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Information Technology ProjectManagement, Eighth EditionNote: See the text itself for full citations.

}}}Understand the growing need for better projectmanagement, especially for information technology (IT)projectsExplain what a project is, provide examples of IT projects,list various attributes of projects, and describe the tripleconstraint of project managementDescribe project management and discuss key elements ofthe project management framework, including projectstakeholders, the project management knowledge areas,common tools and techniques, and project successInformation Technology ProjectManagement, Eighth EditionCopyright 20162

}}}Discuss the relationship between project, program, andportfolio management and the contributions eachmakes to enterprise successUnderstand the role of project managers by describingwhat they do, what skills they need, and careeropportunities for IT project managersDescribe the project management profession, includingits history, the role of professional organizations like theProject Management Institute (PMI), the importance ofcertification and ethics, and the advancement of projectmanagement softwareInformation Technology ProjectManagement, Eighth EditionCopyright 20163

}Many organizations today have a new or renewedinterest in project management}Worldwide IT spending was 3.8 trillion in 2014, a3.2 percent increase from 2013 spending}The Project Management Institute estimatesdemand for 15.7 million project management jobsfrom 2010 to 2020, with 6.2 million of those jobs inthe United StatesInformation Technology ProjectManagement, Eighth EditionCopyright 20164

}}}In 2013 (the most recent year of PMI’s salary survey), theaverage salary in U.S. dollars for someone in the projectmanagement profession was 108,000 per year in theUnited States; 134,658 in Australia, (the highest-paidcountry); and 24,201 in Egypt (the lowest-paid country)The top skills employers look for in new college graduatesare all related to project management: team-work,decision-making, problem-solving, and verbalcommunicationsOrganizations waste 109 million for every 1 billion spenton projects, according to PMI’s Pulse of the Profession reportInformation Technology ProjectManagement, Eighth EditionCopyright 20165

}IT Projects have a terrible track record, as described in theWhat Went Wrong?}A 1995 Standish Group study (CHAOS) found that only16.2% of IT projects were successful in meeting scope,time, and cost goals; over 31% of IT projects werecanceled before completionA PricewaterhouseCoopers study found that overall half ofall projects fail and only 2.5% of corporations consistentlymeet their targets for scope, time, and cost goals for alltypes of project.}Information Technology ProjectManagement, Eighth EditionCopyright 20166

}}}}}}}}}Better control of financial, physical, and humanresourcesImproved customer relationsShorter development timesLower costsHigher quality and increased reliabilityHigher profit marginsImproved productivityBetter internal coordinationHigher worker moraleInformation Technology ProjectManagement, Eighth EditionCopyright 20167

}A project is “a temporary endeavor undertakento create a unique product, service, or result”(PMBOK Guide, Fifth Edition, 2013)}Operations is work done to sustain the business}Projects end when their objectives have beenreached or the project has been terminated}Projects can be large or small and take a shortor long time to completeInformation Technology ProjectManagement, Eighth EditionCopyright 20168

}}}}A team of students creates a smartphoneapplication and sells it onlineA company develops a driverless carA government group develops a system to trackchild immunizationsA global bank acquires other financial institutionsand needs to consolidate systems and proceduresInformation Technology ProjectManagement, Eighth EditionCopyright 20169

}}}}Computing everywhereThe Internet of things3D printingAdvanced, pervasive, and invisible analyticsInformation Technology ProjectManagement, Eighth EditionCopyright 201610

}}}Gartner predicted that by 2014, there would be morethan 70 billion mobile application downloads everyyear, but it was almost doubleFacebook is by far the most downloaded app, andthe most popular category of all apps continues to begamesThe challenge is to develop useful apps and getworkers to focus on them instead of the manydistracting options availableInformation Technology ProjectManagement, Eighth EditionCopyright 201611

}A project has a unique purposeis temporaryis developed using progressive elaborationrequires resources, often from various areasshould have a primary customer or sponsor The project sponsor usually provides the direction andfunding for the project involves uncertaintyInformation Technology ProjectManagement, Eighth EditionCopyright 201612

}Project managers work with project sponsors,project team, and other people involved in aproject to meet project goals}Program: group of related projects managed in acoordinated way to obtain benefits and control notavailable from managing them individually(PMBOK Guide, Fifth Edition, 2013)}Program managers oversee programs; often actas bosses for project managersInformation Technology ProjectManagement, Eighth EditionCopyright 201613

Information Technology ProjectManagement, Eighth EditionCopyright 201614

}}Project management is “the application ofknowledge, skills, tools and techniques to projectactivities to meet project requirements” (PMBOK Guide, Fourth Edition, 2013)Project managers strive to meet the tripleconstraint (project scope, time, and cost goals)and also facilitate the entire process to meet theneeds and expectations of project stakeholdersInformation Technology ProjectManagement, Eighth EditionCopyright 201615

Information Technology ProjectManagement, Eighth EditionCopyright 201616

}}Stakeholders are the people involved in oraffected by project activitiesStakeholders include the project sponsorthe project managerthe project teamsupport staffcustomersuserssuppliersopponents to the projectInformation Technology ProjectManagement, Eighth EditionCopyright 201617

}}}Knowledge areas describe the key competenciesthat project managers must developProject managers must have knowledge and skillsin all 10 knowledge areas (project integration,scope, time, cost, quality, human resource,communications, risk, procurement, andstakeholder management)This text includes an entire chapter on eachknowledge areaInformation Technology ProjectManagement, Eighth EditionCopyright 201618

}}Project management tools and techniques assistproject managers and their teams in variousaspects of project managementSome specific ones include Project charter, scope statement, and WBS (scope) Gantt charts, network diagrams, critical path analysis,critical chain scheduling (time) Cost estimates and earned value management (cost) See Table 1-1 for many moreInformation Technology ProjectManagement, Eighth EditionCopyright 201619

}“Super tools” are those tools that have high useand high potential for improving project success,such as: Software for task scheduling (such as projectmanagement software) Scope statements Requirements analyses Lessons-learned reports}Tools already extensively used that have been found toimprove project importance include: Progress reportsKick-off meetingsGantt chartsChange requestsInformation Technology ProjectManagement, Eighth EditionCopyright 201620

What Went Right? ImprovedProject PerformanceThe Standish Group’s CHAOS studies showimprovements in IT projects in the past decade:}}}The number of successful IT projects has more thandoubled, from 16 percent in 1994 to 39 percent in 2012The number of failed projects decreased from 31percent in 1994 to 18 percent in 2012Success rates were much higher for small projectsthan large ones – 76 percent versus 10 percentInformation Technology ProjectManagement, Eighth EditionCopyright 201621

}There are several ways to define project success: The project met scope, time, and cost goals The project satisfied the customer/sponsor The results of the project met its main objective, such asmaking or saving a certain amount of money, providing agood return on investment, or simply making thesponsors happyInformation Technology ProjectManagement, Eighth EditionCopyright 201622

1. Executive support2. User involvement3. Clear business objectives4. Emotional maturity5. Optimizing scope6. Agile process7. Project management expertise8. Skilled resources9. Execution10. Tools and infrastructure*The Standish Group, “CHAOS Manifesto 2013: Think Big,Act Small” (2013).Information Technology ProjectManagement, Eighth EditionCopyright 201623

}}}Adequate fundingStaff expertiseEngagement from all stakeholdersInformation Technology ProjectManagement, Eighth EditionCopyright 201624

}Recent research findings show that companies thatexcel in project delivery capability: Use an integrated project management toolbox(use standard/advanced PM tools, lots oftemplates) Grow project leaders, emphasizing business andsoft skills Develop a streamlined project delivery process Measure project health using metrics, like customersatisfaction or return on investmentInformation Technology ProjectManagement, Eighth EditionCopyright 201625

}A program is “a group of related projects managed ina coordinated way to obtain benefits and control notavailable from managing them individually” (PMBOK Guide, Fifth Edition, 2013)}A program manager provides leadership and directionfor the project managers heading the projects withinthe program}Examples of common programs in the IT field includeinfrastructure, applications development, and usersupportInformation Technology ProjectManagement, Eighth EditionCopyright 201626

}}As part of project portfolio management,organizations group and manage projects andprograms as a portfolio of investments thatcontribute to the entire enterprise’s successPortfolio managers help their organizations makewise investment decisions by helping to select andanalyze projects from a strategic perspectiveInformation Technology ProjectManagement, Eighth EditionCopyright 201627

Information Technology ProjectManagement, Eighth EditionCopyright 201628

}}A best practice is “an optimal way recognized byindustry to achieve a stated goal or objective”*Robert Butrick suggests that organizations need tofollow basic principles of project management, includingthese two mentioned earlier in this chapter: Make sure your projects are driven by your strategy. Be able todemonstrate how each project you undertake fits your businessstrategy, and screen out unwanted projects as soon as possible Engage your stakeholders. Ignoring stakeholders often leads toproject failure. Be sure to engage stakeholders at all stages of aproject, and encourage teamwork and commitment at all times*Project Management Institute, Organizational Project Management Maturity Model(OPM3) Knowledge Foundation (2003), p. 13.Information Technology ProjectManagement, Eighth EditionCopyright 201629