chapter 2: the project management and IT context

7/29/2019 chapter 2: the project management and IT context

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Chapter 2:The Project Management and Information

Technology Context

Information Technology

Project Management,

Fifth Edition


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Information Technology Project Management, Fifth Edition, Copyright 2007

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Projects Cannot Be Run in Isolation

Projects must operate in a broad organizationalenvironment

Project managers need to use systems thinking Taking a holistic view of carrying out projects within the

context of the organization

Senior managers must make sure projectscontinue to support current business needs


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A Systems View of Project Management

A systems approach emerged in the 1950s todescribe a more analytical approach tomanagement and problem solving Management must see how projects relate to the whole

orgnaization

Three parts include: Systems philosophy: an overall model for thinking about

things as systems

Systems analysis: problem-solving approach

Systems management: address business, technological,and organizational issues before making changes tosystems


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Media Snapshot The Press Association Ltd, the largest news agency in the

United Kingdom, hired a consulting firm to help turn thingsaround after management noticed its profit margins were sliding

The organizations rapid growth rate and acquisition of several news

organizations help extend its reach throughout the country but thesedisparate groups were not sharing work processes and technologiescausing high operating costs

The consultants suggested using a holistic view and a top-downstrategy to make sure projects supported key business goals

Everything must be seen as being connected in order for

organization change to be accomplished They also suggested releasing short-term results to accrue

benefits on an incremental basis and reviewing projects on aregular basis to ensure strategic alignment


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Opening Case Analysis Tom Walters did not use a systems approach the

IT department did all of the planning

He did not address many of the organizationalissues involved in such a complex project

He did not clearly define the business,technological and organizational issuesassociated with the project

He did not involve the stakeholders which led tohis being blindsided by the problems raised atthe meeting


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Three Sphere Model forSystems Management of Laptop Project


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7/38Information Technology Project Management, Fifth Edition, Copyright 2007

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Understanding Organizations

Structural frame:

Focuses on roles andresponsibilities,coordination and control.Organization charts helpdefine this frame.

Human resources frame:

Focuses on providingharmony between needs ofthe organization and needsof people.

Political frame:Assumes organizationsare coalitions composed

of varied individuals andinterest groups. Conflictand power are keyissues.

Symbolic frame: Focuseson symbols and meaningsrelated to events. Was it

good the CEO came to thekickoff meeting? Culture isimportant, particularly ininternational projects.


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What Went Wrong? Many enterprise resource planning (ERP) projects fail due to

organizational issues, not technical issues. For example, SobeysCanadian grocery store chain abandoned its two-year, $90 million ERPsystem due to organizational problems.

As Dalhousie University Associate Professor Sunny Marche states, The

problem of building an integrated system that can accommodate differentpeople is a very serious challenge. You cant divorce technology from the

sociocultural issues.They have an equal role. People in different parts of the company had different terms for various items.

People had their daily work to do and did not want to take the required time to getthe new system to work

Sobeys ERP system shut down for five days and employees were

scrambling to stock potentially empty shelves in several stores for weeks.The system failure cost Sobeys more than $90 million and causedshareholders to take an 82-cent after-tax hit per share.*

*Hoare, Eva. Software hardships, The Herald, Halifax, Nova Scotia (2001).


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Organizational Structures Related to political and structural frames

Three basic organization structures Functional: functional managers report to the CEO

Project: program managers report to the CEO Matrix: middle ground between functional and project

structures; personnel often report to two or morebosses; structure can be weak, balanced, or strongmatrix


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Functional, Project, and MatrixOrganizational Structures


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11Organizational StructureInfluences on Projects

ProjectCharacteristics

Organizational Structure Type

Functional Matrix Project

WeakMatrix

BalancedMatrix

StrongMatrix

Project managersauthority

Little or none Limited Low toModerate

Moderateto high

High toalmost total

Percent ofperformingorganizations

personnel assignedfull-time to project

work

Virtually none 0-25% 15-60% 50-95% 85-100%

Who controls theproject budget

Functionalmanager

Functionalmanager

Mixed Projectmanager

Projectmanager

Project managersrole

Part-time Part-time Full-time Full-time Full-time

Common title for

project managersrole

ProjectCoordinator/

ProjectLeader

ProjectCoordinator/

ProjectLeader

ProjectManager/ProjectOfficer

ProjectManager/ProgramManager

ProjectManager/ProgramManager

Projectmanagementadministrative staff

Part-time Part-time Part-time Full-time Full-time

PMBOKGuide, 2000, 19, and PMBOKGuide 2004, 28.


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Organizational Structure Project managers have the most authority in a pure project

organizational structure and the least in a pure functional structure A project leader in a functional organization who requires strong

support from several different functional areas, should ask for topmanagement sponsorship

The sponsor should solicit support from all relevant functional managers to

ensure that they cooperate and that qualified people are available to workas needed

Even though PMs have the most authority in the project organizationalstructure, this is often inefficient for the company as a whole

Assigning full-time staff to the project an lead to underutilization and/or

misallocation of resources A full-time technical writer that has no work on a particular day is a wasted

resource

Using a systems approach might lead the PM to suggest hiring an independentcontractor to do the writing instead of using a full-time employee, thus savingmoney


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Organizational Culture

Just as an organizations structure affects its ability tomanage, so does an organizations culture.

Organizational culture is a set of shared assumptions,values, and behaviors that characterize the functioning ofan organization

Many experts believe the underlying causes of manycompanies problems are not the structure or staff, but the

culture

Even within one organization, one departments culture

may be different from another departments culture(technology vs. finance)

Some cultures make it easier to manage projects


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Ten Characteristics ofOrganizational Culture1

Member identity*

Group emphasis*

People focus

Unit integration*

Control

Risk tolerance*

Reward criteria*

Conflict tolerance*

Means-endsorientation

Open-systems focus*1 as per Stephen P. Robbins*Project work is most successful in an organizationalculture where these items are strong/high and otheritems are balanced

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Ten Characteristics ofOrganizational Culture

1. Member identity: The degree to which employees identify withthe organization as a whole rather than with their type of job orprofession.

A PM or team member might feel more dedicated to his or hercompany or project team than to their job or profession, or theymight not have any loyalty to a particular company or team.

An organizational culture where employees identify more with thewhole organization are more conducive to a good project culture.

2. Group emphasis: The degree to which work activities are

organized around groups or teams, rather than individuals. An organizational culture that emphasizes group work is best for

managing projects.

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3. People focus:The degree to which managements decisions take intoaccount the effect of outcomes on people within the organization. A PM might assign tasks to certain people without considering their

individual needs, or the PM might know each person very well and focuson individual needs when assigning work or making other decisions.

Good PMs often balance the needs of individuals and the organization.

4. Unit integration: The degree to which units or departments within anorganization are encouraged to coordinate with each other. Most PMs strive for strong unit integration to deliver a successful product,

service, or result.

An organizational culture with strong unit integration makes the project

managers job easier.5. Control: The degree to which rules, policies, and direct supervision are

used to oversee and control employee behavior. Experienced PMs know it is often best to balance the degree of control to

get good project results.

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6. Risk tolerance: The degree to which employees are encouraged tobe aggressive, innovative, and risk seeking. An organizational culture with a higher risk tolerance is often best for

project management since projects often involve new technologies, ideas,and processes.

7. Reward criteria: The degree to which rewards, such as promotionsand salary increases, are allocated according to employeeperformance rather than seniority, favoritism, or other non-performance factors. Project managers and their teams often perform best when rewards are

based mostly on performance.

8. Conflict Tolerance: The degree to which employees are encouragedto air conflicts and criticism openly. It is very important for all project stakeholders to have good

communications, so it is best to work in an organization where people feelcomfortable discussing conflict openly.

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9. Means-ends orientation: The degree to which managementfocuses on outcomes rather than on techniques and processesused to achieve results. An organization with a balanced approach in this area is often best

for project work.

10. Open-systems focus: The degree to which the organizationmonitors and responds to changes in the external environment. Projects are part of a larger organizational environment, so it is

best to have a strong open-systems focus.

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Stakeholder Management

Project managers must take time to identify,understand, and manage relationships with allproject stakeholders

Using the four frames of organizations can help

meet stakeholder needs and expectations Since organizations have limited resources,

projects affect top management, other functionalmanagers and other project managers by using

some of those resources

Senior executives/top management are veryimportant stakeholders


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Opening Case Analysis Tom Walters focused on just a few internal project stakeholders

He did not involve the main customers of his project - thestudents nor did he hold meetings with senior administration orfaculty

At the faculty meeting, it became evident that there were manystakeholders Tom had excluded from his original plan

Structural frame by looking at an organizational chart of the entirecollege he would have been able to see that his project would affectacademic dept heads and members of different administrative areas

Human resource frame tap his knowledge of the college andidentify individuals who would most support or oppose his project

Political frame consider the main interest group most affected by

his projects outcome Symbolic frame address what moving to a laptop environment

would really mean to the college. He could have anticipated some ofthe opposition and solicited a strong endorsement from the collegepresident or dean before talking to the faculty


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21The Importance ofTop Management Commitment

Several studies have found that one of the key factorsassociated with virtually all project success is thecommitment and support PMs receive

A senior manager, called a champion, acts as a key proponentfor the project

Makes sure adequate resources are provided money,human resources, visibility

Help PMs meet specific needs in a timely manner realizethat unexpected problems can and will arise and support isneeded to overcome them

As most IT projects cut across functional areas, assists inobtaining cooperation from people in other parts of theorganization; fight political battles

Mentors and coaches PMs on leadership issues since mostIT PMs are not experienced in management


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Best Practice IT governance addresses the authority and control for key IT

activities in organizations, including IT infrastructure, IT use, and

project management

A lack of IT governance can be dangerous, as evidenced bythree well-publicized IT project failures in Australia (SydneyWaters customer relationship management system, the Royal

Melbourne Institute of Technologys academic managementsystem, and One.Tels billing system)*

Senior management had not ensured that prudent checks andbalances were in place to enable them to monitor either progress ofthe projects or the alignment and impact of the new systems on their

business Project level planning and control were absent or inadequate

project status reports to management were unrealistic, inaccurateand misleading

*Avison, David, Gregor, Shirley and Wilson, David, Managerial IT Unconsciousness,

CACM, vol 49, No. 7, P.92


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Need for Organizational Commitmentto Information Technology (IT)

If the organization has a negative attitude towardIT, it will be difficult for an IT project to succeed

Having a Chief Information Officer (CIO) at a high

level in the organization helps IT projectsAssigning non-IT people to IT projects also

encourages more commitment

Some CEOs take a strong leadership role in

promoting the use of information technology intheir organizations


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Project Phases and the Project LifeCycle

A project life cycle is a collection of projectphases that defines: What work will be performed in each phase

What deliverables will be produced and when Who is involved in each phase

How management will control and approve workproduced in each phase

A deliverable is a product or service produced orprovided as part of a project


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More on Project Phases

In early phases of a project life cycle: Resource needs are usually lowest

The level of uncertainty (risk) is highest

Project stakeholders have the greatest opportunity to

influence the project In middle phases of a project life cycle:

The certainty of completing a project improves

More resources are needed

The final phase of a project life cycle focuses on: Ensuring that project requirements were met

The sponsor approves completion of the project


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Phases of the TraditionalProject Life Cycle

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Ph f th T diti l


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28Phases of the TraditionalProject Life Cycle

Concept phase managers briefly describe the project Develop a very high-level or summary plan for the project

describing the need for the project and basic underlying concepts

Rough cost estimate is developed and an overview of the workinvolved is created

A work breakdown structure (WBS) outlines project work bydecomposing the work activities into different levels of tasks The WBS is a deliverable-oriented document that defines the total scope of the

project

Tom Walters should have created a committee of faculty and staffto study the concept of increasing the use of technology on campus

They might have developed a management plan that included an initial,smaller project to investigate alternative ways of increasing the use oftechnology

Prepare a report that studies what are similar campuses doing,surveys students, staff and faculty and estimates the impact of using

more technology on costs and enrollments.

Ph f th T diti l


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Development phase project team creates moredetailed project management plans, a more accurate costestimate and a more thorough WBS

If the concept phase suggested that laptops were one meansof increasing the use of technology on campus, then further

study would be required in this phase to determinebuy/lease, type of hardware and software, how much tocharge students, how to handle training and maintenance,etc.

If the concept phase suggested that laptops were not theway to go, the project would have been cancelled at thatpoint thereby saving time and money

Ph f th T diti l


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Implementation project team creates a very accuratecost estimate, delivers the required work and providesperformance reports to stakeholders

Acquire the hardware and software, install necessarynetwork equipment, deliver laptops to the students, create aprocess for collecting fees, provide training, etc.

Faculty need to consider how to take advantage of the laptops,security prepare for potential problems, admissions include thisin recruiting brochures, etc.

Close-out all the work is completed, customeracceptance of the entire project Project team should document their experiences on the project

Survey students, faculty, administration on impact of technology


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Product Life Cycles

Products also have life cycles

The Systems Development Life Cycle (SDLC) is aframework for describing the phases involved indeveloping and maintaining information systems

Systems development projects can follow: Predictive life cycle: the scope of the project can be

clearly articulated and the schedule and cost can bepredicted

Project team spends a large portion of the project attempting toclarify the requirements of the entire system and then productinga design

Users are often unable to see tangible reults in terms of workingsoftware for an extended period


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Predictive Life Cycle Models Project team spends a large portion of the project attempting to

clarify the requirements of the entire system and thenproducing a design

Users are often unable to see tangible results in terms ofworking software for an extended period

Waterfall model: has well-defined, linear stages of systemsdevelopment and support

Spiral model: shows that software is developed using aniterative or spiral approach rather than a linear approach

Incremental build model: provides for progressivedevelopment of operational software

Prototyping model: used for developing prototypes to clarifyuser requirements

Rapid Application Development (RAD) model: used toproduce systems quickly without sacrificing quality


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Product Life Cycles

Adaptive Software Development (ASD)life cycle:requirements cannot be clearly expressed, projects aremission driven and component based, using time-basedcycles to meet target dates

Development proceeds by creating components that

provide the functionality specified by the business groupas these needs are discovered in a more free-formapproach

Requirements are developed using an iterative approachand development is risk driven and change tolerant toaddress and incorporate rather than mitigate risks


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Product Life Cycles Large IT projects are usually composed of several

smaller, more manageable projects, especiallywhen there is a lot of uncertainty involved Some aspect of project management need to occur

during each phase of the product life cycle Systems planning phase for a new information system can include

a project to hire an outside consulting firm to help identify andevaluate potential strategies for developing a particular businessapplication

Implementation phase might include a project to hire outside

programmers code part of the system Close-out phase might include a project to develop and run several

training sessions for users of the new application

Th I t f P j t Ph


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35The Importance of Project Phasesand Management Reviews

A project should successfully pass through each of theproject phases in order to continue on to the next

Management reviews, also called phase exits orkillpoints, should occur after each phase to evaluate the

projects progress, likely success, and continuedcompatibility with organizational goals At the end of the concept phase, the project team could have

presented information to the faculty, president and other staffmembers that described different options for increasing the use of

technology, an analysis of what competing colleges were doing andresults of a survey of local stakeholders opinions on the subject.

Unfavorable results could have resulted in stopping the project at thatpoint and not investing more time, effort and money.


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What Went Right?"The real improvement that I saw was in our ability toin the words

of Thomas Edison

know when to stop beating a deadhorse.Edison's key to success was that he failed fairly often; but as

he said, he could recognize a dead horse before it started tosmell...In information technology we ride dead horsesfailingprojectsa long time before we give up. But what we are seeing now

is that we are able to get off them; able to reduce cost overrun andtime overrun. That's where the major impact came on the successrate.*

Many organizations, like Huntington Bancshares, Inc., use anexecutive steering committee to help keep projects on track.

*Cabanis, Jeannette, "'A Major Impact': The Standish Group's Jim Johnson OnProject Management and IT Project Success," PM Network, PMI, Sep.1998, p. 7

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The Context of IT Projects

IT projects can be very diverse in terms of size,complexity, products produced, application area,and resource requirements

IT project team members often have diversebackgrounds and skill sets

IT projects use diverse technologies that changerapidly; even within one technology area, people

must be highly specialized


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Case Wrap-Up

Due to the concerns raised from many people atthe meeting, the president directed that a broad-based committee be formed to investigate thetechnology issue and report back in a month.

Not surprisingly, the committee recommended toterminate the concept

Tom Walters learned the hard way about the

need to pay more attention to the needs of theentire college before proceeding with futuretechnology plans.

Documents

chapter 2: the project management and IT context