IT PM

Information Technology Project Management Concept of Project Constraints Managing Projects IT Project Failure Stakeholders PM History & Profession Project Management Components Project Lifecycle

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IT PM Concept of Project PMBOK a project is a temporary endeavour undertaken to create a unique product or service. temporary means that every project has a definite beginning and a definite end. The presence of repetitive elements does not change the fundamental uniqueness of the overall effort. Attributes Uniqueness Temporal limit Resource dependent Uncertainty (Uniqueness combined with predicting future) Requires Sponsor (IT), Director in Construction Industry Concept of Project Another version Four common characteristics: finite budget & time frame set of complex and interrelated activities clearly defined objective(s) each is unique to some degree. Pinto, J.K., Power and politics in project management, PMI, 1996. Constraints Every project is constrained by its Scope Time Cost Scope refers to: y y What must be produced its features and functions Work must be done to deliver specified features & functions.

y y y y

Time Refers to the project duration and defined by schedule. Cost Refers to the cost of implementing the project and is limited by the budget.

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IT PM Constraints (cont.) Managing with these constraints involves trade-offs. All involved need to be aware of the interplay of constraints. Underlying Elements y Quality y Resources y Client/user satisfaction Triple Constraints Underlying Elements: Quality, Resources, Client/user satisfaction Scope, Time, Cost These are the triple goals success is meeting them . & satisfying sponsor

Raises the issue of defining success Consider issues relating to constraints Eg SI where all 3 constraints may be fixed SI may have fixed price contract with scope and timetable defined in contract. Text book example 1st project for Anne R is Information Technology Collaboration project Report with analysis of 30 projects, Budget of $50,000 Timeframe of 1 month
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IT PM

Not only must constraints be met but need to ensure quality of output and that output content meets Anne Rs expectations (customer satisfaction)

Exercise Technology Collaboration project Report with analysis of 30 projects, Budget of $50,000 Timeframe of 1 month In groups of 4 (say 2 & 2 behind) list what you think are the criteria for success for Anne Rs project justify. Remember this is a etail chain not an IT company. Potential Project Mangers? Summary Projects: Uniqueness Finite Budget Temporary Activity Defined outcome Uncertainty Sponsorship (IT projects) Scope: What must be produced features & functions What must be done to deliver features & functions Time: Project duration defined by schedule Cost: Cost of implementing limited by budget Success Queried what was meant by success Managing Projects What is Project Management? PMBOK defines project management as: the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations. Project management concerns itself with and provides: y Tools, skills and environment
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IT PM  To plan, monitor, track, and manage schedules, resources, costs, and quality y y Assurance and reduces risk A history or metrics base for  review  future planning y Project Management Who needs it? IT Project Failure Surveys of the IT industry have revealed enormous losses and high failure rates eg 16.2% of IT projects were successful Over 31% of IT projects were cancelled before completion Also, its an industry in which more than half of all projects fall short of their expectations and more than 20% exceed their budget & deadline. We can only be talking about an information technology project, right?" Helen Zampetakis from AFR in Aust. Project Manager J Gartner Group Survey of 66 largest organisations cost of SG&A/dollar labour & material NOT decreased - massive IT investment Major Oil company Budget $250M, spent $450M over 3yrs and still not running Survey at Comdex $81B in s/w projects terminated EACH Yr and so on. See reference to Standish in text And so the list goes on. Seems like the IT industry needs PM! Underlying reasons for IT project difficulties? Because IT Projects are Hard: y Tight timetables (technology redundant 18mths) y Tight budgets (high tech not cheap) y Likely to interface with other projects y Complex tasks
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Means to meet stakeholder needs

IT PM Dynamic environments

Other suggested factors include: IT projects are high technology projects and some probably bleeding edge new technology inherently risky. incur higher costs longer implementation times fail to meet technical expectations unanticipated incompatibilities h/w & s/w systems Consequences of failure Unlike a construction project, when an IT project fails the money is completely lost. Managing these issues and ensuring that quality and customer satisfaction criteria are met is the domain of project management. Some Comments on Success & Failure Overruns are common. Based on failure to meet some or all of the three constraints PM appears not to be performing. Yet do overruns reflect project failure, incompetence? Fact there are so many overruns in so many industries suggests cause may be outside traditional PM concerns May include increased government charges, interest charges, client induced changes, strikes or acts of God. the fixation on the part of project managers particularly, to satisfying timescale and budget constraints, at the expense of other criteria, is leading to the failure of IS/IT projects. Wateridge (1998) Buttricks (2000) analysis of project failure shows that a lack of a clear strategy is a root cause of failure. I would go further & say that more than 80% of all problems at the project level are caused by failures at a board level in firms to provide clear policy and priorities. Maylor(2001), p93, on Project Failure .research points to the fact there is a vast difference between perceptions of users and the perceptions of project managers on the factors that contribute to successful IT projects. Wateridge, J., International Journal of Management; 1995, p171 Summarise as: Many projects have been considered successful (for narrow reasons?) Much of success has been narrowly defined hangover from 50s & 60s.

y y

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IT PM Most of this based on PMBOK triangle approach Many authors believe need a wider definition and many think they have found the answer but never put their results in an overall view. Wider view encompasses/addresses the modern issues surrounding projects with regard to customer satisfaction, stakeholder perception, project context and effect of time. Stakeholders Who or what are Stakeholders? Individuals & organisations who are actively involved in the project or whose interests may be positively or negatively affected as a result of project execution or successful project completion. PMBOK (2.2) p15-17 Stakeholders Include: y owners, managers, operational support staff y internal users - direct computer & indirect y external users - customers, suppliers y project team Can summarise as: y Internal y External y Directly involved y Just affected by the project. A function of project management is to analyse stakeholders. WHY? Stakeholders can be crucial to the projects success Stakeholders provide service to PM provide a Reality Check Stakeholders Provide a Reality Check

y y

y y y y y y

Regular progress meetings, updates, No surprises, Enlist stakeholders where possible, Align success, outcomes Cannot afford any illusion on status Need their acceptance for closure Exercise

On 20th July, 1969 man first set foot on the moon.

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IT PM This was to be made possible by a project called the Apollo project. Its goal was to put a man on the moon and return him safely. It was to be achieved in 10yrs from 1961 Its budget was $20B. It cost $21B It was organised and run by NASA Briefly identify whom you believe would have been the stakeholders. Was the project a success? In what terms According to which stakeholders? Project Management - Summary On time, On budget, To specification MAY be Necessary for project success BUT are they Sufficient? Surveys of the IT industry have revealed enormous losses and high failure rates Project Success may be an elusive concept Function of: y Perception y Criteria y Current thinking At least in terms of definition Project Failure may also be function of too narrow definition of Project Success Many solutions proffered but little agreement in literature on solution PM History History of Project Management: y y y y y y Pre WWII chemical industry Manhattan Project - the atomic bomb 1917 Henry Gantt developed the Gantt chart 1958, the Navy developed PERT charts 1970s, PM software- the military, the construction industry 1990s, most industry uses some form of project management

The Project Management Profession

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IT PM Professional societies PMI - Project Management Institute Established in 1969 and headquartered outside Philadelphia, Pennsylvania USA, the Project Management Institute (PMI) is the worlds leading not-for-profit project management professional association, with nearly 80,000 members worldwide. (www.pmi.org) Project Management Certification To obtain PMP certification an individual must satisfy education and experience requirements, agree to and adhere to a Code of Professional Conduct, and pass the PMP Certification Examination. Currently about 30,000 PMPs. The Project Management Profession (cont) APM - Association of Project Management UK based, linked with IPMA Offers Certification - The APMP is a qualification which recognises an individuals baseline knowledge in Project Management. (www.apm.org.uk) AIPM Australian Institute of Project Management Certification Reg PM Program. Competency based certification by assessment. (www.aipm.com.au) Project Management Components Project Management as a discipline can be divided up into a number of functional areas or knowledge areas. Other components are Tools & techniques Stakeholder needs & expectations Functional or knowledge areas form basis of Guide to PMBOK (published by PMI) Systems Approach Integrate Business, Organization and Technology view Holistic and analytical approach to complex situations Projects exist in organisational context Project managers must: y Understand the organisational context of their projects y Understand the impact of their project on the organisation y Involve key stakeholders from all spheres of the organisational model. Many IT staff focus on the technology aspects of their systems Dont want to know - about political and financial environment in which they operate. Extreme outcome for IT PMs with this view is the almost certain failure of their projects

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IT PM Project Lifecycle

Scoping Defines the terms of reference Why are we doing the project and what do we want to achieve Defines critical success factors Defines deliverables and timetable Planning Works out what needs to be done Plans activities in detail, consultation process, etc Finalises project team Defines evaluation measures Managing Apply controls to make sure the project stays on track Manages the people & physical resources Implementing Deliver the outcomes Reviewing Occurs throughout the project Evaluates the effectiveness of the outcomes did we achieve the required outcomes? Evaluates the techniques and processes did we do things right?

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IT PM Project Phases

Note that projects: y are unique undertakings y involve uncertainty Dividing project into phases helps manage and control that uncertainty Phases usually end with phase review Finalises & signs off phase Sanctions start of next phase Referred to as Phase exits, stage gates, kill points Processes

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