the high level progress of the project. Issues should be escalated to the project sponsor quickly. This will ensure that issues are resolved quickly and efficiently. 108 Researcher: What is your organisation’s project risk management methodology? JS: Everybody involved in the project is responsible for identifying risks. The steering committee assess the risks and draw up an action plan in order to mitigate the risks. Researcher: Who is responsible for controlling the risks? JS: The project manager is responsible for controlling the risk. The project manager works in conjunction with the steering committee to assess and mitigate the risks. The project manager often relies on the project resources expertise to identify risks and help control the risks. Researcher: How important is effective risk management for project management success in your organisation and why? JS: It is very important to identify risks early and escalate them in order to get action and resolution quickly. GijimaAst rely heavy on the steering committee in their risk management process. Researcher: How much is the user / customer involved during the different stage of the project? JS: Users/Customers are involved throughout the project. In my experienced I have found that the more you involve the customer the better the customer understand the solution and the easier it is to get sign off. I involve the customer in all my scoping sessions. This way the customer understands exactly what are included and more important excluded from the project scope. I also involve the customer as much I can during testing. I have found that this helps tremendous with them accepting the deliverables and deferent components to it. Involving the customers helps to resolve issues quicker and more efficiently and lead to the project begin more profitable. Researcher: How important is user/customer involvement for project management success in your organisation and why? JS: According to me GijimaAst do to put enough emphasis on user involvement during the project. They only involve the customers in the beginning scoping sessions of the project. In many project the customer do not understand the deferent components of the solution and when they this leads to delayed sign off and overruns not only on time, but also on cost. 109 Researcher: For successful project management is necessary for a project manager to have a strong technical background? JS: In other industries it is not always necessary for the project manager to understand the technical aspects, but in the IT industry it is necessary. In other industries project manager simply follows the project management methodology. 110 APPENDIX E INTERVIEW 4: VANESSA DU TOIT, PROJECT MANAGER, GIJIMAAST Researcher: Please give a short synopsis of your working background, positions held and main experience. VDT: I have been working in the IT industry for the past 7 years. I started my career as a service desk administrator and next moved to the project office as a project office administrator. I have been involved in the project office for the past 6 years of which the last 3 years was a project manager. Researcher: Please state your current position and the core function of this position? VDT: Project manager for mainly deployment of networks. Researcher: How does your organisation define and measure project success? VDT: A project can be regarded as successful if it falls within time; cost; resources are managed effectively and efficiently; communication is managed effectively; risks are identified and mitigated. However the relationship with the stakeholders of the project is of utmost importance. A project can meet all the above criteria but be seen as a failure to the stakeholders. Developing a respectful relationship with the client and ensuring that their best interest is taken to heart can also affect the success of a project. Researcher: How does your organisation define and measure project management success? VDT: Project Manager is defined and measure in our KPIs. Researcher: What project management methodology does your organisation follow? VDT: PMBOK 111 Researcher: Does your organisation concentrate on critical success factors when managing projects? VDT: Not directly Researcher: Please list and rank the top 5 CSF in your organisation from the following list? 1. Top management support 2. Skilled and experienced project manager 3. User / customer involvement 4. Clear goals and achievable deliverables 5. Comprehensive project management plan 6. Break project down in smaller milestones 7. Good architecture 8. Make sure the resources are available to the project 9. Well defined scope 10. Competent team 11. Proficient scope control 12. Accurate cost management 13. Effective risk management 14. Good quality control 15. Effective change management 16. Communicate early and often VDT: Order of importance 1. User / customer involvement 2. Top management support 3. Competent team 4. Clear goals and achievable deliverables 5. Communicate early and often Researcher: How much is the user / customer involved during the different stage of the project? VDT: Users/Customers are involved mostly during the scoping sessions. This helps the customer to understand exactly what the project entails. The customer also agrees to what 112 are included and excluded from the project scope. The users are also involved during the testing phases. Researcher: How important is user/customer involvement for project management success in your organisation and why? VDT: It is of utmost importance for project management success that the customer is part of the project. The customer must be involved as much as possible. This will help to manage the issues during the project and will help to have successful project management. Researcher: Do top management support all your projects? VDT: Top management must always support the project. They need to make the project selection as well as give high level guidance and support to the project. Top management are also part of the project steering committee. Researcher: Do top management use their authority to influence your projects? VDT: Top management uses their authority to influence a project. The rest of the project team show more commitment when they know that top management is monitoring their actions. The project team are also more responsive when issues are escalated to them. Researcher: How important is top management support for project management success in your organisation and why? VDT: Top management support is of critical importance for successful project management. Researcher: How is the project team selected? VDT: The project manager will indicate what type and how much resources are needed for each activity. Each business unit’s line manager will them allocate resources from their available resources that have the right skill set. Researcher: How important is a competent team for project management success in your organisation and why? VDT: With competent team members the risks to the project are generally lower, because they know how to handle different issues and situations before they get to be real 113 problems. Do to the fact that most projects share resources with operations it does take an engineer that can do proper time management and who knows when and how to get additional help. Researcher: Do all the project stakeholders always agree on the goals of the project? VDT: Not all stakeholders always agree on the goals of the project. It is difficult to get everybody’s agreement, but with most projects when the project sponsor agrees the project will continuous. Researcher: Is all the project deliverables always achievable? VDT: Great care is taken to ensure that all the project deliverables are achieved during the presales or proof of concept phases, but sometimes during the project certain issues arise. We then need to address these issues, before they impact the project success. Researcher: How important is clear goals and achievable deliverables for project management success in your organisation and why? VDT: Clear goals and achievable deliverables are important, because if the deliverables are not clear it opens the door for grey areas. It is very difficult to deliverable a project successfully if you are not sure if it is even going to work. Researcher: What is your organisation’s project communication methodology? VDT: We are always clear and transparent during our projects and this is done by communication to everybody throughout the project. It depends on the size, phase and complexity of the project, by we generally have weekly update sessions with the client. The project manager has daily update sessions with each project resource in order to accurately monitor each activity. Researcher: Who is responsible for communication during the project? VDT: All communication gets channelled thought the project manager and the project manager is responsible to communicate to everybody. 114 Researcher: How important is communication for project management success in your organisation and why? VDT: Without good communication the customer will get the impression that the project team do not have enough focus and urgency. It is especially important to communicate effectively when working in issues during the project. Researcher: For successful project management is necessary for a project manager to have a strong technical background? VDT: I think that a strong technical background helps to understand the deliverables of the project. It is not necessary for success full project management that the project manager must have a technical background 115 APPENDIX F INTERVIEW 5: CHRISTO WELGEMOED, PROJECT MANAGER, BUSINESS CONNEXION Researcher: Please give a short synopsis of your working background, positions held and main experience. CW: 25 years of experience in IT ranging from technical to management. I started as a systems engineer moved over to service manager later before moving to project management. Have been doing project management for the last 15 years ranging from project manager to project office management. I have done the theoretical training and entry exams for Prince 2. Researcher: Please state your current position and the core function of this position? CW: Project manager working for BCX Researcher: How does your organisation define and measure project success? CW: Work according to methodologies of Prince 2. We basically measure project success according to budget, time and within scope. Researcher: How does your organisation define and measure project management success? CW: Each project has a gross margin and if you reach your gross margin and you have your also reached your customers satisfaction you score point on KPI. Researcher: What project management methodology does your organisation follow? CW: Prince 2 116 Researcher: Does your organisation concentrate on critical success factors when managing projects? CW: We do a business case before the project and the factor identified in the business case do get priority and are been monitored throughout the project. We do focus on CSF indirectly. Researcher: Please list and rank the top 5 CSF in your organisation from the following list? 1. Top management support 2. Skilled and experienced project manager 3. User / customer involvement 4. Clear goals and achievable deliverables 5. Comprehensive project management plan 6. Break project down in smaller milestones 7. Good architecture 8. Make sure the resources are available to the project 9. Well defined scope 10. Competent team 11. Proficient scope control 12. Accurate cost management 13. Effective risk management 14. Good quality control 15. Effective change management 16. Communicate early and often CW: Order of importance 1. Well defined scope 2. Comprehensive project management plan 3. Break project down in smaller milestones 4. Effective risk management 5. Competent team Researcher: How much detail do you include in your scope definition? 117 CW: Any project’s scope of work and high level design gets done during the presales stage of the sales cycle. Further work will then be done to develop the project charter for the project. BCX puts a lot of emphasis on defining and developing the project scope. Scope sets the boundaries of the project and without this it impossible to deliver a successful project. The prince 2 methodology includes a lot of documentation and because we follow the methodology we have we detailed documentation. Researcher: How important is it to define scope for project management success in your organisation and why? CW: BCX puts a lot of emphasis on defining and developing a comprehensive scope together the sales and presales personnel. Scope sets the boundaries of the project and without this it impossible to deliver a successful project. BCX puts a lot of emphasis on defining and developing the project scope. Researcher: How much detail do you include in your project management plan? CW: The amount of detail included depends on three criteria; the financial size of the project, how much departments / outside companies are involved and how much resource are needed for the project. The amount of detailed documentation gets determinant on these factors, but the basis things like risk management, change management, communication management and financial management are always included in the project plan. Researcher: Do you use the project management plan as a control tools? CW: Before the project starts the project must be registered and during this phase the projects gets loaded on a central database to which all the project stakeholders have access to. This gets updated on a weekly basis and is used as a control tool for the project. Researcher: Do all the stakeholders sign off the project management plan before the project starts? CW: All the stakeholders do not always sign off on the project plan which includes the scope and all other components. With some project, it is not always easy to get all the stakeholders buy in and approval on items and issues during the project, because they 118 choose to respond to only items that they want to. In cases as this it is necessary to get the sponsors involved. Researcher: How important is the project management plan for project management success in your organisation and why? CW: The project management plan is very important. A lot work goes into developing a comprehensive plan and this plan gets updated and is used as a control tool during the life of the project. Due to the Prince methodology there a lot of documentation involved. The project plan starts developing from the start together with the sales team. This took some time to settle in the organisation, but after the sales and project management team saw the benefits, they focussed on making it work. Researcher: Do you break the project down in very smaller projects? CW: Yes we do break projects down in smaller projects. Prince 2 defines your finale deliverable as a product. The product is broken down in smaller milestones. By focussing on each smaller sub project it is easier to achieve a successful end product. Researcher: Do you identify ownership of the sub projects? CW: We do identify ownership of each of the smaller sub projects. Researcher: How important is breaking the project down in smaller milestones for project management success in your organisation and why? CW: It is especially important to break down big complex project down into smaller sub projects. It is important because this way you minimise the risk, because it easier to control and manage smaller projects. There are fewer things that I go wrong. Researcher: What is your organisation’s project risk management methodology? CW: We first identify the risk, next we determine the impact that it might have and then we determine the probability that this might take place. From this we determine the impact factor on a scale of 0 to 20. Any impact factors of 7 and less is classified as low and is managed by the project manager. Anything between 8 and 12 is medium impact and anything more than 12 is classified as a high impact and is managed and a project board on a daily basis. 119 Researcher: Who is responsible for controlling the risks? CW: The project manager is responsible for controlling the risks. Researcher: How important is effective risk management for project management success in your organisation and why? CW: Effective risk management is very important. If risks are not properly managed it will have a negative impact on the project, it could cause costly delays and could ultimately cause the project to be unsuccessful. Researcher: How is the project team selected? CW: The project manager work together with the resource manager to plan the amount of resources that will be needed for the project. Next the respective line managers are responsible to identify and assign the correct resources to the project. Researcher: How important is a competent team for project management success in your organisation and why? CW: Competent team members lower the risks to the project and ultimately are responsible for the success of the project. The project does share resources with operations and they do sometimes get pulled from the projects in order to resolve high priority operational tasks. This is always communicated properly and is managed thoroughly by both the project manager and the line of business manager. Researcher: For successful project management is necessary for a project manager to have a strong technical background? CW: In my experience it is necessary for complex projects to have a project manager who have a strong technical background. I have found that it helps me to understand and identify the risk more accurately. 120 APPENDIX G INTERVIEW 6: WILLIAM PRETORIUS, PROJECT MANAGER, BUSINESS CONNEXION Researcher: Please give a short synopsis of your working background, positions held and main experience. WP: I have 22 years experience in the IT industry of which the past 9 years was in project management. Researcher: Please state your current position and the core function of this position? WP: Project manager for any type of IT project. Researcher: How does your organisation define and measure project success? WP: A project is successful if the product is delivered within the customer’s requirements and within time and budget. The functionality of the end product is very import and the organisation would even make a loss in order to deliver the correct functionality. Researcher: How does your organisation define and measure project management success? WP: The organisation measure project management success by means of KPIs. All the resources are been measure each with their own KPIs that are specific for their function. Researcher: What project management methodology does your organisation follow? WP: Prince2 Researcher: Does your organisation concentrate on critical success factors when managing projects? WP: We do not focus directly on critical success factors. 121 Researcher: Please list and rank the top 5 CSF in your organisation from the following list? 1. Top management support 2. Skilled and experienced project manager 3. User / customer involvement 4. Clear goals and achievable deliverables 5. Comprehensive project management plan 6. Break project down in smaller milestones 7. Good architecture 8. Make sure the resources are available to the project 9. Well defined scope 10. Competent team 11. Proficient scope control 12. Accurate cost management 13. Effective risk management 14. Good quality control 15. Effective change management 16. Communicate early and often WP: Order of importance 1. Skilled and experienced project manager 2. Clear goals and achievable deliverables 3. Communicate early and often 4. Well defined scope 5. Good architecture Researcher: What training does your project managers do? WP: We do project management courses at the University of Stellenbosch. The company works according to Price 2 methodology and all project managers are required to do the Prince 2 certification. The company encourage self development. Researcher: How do you select your project managers for certain projects? WP: The project manager is selected on their skill and experienced level. The project manager is also chosen on customer preference. If no one is available with the right skill 122 level someone is chosen who is available with the nearest skill and experienced levels. A coach is also assigned to give guidance and advice. Researcher: What roles and responsibilities do PMs have, for instance do they manage scope, risks, communication, etc? WP: The project manager is responsible for managing scope, risk, communication and financials. The project manager is responsible for all the management and control functions associated to the project. Researcher: How important is a skilled and experience project manager for project management success in your organisation and why? WP: A skilled and experienced project manager is one of most important CSF. The project manager is the only person that has a view over all of the activities and he is responsible for controlling and monitoring each activity. Researcher: Do all the project stakeholders always agree on the goals of the project? WP: No, not all the stakeholders agree on all the goals of the project. It is not always viable to get all the stakeholders agreement on all the goals of the project. Researcher: Is all the project deliverables always achievable? WP: During presales all the functionality is researched before it is proposed. For all the uncertain functionality or items a proof of concept is first done, but it still happens that some of the deliverables is not always achievable. Researcher: How important is clear goals and achievable deliverables for project management success in your organisation and why? WP: Clear goals and achievable deliverables are very important for project management success. If this is not the case, the project manager will never know how to plan each activity and the project management success will not be successful. Researcher: How much detail do you include in your project management plan? WP: The amount of details included in the documentation depends on the size of the budget, the amount of resources involved from BCX and how many outside companies are 123 involved. The project management plan always includes risk management, change management, communication management and financial management. Researcher: Do you use the project management plan as a control tools? WP: The project plan does get used as a control tool. BCX have a central database that gets updated on a weekly basis and is used as a control tool for the project. All the stakeholders do have a view on this and can monitor the project status. Researcher: Do all the stakeholders sign off the project management plan before the project starts? WP: All the stakeholders do not always sign off on the project plan. I personally try and get as much stakeholders to sign off the scope of the project. Researcher: How important is the project management plan for project management success in your organisation and why? WP: The project management plan is especially important for successful project management. If all the components of a project management plan is done thoroughly it usually means that the proper planning have been done for the project. With smaller projects I use the project management plan as a planning tool. With smaller projects I do not always include all the detail in the documentation. Researcher: How much detail do you include in your scope definition? WP: In BCX the project office is involved from the beginning of the proposal and during the presales the scope for the project is already done. The scope is documented as well as all the inclusions and exclusions of the project. Without a well defined scope the projects do not have boundaries and it is difficult to close get closure. Researcher: How important is it to define scope for project management success in your organisation and why? WP: Without a well defined scope the projects do not have boundaries and it is difficult to close get closure. In my experience a project without a well defined scope often have scope creep and ends up running over time and budget. 124 Researcher: Does your organisation focus on delivering quality as defined in the scope or do you deliver more than what was agreed upon? WP: We focus on delivering exact quality as defined in the scope. Researcher: Who is responsible for controlling the quality of the deliverables? WP: The engineers on the project are responsible to ensure that the quality is adhered to, but during and after the project we also get systems engineers to ensure and verify the quality of each deliverable and end product. This is done with systems assessment testing which is documented and signed off by the systems engineer and the customer. Researcher: How important is quality control project management success in your organisation and why? WP: Quality control is important, because the project must adhere to the functional specifications as define in the project plan. Over achieving is not financially viable for the company and under achieving means that the project is not delivering according to what was agreed upon. Researcher: Do you think that a strong IT technical background contributes to a successful ICT project manager? WP: In the IT industry it is necessary for the project managers to have good technical knowledge in order to successfully manage complicate projects. Project managers with good technical knowledge are able to better understand the different components and the risk associated with each activity. With projects that a very detailed architectural plan is done, it is not always necessary to be that technical.